Belarus - Raiffeisen Bank International AG

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16 Unless they are wholesalers, the following tax rates have been adopted for the simplified regime in respect of commercial organizations and individual entrepreneurs domiciled/resident in agrocities, state settlements and cities with a population of not more than 50,000 in which unemployment is high, that have a socalled ‘city budget financing’ enterprise or are located in radioactive pollution zones (a list thereof has been issued by the Council of Ministers of the Republic of Belarus in consultation with the President): 5 per cent for non-VATable organizations and individual entrepreneurs; 3 per cent for VATable organizations and individual entrepreneurs. Moreover, organization with gross annual revenues of over BYR1,090 million but not more than BYR3,815 million and an average workforce of between 15 and 100 can apply the simplified regime, albeit with certain restrictions. These will depend on the type of activity and the taxation regime previously applied.
4. Privatization Roughly 75 per cent of Belarusian GDP is generated by state-owned enterprises. In other words, private companies only account for about 25 per cent. This is one of the lowest ratios of any successor state of the former Soviet Union. In particular, the country’s big industrial enterprises have remained in state hands. Privatization has mainly affected small and medium-sized enterprises (a total of 4,129 between 1991 and 2007). 47.6 per cent of the working population in Belarus work for private companies. The ‘golden share’—though not very widespread—was abolished in 2008. The government and, therefore and above all, public authorities, play an important role in the Belarusian business and industrial life. Just four stateowned enterprises were transformed into ‘open’ joint stock companies during 2006. The government is trying out various privatization schemes for agrobusinesses. During 2005, 222 loss-making agrobusinesses were put back on their feet by merging them with profitable businesses or selling them to legal entities. On the other hand, the ‘voluntary’ nationalization of businesses that had been privatized earlier began in 2006, with the government exchanging business debts arising from gas and electricity supplies for a bigger stake in their share capital. At the same time, to mitigate the adverse effects of the decline in the Belarusian economy, there are also plans to sell state shares in profitable businesses. At the start of 2007, Belarus began selling 50 per cent of the stock of gas transportation company Beltransgaz to Russia’s GASPROM in instalments (in June 2007, Belarus had sold 12.5 per cent of the shares in Beltransgaz for US$625 million). In July 2008, the Belarusian Council of Ministers approved the plan for the privatization of state-owned industrial enterprises and other businesses in the years 2008 to 2010. According to a ministerial directive, 519 state-owned enterprises are to be privatized in that period. They include Homselmash, which makes agricultural equipment, motor vehicle manufacturer Zhodzina, the Minsk tractor factory, the Vitsyaz media company and oil pipeline operator Druzhba. In an initial stage of the privatization process, the stock of the transformed companies will be sold to large institutional investors. 17
Page 1 and 2: Financial Market Report Belarus In
Page 3 and 4: The Belarusian Financial Market Imp
Page 5 and 6: The continuation of expansive polic
Page 7 and 8: The general view is that representa
Page 9 and 10: Forming a limited liability company
Page 11 and 12: 3. Taxation and Legislation VAT The
Page 13 and 14: Profit tax in a number of areas of
Page 15: Special tax regimes Unified tax on
Page 19 and 20: The arbitration clause of the Inter
Page 21 and 22: Who can apply? All natural persons
Page 23 and 24: 7. Risk Mitigation and Finance Guar
Page 25 and 26: Investment of €100 Austrian Compa
Page 27 and 28: 8. Payment and Account Services at
Page 29 and 30: 9.3. Clearing Mechanisms Settlement
Page 31 and 32: 10. Your International Business Spe
Page 33 and 34: Notes 33
Page 35 and 36: Notes 35

Belarus - Raiffeisen Bank International AG

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