| I Advice |
Hubs | Hubbers | Topics | Request |
| #1 in Business | Subscribe Email Print |
|
You are here: Home > News and Society > Politics > Economic Free Zones in Macedonia |
|
I Advice - Economic Free Zones in Macedonia
Google Duplicate Content Filter for SEO -- The Good en't we offering too much by way of tax incentives? Aren't the revenues lost by the state worth more than the free zone will ever generate?The much maligned Google duplicate content filter is generally the bane of most sites. There is, however, one way to use it to your advantage.Google Duplicate Content Filter for SEO – The GoodThe Google duplicate content filter is a relatively new, annoying aspect. Essentially, Google now eliminates multiple listings on sites carrying the same content. This typically occurs with distributed articles. For instance, 100 sites may pick up and publish this article. Because the content on each site is the same, Google will only include a modest number of said pages in the search results it returns.The aggravating thing about the filter is it apparently is not tuned to create an exception for the original work. If I publish this article on my site, Google may or may not include it in the index of sites, to wit, it may get filtered out. This is the particular part of the content filter that drives people crazy. Alas, there is one way to use the duplicate filter to your advantage.Assume you have a relatively new site or simply have not achieved the rankings you had hoped for in your optimization efforts. Now assume you have a timing sensitive site such as a product line devoted to Christmas sales, Valentine’s Day and so on. You can take advantage of the rankings of other sites to get your product in front of viewers.The key is to write an optimized article for the keyword you want get rankings on in the relevant search engine. For instance, assume I sell outdoor gifts, but have no rankings at the beginning of summer when my market gets cranking. I will go ahead and write an article optimized for this keyword phrase and including mention of my brand or product line. I am not suggesting a sales piece, just an informative article wi Answer: It is a very narrow point of view. Tax revenues are not the only thing we should consider. What about unemployment, technology transfers, export enhancement? These are invaluable in that they can revive the economy. Compared to other free zones in other countries, we are offering mid-way concessions. We are by no means too generous. Additionally, to qualify to receive the tax incentives, the user must satisfy certain annual export quotas. It must prove that it generated NEW activities, not merely transferred activities from "mainland" Macedonia to the free zone "island". It must show that it is not involved in criminal activities or bankruptcy procedures and so on. Only then is it eligible to enjoy the tax incentives. Question: Which are? Answer: The law says it best: "Free zone users meeting the terms as in article 21 of this law shall be exempted from:
Free zone users reinvesting in the capital assets of the free zone site shall be entitled to a reduced profit tax base for the amounts invested after the expiration of the 10-year period. Free zone users shall be exempted from paying participations (contributions), taxes and other duties pertaining to use of land for construction, connection to the water supply, sewerage, heating, gas and power supply networks. Free zone l Pre-Money vs. Post-Money Valuation Question: Dr. Vaknin – is it true that you are the father of the Law of Free Economic Zones?When a company decides that it must raise capital, a key question that must be answered is how much the company is worth. For example, if the business needs $500,000 to get started and/or grow, how much of the equity in that company should $500,000 command? Once this question is answered, the company will go out and try to find investors. When doing so, a key question often arises as to whether the valuation is “pre-money” or “post-money.”“Before the money" or “pre-money” and "after the money" or “post-money” denote simple concepts. However, these simple concepts can even confuse even the most sophisticated analysts at times. If a company is valued at $1 million on Day 1, then 25 percent of the company is worth $250,000. However, there may be an ambiguity. Suppose the company and the investor agree on two terms: (1) a $1 million valuation, and (2) a $250,000 equity investment. In this case, the company may offer the investor 250 shares for $250,000. Immediately there can be a disagreement. The investor may have thought that equity in the company was worth $1,000 per percentage point, in which case $250,000 gets 250 out of 1,000 shares or a 25% equity position. Conversely, the company may have believed that the investor was contributing to the enterprise which was already worth $1 million. Under this rationale, the $250,000 would give the investor 250 shares out of 1,250 shares or a 20% equity position.The critical issue was whether the agreed value of $1 million to be assigned to the company was prior to or after the investor's contribution of cash (pre-money) or post-money.In the above case, a pre-money valuation of $1 million and a post-money valuation of $1.25 million were equivalent. Because mixing up the terms could significantly Answer: I participated in the dedicated and professional team, from many ministries and state organs, which prepared the law. The initiative – in collaboration with the delegation of the government of the Republic of China (Taiwan) – belongs to Dr. Milijana Danevska, the