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1
Investment Environment
of the Republic of Belarus
A. Tur N.
The Deputy Minister of
Economy of the
Republic of Belarus
© Ministry of Economy of the Republic of Belarus 2008
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Selected Economic Indicators
23,3
2007, %
15,1
8,2
8,5
4,1
72,3
January – march, 2008, %
9
10,5
GDP
9
17
13,6
Industrial
production
8
20
17
Forecast,
year
In fact
6,8
Agricultural
Capital
production investments
Export
(february, 2008)
© Ministry of Economy of the Republic of Belarus 2008
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Investments in the Capital Assets
132,2
120,8
120,2
120
115,1
106
2002
2003
2004
2005
2006
2007
years
© Ministry of Economy of the Republic of Belarus 2008
Structure of Foreign Investments in Belarus,
2002-2007, mln. USA
4
5422
4036
1816
1306
1517
722
299
2002
675
860
2003
2004
451
749
2005
2006
1314
2007
foreign direct investment
© Ministry of Economy of the Republic of Belarus 2008
The main countries-investors in Belarus, 2007 (%)
Netherland
2,3%
5
Others
11,7%
Russia 33,5%
Switzerland
11,2%
Austria 11,0%
Germany 5,7%
Cyprus 7,0%
Great Britain
15,9%
USA
1,2%
Latvia 2,7%
© Ministry of Economy of the Republic of Belarus 2008
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Organizations with foreign capital,
2002 – 2008 at the beginning of the year
4218
3818
3457
3545
2957
2667
2321
2082
2091
1140
942
2002
1396
1271
2003
1575
1382
2004
1841
1616
2005
1903
1642
2006
1727
2007
1897
Total
JV
FE
2008
© Ministry of economy of the Republic of Belarus 2008
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The reasons to invest in Belarus
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Political and economic stability
High dynamics of economic growth
Favorable economic and geopolitical location
Access to the market of the Russian Federation and the EU
Highly qualified labour, scientific and technical potential
Export oriented economy (export more than 60% of GDP)
Credit raiting of the Republic of Belarus: “B+” (Moody’s Investors
Service, Standart&Poors)
Low crime and corruption level
Free Economic Zones and High Technologies Park
National Investment Agency (“One Stop Shop”)
Dialog between Government and Investors through Foreign
Investment Advisory Council
© Ministry of Economy of the Republic of Belarus 2008
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Free economic zones (FEZ)
Minsk
Vitebsk
Grodnoinvest
Mogilev
Brest
Gomel-Raton
© Ministry of Economy of the Republic of Belarus 2008
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Advantages for residents of Free Economic Zones (FEZ)
•Exemption from profit tax on products of own manufacture
for the period of 5 years
•Exemption from customs duties for import and export goods
(own manufactured)
From 1st of April 2008:
- ground-rent is payed on preferential terms during
realization of the investment projects
- guarantees for taxes are unchangeable for 7 years for
residents of FEZ
© Ministry of Economy of the Republic of Belarus 2008
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High Technologies Park activities
Activities:
•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 Technologies Park are
exempted from:
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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
© Ministry of Economy of the Republic of Belarus 2008
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Preferences for enterprises setting up in the territories
with number of people up to 50 000
• 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 years
For foreign enterprises:
• technological equipment for formation Capital charter of
organizations is exempted from Customs Duties and Value Added
Tax (VAT)
© Ministry of Economy of the Republic of Belarus 2008
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Preferences and privileges for small
and middle enterprises
•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.
© Ministry of Economy of the Republic of Belarus 2008
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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.
© Ministry of economy of the Republic of Belarus 2008
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Measures taken to improve business
environment in 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.
© Ministry of economy of the Republic of Belarus 2008
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List of objects, offering for transfer in
concession
Mineral deposits of:
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Gypsum “Brinevskoye”, Petrikovski region, Gomel oblast;
Iron-ore “Okolovskoye”, Stolbcovski region, Minsk oblast;
Iron-ore “Novoselkovskoye”, Korelichi region, Grodno oblast;
Bentonite clay “Ostrozanskoye”, Lelchinski region, Gomel oblast.
© Ministry of economy of the Republic of Belarus 2008
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Foreign Investment Advisory Council
(FIAC)
Prime-Minister of the Republic of Belarus
FIAC
Working
groups for:
Tax policy,
Customs
& Accounting
Standing Committee of the FIAC
Investment
legislation
Development
of financial
markets
Investment
image
© Ministry of Economy of the Republic of Belarus 2008
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National Investment Agency
www.invest.belarus.by
Purposes:
1. Improvement of the investment climate in Belarus
2. Development of the economic potential of Belarus by attracting of
foreign and domestic investments.
Activity directions:
1. International co-operation.
2. Provision informational and analytic services.
3. Investment projects maintenance.
4. Provision consulting services.
5. Organization of conferences, forums, seminars and business meetings.
6. Co-operation with state bodies and state officials.
© Ministry of Economy of the Republic of Belarus 2008
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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!
© Ministry of Economy of the Republic of Belarus 2008