EU -> Belarus -> Russia, Kazakhstan, Kyrgyzstan, Armenia 10 mln EU customers of Belarus Belarus 180 mln Russia Kazakhstan Armenia Kyrgyzstan customers of EEU
Transport and logistics infrastructure Total stretch of roads in use: highways 75 000 km railway lines 5 490 km logistic centers 20
“Why Belarus? Two words – SMART PEOPLE. Belarus has a reputation of a country with a high scientific potential” - Cliff Reeves, General Manager of Microsoft New Business-Models Development
Average nominal salary, USD RU; 520 KZ; 390 BY; 300
Average nominal salary, USD CH; 740 RU; 520 KZ; 390 BY; 300
Average nominal salary, USD CH; 740 RU; 520 KZ; 390 BY; 300
Doing Business 2016 Ease of Doing Business Index BELARUS 44th th Italy 45th Russia 51st Turkey 55th Ukraine 83d among the most reformative China 84th countries
Doing Business 2016 Trading Across Borders Rank BELARUS 25th Turkey 62nd China 96th 122th Kazakhstan 94 57 Protecting minority investors rank
«Paying Taxes» DB Indicator composition & comparison with Europe & Central Asia Region & OECD Republic of Europe & Central Indicator OECD Belarus Asia Payments 7 19,2 11,1 (number per year) Time 176 232,7 176,6 (hours per year ) Total Tax Rate 51,8 34,8 41,2 (% of profit)
Countries with comparable level of Total Tax Rate (% of profit) Total Tax Rate Payments Time Country Paying Taxes Rank (% of profit) (number per (hours s per per yea ear ) year) Spain 60 50,0 9,0 158 Belarus 63 51,8 7 176 Austria 74 51,7 12,0 166 Ukraine 107 52,2 5 350 Japan 121 51,3 14 330 Czech Republic 122 50,4 8,0 405 Jamaica 146 51,3 37,0 358 Cote d'Ivoire 176 51,9 63,0 270
Tax System of the Republic of Belarus • VAT Corporate Income Tax • Taxes paid in connection with Land Tax • activity implementation Real Estate Tax • Social Contributions • • Excises Ecological Tax Taxes paid at emergence of • • Custom Duties specific objects of taxation Other taxes, charges, duties •
The Influence of Profit Tax & VAT on the Investment Climate Corporate Income Tax VAT (8,2 % (8 % of of Genera General l Gov Governm rnment Bala Balanc nce) (27,3 % General Government Balance) 1. The level of rate of 18% - the lowest among the 1. The term of refund of “input” VAT accounts 1 countries of the Eurasian Economic Union and the month and it is the shortest among the Eurasian majority of Europe countries Economic Union Countries 2. Tax exemption while producing innovative and high- 2. VAT exemption of socially significant products and tech products services (basic set of products, medicines, children’s goods, medical services) 3. Possibility of investment deductions (profit on 3. Full VAT exemption of the imported manufacturing development doesn’t liable to tax ) equipment 4. Possibility to transfer losses of past years on future profits
Preferred Tax System
Monetary Targeting Monetary policy target for 2016: limit inflation to 12% (December 2016 to December 2015) . Intermediate goal: limit average broad money growth by 16 - 20 % (December 2016 to December 2015). Operational indicator: change in the ruble monetary base.
Exchange Rate Policy - a more flexible exchange rate policy since January 2015. - interventions in order to reduce sharp daily exchange rate volatility of the national currency only - further strengthening of the exchange rate flexibility by implementing a mechanism of currency trade in the form of continuous double auction
Monetary Policy The volume of international reserves is maintained at a sufficient level needed, among others, to make timely repayment of Government’s and the National Bank’s foreign and domestic debts In 2014 the net repaid amount totaled USD 4 billion; in 2015 – USD 3.6 billion Currently, foreign reserves to imports ratio is estimated at a level of 1.5 months
Dynamics of Banks’ Claims and Term Deposits
Main Characteristics of the Belarusian Banking Sector Number of 26 operating banks 26 banks (5 banks with 100% banks: (as of April 01,2016), foreign capital share) including: USD32.2 billion Assets: 72.7% of GDP 5 banks controlled by the state USD USD3.9 billion Regulatory 16 banks controlled by foreign capital : 8.9% of GDP capital
Belarusian Banks’ Sustainability The regulatory capital requirements:
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