Minister of Development. Most of the work was done by her advisor, Ms. Zorica Doncevska long before I arrived on the scene. I did suggest a few amendments, some of which were accepted. Question: What is a free zone? Answer: There is an important distinction which the media is not aware of between FREE ZONES and FREE ZONE SITES. To quote from the law: "A free zone site represents a detached, enclosed and marked area of the territory of the Republic of Macedonia on which commercial activities are conducted under conditions prescribed by this and other laws and on which custom and other tax incentives determined by this law shall be applicable." "A Free Zone shall be established as trade associations conducting economic, technical, administrative, expert and other activities supporting the operations in the free zone sites." Question: Do other countries have free zones? Answer: Dozens of other countries have free trade zones, free industrial zones, free industrial or technology parks, customs free zones, free transhipment zones and many other types of free economic zones. Our law allows for all these types of activities to exist. It is very broad and flexible and one of the best and most complete laws I have seen. As opposed to popular opinion, free zones exist even in rich countries such as the United Kingdom or the USA (although they are not called "free zones" there). It is true, though, that to poor and middle income countries, such as Macedonia, a free zone can be an important tool for economic development. Question: Why do you use such cautious language, "can be"? Answer: Because it is never enough to have a law. What matters is how it is implemented. There are free zones in countries as diverse as the Philippines, Tunisia, Costa Rica and Taiwan. In some places they are the engine of the economic locomotive, in other they are a drag on the local economy. Question: So, the critics are right, free zones can be a bad thing? Answer: The critics are wrong. Anything that has the potential of generating investments, encouraging entrepreneurship, creating new working places, enhancing exports and improving the balance of payments – should be implemented without delay. Free zones are potentially powerful economic engines of exports and growth and employment. Would it have been wise of us to ignore their potential? Question: Can't free zones be used as tax havens, for smuggling or other criminal activities? Answer: If the free zones are run by criminals AND (this is a cumulative condition) the authorities are inefficient or corrupt – of course it can. But our law is very strict on WHO will own and run the free zones. It is also very explicit about the precise functions and procedures to be performed by the authorities intended to ensure that the free zones are not abused. Free zones will be established only where and when they can increase employment, bring new technology and know how to the country and increase exports. An average of 65% of the goods and services produced in the zones MUST be exported or the developer might lose its licence. Additionally the law says that the businesses operating in the zone must use local manpower and prefer domestic suppliers where economically feasible. Question: What is the Free Zones Directorate? Answer: This is my favourite part of the law, the one I am most proud of. We introduced, for the first time in Macedonia, not only in theory, but in practice, the concept of "One Stop Shop". All the business entities in the free zone will have one address to go to. They will no longer have to run for weeks between ministries, authorities, agencies and state organs. They will get everything they need from one central authority, from one address. All the relevant ministries and state organs will be represented there, with full authority to render all the services required by the free zones users. This is unprecedented. The ministers are worthy of the highest praise for being willing to participate in such an innovative approach. The law says: "The Free Zone Directorate shall be responsible for… granting approvals of requests of developers for the establishment of free zones; provision of supervision and management of free zone sites through its branches; coordination of the activities of state organs and authorities and public enterprises within the free zone sites; planning and developing free zone sites and making sites available to developers; public relations, advertising and promotion of free zone sites; attracting developers and users to the free zone sites; registration of businesses and structures within the free zone sites; coordination of issuance of licenses, permits and approvals where and as needed, of product quality control and the issuance of certificates of origin by the members of the Directorate; Inspection of installations and working conditions within the free zone sites; convening a labour relations committee in which all labour disputes between employees and employers in the free zone sites are to be settled; the coordination of the issuance of export and import licenses; coordination of the prevention of smuggling; coordination of the safety and security of people and property in the free zones sites; Provision and maintenance of all public goods and utilities … conducting other activities associated with the functioning of free zone sites and especially the implementation of the "one stop shop" concept of management of the free zone sites; raising the required start-up capital." Question: So, from now on, any trade association can open a free zone? Answer: Absolutely not. The developer