Recent legal & business developments in Belarus, May 2009
1. The Council of Ministers, on 30 April (published on May 12) adopted the Resolution No. 548/8, which determines the list of non-monetary methods for the termination of the export foreign trade transactions. According to the Resolution such methods include: full or partial offsetting of claims, based on foreign trade contracts; non-cash payments made on the basis of clearing according to the international treaties of Belarus; exchange of goods, services, intellectual property rights; novation and indemnification. Previously, the obligations under foreign-trade contracts could be terminated only by monetary means save for the cases of offsetting of claims and exchange of goods, services, intellectual property rights.
2. On May 26, the President of the Republic of Belarus adopted Edict No 262. According to the said Edict, foreign companies which open depositary account in the banks and non-bank financial and credit institutions of Belarus are allowed not to get registration with tax authorities.
3. On May 23 the deputy vice-president of the Republic of Belarus, Vladimir Semashko, announced that from June 1 VAT will be increased from 18% to 22%. It is also planned that the corporate income tax will be decreased from 24 % to 20 %. It was also announced that that the duty to the fund of the support of the agricultural manufacturers, currently being levied at the rate of 1 % of the proceeds, shall be abolished.
4. By virtue of the Edict No. 261 of May 26, the President of the Republic of Belarus authorized Gomel region executive committee to conclude investment agreement with Iranian company Azarab Ind. The subject matter of the investment agreement shall be the realization of the investment project on the construction and exploitation of the cement works.
5. On May 21 President of the Republic of Belarus approved the Edict “On some measures of state support of small businesses”. According to the Edict, the state support to small businesses shall be rendered in the following forms: provision of credits with or without the obligation to pay interest; provision of property for financial leasing; issuance of guarantees, as the collateral for the credits, provided by Belarusian banks on beneficial conditions.
6. By virtue of the Edict of the President of the Republic of Belarus No. 233 of May 5 the rate of import tax duty was decreased to 0 % for certain component parts, raw materials and materials, including fabrics, wheat, engines, medical products, fibers and etc. The tax rate in the amount 0 % shall be valid for nine months, i.e. until February 5, 2010.
7. A number of documents were signed in result of the thirtieth meeting of the Interbank currency council of the central banks of Belarus and Russian Federation, which took place on May 22 in Orsha (Belarus). One of the said documents is the Memorandum on the cooperation between National Bank of the Republic of Belarus and Central bank of Russian Federation. The memorandum provides for the promotion of the mutual exchange of information regarding economic situation and policy. The Parties shall increase the intensification of the cooperation in questions regarding the functioning of banking sector, payment systems, etc.
