Recent legal & business developments in Belarus, September 2009
1. On September 25th 2009 the President of the Republic of Belarus signed the Edict #477 «On Certain Issues of Activity of Individual Entrepreneurs and Introduction of Changes to the Edict of the President of the Republic of Belarus # 194 dated April 15, 2009». This Edict was enacted in order to facilitate and promote export activities of individual entrepreneurs and was aimed at settlement of some problematic issues related to sales of goods produced in the Republic of Belarus. Individual entrepreneurs exporting and selling goods produced (purchased) within the territory of the Republic of Belarus are now granted simplified taxation regime: general trade fee payable at the place of tax registration was introduced at the rate of 35 000 Br (approximately 9 EUR) payable per each month when such goods are purchased instead of general taxation regime. In case revenues exceed certain limits individual entrepreneurs shall be charged extra fee amounting to 10 per cent of such exceeding.
2. The President of the Republic of Belarus on 24 September 2009 also enacted the Edict #466 «On Certain Measures for Sales of Goods Produced in the Republic of Belarus» which is mainly aimed at promotion of Belarusian goods abroad and increasing currency proceeds from foreign trade. The Edict provides for entitlement of foreign entities buying Belarusian goods abroad and residing in countries where customs control and customs clearance are not applied in relations with Belarus, to obtain partial compensation of interests for bank loans provided by the banks of such countries, from the budget of Belarus. This entitlement to compensation of interests is supposed to be implemented on the basis of agreements signed between Belarusian Government with non-resident banks. The maximum amount of compensation shall not exceed the effective borrowing rates of central banks in the countries where such Belarusian goods are being purchased.
3. Resolution of the Council of Ministers of the Republic of Belarus # 1197 enacted on 17th September 2009 corrected contractual price of manufacturing equipment being imported into Belarus by legal entities and individual entrepreneurs that is entitled to temporary zero import customs duty: now this contractual price is 10 000 USD, which is 50% lower than the previous threshold.
4. In accordance with the Edict of the President of the Republic of Belarus # 465 «On Certain Issues of Improvement of Leasing Operations in the Republic of Belarus» dated 24th September 2009 striving to facilitate promotion of Belarusian goods abroad under international lease contracts, turnover of the manufacturer for selling of leased objects (equipment, farming machinery as well as other fixed assets) are exempted from VAT. These benefits are granted in order to reduce amounts of loan facilities necessary for lessors to maintain their operations, as well as to reduce prices of leased objects abroad and to raise goods’ competitiveness.
5. Lithuanian - Belarussian International Economic Forum was held in Vilnius on 16-19 September 2009, where the President of the Republic of Belarus Alexander Lukashenko offered all businessmen, including those from Lithuania, mutually beneficial co-operation in sectors of transportation and transit, and called for development and implementation of particular joint projects. Among other issues on agenda were the prospects of development of relations between Belarus and Lithuania and Baltic countries, cooperation in mechanical engineering, construction, agriculture, processing and informational technologies.
