Economic Overview
Financial recuperation grabbed hold in 2017 and the primary long periods of 2018. In 2017 GDP developed by 2.4 percent (a bounce back from the constriction of 2.5 percent in 2016). On the supply side, outer interest improved, driven by solid development in industry (6.1 percent) and agribusiness (5.6 percent).
In 2018, the extension proceeded: GDP development quickened to 5.6 percent y/y in January-February 2018, with the fundamental commitments from industry (2.7 rate focuses) and local exchange (0.9 percent) because of solid local interest development.
The medium-term monetary standpoint stays testing because of high remote trade financing needs and residential basic bottlenecks. While moderate recuperation will keep on being upheld by bit by bit improving local and outer interest conditions, financial development rates are probably not going to surpass 3 percent because of supply-side limitations. Low development rates will prompt enlarging of salary per capita holes among Belarus and its neighbors, as the economies of the Baltic States and Poland are anticipated to develop all things considered over 3 percent for every year. Unassuming development would ease balance-of-installment weights, keeping up the present record deficiency somewhere in the range of 2 and 3 percent of GDP.
The effect of lower loan costs is restricted, as exceedingly obliged ventures are unfit to contribute more, while high dollarization decreases further the mobility of fiscal arrangement.
Upgrades in capital assignment and a methodical loosening up of substantial outside liabilities are required for a progressively supportable development direction. In the course of the most recent decades Belarus has figured out how to collect vast resources of physical and human capital. Be that as it may, the gathering of physical capital has harmonized with a decay of the nation’s net remote resource position.
Main sectors in Belarus
The priority sectors of the Belarusian economy include incorporate apparatus and metal working, oil refining, synthetic and petrochemical industry, electric power, customer products and nourishment preparing, timber and carpentry industry. The job of administrations is ending up progressively bigger. Exchange, administrations, and the mechanical part are the fundamental wellsprings of the nation’s financial improvement. In 2015, the modern creation added up to 41.3 percent of GDP, horticulture to 9.3 percent, and administrations to 49.4 percent of GDP.
A lot of fares in GDP is 59.4 percent, in excess of a half of sent out merchandise being modern items. Our significant fares are apparatus, transport vehicles, synthetic concoctions, petrochemical items, elastic, filaments, mineral items, essential metals, composts, sustenance, horticultural crude materials, and IT and transport administrations (National Statistics Committee, 2015). Crude materials remain the principle import, most originating from the Russian Federation. Likewise, Belarus’ imports incorporate hardware, gear, mineral items, metal items, and foodstuffs.
For quite a few years, Belarus is one of the world’s biggest makers. The nation’s offer on the planet generation of the accompanying items includes: 17% of consolidate reapers, 6% of tractors, 6.4% of flax fiber, 1.6% of potatoes, and up to 30% of mine dump trucks. Creating 1.4% of world milk volume, Belarus holds about 5% in world fares of dairy items and about 11% of spread.
Belarus exchanges with in excess of 190 nations, its real exchange accomplices being Russia (over 48% of outside exchange volume), Ukraine, China, Great Britain, Germany, Poland, the Netherlands, Lithuania, Italy, and Latvia. The Government takes measures to improve the intensity of Belarusian merchandise and accomplish their extension toward the Western market.
Belarusian ventures that structure the center of the Belarusian business incorporate mechanical building mammoths, first class substance undertakings, imaginative IT organizations, and makers of garments, footwear, and foodstuffs. Among Belarus’ most dominant plants are the Minsk Automobile Plant (MAZ), the Minsk Tractor Plant (MTZ), Belarusian Steel Works (BMZ), Atlant (cooler and fridge plant), Belaruskali (the second biggest maker of potassium manures on the planet), Belcommunmash (electric transport producer), and oil refineries in Novopolotsk and Mozyr.