must satisfy very strict and rigorous criteria to qualify. The law demands that it "…provide written proof of their financial ability matching their financial obligations under this Law either in the form of a performance bond or a bank document substantiating the availability of unencumbered funds in their account or audited financial statements" and "demonstrate previous experience and track record in trading or in the operating of free zone sites". The developers, in their application, must provide an environmental impact assessment, a marketing plan and a business plan or a feasibility study. And the developer loses his approval if it enters bankruptcy procedures, if it is proven that he provided false material information in his request, If he failed to build and operate the free zone site in accordance with the stipulations of this Law or failed to submit one annual report. Additionally, the developer pays 0.3% of the total turnover of the business entities in his zones. I think these are relatively reasonable terms. It will also not be that easy for the developer to do in the zone something other than what he undertook to do. Almost every substantial change requires a new approval. The law states: "Each change of a free zone shall be subject to the procedure for the establishment of a free zone … "Change" in this law shall mean: enlargement of the approved free zone site area; change in location of the free zone site; new activities are to be conducted in the approved free zone; each change in the composition of the developers (addition of new developer, change of corporate structure, take over, merger, acquisition, etc.) of the free zone; change of the period for existence of the free zone. Question: Still, inside the zone – the developer is king. Actually, it is a kind of ex-territorial area, like an embassy? Answer: I want to say it once and for all (because I heard this argument before): A free zone is NOT an ex-territorial area. It is an integral and inseparable part of Macedonia. All the domestic laws of Macedonia apply there. It simply has different rates of customs and taxes. The over-riding status of the Macedonian domestic law is stated numerous times throughout the law. One example: Article 20 says: "Free zone developers shall enact rules or pose conditions (hereunder referred to as "developer rules") under which their free zone site will be operated and activities conducted, regulate internal order and prescribe separate measures for protection of the working and living conditions and the environment. BUT… The developer rules shall not contradict all the applicable laws of the Republic of Macedonia, including their by-laws and regulations and all the international obligations of the Republic of Macedonia…. AND The developer rules shall be announced in the Official Gazette of the Republic of Macedonia after the approval given by the Free zone Directorate." Question: Aren't we offering too much by way of tax incentives? Aren't the revenues lost by the state worth more than the free zone will ever generate? Answer: It is a very narrow point of view. Tax revenues are not the only thing we should consider. What about unemployment, technology transfers, export enhancement? These are invaluable in that they can revive the economy. Compared to other free zones in other countries, we are offering mid-way concessions. We are by no means too generous. Additionally, to qualify to receive the tax incentives, the user must satisfy certain annual export quotas. It must prove that it generated NEW activities, not merely transferred activities from "mainland" Macedonia to the free zone "island". It must show that it is not involved in criminal activities or bankruptcy procedures and so on. Only then is it eligible to enjoy the tax incentives. Question: Which are? Answer: The law says it best: "Free zone users meeting the terms as in article 21 of this law shall be exempted from:
Free zone users reinvesting in the capital assets of the free zone site shall be entitled to a reduced profit tax base for the amounts invested after the expiration of the 10-year period. Free zone users shall be exempted from paying participations (contributions), taxes and other duties pertaining to use of land for construction, connection to the water supply, sewerage, heating, gas and power supply networks. Free zone la Comprehensive Online Web Forum Guide y are a drag on the local economy.Adding a public web forum to a website is one of the best ways to easily acquire lots of targeted niche traffic. If you don't have a decent amount of traffic (150+ visits/day) or a good sized list of emails (150+) don't bother starting a forum. Nothing looks worse than an inactive forum. It is best to have around 500 leads and a $400 budget to start a forum. If you don't have the traffic, or you can't afford to buy the traffic required to start a web form, don't spend the time setting one up.What Forum Software Should I Use?It is important to choose a software that will allow your forum community to grow. I have the most experience with Invision Power Board and I recommend using it in almost all situations.If you can spare a few bucks, buy Invision Power Board(IPB) or vBulletin. They are both excellent web forum programs and in the end they will be worth the investment. Invision Power Board is more complicated to use, but it is full featured and more end user friendly. vBulletin is cheaper and easier to administer but offers less usability. Both vBulletin and IPB have excellent documentation and support.PHPbb and Simple Machine Forums are both free solutions