Communication for investors on available potential sites of high-quality fresh groundwater for indus-trial bottling on the territory of the Republic of Belarus (стр. 4 )

3.3. On stimulating manufacture and sales of goods

the Belarusian President’s Decree № 1 of 28th January 2008 on stimulating manufacture and sales of goods (works, services) specifies that according to the List approved by the Council of Ministers’ Resolution №1451 of 5 October 2008 profit organizations both with foreign investment and without such investment, set up (with the exception of reorganized enterprises) from 1 April 2008 and located and operating on the territory of the Republic of Belarus except for townships with the population of 50 thousand people are eligible not to calculate and pay profit taxes and duties into the National Fund for supporting agricultural producers, food supply and agricultural science relating to goods (works, services) of domestic production given their separate record-keeping. During five years starting from their setting up profit organizations, profit organizations with foreign investment are exempt from the obligatory sale of foreign currency within the first five years of the operation, received from transactions with legal entities-non-residents and natural persons-non-residents from the sales of own goods (works, services) including leased property. Under the customs regime of free circulation technological equipment, its component and spare parts imported to the customs area in the Republic of Belarus are exempt from import customs duties and value added tax (except for VAT imposed on export from the Russian Federation) as a contribution to the authorized fund of profit organizations with foreign investments. The integrated value of goods shall not exceed the size of non-money input specified by the constituent papers of such organizations. However, if at a stated time a profit organization with foreign investment importing goods with exemption from customs duties and value added tax has not generated the minimum capital fund stipulated by the legislation it will forfeit its rights to exemption. Import customs duties and value added tax are collected in accordance with the established procedure including surcharge starting from the day of certification on the placement of goods under the customs regime of free circulation.

