Ukraine
North-Crimean Experimental Economic Zone "Sivash" is the first free economic zone (SEZ) in Ukraine
Today, Ukrainian companies face a problem of attracting the investment resources while other companies face that of placing and using them in the most efficient manner. In order to address such problems and to raise the investment activities, the North-Crimean Experimental Economic Zone "Sivash" was organized.
The Experimental Zone territory includes the cities of Krasnoperekopsk, Armyansk, and Krasnoperekopskiy region.
The managing authority is the state-owned company "Administratsiya NCEEZ "Sivash" which operates being guided by the laws of Ukraine and was founded pursuant to the Cabinet of Ministers Resolution.
The main point of the experiment is to establish special taxation" terms for certain companies located at the territory of the Experimental Zone.
    The objects of the experiment:
  • To operating companies in Krasnoperekopsk, Armyansk and Krasnoperekopskiy area; to preserve old and to generate new jobs; to resolve social issues.
  • To work out the new economic relationship for implementation throughout Ukraine; to determine the optimal tax rates.
  • To introduce the advanced domestic and foreign scientific and technical developmentd in production. Tax Exempts stipulated by the Law of Ukraine "On some Issues Involving Taxation and Currency Regulation the Experimental Economic Zone "Sivash" Subjects" dated February 23, 1996.
  • profit tax is reduced to 50% of the normal rate;
  • raw materials, equipment an inputs being imported by the Experimental Economic Zone "SIVASH" subjects for the needs of their production are exempt from customs duty and value added tax;
  • export of the manufactured products is subject to no quotas and licenses.
The above exempts shall only cover entities of Sivash Zone which implement their activities within the framework of investment project approved by the Cabinet of Ministers and having the registration certificate.

Specific features of the Sivash Region project:
the Sivash Area territory has no own customs border.
Control of pilot implementation is provided by the Cabinet a/Ministers of Ukraine and the Supervisory Board, "Technical Reamament and Modernization of Industrial and Agricultural Complexes of Region by Application Leasing as Capital Saving Method of Financing Development of Production" was affirmed by the Decree of the Cabinet of Ministers dated April 17., 1997, #209-p.