Hi-Tech Park Belarus




Belarus High Technologies Park

On September 22, 2005 the President of Belarus signed the Decree ¡°On the High-Tech Park¡±. The Decree is aimed at boosting the competitive power of the national new and high technology-based sectors, developing modern technologies and expanding their exports, as well as attracting to the sector both Belarusian and foreign technologies.

Mikhail Myasnikovich
The Chairman of the Presidium of the National Academy of Sciences of Belarus
The Chair of the Supervisory Council of High Technologies Park

"The High Technologies Park is so strengthen Belarusian standing in the IT sphere and boost exports of software, advance the e-society development in Belarus. Further the park scope will be extended to other perspective future-oriented industries: biotechnologies, nanotechnologies, green integrated technologies, etc."

Valery Tsepkalo
The Director of the Administration of High Technologies Park

"The intellectual potential of Belarus high tech specialists is immense. High Technologies Park aims at creating a unique business environment where economic and legal conditions for the high tech industry development will surpass anything available in other countries. The park residents and investors will benefit from unprecedented economic incentives."



Benefits in High Technologies Park



Residents of High Technologies Park are exempt from the following dues and taxes:

  • Dues and taxes to the state budget and non-budgetary funds;
  • Income tax;
  • Value added tax;
  • Customs dues and VAT when the residents import hardware, firmware necessary for their activities in the High Technologies Park;
  • For foreign legal entities without a permanent Belarusian representative office the rate of income tax on the dividends, debts, royalty and licenses paid by the residents of High Technologies Park is 5% in case no other, more beneficial privileges are stipulated by international agreements of the Republic of Belarus;
  • Individual income tax for High Technologies Park residents' employees has a fixed rate of 9% from the salary received.

At its first stage, High Technologies Park will host legal entities or individual entrepreneurs engaged in:

  • Analysis, design and software development of information systems and technologies (includes design, development, delivery and documentation of custom software or off-the-shelf software; design, development and implementation
    of enterprise information system; consulting, training and technical support services for the software developed by High Technologies Park residents)
  • Software-based data processing
  • Fundamental and applied R&D, experimental R&D in the field of natural and technical sciences (scientific, research, experimental and engineering works).

As the next stage the Belarusian government considers adding medical & biotechnologies, nanotechnologies, green integrated technologies as well as other future-oriented activities to the high priority areas of the High Technologies Park activities.
High Technologies Park is keenly interested in R&D projects in various science-intensive areas.

Non-Residence Opportunities

Non-residents of High Technologies Park can also take advantage of the benefits adopted for High Technologies Park residents. For this non- residents need to register their business project in High Technologies Park. In case the goals of the business project comply with the park priority activities, the non-resident can benefit from the above-mentioned preferences while the business project is implemented.



Benefits for Construction Within High Technologies Park Territory

Investors who intend to invest in the High Technologies Park infrastructure and construction of buildings will be exempt from:

  • Land taxes for the period of construction;
  • Real estate tax;
  • Payments for shared participation in the city infrastructure development;
  • Compensation to the city administration for the available engineering and social infrastructure.

The increasing coefficient for the land tax levied in Minsk will not be applied to the buildings constructed within High Technologies Park.



Tax exemptions for residents of the High-Technologies Park


On September 22, 2005 the President of Belarus signed the Decree ¡°On the High-Tech Park¡±. The Decree is aimed at boosting the competitive power of the national new and high technology-based sectors, developing modern technologies and expanding their exports, as well as attracting to the sector both Belarusian and foreign technologies.

The High-Tech Park will occupy 500 000 sq. m. and features a tailor-made legal regime which shall remain in effect for 15 years after the Decree comes into force.
Both legal entities and individual entrepreneurs can become High-Tech Park residents if they provide the Park Administration with the necessary registration documents and if they plan to perform business operations related to analysis, design and development of IT-systems software and data processing activities.

The Decree stipulates that Park residents shall be exempt from taxes, levies and other payments to the Republic¡¯s budget and special-purpose budgetary and non- budgetary funds; from profits tax and VAT as well as real estate tax. Instead, a
single payment is introduced, set at 1% of revenue, an amount which will be transferred to the Park Administration account.

The new Decree provides individuals with certain tax incentives. Income received by individuals from Park residents, as well as income received by individual entrepreneurs, shall be taxed at 9% and excluded from the aggregate annual income of the individual. High-Tech Park residents shall be exempt from the payment levied for inviting Belarusian citizens from other cities to work and
reside in Minsk. Currently the payment for employing a non-Minsk resident is substantial, amounting to 500 statutory base-units (approximately USD 5,900).
Certain goods imported into the Republic of Belarus for the purposes of activities indicated in the Decree will also be exempt from customs duties and VAT imposed by customs bodies. The list of imports is to be approved by the President
of Belarus.

It should be noted that the income tax rate for foreign legal entities (with no permanent establishment for business operations on the territory of Belarus) on dividends, interest, royalties if such income is paid by a Park resident; will be 5%, unless a more preferential tax treatment is provided by an international
treaty of Belarus. Park residents shall not be liable for the offshore fee when paying dividends to their parent companies. Under the general tax regime the offshore fee is payable if monetary funds have been transferred by a tax resident of the Republic of Belarus to a non-resident registered in an off-shore jurisdiction, or to off-shore bank accounts etc. Currently the offshore fee is calculated at the rate of 15% of the transferred amount.

In addition, foreign currency received by Park residents for sales of their goods, works, services and intellectual property rights shall not be subject to obligatory sale.

Up to now, Belarusian companies operating in the high-tech sector have had difficulties in sustaining competitiveness as the high level of costs has checked development and growth in the sector. This Park of new technologies combined with the tax exemptions provided for in the Decree, will facilitate investment in and development of the new technologies sector in the Republic of Belarus.

Viktor Strachuk

Viktor Strachuk is a Manager of the Tax and Legal Department in Deloitte¡¯s Minsk office. He has extensive experience in tax and legal due diligence on potential acquisition targets in the Republic of Belarus, in creating companies with foreign investment in Belarus and in appealing against the decisions of tax authorities both judicially and extra-judicially. Currently he focuses on the international tax planning and structuring of inbound investments into Belarus. Viktor qualified as a lawyer in Belarus and is an active member of the International Fiscal Association.





High Technologies Park. Location.

High Technologies Park is located in the Academic City of the National Academy of Sciences of the Republic of Belarus and occupies the territory of 50 hectares. The territory of the Academic City is in close proximity of the Minsk main highway and the city ring road, which makes the site easily accessible via public and private transport.