Head of the Office for Local Economy Development Dalibor Đogović about business zones in Bijelo Polje

English

Details: 19 January 2023

So far, six such zones have been formed, which include a limited construction space with conditions for development of a certain economic activity, the head of the Office for Local Economic Development of the Municipality of Bijelo Bijelo Polje, Dalibor Đogović, said to Radio Montenegro.

Four and a half years ago, the municipality of Bijelo Polje passed the Decision on the establishment of business zones in order to attract investors and provide conditions for starting businesses. "In six business zones: "Nedakusi", "Cerovo", "Vraneška dolina", "Bistrička dolina", "Rakonje-Ravna Rijeka" and business zone "Ribarevine-Poda", potential users have more favorable working conditions, primarily because resolved infrastructure (transport, communal, energy and communication infrastructure) and due to a set of tax incentives from the local and state level. It is a planned or organized piece of land that is divided by transport networks, with or without built-up buildings and plots suitable for economic/industrial activities ", announced Đogović, noting that the Business Zone "Cerovo" is currently engaged, given that the decision of the Government is to build a Regional creative hub at that location, for which a preliminary design has been prepared.

According to him, there is interest in Bijelo Polje business zones. First of all, every foreign or domestic investor tries to find out what benefits he can achieve by starting a business in one of the business zones. Among the details that interest them are the locations where they will have the least costs and where they will be able to get permission to build buildings.

"Within the business zone, the Municipality of Bijelo Polje offers financial incentives: Exemption from payment of fee for communal equipment of construction land, exemption from payment fee for use of municipal roads, exemption from payment of surtax on personal income tax and exemption from payment real estate tax above 0.1 % of the market value of real estate," says Đogović.

Investors operating in the business zone have the right to use a number of benefits, i.e. exemption from paying taxes to the municipality/state for a certain number of years, which significantly facilitates business in the beginning.

"The next benefit is that each business zone has a detailed purpose, i.e. a description of what types of buildings can be built in accordance with the Detailed Urban Plan, i.e. the Spatial Plan of the municipality of Bijelo Polje. You usually do not have a building permit for a various types of facilities on land that is outside the scope of the business zone, all depending on the location where the plot is located. Within the business zone, the investor can ask the Municipality or the state for help with further communal equipment of the location, and also some form of public-private partnership. Given the strategic goal of the Government of Montenegro, i.e. Municipality of Bijelo Polje that it is necessary to stimulate more foreign investors to invest in Montenegro, this type of support is highly desirable," our interlocutor points out.

Đogović notes that if the investor wants to operate within the business zone, he is obliged to employ a minimum of five workers from the records of the Employment Office of Montenegro - PJ Bijelo Polje, in accordance with the Agreement that defines mutual rights and obligations and which the investor signs with the Municipality of Bijelo Polje.

In order for the potential investor to take advantage of the benefits of the business zone, he should contact the Secretariat for Entrepreneurship and Economic Development, where he will receive all the necessary forms and information on all the details of using the business zone.

"A completed application form with accompanying documentation in printed form is submitted to the address of the Secretariat for Entrepreneurship and Economic Development - business zone sector (Ul. Nedjeljka Merdovića bb, 84000 Bijelo Polje). Also, the aforementioned application form as well as information about business zones can be downloaded from the special website of the Municipality of Bijelo Polje: (http://invest.bijelopolje.co.me/index.php/mn/) as well as within the premises of the Office for Local Economic Development of the Municipality of Bijelo Polje (Ul. Slobode bb, 84000 Bijelo Polje, office no. 24," Đogović points out.

In order to avoid ambiguity and misinterpretation, the actions that the investor needs to undertake in order to realize the benefits of business zones are harmonized with the Law on the Control of State Aid and clearly prescribe the conditions that must be met in order for the investor to be exempt from paying tax duties. The steps for applying are simplified, and the plan is to improve the process itself from application to signing the contract on the use of business zones, and where it is legally possible to speed up the process, explains the head of the Office for Local Economic Development.

According to him, the list of benefits realized by business zone users is not negligible.

"Most significant benefits are: Exemption/suspension from the payment of the fee for communal equipment of construction land, exemption/suspension from the payment of the fee for the use of municipal roads, exemption/suspension from the payment of the surcharge on the income tax of natural persons, exemption/suspension from the payment of real estate tax above 0.1% of the market value of real estate, exemption/suspension of payment of contributions for mandatory social insurance on wages (contribution for pension and disability insurance, contribution for unemployment insurance) and contribution to the Labor Fund, and exemption/suspension of payment of personal income tax", Đogović states.

