Belarus expands the list of benefits and preferences for investors, granted at the conclusion of investment contracts. The corresponding decree № 4 was issued by President of Belarus Alexander Lukashenko on June 6. This document is expected to increase the inflow of foreign capital in the Belarusian economy.
In connection with the new provisions, introduced by the new instrument, the appropriate changes and additions are made to the decree № 10 «On creation of additional conditions for investment activity in Belarus» of August 6, 2009, explained the President’s Administration.
According to the decree № 4, investors are allowed applying project documentation developed abroad. «In the case of documents developed in accordance with international norms and standards in the design of the building, entered into force on the territory of Belarus, only work on the binding of objects to their locations is provided. In other cases, such documentation will be corrected,» explained in the presidential administration.
In addition, investors are entitled to deduct the full amount of VAT paid on purchase of goods (works, services), property rights used for the design, construction and equipping of the investment project.
Investors are also allowed not to carry out contract bidding to determine the general project organization, subcontracted of the project, construction organizations and other companies for construction of the objects, their repair, reconstruction, restoration and improvement.
Lukashenko Exempts Investors from Some Taxes
Decree of the President exempts investors from land tax and rent for state-owned land for the period of design and construction. Investors are also now obliged to make contributions to the innovation funds, as well as to pay taxes, previously paid by donations of state property to investors (value added tax — the donating side, the income tax — the host country).
Number of preferences will be given to residents of free economic zones. In particular, they will be released from paying for the right to sign the land lease contract coming into the fund of development of the free economic zone.