Invest in Belarus Guidebook Investment opportunities, legal and economic environment PREPARED BY In today’s dynamically changing world, each may reckon on when considering prospects of opening and every state’s successin promotion of foreign business in our country. direct investment is largely determined by its ability National Agency of Investment and Privatization to not only perceive present, but also envisage serves as a reliable and competent partner for future needs of businesses and, consequently, act businesses through all stages of investment projects proactively while creating a favorable investment realization in Belarus, employing its long-time climate. experience and expertise while rendering free-of-charge Drawing on its key competitive advantages – professional consultative, communication and unique location, considerable human, industrial and organizational assistance to investors. logistical potential, and forward-looking legislation – This edition encompasses the most up-to-date Belarus today continues to consistently enhance information on the top priority sectors for FDI, conditions for doing business, adequately adjusting opportunities available within various preferential to new realities and successfully implementing regimes, judicial aspects of investments, Belarus’s digital transformation of the national economy. primary avenues of multi-faceted international Stable domestic political situation, high level of cooperation and even more. public security, coherent and constantly improving I am confident, inside You will find a complete legal regulations of investment activity aimed to answer to the question “Why more and more mitigate risks and lower costs for investors, diversity investors today opt for Belarus?”. of preferential regimes and individual approach make up just a small part of privileges every single investor Aleksandr Chervyakov Minister of Economy, Republic of Belarus Belarus in world rankings: Food Industry strong potential, IT Industry good performance One-stop shop for investors: Promising sectors for National Agency of Investment investment and Privatization Pharmaceutical industry Services Renewable energy Public private partnership Transport and Logistics (PPP) program Automotive Industry Step-by-step algorithms for an investor Economy of Belarus International cooperation and overview foreign capital in Belarus Consumer price index FDI on net basis International trade Eurasian integration Belarus-European Union relations: long way from neighborhood to partnership Belarus-China : towards the new level of cooperation International economic organizations Legal Environment for Foreign Investment . . Investment laws . 6 . Corporate law: setting up a Business in Belarus.Main organisational and legal forms . . Privatization . . Merger filing requirements in Belarus . 7 TAXES . . Financial regulation . Corporate profit tax (CPT) . in Belarus . 7 . Withholding tax (WHT) . . Legal status of land . Personal income tax (PIT) . and other real property . 7 . Social security . Intellectual property contributions (SSC) . protection . 7 . VAT . . Employment specifics . 7 . Land tax . ............ . Dispute resolution . 7 . Real estate (RET) . . Offshore duty . . Ecological tax and Natural resources tax . . Taxation treaties . DEAR READER, According to a report published by the growth of the number of residents from many World Bank, Belarus currently ranks th on parts of the world and a noticeable boost in its Ease of Doing Business scale ( position revenues. up). Belarus has progress in such areas as In addition, Belarus has become one of “Getting Credit” ( positions up) and “Trad- the first countries in the world to create a ing across borders” ( positions up). In our legal framework for cryptocurrencies and opinion, this reflects Belarus Government’s initial coin offerings. Our jurisdiction has consistent efforts to stay competitive in never offered more exciting opportunities to attracting investors, collaborating with business than before. partners, improving its legal framework for business, and modernizing the economy. After an almost three year recession, the Kind regards, national economy is growing again. Some of the growth drivers are breakthrough projects such as High Tech Park (already nicknamed Maksim Salahub, by some as “Silicon Valley of the Eastern Partner at Sorainen Europe) and Belarus Industrial Park “Great Stone “ Investment Opportunities Belarus in world rankings: One-stop shop for investors: strong potential, National Agency of Investment good performance and Privatization Promising sectors for Services investment Public private partnership Pharmaceutical industry (PPP) program Renewable energy Step-by-step algorithms Transport and Logistics for an investor Automotive Industry Food Industry IT Industry 8 . BELARUS IN WORLD RANKINGS: STRONG POTENTIAL, GOOD PERFORMANCE Since 99, Belarus has been constantly improving its Human Development Index rank. According to the 9 Human Development Report, Belarus is categorized as the country with the very high human development level. In the Doing Business ranking , Belarus occupies 49th place. According to the data of the World Bank, the Near-term external financing risks have Republic of Belarus has maintained its leading declined due to the preemptive government position in the total number of reforms aimed at borrowings, and due to an increase in international improving business climate. In the ranking of Doing reserves. The rating also takes into account such Business , the Republic is on the 9th position factors as the improved terms of trade, the risks of among 9 countries. In the Starting a Business the financial sector, the state of the government ranking Belarus occupies the th position. Belarus budget and the economic growth prospects. made starting a business easier by abolishing the Estimations of international rating agencies requirement to register the book of Registry of reveal the strengthening of the financial reputation Inspections, and allowing its purchase within six of the Republic of Belarus. months of incorporation. By the Dealing with Belarus also ranked 66th among countries Construction Permits ranking, Belarus is on the 8th in the Transparency International Corruption position. Belarus made dealing with construction Perceptions Index for 9. permits easier by streamlining the process at the Belarus has been ranked 72nd in the world and one-stop shop. th in Europe in the Global Innovation Index (GII) In January , the Organization for Economic 9 prepared jointly by Cornell University, INSEAD Cooperation and Development (OECD) improved the Business School and the World Intellectual Property position of Belarus in the classification of country Organization (WIPO). The country has climbed risks and moved the country from the th to the 6th places up since the last year, taking its place between category. Currently Belarus maintains its position. Brunei and Argentina. One of the main drivers that The improvement in the OECD risk rating position improved Belarus’ ranking in the GII is mobile app reduced the cost of credit resources provided by development. The country is now ranked th foreign banks to Belarusian importing enterprises and worldwide in the «Mobile app creation» indicator. became a positive moment in building the country’s It should be noted, that Belarus is ranked rd credit image. in the world in the percentage of white collar Standard & Poor's has upgraded Belarus' long- (intellectual) workers to the total number of term sovereign credit rating for foreign currency employees. The country is also No. in the world liabilities to "B"level (stable outlook). Moody's in the proportion of females with an advanced Investors Servicehas upgraded Belarus' long-term academic degree to the total number of people sovereign credit rating to "B" (stableoutlook). employed in the economy. The ratings have been changed due to the improved economic growth and external financing. Fitch Ratings has upgraded Belarus' longterm sovereign credit rating for foreign and domestic currency liabilities to "B" level (stable outlook). According to the Human Development Report 9, 8 IT-companies with development offices in Belarus Belarus ranks th out ofУAловите 9 countries свое in the Human were included in "The Global Outsourcing " Development Index. Belarus is included to the very rating. This is a rating of the best outsources in high human development category. the world according to the International Association Belarus ranks 8th out of 9 in the Social of Outsourcing Professionals (IAOP). The Belarus- Progress Index 9. Belarus has improved its position in based companies included in the top- best comparison with the previous results. Belarus has the outsourcers were as follows: A1QA, Bell Integrator, highest scores on the following components of social Ciklum, IBA Group, Intetics, Itransition, iTechArt Group, progress: access to basic knowledge, nutrition and Qulix. The main selection criteria were a company's basic medical care, water and sanitation, shelter, profitability, team growth, the best projects, customer personal safety. recommendations and the level of corporate social According to the ranking of the International responsibility and innovation. Telecommunication Union, published in , the According to the rating of European Cities and Republic of Belarus occupies nd place out of Regions of the Future -, compiled by fDi countries in the Information and Communication Intelligence (division of The