3.4. List of taxes and other compulsory payments in 2009

List of taxes	Rate, object, preferences	Standard legal instruments
1. Indirect taxes, duties, allocation (included in sale prices of goods, works and services)
1.1 Value added tax (VAT)	The basic tax rate is 18%. There is a reduced rate of 10% according to the List set by the Presidential Decree (food and a range of children's goods; production of plant growing and livestock- and fish-breeding, beekeeping). The reduced rate to exports of goods is 0%. Overall sales (works, services), the turnover of property rights on the territory of the Republic of Belarus (including an overall voluntary transfer of projects), and goods brought to the Belarusian customs territory are recognized as object of taxation.	The Belarusian Tax Code of 19.12.2002 (general part); National Law № 1319-XII of 19.12.1991 «on Value added tax»
1.2 Excise taxes	Excise rates are set in total per physical unit of measurement for excisable goods (fixed (specific) rates) or in percent rates from the value of goods (ad valorem rates). Excise rates are set by the President of the Republic of Belarus. Excise taxes are paid for: - produced excisable goods; - excisable goods imported to the customs area of the Republic of Belarus and/or during sales of excisable goods on the customs area of the Republic of Belarus. The following goods (production) are excised: - technical hydrolytic alcohol; - alcohol-containing liquids except:  liquids with denaturated agents, alcohol-containing drug, medicinal and preventive, diagnostic agents and drugs approved for manufacture and/or application on the territory of the Republic of Belarus in accordance with the legally established procedure; - alcohol-containing preparations made by pharmacies on prescription including homeopathic remedies; - alcohol-containing agents and drugs for veterinary purposes approved for manufacture and /or application on the territory of the Republic of Belarus in compliance with the legally established procedure; - alcohol-containing perfume and cosmetic agents; - alcohol products (except cognac spirit and wine materials); - beer; - tobacco production; - crude oil, motor petrol, diesel oil, other fuel used as motor petrol, diesel fuel for diesel and/or carburettor (injector) engines; - microbuses and cars including converted into trucks disregarding the cubic capacity of the engine, except cars meant for maintenance and rehab measures. The list of excisable goods shall be specified by the President of the Republic of Belarus.	National Law № 321-XII of 19.12.1991 «on Excise taxes»; Presidential Decree № 636 of 13.12.2007 «On excise rates for excisable goods»
1.3 Contributions to the national fund for producers of agricultural products and foodstuffs and agrarian science	Contributions are made at the rate of 1% from sales (works, services) (from profits after paying interest, commission and other bank charges for banks and nonbank financial intermediaries except the National Bank of the Republic of Belarus; from gross income for organisations engaged in trade, procurement and catering activities; from balance sheet profit for insurance companies) irrespective of their institutional and legal form.	Belarusian Law № 450-3 of 13.11.2008 «On the National Budget for 2009»
2. Direct taxes and duties (imposed from current yields and profits)
2.1 Profit Tax	The rate is 24 %. The object is gross profit - an amount of profit from sales of goods (works, services), other values (including fixed assets), property rights and earnings from out-of-selling operations reduced by the amount of charges relating to these operations. Preferences are taxable profit reduced by the amount of profit directed at the capital investments of industrial significance and house-building as well as repayment of credits obtained and used for these purposes.	Belarusian National Law of 22.12.1991 «On revenue and profit taxes»
2.2 Revenue tax	Foreign legal entities that are not engaged in any activities in the Republic of Belarus through the permanent office and paying revenue taxes at the following rates: 15 % for dividends, royalties, licences and other gains. 10 % of profits from Debt Instruments (requirements) of any kind ; 6 % from payment for shipment, freight in relation to international transportation. Tax on earnings of foreign legal entities is withheld by legal entities and sole proprietors, paying profits. If the Republic of Belarus has not established otherwise by its international treaty the Rules of international treaties are applied.	Belarusian National Law of 22.12.1991 «On revenue and profit taxes»
2.3 Income tax	The rate is 12 %. The object of taxation is natural persons' aggregate income gained in money terms or in kind during the calendar year. Note. Income taxpayers are natural persons. Legal entities estimate and withhold an income tax from the earnings of natural persons.	National Law № 000-XII of 21.12.1991 «On income tax from natural persons»
3. Taxes and duties on the cost price of goods, works and services
3.1 Assessments to the Social Fund (contributions for social insurance)	34 % of all payments in money and/or in kind, charged in favour of employees with good reason independently of sources including royalties under civil treaties except those specified by the List of payments that do not come under obligatory insurance taxation to the Fund approved by the Government of the Republic of Belarus.	National Law № 138-XIII of 29.02.1996 «On obligatory insurance premium into the Social Fund» of the Ministry for Social Protection of the Republic of Belarus
3.3 Payments for land in the form of land tax and rental fee	Land taxes are set in the form of annual fixed payments per hectare, lease payments are established in line with the Lease agreement. The object is a plot that is in possession, use or ownership.	National Law of 18.12.1991 «On land payments»