with excellent support. They don't have all the features vBulletin and IPB have, but they are both easy to use and administer. While both of these forums are potential solutions, they tend to cause more problems than they are worth.How Do I Jump Start My Web Forum?Starting a web forum isn't at all like building a website. Web forums need a lot of traffic in a short period of time in order to get started or else they flunk. Before releasing your forum to the public make sure everything is setup to perfection. Things can be changed later, but it is best if there Question: So, the critics are right, free zones can be a bad thing? Answer: The critics are wrong. Anything that has the potential of generating investments, encouraging entrepreneurship, creating new working places, enhancing exports and improving the balance of payments – should be implemented without delay. Free zones are potentially powerful economic engines of exports and growth and employment. Would it have been wise of us to ignore their potential? Question: Can't free zones be used as tax havens, for smuggling or other criminal activities? Answer: If the free zones are run by criminals AND (this is a cumulative condition) the authorities are inefficient or corrupt – of course it can. But our law is very strict on WHO will own and run the free zones. It is also very explicit about the precise functions and procedures to be performed by the authorities intended to ensure that the free zones are not abused. Free zones will be established only where and when they can increase employment, bring new technology and know how to the country and increase exports. An average of 65% of the goods and services produced in the zones MUST be exported or the developer might lose its licence. Additionally the law says that the businesses operating in the zone must use local manpower and prefer domestic suppliers where economically feasible. Question: What is the Free Zones Directorate? Answer: This is my favourite part of the law, the one I am most proud of. We introduced, for the first time in Macedonia, not only in theory, but in practice, the concept of "One Stop Shop". All the business entities in the free zone will have one address to go to. They will no longer have to run for weeks between ministries, authorities, agencies and state organs. They will get everything they need from one central authority, from one address. All the relevant ministries and state organs will be represented there, with full authority to render all the services required by the free zones users. This is unprecedented. The ministers are worthy of the highest praise for being willing to participate in such an innovative approach. The law says: "The Free Zone Directorate shall be responsible for… granting approvals of requests of developers for the establishment of free zones; provision of supervision and management of free zone sites through its branches; coordination of the activities of state organs and authorities and public enterprises within the free zone sites; planning and developing free zone sites and making sites available to developers; public relations, advertising and promotion of free zone sites; attracting developers and users to the free zone sites; registration of businesses and structures within the free zone sites; coordination of issuance of licenses, permits and approvals where and as needed, of product quality control and the issuance of certificates of origin by the members of the Directorate; Inspection of installations and working conditions within the free zone sites; convening a labour relations committee in which all labour disputes between employees and employers in the free zone sites are to be settled; the coordination of the issuance of export and import licenses; coordination of the prevention of smuggling; coordination of the safety and security of people and property in the free zones sites; Provision and maintenance of all public goods and utilities … conducting other activities associated with the functioning of free zone sites and especially the implementation of the "one stop shop" concept of management of the free zone sites; raising the required start-up capital." Question: So, from now on, any trade association can open a free zone? Answer: Absolutely not. The developer must satisfy very strict and rigorous criteria to qualify. The law demands that it "…provide written proof of their financial ability matching their financial obligations under this Law either in the form of a performance bond or a bank document substantiating the availability of unencumbered funds in their account or audited financial statements" and "demonstrate previous experience and track record in trading or in the operating of free zone sites". The developers, in their application, must provide an environmental impact assessment, a marketing plan and a business plan or a feasibility study. And the developer loses his approval if it enters bankruptcy procedures, if it is proven that he provided false material information in his request, If he failed to build and operate the free zone site in accordance with the stipulations of this Law or failed to submit one annual report. Additionally, the developer pays 0.3% of the total turnover of the business entities in his zones. I think these are relatively reasonable terms. It will also not be that easy for the developer to do in the zone something other than what he undertook to do. Almost every substantial change requires a new approval. The law states: "Each change of a free zone shall be subject to the procedure for the establishment of a free