Business news

10 Mar 2022

Consul general: Belarus has great investment potential

An archive photo

MINSK, 10 March (BelTA) – Belarus is a land with great investment potential, Consul General of Belarus in Guangzhou Andrei Popov said at the 8th China Guangzhou Annual Investment Conference in Minsk on 10 March, BelTA has learned.

“The positioning of Belarus as a promising investment platform is fully justified, as our state has a number of advantages for this. First of all, Belarus' open economy and its broad diversification. Our trade partners include more than 180 countries. Secondly, Belarus is well-known for its highly qualified specialists. According to the UNDP, Belarus is in the group of countries with high human development index,” said Andrei Popov.

Thirdly, Belarus has an advantageous geographical location. “Belarus is at the crossroads of two major economic unions - the European Union (EU) and the Eurasian Economic Union (EAEU). Belarus makes part of the latter, which also includes Russia, Armenia, Kazakhstan, and Kyrgyzstan. This means that the business located in Belarus also gets access to the market of the Eurasian Economic Union, which represents more than 180 million consumers. Goods produced in Belarus can move freely through the EAEU without the need to pay customs duties and fees,” he explained.

Fourthly, the country has developed investment legislation. “In 2013, the country introduced a law on investment, which is in full compliance with international standards. According to it, the rights of foreign and Belarusian investors are fully equalized. Belarus has signed 66 agreements on promotion and mutual protection of investments, as well as 70 agreements on avoidance of double taxation. In 2012 the country became a full member of the multilateral agency for investment guarantees. Belarus and China are currently working on an agreement on trade in services and investment,” the consul general said.

Belarus offers a whole system of preferential regimes for doing business. “Under these regimes, investors can make use of tax and customs privileges and other benefits. In particular, Belarus successfully applies the world practice of free economic zones. There are six such zones in the country, one in each region. They are concentrated on a certain area, with necessary infrastructure and export-oriented manufacturing facilities. Today, you can become a FEZ resident if you invest at least €500,000 within three years from the date of registration,” he said.

According to the consul general, the Great Stone industrial park provides an attractive regime for doing business in Belarus.

Another preferential regime is in forces in the Hi-Tech Park. "Residents of the park are exempt from all corporate taxes, including VAT, income tax, customs duties. You can become a resident of the HTP by registering a company anywhere in Belarus,” Andrei Popov said. “In 2020, new legislation was enacted to regulate the digital economy, which makes Belarus one of the most IT-friendly countries in the world. The list of support measures for HTP residents has been expanded significantly. It includes the introduction of English law institutions, the elimination of restrictions on the employment of foreign workforce and the unprecedented conditions in terms of regulation of digital currencies and tokens.”

A separate regime has been enacted for small businesses that conduct economic activities in small towns with a population of under 60,000 and in rural areas. "Here, an investor is exempt from income tax, real estate, from paying import duties and VAT," he added.

Last year, Belarus launched two new regimes in Orsha District, located near the border of the Russian Federation. "The district is a major transport hub, a convergence point of highways and railways from Europe to Russia, from Ukraine to the Baltic Sea. It is under special control. Business here is endowed with additional tax benefits," Andrei Popov said.

Orsha District also houses the special economic zone Bremino-Orsha. "It is a multimodal industrial and logistics complex, the construction of which is now proceeding at an accelerated pace. It is home to highways and railway junctions and also an airport," the consul general said.

In addition to the above-mentioned preferential regimes, a foreign investor can conclude an investment agreement with the Republic of Belarus to implement an investment project. "Such an agreement gives special preferences from the state, and also additionally formalizes the already established rights and guarantees of a foreign company. The location of a production facility is not tied to any territory," Andrei Popov summed up.



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