Investment Environment of the Republic of Belarus © Ministry of Economy of the Republic of Belarus...

Investment EnvironmentInvestment Environmentof the Republic of Belarusof the Republic of Belarus

© Ministry of Economy of the Republic of Belarus 2008

A. Tur N.A. Tur N.

The Deputy Minister of The Deputy Minister of Economy of theEconomy of the

Republic of Belarus Republic of Belarus

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Selected Economic IndicatorsSelected Economic Indicators

Industrial Industrial productionproductionGDPGDP

AgriculturalAgricultural productionproduction

Capital Capital investmentsinvestments

ExportExport((february, 2008february, 2008))

22


8,2 8,5

4,1

15,1

23,320072007, , %%

9 10,5 913,6

8 6,8

1720

17

72,3

Forecast,yearIn fact

January January – – march,march, 2008, % 2008, %

Investments in the Capital Assets Investments in the Capital Assets

106

120,8 120,2 120

132,2

115,1

2002 2003 2004 2005 2006 2007

years

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Structure of Foreign IStructure of Foreign Investments in Belarus,nvestments in Belarus,2002-2007, mln. USA2002-2007, mln. USA

1314749451

860675299

2002 2003 2004 2005 2006 2007

foreign direct investment

7221306

15171816

4036

5422

44


The main countries-investors in Belarus, 2007 (%)The main countries-investors in Belarus, 2007 (%)

Latvia 2,7% USA1,2%

Cyprus 7,0%

Germany 5,7%

Austria 11,0%

Switzerland 11,2%

Netherland 2,3%

Russia 33,5%

Great Britain 15,9%

Others11,7%

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2002 2003 2004 2005 2006 2007 2008

Total

JV

FE

Organizations with foreign capitalOrganizations with foreign capital,,20020022 – 2008 – 2008 at the beginning of the year at the beginning of the year

2082

1140

942

2667

13961271

3818

1642

1903

3545

13821575

2957

1727

2091

© Ministry of economy of the Republic of Belarus 2008

3457

1841

1616

66

4218

2321

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The reasons to invest in BelarusThe reasons to invest in Belarus

• Political and economic stabilityPolitical and economic stability• High dynamics of economic growthHigh dynamics of economic growth• Favorable economic and geopolitical locationFavorable economic and geopolitical location• Access to the market of the Russian Federation and the EUAccess to the market of the Russian Federation and the EU• Highly qualified labour, scientific and technical potentialHighly qualified labour, scientific and technical potential• Export oriented economy (export more than 60% of GDP)Export oriented economy (export more than 60% of GDP)• Credit raiting of the Republic of Belarus: “B+” (Moody’s Investors Credit raiting of the Republic of Belarus: “B+” (Moody’s Investors

Service, Standart&Poors)Service, Standart&Poors)• Low crime and corruption levelLow crime and corruption level• Free Economic Zones and High Technologies ParkFree Economic Zones and High Technologies Park• National Investment Agency (“One Stop Shop”)National Investment Agency (“One Stop Shop”)• Dialog between Government and Investors through Foreign Dialog between Government and Investors through Foreign

Investment Advisory CouncilInvestment Advisory Council

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Free economic zones (FEZ)Free economic zones (FEZ)

MinskMinsk

GrodnoinvestGrodnoinvest

BrestBrest

VitebskVitebsk

MogilevMogilev

Gomel-RatonGomel-Raton

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Advantages for residents of Free Economic Zones (FEZ) Advantages for residents of Free Economic Zones (FEZ)

•Exemption from profit taxprofit tax on products of own manufacturefor the period of 5 years

•Exemption from customs dutiescustoms duties for import for import and export goods (own manufactured)

From 1From 1st st of April 2008 of April 2008: :

- ground-rent is payed on preferential terms during realization of the investment projects

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- guarantees for taxes are unchangeable for 7 years for residents of FEZ


High Technologies Park activitiesHigh Technologies Park activitiesAActivitiesctivities::

•Analysis, design and software development of information systems and technologies

•Software-based data processing

•Fundamental and applied research and development (R&D), experimental R&D in the field of natural and technical sciences (scientific, research, experimental and engineering works).

