MINSK, 11 January (BelTA) – The Economy Ministry of Belarus has commented on the revised edition of the law “On investments,” BelTA has learned.
The updated law on investments spells out rules for running investment projects in priority areas (to be determined by the Council of Ministers) both within the framework of investment agreements and as preferential investment projects. The document also provides for supporting investors through budgetary funds.
Additional incentives will be provided to investors working under investment agreements. They will be entitled to an expanded package of benefits and preferences. They will get guarantees that will reduce risks for bona fide investors and businesses.
The updated institution of investment agreements offers investors a guarantee against unfavorable changes in tax legislation (the so-called stabilization clause) that will be in effect for five years after an investment agreement enters into force. The revised law provides for partial reimbursement of the costs related to building trunk infrastructure and distribution infrastructure facilities in certain regions (in need of additional support). The law updates the existing benefits under Decree No. 10 “On the creation of additional conditions for investment in the Republic of Belarus”, and establishes new ones, including income tax cuts, as well as cuts in the field of architectural and construction activities, and land matters.
In addition to that, the document provides for a possibility to conclude special investment agreements modelled on special investment contracts used in the Russian Federation.
A special investment agreement will be applicable when an investor or their company plans to launch production of in-demand improved products in Belarus. In turn, Belarus undertakes to buy part of such products through public procurement using the single-source procurement procedure. Thus, in addition to a number of benefits, an investor receives certain guarantees for the sale of part of their products. The special investment agreement is seen as an efficient mechanism to promote import substitution and improve the country’s technological security.
The updated investment law also seeks to increase the investment appeal of the regions. Thus, no agreement will be needed to implement preferential investment projects in the reigons; it will be enough to have an investment project included in the list of preferential investment projects by local authorities. Preferential investment projects will go with updated benefits and preferences that are envisaged under Decree No. 10.
Support from the budget will be provided to investors - legal entities of Belarus who run investment projects in priority areas. The conditions (criteria) for applying for such support will be determined by the Council of Ministers.
The updated investment law will invalidate Decree No. 10 after coming into force. Previously concluded investment agreements will continue to be implemented on the conditions determined before the entry into force of Article 4 of the law.
