Industrial Park in Belarus
Industrial park «Great stone» is a territorial entity with the area of approximately 91,5 sq. km with a special legal status for the provision of comfortable conditions for doing business.
Industrial park is situated in Smolevichy district, Minsk region, in the distance of 25 km from Minsk, the capital of the country. Advantageous geographic position is stipulated by the close vicinity to Minsk National Airport and international highway M1 which extends to Moscow on the north (the distance of 700 km), and to Berlin on the south (the distance of 1000 km) as well as it has access to Klaipeda seaport in the Baltic Sea (the distance of 500 km).
According to the master plan, approved by the Government of the Republic of Belarus in June 2013, production and living areas, offices and shopping malls, financial and research centers are to be located at the territory of the Park. Master plan was developed by Belarusian and Chinese design institutes.
Any company regardless of country of capital origin can act as a resident of the industrial park.
Realizing intense competition for an investor in the world market, the state has created a favorable investment climate for industrial park residents, as guaranteed by the national law, special international agreements and obligations; has provided unprecedented benefits and preferences, has formed a separate and independent state administration body which carries out administrative end-to-end servicing on the basis of “one stop” service.
According to the special Decree of the President of the Republic of Belarus as of June 5, 2012 which was updated in 2014 to take into account the legal regime practices in the Park, residents are granted with the following preferences:
- “10+10” preferential taxation: exemption from all corporation taxes during the first 10 years since the day of registration as a Park resident and reduction of current tax rates by 50% during the subsequent 10 years;
- regime of a free customs zone that gives the right to import goods (raw stock, materials) without payment of customs duties (customs, VAT, excise duties) subject to further processing and export outside the countries of the Customs Union;
- benefits for employees of companies operating in the industrial park: rate of personal income tax is fixed and comprises only 9% that 25% less than in Belarus;
- Park residents, as well as foreign employees are exempt from compulsory insurance contributions from their wages fund. Mandatory insurance contributions are not charged from income of Park residents employees with Belarusian citizenship to a part of income in case such a part exceeds one-time amount of the average wage in the country;
- in full VAT deduction paid at acquisition of goods (works, services, property rights) used for design, building and equipping of buildings and facilities in the Park;
- exemption from the tax on dividend income accrued for the founders for 5 years from the year of gross income origin of a Park resident;
- permission to use foreign currency, securities and (or) foreign-currency payment instruments while settling accounts between the Park residents and residents of the Republic of Belarus in terms of currency transactions aimed at design and construction of the Park objects;
- exemption from recovery of agricultural and (or) forestry production losses caused by withdrawal or permanent use of agricultural land and land under forest in the Park borders; from compensatory planting and compensation payment for extraction and transfer of flora resources, compensation payment for negative impact on fauna resources and (or) its habitat;
- other preferences.
When new taxes and fees are established on the territory of the republic, obligation to pay such taxes and fees for the Park residents does not arise.
Coming to the Park an investor receives a ready transport and engineering infrastructure conducted to the selected land plot. Construction of infrastructure in the Park and its connection with investor facilities is provided by the management company.
In order to use the best practices on the territory of the Park, opportunity to design according to technical standards of foreign countries is provided if they meet the requirements for operational safety, reliability of the main design decisions, fire and explosive hazardous facilities.
An investor can get land plots for use (lease) on the territory of the Park for the period of 99 years or own the mentioned land plots. Rent and sale of land plots is carried out by the management company.
The project is developed within the framework of the China-Belarus intergovernmental cooperation and the relevant signed intergovernmental agreements. The project is based on the experience of China and Singapore in creation and development of complex economic zones: industrial park ”Great stone“ is modeled on the basis of successful project – China-Singapore Suzhou Industrial Park (PRC).
The Park management model provides for a three level management structure:
Intergovernmental Coordination Council (superior body, exercising strategic management, defining bilateral cooperation policy and functioning on the basis of international treaty);
Administration of Industrial Park (territorial body in the form of state institution (established by the Government of the Republic of Belarus) servicing investors on the basis of ”one-stop service“, representing the Park interests in state administrative bodies and local authorities, acting in accordance with charter);
Management Company (closed joint stock company, providing design and construction of the Park infrastructure, organization of municipal services, handling transactions connected to land in the Park borders, acting in accordance with charter).
Administration of Industrial Park and Management Company were established in August 2012.
Industrial Park regulatory acts are the following ones:
Law of the Republic of Belarus as of January 7, 2012 № 348-З ”On ratification of Agreement between the Government of the Republic of Belarus and the People’s Republic of China about China-Belarus Industrial Park“;
Edict of the President of the Republic of Belarus ”On the activity of China-Belarus industrial park ”Industrial park ”Great stone“ as of June 30,2014 № 326;
Resolution of the Council of Ministers of the Republic of Belarus as of August 16, 2012 № 756 ”On some issues of China-Belarus Industrial Park“, which validated the regulation on industrial park and the charter of its administration.
Nowadays design works of the first step of territory development (about 850 hectares, launching platform – 354 hectares) are being carried out. In the first half of 2015 the construction of the main transport and engineering infrastructure has started. At the very moment land plots are being chosen for potential investors for the purpose of design (“binding to the locality”) of specific objects.
Detailed information, including the regulatory acts, can be found at the official web-site of Industrial park «Great stone»