In the past period, the municipality of Bijelo Polje had several requests for the registration and use of business zones, some of which are currently in the procedure. Users who have already used the benefits of business zones and signed contracts with the Municipality of Bijelo Polje fulfilled their contractual obligations towards the Municipality and achieved significant tax exemptions.

"We believe that additional marketing promotion is necessary for the available business zones in Bijelo Polje, what we do in every suitable situation, and our goal is to have more users of business zones. We also expect that more meetings will be organized at the state level to discuss about the effects created by business zones, and perhaps possible amendments to the Decree on Business Zones in order to further encourage investors. What needs to be worked on in the coming period is further communal equipment of business zones," Đogović points out.

Source: RTCG portal

https://www.rtcg.me/vijesti/ekonomija/396175/sest-biznis-zona-privlace-investitore-u-bijelo-polje.html

STRATEGIC DEVELOPMENT

APPLICATION FORM FOR BUSINESS ZONES

CONTACT:

OFFICE FOR LOCAL ECONOMY DEVELOPMENT

TelL: +382 69 840 551

E-mail: kler@bijelopolje.co.me

REAL ESTATES

ACCOMODATION:

e-CADASRE

e-LICENSE

USFULL LINKS:

Municipality of Bijelo Polje

Municipal Assembly of Bijelo Polje

Secretariat for the regulation of the area of Bijelo Polje Municipality

Government of Montenegro

Investment Development Fund

Tourist organization Bijelo Polje

Tourism organisation of Montenegro

Chamber of economy of Montenegro

UNDP

Union of municipatilies

Secretariat for Development Projects

Montenegrin employers federation

Employment Office of Montenegro

Portal Prekoveze

Portal zaposli.me

Association of montenegrin managers

Association of business women of Montenegro

Association of Entrepreneurs of Montenegro

BIJELO POLJE WEATHER

R E L I E F S:

Municipal Decision on tax reliefs

Article 4

Companies and entrepreneurs referred to in Article 3 shall be introduced and identified the following financial incentives:

exemption from payment of communal fee for construction land,
exemption from payment of the fee for the use of municipal roads,
exemption from payment of surtax on personal income tax,
exemption from paying tax on real estate above 0.1% of the market value of the real estate.

Article 5

The tax exemption from Article 4 item 1 investor (company and entrepreneur) is realized in the amount up to 7,000.00 euros per one newly employed worker, or newly opened workplace, and can be used only if by investing, it increases the number of employees for 5 or more employees.

The incentives referred to in Article 4 item 2, 3 and 4 of this Decision shall also apply to existing companies and entrepreneurs in the area of the Bijelo Polje municipality for the extension of the economic activity referred to in Article 3 of this Decision, and can only be used if the expansion increases the number of employees for 5 or more workers and is valid for a period of 3 (three) years.

Note: The new Regulation on Business Zones was adopted on December 13, 2016 and was published in the Official Journal of Montenegro, No. 77/2016.

The municipality is obliged to until 21.06.2018, in accordance with the Government Regulation, adopt a new Business Zone Decision.

We are also referring to the Decision on the fee for communal equipment for construction land that was published on 29.12.2015. in the "Official Journal of Montenegro - Municipal Regulations" No. 48/15.

Tax reliefs – New Government Regulation on business zones

Article 15

For employed people working in a business zones, the business zone user does not pay:

1) Contributions for compulsory social insurance for salaries (contributions for pension and disability insurance, contribution for health insurance, unemployment insurance contribution) and contributions for the Labor Fund;

2) Personal income tax;

The amount of the relief referred to in paragraph 1 of this Article can not exceed the maximum allowable aid intensity of 60% for medium and 70% for small companies, in accordance with the regulations governing state aid.

The user of the business zone may use the incentives referred to in paragraph 1 of this Article, for a maximum period of five years from the date of employment of persons in the business zone.

For the employee referred to in paragraph 1, item 1 of this Article, the user of the business zone calculates, suspends and pays the employee from the earnings of the employee: the contribution for the pension and invasive insurance at the rate of 15,0% contribution to health insurance at a rate of 8.5% and contribution to insurance against unemployment at a rate of 0.5% upon payment of earnings.

The basis for calculating the contribution referred to in paragraph 1 of this Article shall be gross employee earnings.

The user of the business zone pays the calculated surtax of income tax.

In addition to the relief referred to in paragraph 1 of this Article, the beneficiary of the business zone shall also exercise the right to other incentives in accordance with the law and special regulations governing state aid, although they must not exceed the maximum allowable amount of incentive in accordance with paragraph 2 of this Article.

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