zone … "Change" in this law shall mean: enlargement of the approved free zone site area; change in location of the free zone site; new activities are to be conducted in the approved free zone; each change in the composition of the developers (addition of new developer, change of corporate structure, take over, merger, acquisition, etc.) of the free zone; change of the period for existence of the free zone. Question: Still, inside the zone – the developer is king. Actually, it is a kind of ex-territorial area, like an embassy? Answer: I want to say it once and for all (because I heard this argument before): A free zone is NOT an ex-territorial area. It is an integral and inseparable part of Macedonia. All the domestic laws of Macedonia apply there. It simply has different rates of customs and taxes. The over-riding status of the Macedonian domestic law is stated numerous times throughout the law. One example: Article 20 says: "Free zone developers shall enact rules or pose conditions (hereunder referred to as "developer rules") under which their free zone site will be operated and activities conducted, regulate internal order and prescribe separate measures for protection of the working and living conditions and the environment. BUT… The developer rules shall not contradict all the applicable laws of the Republic of Macedonia, including their by-laws and regulations and all the international obligations of the Republic of Macedonia…. AND The developer rules shall be announced in the Official Gazette of the Republic of Macedonia after the approval given by the Free zone Directorate." Question: Aren't we offering too much by way of tax incentives? Aren't the revenues lost by the state worth more than the free zone will ever generate? Answer: It is a very narrow point of view. Tax revenues are not the only thing we should consider. What about unemployment, technology transfers, export enhancement? These are invaluable in that they can revive the economy. Compared to other free zones in other countries, we are offering mid-way concessions. We are by no means too generous. Additionally, to qualify to receive the tax incentives, the user must satisfy certain annual export quotas. It must prove that it generated NEW activities, not merely transferred activities from "mainland" Macedonia to the free zone "island". It must show that it is not involved in criminal activities or bankruptcy procedures and so on. Only then is it eligible to enjoy the tax incentives. Question: Which are? Answer: The law says it best: "Free zone users meeting the terms as in article 21 of this law shall be exempted from:
Free zone users reinvesting in the capital assets of the free zone site shall be entitled to a reduced profit tax base for the amounts invested after the expiration of the 10-year period. Free zone users shall be exempted from paying participations (contributions), taxes and other duties pertaining to use of land for construction, connection to the water supply, sewerage, heating, gas and power supply networks. Free zone l Cheap Homes ranting approvals of requests of developers for the establishment of free zones; provision of supervision and management of free zone sites through its branches; coordination of the activities of state organs and authorities and public enterprises within the free zone sites; planning and developing free zone sites and making sites available to developers; public relations, advertising and promotion of free zone sites; attracting developers and users to the free zone sites; registration of businesses and structures within the free zone sites; coordination of issuance of licenses, permits and approvals where and as needed, of product quality control and the issuance of certificates of origin by the members of the Directorate; Inspection of installations and working conditions within the free zone sites; convening a labour relations committee in which all labour disputes between employees and employers in the free zone sites are to be settled; the coordination of the issuance of export and import licenses; coordination of the prevention of smuggling; coordination of the safety and security of people and property in the free zones sites; Provision and maintenance of all public goods and utilities … conducting other activities associated with the functioning of free zone sites and especially the implementation of the "one stop shop" concept of management of the free zone sites; raising the required start-up capital."When it comes to real estate, it’s really hard to beat a cheap home. Cheap homes are very affordable, and ideal for those on a budget. For real estate agents, these types of homes represent a way to buy a home at a low price, build it up some more, then sale it for a large price. Making money with real estate is easy to do - no matter how you look at it.Although you can find cheap homes throughout the United States, some will obviously be better than others. Some are in great neighborhoods, giving you plenty to see and plenty to do all around you. On the other hand, most towns that offer the cheapest homes normally have a bad situation when it comes to the job market. They can be great to retire to or settle down in if you own a business, although they aren’t great if you need a job. Internet marketers and writers are finding these areas, are flocking to them at a very fast pace.You can also save quite a bit of money by buying a home that is less expensive, but still fits your needs. What this means, is buying a home in the inexpensive areas of your town, or buying a home that is cheap in price. You shouldn’t