Law and regulation of industrial and logistics investment in Belarus

The Bremino-Orsha special economic zone (SEZ) has been established, which focuses on manufacturing, e-Commerce, logistics and transport, postal services, other activities in the field of information services, and R&D. A range of incentives are offered, including state financial support for medium-sized businesses, simplified regulations and procedures for construction activities, and exemptions from certain state fees.

“Great Stone” China-Belarus Industrial Park has been established and prioritises electronics, pharmaceutics, biomedicine, chemicals, mechanical engineering, logistics, big data, and R&D industries. Reduced electricity and natural gas prices, simplified regulations and procedures for construction activities, and shorter time for a number of administrative procedures are also available to investors operating in this industrial park.

Six free economic zones have been established in Belarus where land lease incentives, state financial support for the creation of engineering and transport infrastructure (if the investment value is more than EUR 10 million), and exemptions from some state fees are offered to investors operating in them. In addition, investors can develop activities in the High Technology Park (HTP) where they are granted beneficial tax, legal and administrative conditions as well as special treatment for cryptocurrencies and ICOs.

Investment laws provide that land lease incentives and certain relaxation of mandatory procedures for construction exempting from some state fees, can be offered to investors operating under investment agreements in priority sectors, such as information and communication technologies, logistics, mechanical engineering, and others.

Incentives for investors are also provided in Special Economic Zones. For investors operating in Orsha, district land lease incentives, increased investment deduction for buildings, machinery, and equipment, exemptions from some state fees are offered. For investors operating in the Southeast region of Mogilev, regional state financial support is on offer for the creation of utilities and transport infrastructure, for the implementation of projects in agriculture and industry sectors.

Various tax incentives are available to companies operating in the Bremino-Orsha special economic zone. Among these incentives is an exemption from corporate income tax (CIT) for nine years from the year of the accrual of income, an exemption from real estate tax, a 0% dividend tax for five years, and an exemption from import customs duties and similar.

An exemption from CIT and land tax under certain conditions is available to investors operating in the aforementioned free economic zones. Also on offer are various tax incentives, such as an exemption from CIT, VAT, real estate tax and land tax, reduced WHT rates on dividends, interest and royalties are offered to investors carrying their activities within High Technology Parks. Furthermore, exemptions from CIT, VAT, real estate tax and land tax, reduced WHT rates on dividends, interest and royalties, certain exemptions from import customs duties are offered to investors operating in the “Great Stone” China-Belarus Industrial Park.

In addition, a beneficial tax treatment applies if an investor carries out production activities in rural areas and small towns. Investors are granted an exemption from import customs duties and VAT if they operate under investment agreements. Tax incentives are also available to investors operating in special economic zones. In Orsha district, special economic zone reduced tax rates can be available if certain conditions are met. In addition, PIT and social security contribution incentives are offered to investors carrying out activities in the southeast region of the Mogilev special economic zone.