Residents of High TechResidents of High Technologiesnologies Park are Park are exempted exempted from:from:

• Profit Tax . Real Estate Tax • Value Added Tax (VAT)• Customs Duties & VAT imposed by custom bodies• Individual income tax has a fixed rate - 9% • Offshore fee

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Preferences for enterprises setting up in Preferences for enterprises setting up in the the territoriesterritories with number of people up to 50 000 with number of people up to 50 000

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• profit is exempted from the tax for 5 years

• free prices are set and appllied by organizations

•conditions of carrying out commercial activity are unchangeable for 5 yearsFor foreign enterprises:

• technological equipment for formation Capital charter of organizations is exempted from Customs Duties and Value Added Tax (VAT)


Preferences and privileges for small Preferences and privileges for small and middle enterprisesand middle enterprises

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•Unified tax on gross revenues from the sale of goods (works, services) for organizations under 100 people in number is twice reduced

• Local authorities have the right to provide preferences for all business entities regardless the form of ownership, including bank loan guarantees at the expense of Local Budgets, preferences on the tax on immovable property, on land tax, ecological tax on the volume of used mineral resources

•Organizations under 15 employees in average number are exempted from accounting.


Preferences to corporate entities – residents of the Republic of Belarus that implement investment projects at the expense of

external government loans (credits)

Corporate entities –residents of the Republic of Belarus that implement investment projects at the expense of external government loans (credits) in accordance with the list, approved by the Government of the Republic of Belarus:

• have the right not to hold competitions (other forms of the procedures of purchases);•are freed from the customs duties and the value added tax at importation into the customs territory of the Republic of Belarus of technological equipment and spare parts to it (with exception of those imported from the Russian Federation), intended for implementation of the indicated investment projects;•have the right to the compensation of cash resources in the size of 50 percent of the sum of interest payments on external government loans (credits);•are freed from pay for the state guarantee of the Republic of Belarus, and also from the need of submission of guarantee of the guarantor bank on external government loans (credits) in favor of the Republic of Belarus.


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Measures takenMeasures taken toto improveimprove business business environmentenvironment in Belarusin Belarus

• The declaration principle of state registration and liquidation of companies has been fixed;

• The granting procedure of special permissions (licences) to exercise of definite kinds of activity has been simplified;

• The authority of local executive committees in their decision to withdraw and to parcel lands has been extended;

• The auction sale of unused and ineffectively used state ownership objects by fixing of initial price equal to a basic value has been provided;

• The customs procedure for companies, which are given the status of bona fide participant of foreign economic activity, have been simplified.


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List of objectsList of objects, , offering for transfer in offering for transfer in concessionconcession

Mineral deposits ofMineral deposits of::• Gypsum “Brinevskoye”Gypsum “Brinevskoye”, , PetrikovskiPetrikovski regionregion, , Gomel oblastGomel oblast;;

• Iron-ore “Okolovskoye”Iron-ore “Okolovskoye”, , StolbcovskiStolbcovski regionregion, , MinskMinsk oblastoblast;;

• Iron-oreIron-ore “Novoselkovskoye”“Novoselkovskoye”, , KorelichiKorelichi regionregion, , Grodno oblastGrodno oblast;;

• Bentonite clayBentonite clay “Ostrozanskoye”“Ostrozanskoye”, , LelchinskiLelchinski regionregion, , Gomel oblast.Gomel oblast.


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Foreign Investment Advisory CouncilForeign Investment Advisory Council(FIAC)(FIAC)

Prime-Minister of the Republic of BelarusPrime-Minister of the Republic of Belarus

FIACFIAC

Standing Committee of the FIACStanding Committee of the FIAC

Development Development of financial of financial

marketsmarkets

Tax policy, Tax policy, CustomsCustoms

& Accounting& Accounting

InvestmentInvestment imageimage

Investment Investment legislationlegislation

Working Working groups for:groups for:

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National Investment AgencyNational Investment Agencywww.invest.belarus.by

Purposes:Purposes:11. . IImprovement mprovement of the investment climate in Belarusof the investment climate in Belarus 2. 2. Development of the economic potential of Belarus by attracting of Development of the economic potential of Belarus by attracting of foreign and domestic investments.foreign and domestic investments.

Activity directions:Activity directions:1.1. International co-operation. International co-operation.2. 2. Provision informational and analytic servicesProvision informational and analytic services..3. 3. Investment projects Investment projects maintenance. maintenance. 4.4. Provision consulting services Provision consulting services..5. 5. Organization of conferences, forums, seminars and business meetings.Organization of conferences, forums, seminars and business meetings.6.6. Co-operation with state bodies and state officials. Co-operation with state bodies and state officials.


http://www.invest.belarus.by/

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Ministry of Economy of the Republic of Belarus

www.economy.gov.by

National investment site

www.invest.belarus.by

Welcome to co-operation!Welcome to co-operation!


http://www.economy.gov.by/

http://www.invest.belarus.by/

Investment Environment of the Republic of Belarus © Ministry of Economy of the Republic of Belarus...

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