be focused on one type of home or neighborhood, but instead look at your available options and compare prices.Keep in mind that buying cheap homes doesn’t necessarily mean buying a run down place or buying your home in a bad part of town. You can get a cheap home in a great neighborhood, if you weight your options accordingly. If you shop around and look at different areas, you might find yourself very surprised at just how many homes are available at cheap prices.Before you purchase a home, you can save a lot of money if you know how to negotiate with the real estate agent. Although a home may have a higher pri Question: So, from now on, any trade association can open a free zone? Answer: Absolutely not. The developer must satisfy very strict and rigorous criteria to qualify. The law demands that it "…provide written proof of their financial ability matching their financial obligations under this Law either in the form of a performance bond or a bank document substantiating the availability of unencumbered funds in their account or audited financial statements" and "demonstrate previous experience and track record in trading or in the operating of free zone sites". The developers, in their application, must provide an environmental impact assessment, a marketing plan and a business plan or a feasibility study. And the developer loses his approval if it enters bankruptcy procedures, if it is proven that he provided false material information in his request, If he failed to build and operate the free zone site in accordance with the stipulations of this Law or failed to submit one annual report. Additionally, the developer pays 0.3% of the total turnover of the business entities in his zones. I think these are relatively reasonable terms. It will also not be that easy for the developer to do in the zone something other than what he undertook to do. Almost every substantial change requires a new approval. The law states: "Each change of a free zone shall be subject to the procedure for the establishment of a free zone … "Change" in this law shall mean: enlargement of the approved free zone site area; change in location of the free zone site; new activities are to be conducted in the approved free zone; each change in the composition of the developers (addition of new developer, change of corporate structure, take over, merger, acquisition, etc.) of the free zone; change of the period for existence of the free zone. Question: Still, inside the zone – the developer is king. Actually, it is a kind of ex-territorial area, like an embassy? Answer: I want to say it once and for all (because I heard this argument before): A free zone is NOT an ex-territorial area. It is an integral and inseparable part of Macedonia. All the domestic laws of Macedonia apply there. It simply has different rates of customs and taxes. The over-riding status of the Macedonian domestic law is stated numerous times throughout the law. One example: Article 20 says: "Free zone developers shall enact rules or pose conditions (hereunder referred to as "developer rules") under which their free zone site will be operated and activities conducted, regulate internal order and prescribe separate measures for protection of the working and living conditions and the environment. BUT… The developer rules shall not contradict all the applicable laws of the Republic of Macedonia, including their by-laws and regulations and all the international obligations of the Republic of Macedonia…. AND The developer rules shall be announced in the Official Gazette of the Republic of Macedonia after the approval given by the Free zone Directorate." Question: Aren't we offering too much by way of tax incentives? Aren't the revenues lost by the state worth more than the free zone will ever generate? Answer: It is a very narrow point of view. Tax revenues are not the only thing we should consider. What about unemployment, technology transfers, export enhancement? These are invaluable in that they can revive the economy. Compared to other free zones in other countries, we are offering mid-way concessions. We are by no means too generous. Additionally, to qualify to receive the tax incentives, the user must satisfy certain annual export quotas. It must prove that it generated NEW activities, not merely transferred activities from "mainland" Macedonia to the free zone "island". It must show that it is not involved in criminal activities or bankruptcy procedures and so on. Only then is it eligible to enjoy the tax incentives. Question: Which are? Answer: The law says it best: "Free zone users meeting the terms as in article 21 of this law shall be exempted from:
Free zone users reinvesting in the capital assets of the free zone site shall be entitled to a reduced profit tax base for the amounts invested after the expiration of the 10-year period. Free zone users shall be exempted from paying participations (contributions), taxes and other duties pertaining to use of land for construction, connection to the water supply, sewerage, heating, gas and power supply networks. Free zone l MLM Genealogy Lists - Are Genealogy Lists Better for Recruiting Than Warm or Cold Market Recruiting? lse material information in his request, If he failed to build and operate the free zone site in accordance with the stipulations of this Law or failed to submit one annual report.There are a many opinions about how to build your downline. I am going to tell you the differences, pros, and cons about recruiting from Genealogy Lists, your Warm Market, and your Cold Market. I have personally used all three methods to