Belarus expects investment inflow from Saudi Arabia, Estonia and Ireland

In senators’ judgments that two intergovernmental agreements for assistance and mutual protection of investment with Saudi Arabia and Estonia allows our country to expect investment inflow from this countries. The agreements provide that each side will allow investments from other side, create favorable conditions for them, guarantee just and equal conditions for business and full protection and safety. For example, terms of the contract guarantee foreign investors freely transfer any payments related to investments abroad after fulfilling tax liabilities.

Republic of Belarus has high expectations on investments from Saudi Arabia. This country has the greatest petroleum reserves in the world and invests money gained from selling it not only inside the country but abroad. Moreover the market capacity of this country and the policy of industrial sector development create prerequisites for Belarusian enterprises’ to invest in this country in order to grip on this perspective market in the way creation assembling organization, technology transfer, introduction of scientific inventions.

First deputy minister says there are 78 enterprises with Estonian investments, for example, “Milavitsa” and “Vitebskaya Lesopilka”. At the same time in Estonia there are representations of Orsha Flaxplant and concern “Belneftekhim”. The amount foreign direct investments from Estonia to Belarus was more than $5bn last year.

Similar agreements concerning investment promotion are made by Belarus with 60 more countries.

Besides parliamentarians ratified convention with Ireland concerning double taxation exemption and tax evasion on income and capital. The convention regulates the scheme of paying taxes on real estate, income tax including taxes on dividends, debts, property tax, interest tax. This document provides more preferential in comparison with national legal systems taxation scheme of Belarusian and Irish economic  units that are working on the territory of the other country.

For example, tax rate on dividends being gained by Irish companies according to the convention will be 5% (if Irish capital takes more than 25% in statutory fund of Belarusian enterprise) and 10% in other cases (according to Belarusian legislation tax on dividends is 12%).

Same conventions concerning double taxation exemption are made by Belarus with 53 other countries.

According to belarusian portal EXPORT.BY