Special legal climate
Special legal regime of tax regulation
Special regime of taxation within the borders of FEZ Gomel-Raton is liberal.
In total a FEZ resident pays nearly 30% of taxes less than the amount of taxes established for the entrepreneurial entites of Belarus.
Specil legal regime is not applied to:
public catering, gambling business, trade and procurement activity, stock transactions;
products (works, services) sale, production (execution, rendering) of which is carried out using fixed assets being in property right of a FEZ resident and/or using labour of the employees of a FEZ resident outside FEZ territory;
banks, nonbanking credit/financial and insurance organizations activity;
products sale which cannot be placed under the customs regulations of a free customs zone as well as separate production types which cannot be placed within free customs zones due to the restrictions or bans established by the government of the Republic of Belarus by agreement with the President of the Republic of Belarus.
The liberality of tax regulation in FEZ consists in:
- the establishment of reduced tax rates
- the limited list of the taxes and dues being collected
- the possibility of exemption from profit tax for the period of 5 years, namely:
- exemption from profit tax from products(works, services) of own manufacture sale for the period of 5 years from the moment of its declaration including the 1st profitable year;
- profit amount subject to taxation is reduced by the amount actually invested by FEZ resident into the Republic of Belarus.
FEZ residents are not exempted from real-estate tax on the fixed assets located outside FEZ territories.
Comparative Description of Taxation for Legal Persons in the Republic of Belarus
|
Tax, Duty Type
|
Republic of Belarus in general
|
Free Economic Zone (FEZ) Residents
|
| 1. Value Added Tax |
18% |
VAT is calculated by the rate of 18% and is paid in a 50% amount of the sum subject to payment provided that the goods of own manufacture sold on the territory of the Republic of Belarus are produced on FEZ territory and are import substituting ones.
In other cases VAT is paid by the rate of 18%. |
| 2. Income and Profit Tax |
24% |
Profit earned from the sale of products and services of own manufacture covered by special legal regulations is exempted from taxation for the period of 5 years from the date of profit declaration;
When a 5-year period is over the profit earned from the sale of products and services of own manufacture covered by special legal regulations is subject to taxation by the rate reduced by 50% of the rate established by tax legislation that is by 12% rate. |
| 3. Excises |
By tax rates for every type of excised products or goods |
The same |
| 4. Land Tax (or Land Rent Payment) |
By tax rates depending on the quality and location of a land plot. Land tax rate in Gomel makes up BRB14 772 150 per 1ha taking into account an increase ratio 1,5. |
Rent payment rates for land plots is defined proceeding from the cadastre cost of these plots with the ration 0,02 but not less than land tax rates of corresponding land category.
The rate of land rent payment, calculated at the date of rent contract signing can not be changed during the term of rent contract.
|
| 5. Ecological Tax |
By tax rates depending on volumes of
- pollutant emissions;
- resource outputs |
The same |
| 6. Real Estate Tax |
1,3% of depreciated cost of fixed production and non-production assets |
FEZ residents are exempted from real estate tax by fixed assets located on FEZ territory and motor vehicles regardless of fixed assets or vehicles purpose.
|
| 7. Deductions to Population Social Protection Fund |
35%of pay-roll fund |
The same |
| 8. Motor Vehicles Purchase Tax |
5% of motor vehicle purchase price (VAT excluded). |
Motor vehicles purchase tax is not paid no matter what the reason of purchase is. |
| 9. Offshore Fee |
15% of the amount transferred to non-residents of the Republic of Belarus registered in offshore zones or transferred to the accounts opened in these zones. |
The same |
| 10. Special Purpose Charge on City (Region) Infrastructure Maintenance and Development |
1% of profit left at the disposal of an enterprise after its taxation. |
The same, but preferential profit from products, works, services of own manufacture sale is also deducted from balance profit. |
| 11. Special Purpose Charge on Public Transport Renovation and Repair |
2% of profit left at the disposal of an enterprise after its taxation. |
The same, but preferential profit from products, works, services of own manufacture sale is also deducted from balance profit. |
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