Benefits for the Investors

Based on Article 20 Paragraph 1 Count 9) of the Local Government (”Official Gazette of the Republic of Serbia”number 129/2007) and Article 2 Paragraph 1 Item 11) of the Statute of the Municipality of Ub (”Official Gazette of the Municipality of Ub”number 12/2008),  Ub Municipal Assembly, on the meeting of 25 November 2008. year, brought

Act on the benefits to investors of direct investment in the municipality of Ub

This decision establishes the benefits which municipality of Ub gives to investors for direct investment in the municipality of Ub in form :
1) deduction or exemptions to their obligations determined by the decisions of the Municipal Assembly Ub:
(1) property tax;

(2) the local utility fees;

(3) fees for the use of construction land;

(4) fees for land development;

(5) fee for the protection and improvement of the environment;

(6) municipal administrative fees;

(7) lease of construction land.

2) cofinancing, at the expense of a special budget fund, part of:
(1) compensation for land use change,

(2) urban development plans.

Foreign direct investments in the Municipality of Ub, by this decision are defined as basic and special. The main forms of direct investments :
1)  Incorporation (includes building productive capacities by investors -”Green Field”;
2) The acquisition of majority shares owned by existing companies (buying companies through privatization, buying shares or buying direct ownership stakes – acquisitions);

Special forms of direct investments :
1) concessions (purchase a certain time limit rights to use natural resources or goods in general use to carry out activities of general interest;
2) B.O.T. (Build-Operate-Transfer) transactions (investor approval to build using the facility, installation or plant, as well as infrastructure facilities and communications, with the obligation to transfer ownership to the state after the expiry of the contract).
The demand of investors for the adoption of the act that his investments, investments in paragraph 1 this Article, determine the conclusion of Municipal Council.

Investor has the right to benefits established by this decision from the date of signing the contract with the municipality of Ub on the arrangement of mutual obligations for the subject investment, and the deadline established by the contract in accordance with the provisions of this decision.

The Municipal Council is authorized to contract in Article 3 this decision comply with the client and establish a contract in the name of the municipality of Ub signed by the mayor of the conclusion of the previous Municipal Council.
The contract from paragraph 1 this Article, in addition to other necessary provisions, must contain provisions that determine the security of payment instruments to provide benefits in the event that the investor does not fulfill its contract obligations.

The basis for the calculation of exemptions or deductions payment obligations determined on the value of the obligations which it has based on the valid decision of the Municipal Assembly of Ub on the day of signing the contract in Article 3 this decision.

Benefits, Article 1 item 1) of paragraph (1) to (6), which gives municipalities Ub investor depending on the number of newly employed workers are determined by the%, as follows:

Number New-employed workers Years of liberation – deduction Amount of liberation in %
5 – 10

2

20

11 – 20

3

40

21 – 40

4

60

41 – 80

5

80

81

6

100

In determining whether a newly employed worker under the provisions of this decision, apply the definition used by National Employment Service. Newly registered workers must reside in the municipal territory for the duration of benefits in paragraph 1 this article.

Elevation benefits (reduction) of Article 1 item 1) of paragraph (7) determines the amount of 20% of the fees for the lease of building land which should be paid to the investor.

Municipal Council is authorized for financing benefits from Article 1 Item 2) the to establish the Budget Fund – evidens account in the Treasury Ledger.

Budget Fund is established for the time of the validity of this decision.
The municipality, or its organizational unit in charge of budget funds will manage the fund.

Budget Fund shall be financed from:
1) The appropriation provided in the budget for the current year;

2) budget earmarked receipts, which are defined as special-purpose budgetary fund income;

3) other sources provided by the law.
Obligations of the Budget Fund will be paid from the account of the Fund.

Elevation Benefit (amount of cofinancing) of Article 1 Item 2) determine the amount of 20% of the calculated fee for change of land use and the final cost of making the urban plan.
The investor will earn the right to assets in paragraph 1 this Article when 9th authority specified in Article the decision to submit documents proving that in general settled their obligations to bearer decision on the change of land use and / or interpreters urban act.

The provisions of this decision regarding the benefits of Article 1 item 2) will apply from 1 January 2009. year.

This decision shall enter into force eight days after publication in the municipal Official Gazette.

Municipality of Ub
President of the Assembly

Number: 40-277/2008-01

Damnjanović Alexander

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