3.4 Environmental tax	Fixed rates are set in roubles per tonne, m3, kg, standard litre, 1 thousand m2. The objects are: - volumes of used (extracted, mined) natural resources; - discharges (emissions) of pollutants released into the environment; - amounts of oil and oil products moved on the territory of the Republic of Belarus; - volumes of waste accumulated at the disposal areas; - volumes of goods put under the customs regime of elimination and losing their consumer properties as well as waste, generated as a result of eliminating goods under this regime; - volumes of produced and/or imported plastic, glass, paper and cardboard package and other goods, the loss of whose consumer properties brings to the generation of waste detrimental to the environment and which require the management of collection, treatment and/or use as well as imported goods packaged in plastic, glass, paper and cardboard package; - volumes of refined oil and oil products by enterprises engaged in oil-refining.	National Law 1335-XII of 23.12.1991 № «On tax on natural resources (environmental tax)»
4. Taxes paid at the expense of the enterprise's disposable funds
4.1 Property tax	1 % (per annum) from the cost of buildings and facilities, including incomplete projects being in the possession or ownership of the payer. 0, 1 % for natural persons including registered sole proprietors as well as cooperative garage societies, cooperative parking lots and gardening societies.	National Law № 337-XII of 23.12.1991 «On real estate tax»
4.2 acquisition tax on vehicles	It accounts to 3 % from the acquisition price without VAT. The object of taxation is the acquisition of vehicles through purchase, exchange of free transfer (donation), transfer to the authorised capital stock as a contribution as well as under finance lease (leasing).	National Law № 73-3 of 23.12.1991 «On road funds in the Republic of Belarus»
4.3 Local taxes and duties	These are set by local authorities. In 2008 the Law on the Budget of the Republic of Belarus for 2007 enables the local authorities to set 6 types of local taxes and duties: -sales tax, 5 % from proceeds; -service tax, about 5 % from the price of individual services; -special purpose charges (transport, maintenance and infrastructure charges), 3 % from disposable profits; -charges from users (parking, dogmastership); -charges from procurers, 5 % from the volume of purchases; -resort charges up to 3 %.	National Law № 617-XI1 of 20.02.1991 «On local government and self-government» National Law № 450-3 of 13.11.2008 « On the National Budget for 2009 »
5. Duties from legal entities for financial performance
5.1 Offshore duties	The rate is 15% . The objects are: - money transfer by the resident of the Republic of Belarus to the non-resident of the Republic of Belarus, registered in the offshore zone, or another person under the obligation before this non-resident or on the account opened in the offshore zone ; - fulfilment of the non-money obligation to the non-resident of the Republic of Belarus registered in the offshore zone ; - transfer of property rights and/or duties in connection with the change of liability the parties to which are a resident of the Republic of Belarus and a non-resident of the Republic of Belarus registered in the offshore zone.	Presidential Decree № 000 of 12.03.2003 «On imposing an offshore duty»
6. Special conditions for taxation
6.1 Single tax for agricultural producers	2 % of gross receipt from sales of goods (works, services), other property and profits from out-of-selling operations.	Presidential Decree № 27 of 13.07.1999 «On Single tax for agricultural producers»
6.2 Tax for economic entities applying the simplified system of taxation	Tax rates at the simplified system are: 8, 6, 5, 3 % of gross receipt from sales of goods (works, services), other property and profits from out-of-selling operations and 15 % of gross revenue.	Presidential Decree № 000of 09.03.2007.
6.3 Tax on the gambling business	A tax on the gambling business is set by the President of the Republic of Belarus at the fixed rate. The objects are playing tables, playing machines, totalizator offices, and bookmakers’ offices.	Presidential Decree № 9 of 10.01.2005 «On approval of the activities in the gambling business on the territory of the Republic of Belarus»
6.4 Tax on lottery operations	This is 8 % of earnings from lottery operations.	Presidential Decree № 19 of 23.04.1999 «On imposing a tax on the lottery operations»
6.5 Taxation in free economic zones	Residents in free economic zones within the special legal regime pay a restricted list of taxes and pursuant to Decree № 000 of 09.06.2005 enjoy profit preferences, VAT, property, acquisition of vehicles, contributions to the Fund for agricultural producers, foodstuffs and agrarian science.	Presidential Decree № 000 of 09.06.2005 «On activities in free economic zones on the territory of the Republic of Belarus»
6.6 Taxation of residents of the High-tech Park	residents of the High-tech Park enjoy significant preferences which allows not paying all basic taxes (VAT, profit tax, so-called circulating duties, etc.) owning to Decree № 12 of 22.	Presidential Decree № 12 of 22.09.2005 «On the High-tech Park»
6.7 Taxation of commercial organizations located and operating on the territory of the Republic of Belarus, except human settlements (by list)	within the period of five years after their set-up commercial organizations with foreign investments including (except for reorganized ones) set up starting with 1 April 2008 and located and operating on the territory of the Republic of Belarus except for human settlements (by list) with a population of over 50 thousand people are exempt from a tax on profit and contributions to the National Fund for agricultural producers, foodstuffs regarding to sales of goods (works, services) of own production, property tax, acquisition tax on vehicles, local taxes and charges, compulsory sales of foreign currency through transactions with non-residents from sales of goods (works, services) of own production including leasehold property.	Presidential Decree № 1 of 28.«On stimulating production and selling of goods (works, services)»
6.8 Taxation of organizations and sole proprieties in rural areas	organizations and sole proprietors in rural areas producing goods (works, services) are exempt from a tax on profit (for organizations) and income tax (for sole proprietors) in view of profits and proceeds from sales of goods (works, services) produced (exercised, provided) in rural areas as well as real estate tax from the price of the projects located in rural areas.	Presidential Decree № 9 of 20.«On some issues of regulating entrepreneurial activities in rural human settlements»

3.5. On some peculiarities of the delivery of drinking water for export