Belarus Reduces Tax Rates On Investors

by Ulrika Lomas, Tax-News.com, Brussels

11 August 2009

On August 6, Belarusian President Alexander Lukashenko issued Ordinance No. 10 "On Creating Additional Conditions for Investment Activities in the Republic of Belarus". The ordinance sets out rules to make it easier to start investment projects in the Republic of Belarus, offers exemptions from paying tax on establishing operations in Belarus, and identifies investors’ responsibilities in this respect.

According to the document, contracts with investors should contain all the necessary information on investment projects, including the object of investment, the place of investment, the amount of funding made available for it, the project deadline, and the penalties for failure to comply with contract terms. Providing the aforesaid conditions are fulfilled, and the nature of the industry and the investment project are approved, investors will now be able to benefit from tax exemptions, and other incentives. The Belarusian government is particularly eager to encourage investment in tourism and in infrastructure, in an effort to revive the housing market.

Under the ordinance, investors can gain exemptions from import custom duties and value-added tax on the equipment and component parts necessary for the investment project, although the value-added tax exemption cannot be claimed on goods imported from Russia.

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