recruit. Lets start with Warm Market recruiting because it is probably the oldest and original way to recruit.Warm market recruiting is the usual method a company will tell you to recruit. This entails creating a list of 100 or more friends, family, and acquaintences. Then, you "expose" them using a DVD or "sizzle call." And lastly you invite them to a home meeting presentation. This method is a lot more efficient than calling MLM leads because you might recruit 2-5 of your 100 people, rather than 1 out of 100. Also, you might be able to make money with friends that you know and like. For people that have great rapport with friends and family, there may be no fear of rejection in talking to them.The downside to this method is that you might know a lot of people that are negative, will discourage you, and that aren't reliable. This heavy rejection and negativity, or even the fear of it, kills a lot of new people. Also, if you don't know how to work through the warm market of your own warm market or get referalls, you will quickly run out of prospects. I find that this method can cost a lot more money as well. That is if you are buying all the dvd's, flip charts, 800 numbers, and other things to expose prospects. Also, if you are meeting with them one on one, it takes a lot of time. Expect a lot of prospects to give you excuses and beat around the bush about how they just were so busy and couldn't get to your call.Another method is Cold Market recruiting or the "3 foot rule." By this, I mean goi Additionally, the developer pays 0.3% of the total turnover of the business entities in his zones. I think these are relatively reasonable terms. It will also not be that easy for the developer to do in the zone something other than what he undertook to do. Almost every substantial change requires a new approval. The law states: "Each change of a free zone shall be subject to the procedure for the establishment of a free zone … "Change" in this law shall mean: enlargement of the approved free zone site area; change in location of the free zone site; new activities are to be conducted in the approved free zone; each change in the composition of the developers (addition of new developer, change of corporate structure, take over, merger, acquisition, etc.) of the free zone; change of the period for existence of the free zone. Question: Still, inside the zone – the developer is king. Actually, it is a kind of ex-territorial area, like an embassy? Answer: I want to say it once and for all (because I heard this argument before): A free zone is NOT an ex-territorial area. It is an integral and inseparable part of Macedonia. All the domestic laws of Macedonia apply there. It simply has different rates of customs and taxes. The over-riding status of the Macedonian domestic law is stated numerous times throughout the law. One example: Article 20 says: "Free zone developers shall enact rules or pose conditions (hereunder referred to as "developer rules") under which their free zone site will be operated and activities conducted, regulate internal order and prescribe separate measures for protection of the working and living conditions and the environment. BUT… The developer rules shall not contradict all the applicable laws of the Republic of Macedonia, including their by-laws and regulations and all the international obligations of the Republic of Macedonia…. AND The developer rules shall be announced in the Official Gazette of the Republic of Macedonia after the approval given by the Free zone Directorate." Question: Aren't we offering too much by way of tax incentives? Aren't the revenues lost by the state worth more than the free zone will ever generate? Answer: It is a very narrow point of view. Tax revenues are not the only thing we should consider. What about unemployment, technology transfers, export enhancement? These are invaluable in that they can revive the economy. Compared to other free zones in other countries, we are offering mid-way concessions. We are by no means too generous. Additionally, to qualify to receive the tax incentives, the user must satisfy certain annual export quotas. It must prove that it generated NEW activities, not merely transferred activities from "mainland" Macedonia to the free zone "island". It must show that it is not involved in criminal activities or bankruptcy procedures and so on. Only then is it eligible to enjoy the tax incentives. Question: Which are? Answer: The law says it best: "Free zone users meeting the terms as in article 21 of this law shall be exempted from:
Free zone users reinvesting in the capital assets of the free zone site shall be entitled to a reduced profit tax base for the amounts invested after the expiration of the 10-year period. Free zone users shall be exempted from paying participations (contributions), taxes and other duties pertaining to use of land for construction, connection to the water supply, sewerage, heating, gas and power supply networks. Free zone l Sun Zi Art of War-Five Essential Characteristics of Manager en't we offering too much by way of tax incentives? Aren't the revenues lost by the state worth more than the free zone will ever generate?Generals must be assessed according to the following characteristics: wisdom, trustworthiness, benevolence, courage and disciplined. – Chapter 1, Sun Zi Art of War. From the above you can see that the five characteristics that is required of a general by Sun Zi are wisdom, trustworthiness, benevolence, courage and discipline. Let’s have a look at how to apply this knowledge into business.Business ApplicationWisdomSo what does wisdom