Economy
Most of the Belarusian economy remains state-controlled, as in Soviet times. Thus, 51.2% of Belarusians are employed by state-controlled companies, 47.4% are employed by private Belarusian companies (of which 5.7% are partially foreign-owned), and 1.4% are employed by foreign companies. The country relies on imports such as oil from Russia. Important agricultural products include potatoes and cattle byproducts, including meat. As of 1994, the biggest exports from Belarus were heavy machinery (especially tractors), agricultural products, and energy products.
Historically important branches of industry include textiles and wood processing. As of the 1991 dissolution of the Soviet Union, Belarus was one of the world's most industrially developed states by percentage of gross domestic product (GDP) as well as the richest CIS state. Economically, Belarus involved itself in the CIS, Eurasian Economic Community, and Union with Russia. During the 1990s, however, industrial production plunged because of decreases in imported inputs, in investment, and in demand for exports from traditional trading partners. It took until 1996 for the gross domestic product to rise; this coincided with the government putting more emphasis on using the GDP for social welfare and state subsidies.The GDP for 2006 was US$83.1 billion in purchasing power parity (PPP) dollars (estimate), or about $8,100 per capita.
Belarus's largest trading partner is Russia, accounting for nearly half of total trade in 2006. As of 2006, the European Union is Belarus's next largest trading partner, with nearly a third of foreign trade. Belarusian exports to the EU consist mainly of agricultural and textile products, while the EU exports are primarily machinery.
Decree No. 42 of 28 January 2008
On Introducing Amendments and Additions to Some Decree of the President of the Republic of Belarus Relating to the Activity of Free Economic Zones
By his Decree No. 42, the President of the Republic of Belarus has introduced amendments and additions to some decrees dealing with the activity of free economic zones.
The Decree secures for FEZ residents the right to tax relief and guarantees to include their products to the annual list of import-substituting goods produced by FEZ residents and imported to the domestic market in case these goods are included on that list during the first year of their production. Besides, FEZ residents will enjoy privileged renting conditions (no bigger than two per cent of the cadastral value, but no less than the rates of the land tax) with respect to the land plots provided to them for pursuing investment projects and privileged taxation schemes.
The Decree comes into force on 1 April 2008.
Paying Taxes in Belarus
The table below addresses the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year in Belarus, as well as measures of administrative burden in paying taxes.
| Tax or mandatory contribution | Payments (number) | Notes on Payments | Time (hours) | Statutory tax rate | Tax base | Total tax rate (% profit) | Notes on TTR |
|---|---|---|---|---|---|---|---|
| Turnover tax | 12 | - | 3.0% | turnover | 53 | ||
| Social security contributions | 12 | 180 | 35.0% | gross salaries | 39.5 | ||
| Corporate income tax | 12 | 960 | 24.0% | taxable profit | 20.1 | ||
| Property tax | 12 | - | 1.0% | residual value of fixed assets | 2.1 | ||
| Transport tax | 12 | - | 3.0% | taxable profit (after corporate income tax) | 1.9 | ||
| Ecological tax | 12 | - | various rates | mining, fuel consumption, etc. | 0.3 | ||
| Land tax | 4 | - | BYR 1,503.1 | per square meter | 0.3 | ||
| Obligatory insurance for work accidents | 12 | - | 0.1% | gross salaries | 0.1 | ||
| Sales tax | 12 | - | 5.0% | sales (including VAT) | witheld tax | ||
| Value added tax (VAT) | 12 | 48 | 18.0% | value added | not included | ||
| Totals: | 112 | 1188 | 117.5 |
Notes
Name of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table.
The hours for VAT include all the VAT and sales taxes applicable.
The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.
Wages
The average wages in Belarus is about 400 USD per a month.
Marketing services
Nowadays, when economic situation changes impetuously, a greater importance for a company to develop successfully belongs to a continuous monitoring of external environment and elaboration of an efficient marketing policy.
Information Republican Unitary Enterprise ?National Center for Marketing and Price Study? of the Ministry of Foreign Affairs of the Republic of Belarus is one of the leading advisory companies of the country rendering comprehensive informative and marketing support and assistance for the development of Belarus? enterprises.
We have the opportunities to render marketing services on following basic trends:
- study of market situation with provision of data on the market capacity, price level, basic development trends;
- study of products/services consumer market with provision of data on consumption, consumer preferences, consumers? focus groups, and also motives of consumer behaviour (using questionnaire survey);
- competitive analysis (determination of the list of major industrial manufacturer and suppliers of similar products on discovered country?s market, description of technical features and wholesale/retail prices level analysis);
- search for enterprises manufacturing and supplying products and services on the territory of the Republic of Belarus and foreign states, description of their product range and prices;
- search for business partners and clients, providing data on business solvency of partners (provision of address and other contact information, companies? activity description, list of products manufactured, and also a number of financial indicators providing a picture of this or that company?s opportunities);
- Retail Audit ? provision of data on product range presented in retail trade and its price level, TOP-5 (TOP-10) of the leading brands,
- analysis of statistical data on the world trade, foreign trade of the Republic of Belarus and other states presented as a study of imports/exports in terms of value and in physical terms;
- assessment of the activity of sales and consumer services using the technique of ?Mystery Shopping? - anonymous quality evaluation of a company?s customer service, personnel operation, monitoring of merchandising standards compliance etc;
- stesting of a brand with determination of its recognizability and attitude towards the brand, awareness of products, associations with the brand (focus groups, depth interview, polls);
- international marketing - arrangements to study trade-sales activity of an enterprise;
- development of the recommendation to encourage sales on the Belarusian and foreign markets, improve competitiveness of a client?s products, and master production programme, merchandising and marketing policy.
National Center for Marketing and Price Study is ready to consider any of Your suggestions concerning marketing surveys trends.
In order to perform marketing surveys we have:
- a chain of affiliates in all main centers of business activity in the Republic of Belarus;
- informational and resource potential to explore both, foreign and domestic markets;
- business contacts with Belarusian and foreign state managerial establishments and specialized companies.