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| Lukashenko expands preferences for businesses in small towns, villages
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Belarusian President Alexander Lukashenko has provided additional preferences to businesses working in small towns and villages by his decree #4. Amendments have been made to decrees #9 dated December 20, 007 and #1 dated January 28, 2008, the press service of the president reported.
The document abolishes the necessity to compensate for all tax preferences if the business is liquidated or reorganized during the period of validity of preferences or three years after it.
The decree extends the period of validity of profit tax preferences to seven years from five and allows businesses that enjoy the preferences provided by decree #1 to use tax breaks upon merger with another business.
The companies with foreign investments that make use of provisions stipulated in decree #1 have been exempted from mandatory confirmation of the accuracy of equity formation and compensation for tax breaks in case of withdrawal from business.
Newly created Belarusian businesses are entitled to preferential imports of commodities (tax- and duty-free) as equity contributions.
Furthermore, preferences provided by decree #9 will be applied to businesses engaged in production and retail and intermediary activities provided they have separate accounting.
Preferential customs duties and the value-added tax will be applied to all commodities classified as production equipment, which will spare importers the need to have their imports recognized as production equipment by local administrations.
Decree #1 stipulates preferences for organizations working in small towns, and Decree #9 regulates preferences for organizations working in rural settlements. The documents provide preferential profit taxation, real property taxation, import duty preferences, etc.
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