New preferences for investors can be enforced through amendments to Decree No 10

Decree No 10 “On additional terms for investment activities in the Republic of Belarus” dated 6 August 2009 may be supplemented by new incentives for investors, the chief of the general directorate of law making activities in economy and ecology of the Justice Ministry of Belarus, Sergei Zadiran, told reporters.

“We have been working on the amendments to the decree for about four months. Now they are being approved by other government agencies,” Sergei Zadiran said.

In particular, a preference associated with environmental regulations may be introduced. It is aimed at exempting investors from compensatory planting and paying for the costs of plants to be removed.

Another amendment is related to the granting of the right to investors to apply construction and technical standards similar to those applied in the countries of the Customs Union or the European Union. “This is a very serious amendment. If approved, it will be of great interest to investors who invest in residential and industrial facilities construction projects,’ Sergei Zadiran believes.

It is also suggested to deduct VAT paid on acquisition of goods, works and services and property rights. Investors may also be exempted from carrying out contract tenders and procurement procedures. They can be allowed to apply free prices and tariffs.

Another preference is exemption from rental charges, land and real estate taxes during the construction period. Today such preferences are valid within the normative period of construction and cannot exceed the deadline set in the investment agreement, Sergei Zadiran said.

One more preference may concern the abolition of contributions to the innovation funds and taxes in connection with gratuitous transfer of property if investor receives state property free of charge in the course of implementation of the project.

“I believe that the abovementioned preferences should be taken into account when investment agreements are signed,” the representative of the Justice Ministry said.

According to