The Belarus Ministry of Taxes and Duties issued guidance on the tax incentives for implementing investment projects in Belarus.
These tax incentives will be granted based on investment agreements and special investment arrangements, specifically for projects designated as preferential investment. The main category of investment projects involves those executed by agreements established with the Belarus government.
This follows after Belarus amended the Law on Investments, which went into force on 11 July 2024. The amendments were enacted through Law No. 350-Z on 8 January, 2024, which modifies Law No. 53-Z, established on 12 July, 2013, concerning investments.
The main provisions of tax incentives are as follows:
- A complete deduction of VAT presented upon the acquisition or import of goods, works, or services into Belarus, and property rights used for the construction and equipping of facilities provided for by the investment agreement;
- An exemption from land tax for land plots in state or private ownership and rent for land plots in state ownership provided for the construction of facilities provided for by the investment agreement;
- An exemption from income tax on profits from the sale of goods of own production, produced on constructed property under an investment deal for five calendar years from the day following the day of termination of the investment agreement in connection with its execution;
- An exemption from state duty for the issuance of special permits for the right to engage in labor activity in the Republic of Belarus;
- A guarantee against unfavourable changes in tax legislation, establishing a moratorium on increasing tax rates and introducing new taxes and fees for the period of validity of the investment agreement, but not more than five years calculated in calendar years from the year on which the investment agreement went into force; and,
- An exemption of import customs duties and VAT on technological equipment, components, and spare parts imported for use in Belarus to implement an investment project within the framework of an investment agreement.
The provisions of the previous investment legislation will continue to apply to investment agreements made before 11 July, 2024.
Earlier, Belarus published Resolution No. 408 dated June 5, 2024 in the Official Gazette, which introduces VAT exemptions for the import of specific technical equipment, spare parts, and related components.
