Investment Projects of Postavy District. INVESTMENT PROPOSALS

Investment Attractiveness of Private Business
in the Republic of Belarus

The first step to starting a business is state registration of an economic entity, which is carried out on the day all necessary documents are submitted. Within 5 working days, the registered enterprise is registered with tax and customs authorities, statistical bodies, the Social Protection Fund, and the Belgosstrakh structural unit. The economic entity receives a full package of documents within 5 working days.

Economic entities operating in Postavy city or Postavy district are granted more favorable conditions – reduced rates and exemption from certain taxes.

Thus, in accordance with Decree of the President of the Republic of Belarus No. 6 of May 7, 2012 "On stimulating entrepreneurial activity in the territory of medium, small urban settlements, and rural areas," commercial organizations and individual entrepreneurs registered in the Republic of Belarus with a location (residence) in the territory of medium, small urban settlements, and rural areas, and carrying out activities for the production of goods (performance of works, provision of services) in their territory, for seven calendar years from the date of their state registration:

- have the right not to calculate and not to pay profit tax (commercial organizations) and personal income tax (individual entrepreneurs) respectively in respect of profits and incomes received from the sale of goods (works, services) of their own production (during the validity period of the certificate of own production (certificate of own works and services));
- are exempt from paying state duty for issuing a special permit (license) for legal entities and individuals to carry out certain types of activities, making changes and (or) additions to such a special permit (license), extending its validity period;
- have the right not to calculate and not to pay other taxes, fees (duties) (with the exception of value-added tax, including value-added tax levied on the import of goods into the territory of the Republic of Belarus, excise duties, stamp and offshore duties, state duty, patent duty, customs duties and fees, land tax, environmental tax, tax for the extraction (withdrawal) of natural resources and other taxes calculated, withheld and (or) transferred when performing the duties of a tax agent;
- are exempt from mandatory sale of foreign currency received from transactions with non-resident legal entities and non-resident individuals from the sale of goods (works, services) of their own production, as well as from leasing property.

Commercial organizations and individual entrepreneurs are exempt from mandatory conclusion of transactions at exchange trades of the open joint-stock company "Belarusian Universal Commodity Exchange" when purchasing raw materials, components, and materials for their own production (with the exception of purchases fully or partially at the expense of budget funds and (or) funds of state extra-budgetary funds by recipients of such funds), as well as when carrying out foreign trade in goods of their own production.

Goods imported into the territory of the Republic of Belarus as a non-monetary contribution to the authorized capital of commercial organizations, manufactured no more than five years ago, are exempt from import customs duties.
Alienation of buildings (structures), unfinished preserved capital structures, unfinished unpreserved capital structures owned by Postavy district and located on its territory is carried out without selling the right to conclude a land lease agreement necessary for servicing the alienated property. In this case, the land plot is provided for lease to the buyer of the property without an auction and without charging a fee for the right to conclude a lease agreement, and perennial plantings located on this land plot are alienated to him free of charge.

Similar benefits are provided to separate divisions of commercial organizations engaged in the production of goods (performance of works, provision of services) in the territory of medium, small urban settlements, and rural areas and having a separate balance sheet.

Upon conclusion of an investment agreement, benefits are provided in accordance with Decree of the President of the Republic of Belarus No. 10 of August 6, 2009 "On creating additional conditions for investment in the Republic of Belarus." During the validity period of the investment agreement, investors have the right to:

- provision without an auction for the right to conclude a land lease agreement, an auction with conditions for the right to design and construct capital structures (buildings, structures) and an auction for the sale of land plots into private ownership of a land plot included in the list of plots for the implementation of investment projects, on real rights in accordance with land protection and use legislation;
- exercise, in the manner established by law, no later than the reporting period for value-added tax, which includes the date of completion of the investment project provided for by the investment agreement, a full deduction of value-added tax amounts recognized in accordance with the law as tax deductions (with the exception of non-deductible tax amounts), presented when acquiring in the territory of the Republic of Belarus (paid when imported into the territory of the Republic of Belarus) goods (works, services), property rights used for the construction, equipping of facilities provided for by the investment agreement, regardless of the amounts of value-added tax calculated on the sale of goods (works, services), property rights.

Goods used for the construction of facilities provided for by the investment agreement include, among other things, facilities whose reconstruction, restoration, major repairs are provided for by the investment agreement and commenced in accordance with the act establishing the start date of construction of the facility, as well as real estate objects (unfinished unpreserved objects) demolished (dismantled) for the purpose of implementing the investment project;

- exemption from import customs duties and value-added tax levied by customs authorities, when importing technological equipment, components and spare parts for it into the territory of the Republic of Belarus for exclusive use in the territory of the Republic of Belarus for the purpose of implementing an investment project.

Investors are also exempt from:

- payment for the right to conclude a land lease agreement, provided for lease without an auction for the construction of facilities provided for by the investment agreement;
- land tax for land plots in state or private ownership, and lease payments for land plots in state ownership;
- compensation for losses of agricultural and (or) forestry production related to the withdrawal of a land plot;
- value-added tax and profit tax, the obligation to pay which arises in connection with the gratuitous transfer (receipt) of capital structures (buildings, structures), isolated premises, objects of unfinished capital construction and other fixed assets transferred (received) for the purpose of implementing an investment project within the framework of an investment agreement into the ownership, economic management or operational management of the investor (investors) and (or) organization.

Within the framework of an investment agreement, investors, as well as the contractor and (or) the project documentation developer have the right to exemption from paying state duty for issuing (extending the validity period of) permits for attracting foreign labor to the Republic of Belarus, special permits for the right to engage in labor activity in the Republic of Belarus, and foreign citizens and stateless persons attracted by the investor, contractor or project documentation developer for the implementation of an investment project - for exemption from paying state duty for issuing (extending the validity period of) temporary residence permits in the Republic of Belarus.

Postavy district owns more than 20 unused and inefficiently used properties that can be offered for entrepreneurial activity. These properties can be acquired either for a fee or free of charge in one of the following ways:

- gratuitous transfer into private ownership for the implementation of investment projects;
- alienation of capital structures (buildings, structures), isolated premises, their parts to business entities renting (using under a gratuitous use agreement for creating jobs) this property for at least 3 years and properly fulfilling their obligations under the lease (gratuitous use) agreement for the specified period, with the provision of installment payments for up to five years with monthly indexation of payments from the date of conclusion of the sale and purchase agreement. The condition for providing installment payments is the buyer's obligation to organize the production of goods (works, services) of their own production and (or) their sale.
- alienation of real estate objects owned by the Postavy district without selling the right to conclude a land lease agreement necessary for servicing the alienated property;
- transfer of capital structures (buildings, structures), isolated premises, their parts, for gratuitous use under contractually formalized obligations to create jobs;
- application of a reducing coefficient to the base lease rate, provided that activities for the production of products, performance of works, provision of services are carried out.