Recent legal & business developments in Belarus, August 2011
1. Decree on creation of additional conditions for investment activity in Belarus No. 4 dtd. June 6, 2011 came into force on August 9, 2011
The document provides for broadening of list of privileges and preferences for investors at conclusion of investment agreement, namely: privileges and preferences, connected to possibility to use design documentation, developed abroad, right on separate tax deductions, exemption from land tax and rent for land plots, being state property and provided for implementation of the investment project for the period of designing and construction, exemption from payments to innovation funds, and form taxes, obligation on payment of which arises in connection with free transfer of state property to the investor for implementation of investment project.
2. Belarusian companies, releasing innovation production, will be granted tax privileges. The Rules on the order of determination by organizations of exceeding sum of income tax were approved by Regulation of the Council of Ministers dtd. August 4, 2011 No. 1045.
Named Regulation was taken in accordance with the Edict of the President of the Republic of Belarus dtd. June 6, 2011 No. 231 “On separate issues of encouragement of development of high-performance productions”. Companies, implementing investment projects and fulfilling indicators on profitability and specific weight of shipped innovation production in general amount of shipped production, shall receive tax privilege. Such companies shall be exempted from payment to the budget of exceeding sum of income tax, paid (is to be paid) in accounting year, in comparison to the sum of tax, to be paid in previous year.
3. The Edict of the President of the Republic of Belarus No. 347 dtd. August 9, 2011 (comes into force on November 15, 2011) introduced amendments and alterations to the Edict of the President of the Republic of Belarus No. 178 dtd. March 27, 2008 “On the order of fulfillment and supervision over external trade operations”. Among other alterations we would like to mention to the following.
List of operations, not included in sphere of the Edict No. 178 was broadened: it will include all operations of non-trade character.
Transactions on performance of works, rendering of services and transfer of rights on results of intellectual activity will not be subjected to registration. In connection with transactions, providing for transfer of goods on the basis of separately signed attachments: there will be no registration of each attachment, the subject of registration will be agreement as a whole. Regarding foreign trade agreements, concluded before the Edict No. 347 comes into force, in frameworks of which each attachment was registered separately the last assigned registration number will be used. Assignment of other registration numbers will be unnecessary.
New obligation for participants of foreign trade operations was established. After completion of all operations under foreign trade agreements (taking account of its prolongations) participants of foreign trade operations will be obliged to notify of that bank, where transaction was registered.
4. Refinancing rate
Starting from August 17, 2011 refinancing rate of the National Bank of the Republic of Belarus was increased on 2 % from 20 % to 22%.
5. Simplification of procedure of transfer of immovable property.
The President of the Republic of Belarus signed on August 30, 2011 the Decree No. 7 “On making amendments and alterations to the Decree of the President of the Republic of Belarus dtd. December 19, 2008 No.24”.
The Decree No. 7 abolishes necessity of notification of local organizations on state registration of immovable property, rights on it and transactions with it of conclusion of lease, sublease agreements and agreements of free usage.
