Allowed vocation precincts

Free trade zones are also known as special permanent free trade zone. Free trade zone essentially means that organizations operating within the set territory are benefitted with certain amount of tax benefit. There are certain essential criteria and requisitions that make organizations need to abide in order to undertake commercial activities. Tax exemptions help organizations in gaining a competitive edge over their rival firms in the market. They gain a competitive edge in terms of cost of manufacturing; cost of raw materials etc. when their cost of manufacturing is low they will price their commodities at a comparatively low price. Making a quality product available at a comparative low price will attract a lot of customers which would end up in an increase in the sales volume and profit enhancement.

There are numerous benefits available for the companies operating in free trade zone. Benefits like customs exemption, exemption from custom duty on capital goods, mass storage facility, and incomplete payment of import duty, free commodity registration, entering the national territories by paying VAT and other required service tax, easier customs process, reduced cost of raw materials etc. these are some of the few benefits from the endless list, enjoyed by the organizations operating in free trade zone. There is also a considerable amount of tax relaxation to the organizations operating in free trade zone. Like for example, organizations involved in science and technology have a facility of reducing tax margin by 175% in their research and development.

Operating in free trade zone has always been a boon for the organizations. This is because it facilitates them in reducing majority of additional expenses which automatically leads to an increase in the cost of final goods and services. They can invest 100% in environmental control and varied measures of improvement. This provides them with a tax deduction of 20%. Here organizations are not bound to pay custom duty on the import of their goods. These benefits help organizations in gaining a competitive edge and witness an increase in the profit margin. Organizations operating in Free Trade Zones Bogota can easily sell their commodities at 100% margin. Apparently they are bound to pay only a specified amount of money to their third party. VAT exemptions further reduces the manufacturing and production cost. A considerable decrease in these will lead towards generating of a quality product. Therefore, organizations always strive hard to operate in free trade zone.