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Incentives

The legislation of the Republic of Belarus has a number of special conditions which should help foreign companies to optimise tax assessment and planning processes.

 

Industrial Park

Industrial Park is a special economic area which has special legal status and tax privileges. Industrial Park should attract foreign and local investors, create and develop high-quality and competitive products in the spheres of electronics, fine chemistry, biotechnology, engineering, industry and new materials.

 

Tax benefits

 

During the first 10 years since the registration date all the residents of the park are free from paying every corporation tax. During next 10 years the following tax rates are reduced by half:

  • profit tax;
  • land tax that concerns private land  parcels based  on the Park territory;
  • real estate tax that concerns buildings and constructions placed on the Park  territory.

 

Individual income tax rate for the employees of the Park residents makes up 9%. Moreover, residents of the park and their employees are free from compulsory insurance contributions from salaries and wage fund.

 

Park residents are also paid the full-scale deduction of the VAT in case they purchase commodities (works, services, rights) for projecting, constructing and equipping buildings and facilities of the park. During the first 5 years since the first annual profit report was made residents of the park are free from dividend income tax. Royalty income tax rate makes up 5% remunerating license, patent, useful model, know how, process purchase.

 

Customs preferences

 

The regime of duty free zone means the import of commodities without customs duties payment under the condition of further processing and export outside the Customs Union.  So, residents  of the Park are free from VAT and customs duties on goods that they import to the territory of Belarus to implement them in investment projects.

 

Policy concerning foreign labor issues

 

Residents of the Park are exempt from fees if the permit to engage foreign labor, special work permits, residence permits have been extended.

 

One stop service

 

On the territory of the Park the Administration carries out administrative management and provides comfortable and comprehensive service for the Park residents working on the “one stop service” principle. It means that on the territory of the Park the Administration performs administrative function, registers legal entities and provides the residents with all the possible administrative procedures.

 

Additional guarantees

 

Investors will have a guaranteed right to transfer their income outside the Republic of Belarus in case it have been earned on the territory of the country by investment activities in the Park.

 

Geographical location

 

The Industrial Park has a very good location. It is situated near the Belarusian capital Minsk (25 km). Moreover, as neighbours it has Minsk National Airport, railways, the internal highway M1 which on the north extends to Moscow (the distance of 700 km) and on the south to Berlin (the distance of 1100 km). The closest seaport is in Klaipeda in the Baltic Sea with the distance of 500 km.

 

Excellent ecology

 

Surrounded by forests administrative and residential areas of the Park will be situated on the shoreline of Petrovichskoe  reservoir. Moreover, on the territory of the Park a piece of wild life preservation with unique species of animals and plants could be found.

 

Others

 

Apart from the listed above, residents of the Park get a number of the following benefits:

  • Benefits that concern payment of state dues for different administrative procedures;
  • Possibility to design and construct buildings according to foreign states technical regulations;
  • Possibility to rent land plots during 99 years or purchase them;
  • Possibility to use ready transport and engineering infrastructure;
  • Exemption from paying taxes and fees if new ones have been established.

 

High-Tech Park

High-Tech Park (HTP) provides special tax and legal conditions that targeted at creating good opportunities for the development of software, information and communication technologies in the Republic of Belarus and enhancing national competitiveness.

 

The key difference of Belarusian HTP from other parks in Europe or Asia is that it is a virtual high-tech park, which means that the legal conditions of Belarusian High-Tech Park are valid within the whole territory of the country. It gives the possibilities to the resident companies to make good use of all the educational, scientific, professional and infrastructural potential of the country.

 

137 resident companies of Belarusian HTP are engaged in high-quality software development, customization and IT-services and provide them for the customers from more than 55 countries. The number of software that produced in the Park for export makes up 87,4% (39 % for the USA and Canada, 48 % for the European countries, 12% for Russia and CIS countries).

 

Residents of Belarusian HTP are free from:

  • profit tax and VAT on goods (works, services) produced on the territory of Belarus;
  • customs duties and VAT on technical equipment imported for carriage of investment projects;
  • compulsory sales of foreign currency;
  • land tax on plots based on the territory of the HTP during the period of construction but  no longer than three years;
  • real estate tax (except for leased real estate).

 

Free Economic Zones

 

There are 6 active Free Economic Zones in Belarus. The residents of these zones have some special benefits for good production. As of October 1, 2014, 475 organizations were registered as the residents of Free Economic Zones.

 

To register an organisation as a resident, it should fulfil several conditions. One of these conditions is to invest 1 million USD. Making an investment, an organization becomes the benefits:

  • exemption from income tax for 5 years. After 5 years pass the tax rate is reduced by half;
  • 50% VAT discount for import-substituting goods produced in Free Economic Zone;
  • exemption from real estate tax on the buildings, based on the territory of the zone;
  • exemption from payments in state agricultural fund;
  • the ability to purchase vehicles without paying taxes on them;
  • the ability to import duty-free the raw materials and equipment from abroad;
  • the guarantee that the legislation that regulates the activity of organizations will not change during the next 7 years.

 

The activity in medium and small cities and rural area

 

In Belarus 184 cities are considered to be medium and small. Commercial organizations which have been registered since June, 2, 2012 and are based in medium and small cities or in rural areas and produce goods or supply services for 7 years from the date of registration are free from:

  • income tax on their own goods;
  • state tax for getting a special permit or its update or extension;
  • other duties and taxes (including VAT, excise tax, stamp and offshore tax state taxes, patent taxes, custom duties, land tax, ecotax etc.);
  • obligatory selling of foreign currency which has been got from own goods (fulfilled work or supplied services) and property rent or money rent, which was got from non-resident natural person or legal entity.

 

Investment contract

 

Investment activity may be realized only if an investment contract with Belarus is signed. 1182 investment contracts were registered in Belarus as of October, 1, 2014. The main types of activity for the organizations, which have signed the contracts include: trade, building, hotel and restaurant business, foodstuffs production, telecommunication, chemical industry, machine and equipment production, agriculture. Signing an investment contract an investor ensures legal protection of his capital and becomes special benefits and preferences for realization of his project, which include:

  • the ability to construct investment objects and to develop, examine and approve the next phase of building simultaneously;
  • simplified way of getting land, including the ability of rent without taking an auction;
  • exemption from import duties and VAT for import of specialized equipment, which is necessary for realization of the investment project and spare parts to this equipment;
  • exemption from losses of agricultural and forestry production in case of withdrawal of land;
  • exemption from state tax for getting a special permission for foreign citizens and stateless people to realize a working career;
  • exemption from payment of taxes for local budgets.