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Belarus Publishes Decree on Improving Special Regime for the Great Stone Industrial Park — Orbitax Tax News & Alerts

Belarus has published Presidential Decree No. 166 of 12 May in the Official Gazette of 25 May 2016. The Decree provides for the improvement of the special regime for the Belarus-China "Great Stone" Industrial Park, including measures to simplify park administration and to expand the tax incentives for companies resident in the park. The tax incentive changes include:

  • A change in the effective start date for the 10-year corporate tax exemption from the date a company is registered to the tax period when a company first generates a gross profit from the sale of goods, works, or services;
  • An extension of the 50% corporate tax exemption from a 10-year period following the end of the full exemption period to a permanent exemption; and
  • A value added tax exemption for goods produced in the newly introduced free trade zone, for the sale and lease of real estate between residents of the park, and for services acquired from non-residents.

The decree also expands the eligible activity types for investment and reduces the minimum investment amount to USD 500,000 for research and development projects. The minimum investment is also reduced to USD 500,000 for other projects, provided that the investment amount is made within three years. Otherwise, minimum investment is USD 5 million.

The Great Stone Industrial Park is being jointly developed under the framework of the China-Belarus intergovernmental cooperation with a focus on high-tech and export-oriented production, including in the areas of electronics and telecommunications, pharmaceuticals, biotechnology, engineering, new materials, integrated logistics, e-commerce related to the storage and handling of large amounts of data, and other research and development and technological works.