means to management? It means that the manager is able to make wise decision quick and correctly most of the time. He would able to learn from mistakes if he made a wrong decision. He is able to strategise and take advantage of rising opportunity and avoid unnecessary dangers.TrustworthinessTrustworthiness means that what the manager promises must be carried out, in the process creating trust with his team members. We all know that once a general has the trust of his army, he is able to unite his army against their enemies. This applies to managers as well. If a manager could not reward as promised, it is likely that his team member would not put in their best since they have no idea whether they would be rewarded or not. Same thing for punishment, if certain rules are set out but team members who flout it are not punished, it would create chaos in the company’s organization and structure.BenevolenceBenevolence is understanding, accommodating and love for his team members. On how to take care of his army, Sun Zi mention it in Chapter 10. But one must note that too much benevolence could spoil the army, making them too comfortable, thus sapping their fighting spirit. That is why Sun Zi also advocated measuring the generals’ discipli Answer: It is a very narrow point of view. Tax revenues are not the only thing we should consider. What about unemployment, technology transfers, export enhancement? These are invaluable in that they can revive the economy. Compared to other free zones in other countries, we are offering mid-way concessions. We are by no means too generous. Additionally, to qualify to receive the tax incentives, the user must satisfy certain annual export quotas. It must prove that it generated NEW activities, not merely transferred activities from "mainland" Macedonia to the free zone "island". It must show that it is not involved in criminal activities or bankruptcy procedures and so on. Only then is it eligible to enjoy the tax incentives. Question: Which are? Answer: The law says it best: "Free zone users meeting the terms as in article 21 of this law shall be exempted from:
Free zone users reinvesting in the capital assets of the free zone site shall be entitled to a reduced profit tax base for the amounts invested after the expiration of the 10-year period. Free zone users shall be exempted from paying participations (contributions), taxes and other duties pertaining to use of land for construction, connection to the water supply, sewerage, heating, gas and power supply networks. Free zone land may be leased to foreign investors for a period of fifty (50) years, with a possibility to extend the term to another twenty-five (25) years, pursuant to the law. The developers of the free zone shall have the full right to sublet or rent parts of the free zones or structures thereon or rights thereof to the users." Question: Are the economic activities within the free zone restricted? Answer: Every type of economic activity is allowed EXCEPT the activities explicitly forbidden by the law. These include: the trading of decayed, rotten, expired or infected goods or waste material detrimental to the environment or not fit for human or animal consumption; radioactive materials except those which are needed for industrial, medical and scientific research purposes under a valid license from the competent authorities; drugs, chemicals and biological materials and chemical and biochemical derivatives with the exception of those used in industrial, manufacturing, medicinal and pharmaceutical preparations, according to certificates issued by the Ministry of Health; arms, munitions, weapons and military explosives; goods or services which originate from countries or firms subject to boycotts, embargoes or blockades imposed by the competent national and international organs and authorities; goods or services that violate public morals, public defence, public safety and the security of the state; goods or services that violate the domestic laws and international treaties pertaining to intellectual and commercial property; practices, services and activities in contravention or violation of treaties, laws, regulations and directives regarding the protection of the environment in Macedonia. Free zone users may apply standards, technical and quality norms of the destination country when manufacturing goods in the free zone intended for export. Free zone users may set prices for their goods and services and will not be subject to laws and regulations pertaining to prices in the Republic of Macedonia. Question: Will workers' rights be protected in such an environment? Answer: Workers' rights are protected only by a good economy. In Macedonia, we have a lot of theoretical workers' rights. But the right to work is violated by mass unemployment and by gigantic wage and pension arrears. All the employers in the free zone shall sign a collective agreement with their employees. The collective agreement will oblige the employers and the employees to settle labour dispute through arbitration or mediation. The Directorate shall set up a labour relations committee to provide the employers and the employees with an arbitration and mediation mechanism. Question: Thank you very much. Let's hope that free zones will fulfil all the expectations … Answer: I will settle for half the expectations … Thank you.
HTTP = HTML link (for blogs, profiles,phorums):
Related Articles:Do You Compromise Quality with Outsourcing? Imagery & Affirmations - Activating Your Success Mechanism How You Can Get Started in Creative Real Estate Investing - Even If You're Broke
|