Belarusian agribusiness has some expertise in creature cultivating (milk and meat items), flax, potato, grain and vegetable yields, sugar beets, assaults and feed crops. Since autonomy, accentuation has been laid on grain creation enabling Belarus to accomplish self– adequacy and diminish dependence on costly grain imports. The greater part of the land is still openly or all things considered claimed. Albeit sponsored by the Government, the agrarian division still needs generous capital speculation and working capital financing.
The IT segment is progressively turning into a basic component in Belarus’ economy. In the course of recent years, its fares administrations have expanded in excess of multiple times. In 2015, it came to USD $818 million, denoting a 18% expansion from 2014. Peruse progressively about the Belarusian IT industry.
Taxes in Belarus
Corporate Tax
All organisations which are charge inhabitant in Belarus are obligated for assessment on benefits got from the clearance of items, merchandise, administrations and different resources, in addition to different earnings, at 18% (since 2012).
There are likewise neighbourhood assessments of around 3%, making a total rate of benefits expense of 26.3%. Remote organizations not enrolled for expense purposes in Belarus are liable to 12% with-holding charge.
There is no different capital increases charge and to empower business people the legislature has made a powerful duty rate for littler organizations of 8%. Up to 5% of expense paid on benefits can likewise be diminished by off-setting capital speculation.
Belarus likewise has twofold tax assessment concurrences with more than 60 nations including the UK, USA, all CIS States and most EU individuals.
Customs Tax
Extract obligation is likewise imposed month to month on a scope of products fabricated in Belarus or brought into the nation. This for the most part incorporates liquor inferred products, tobacco, motor oil, petroleum, diesel fuel, and vehicles.
There is a far reaching import substitution program in an offer to create home-developed organizations and diminish Belarus’ dependence on imports. Firms delivering things on the substitution list are qualified for a similar tax cuts as exporters.
Merchandise made for fare are absolved from extract charge, anyway obligation is connected to timber, oil, minerals, and nourishment stuffs traded from Belarus to nations other than Russia, Kazakhstan, Kyrgyzstan and Tajikistan (the Eurasian Economic Community).
The Customs Code of the Customs Union of Belarus, Russia and Kazakhstan came into power on 1 July 2010. It manages traditions techniques of traditions distribution centers and free traditions zones in accordance with independent universal understandings.
Personal Tax
Belarus has a level rate of 12% for its expense occupants and for the Belarusian salary of non-inhabitants. There is no capital additions charge, stamp obligation and legacy charge for people.
To energize Belarus’ IT segment and lift its esteem included business populace, the administration has made the rate lower (9%) for representatives of organizations in the High Technologies Park. Profits and different business salary gotten by outside financial specialists are exhausted at 12%.
Investing in Belarus
Today, Belarus is a country open to foreign investments and offers favourable business conditions.
The numerous advantages for speculators include:
- key geological area
- direct access to ЕЕU markets (Belarus, Russia, Kazakhstan, Armenia, Kyrgyzstan)
- a well-created foundation in Belarus: transport, coordinations and interchanges
- dynamic speculation enactment in Belarus
- certifications of financial specialists rights and venture insurance in Belarus
- an alluring venture atmosphere and positive tax assessment arrangements
- government support for financial specialists as ensures, advantages and inclinations
- privatization openings
- 6 free financial zones
- very talented workforce
- great personal satisfaction
Every one of the parts of the Belarus economy are available to outside ventures, aside from the generation of weapons, opiates and dangerous substances.
Foreign investors may set up companies in Belarus with any amount of foreign investments in any legal form, as well as their branches and representative offices. Government-guaranteed preferences and privileges promote mutually beneficial cooperation. Special legal regimes are available to investors.
Need regions and divisions for outside direct interests in Belarus are:
- pharmaceutical industry
- biotechnology industry
- nanotechnologies and nanomaterials
- high innovations in the business
- new materials
- petrochemical and concoction ventures
- mechanical designing industry and creation of machines and hardware
- transport and transportation framework
- structural designing
- generation of development materials
- agribusiness
- nourishment industry
- data and correspondence innovations
- the travel industry