The investment process is one of the main factors determining the socio-economic development of the Republic of Belarus, its technological progress, and the efficiency of material production.
This explains the increased interest in state instruments for activating the investment process within the framework of economic impact on domestic and foreign investments.
Currently, favorable legal conditions for investors' activities have been established in Belarus.
On July 11, 2024, the updated version of the Law of the Republic of Belarus of July 12, 2013 No. 53-Z "On Investments" (hereinafter referred to as the Law) entered into force.
The Law provides for three mechanisms for implementing investment projects with the provision of benefits and preferences to the investor:
– investment agreement;
– special investment agreement;
– preferential investment project.
The main benefits and preferences within these mechanisms are provided in terms of taxation, land relations, architecture, and construction.
Also, as a separate mechanism for stimulating the implementation of investment projects in the Republic of Belarus, the right of legal entities of the Republic of Belarus to provide state financial support in the form of budget transfers to reimburse part of the costs for investment projects implemented in certain regions is enshrined.
In development of the provisions of this Law, Resolution of the Council of Ministers of the Republic of Belarus of June 13, 2024 No. 417 was adopted, which updated the list of priority types of activities (economic sectors) for making investments, and also determined the minimum investment volume by types of activities (economic sectors) for the implementation of investment agreements.
In addition, in development of the Law, resolutions of the Council of Ministers of the Republic of Belarus have been developed defining the procedures for:
– conclusions, amendments and terminations of investment agreements, decisions on inclusion of investment projects in the list of preferential investment projects, provision of state financial support in the form of budget transfers to reimburse part of the costs for investment projects implemented in the territory of certain administrative-territorial units;
– interaction of state bodies, organizations for the resolution of disputes (disagreements) between an investor and the Republic of Belarus, as well as ensuring the protection of the interests of the Republic of Belarus during court (arbitration) proceedings.
We note that due to the entry into force of the new version of the Law, the Decree of the President of the Republic of Belarus of August 6, 2009 No. 10 "On the Creation of Additional Conditions for Investment in the Republic of Belarus" loses its effect. However, investment agreements concluded up to and including July 10, 2024, remain relevant, and obligations under them (provision of benefits, implementation of investment projects) are fulfilled in accordance with the previously applicable legislation.
By the Decree of the President of the Republic of Belarus of January 16, 2009 No. 1 "On State Registration and Liquidation (Cessation of Activity) of Business Entities"
the procedure for state registration and liquidation of business entities has been simplified.
From February 1, 2009, a declarative principle of state registration of business entities has been introduced, with the exception of banks and non-bank credit and financial organizations. Registration is carried out on the day of submission of documents, and the list of documents required for registration has been maximally reduced.
The Decree significantly simplifies the requirements for the constituent documents of business entities, eliminating the requirements for the minimum charter capital of commercial organizations (except for joint-stock companies, banks, and insurance organizations). The amount of charter capital is determined by legal entities independently. Upon liquidation of legal entities and termination of activities of individual entrepreneurs, the "one-stop shop" principle is established in the relationship between the registering authority and other state bodies.
By Decree of the President of the Republic of Belarus of 07.05.2012 No. 6 "On Stimulating Entrepreneurial Activity in Small and Medium-Sized Urban Settlements and Rural Areas"
measures of economic stimulation of entrepreneurial activity in medium-sized, small urban settlements and rural areas have been defined, according to which commercial organizations and individual entrepreneurs carrying out their activities throughout Belarus, with the exception of regional cities, Minsk, as well as the cities of Baranovichi, Bobruisk, Borisov, Zhodino, Zhlobin, Lida, Mozyr, Molodechno, Novopolotsk, Orsha, Pinsk, Polotsk, Rechitsa, Svetlogorsk, Slutsk, Soligorsk, within seven calendar years from the date of their state registration
- are entitled not to calculate and pay profit tax (commercial organizations) and personal income tax (individual entrepreneurs) respectively on profits and income received from the sale of goods (works, services) of their own production;
- are exempted from paying state duty for issuing a special permit (license) for the implementation by legal and natural persons of certain types of activities (including those related to specific goods (works, services)), making changes and/or additions to such a special permit (license), extending its validity period;
The conditions for involving unused state property in economic circulation have been determined (Decree of the President of the Republic of Belarus No. 150 of March 29, 2012 "On Certain Issues of Leasing and Gratuitous Use of Property", Decree of the President of the Republic of Belarus No. 294 of July 4, 2012 "On the Procedure for Disposal of State Property").
The procedure for the seizure and provision of land plots has been simplified (Decree of the President of the Republic of Belarus No. 667 of December 27, 2007). The adoption of the document significantly reduces the investment risks of persons interested in the provision of land plots, currently associated with the need to prepare costly construction documentation and the possible refusal to provide land plots.
Economic entities that have obtained the status of "reliable foreign economic activity participant" have the opportunity to simplify the import of goods for their production needs and, if necessary, use them immediately in production without customs clearance – the corresponding customs procedures will be carried out on a declarative basis without presenting the goods to customs (Decree of the President of the Republic of Belarus No. 40 of January 28, 2008).
The list of benefits for residents of free economic zones has been expanded, and guarantees of the immutability of the special legal regime of taxation have been provided to them. (Decree of the President of the Republic of Belarus No. 42 of January 28, 2008).
Conditions have been created to reduce the construction time of facilities and develop the material and technical base, procedures in the construction industry have been simplified, and the right has been granted to other developers, along with KSAs, to carry out the construction of residential premises for citizens using state support for these purposes, which will increase the volume of housing construction for those in need (Decree of the President of the Republic of Belarus of 15.05.2008 No. 277), etc.