PRESIDENTIAL DECREE OF THE REPUBLIC OF BELARUS

of June 8, 2015 No. 232

About implementation of the investment project

For the purpose of implementation of the investment project "Belarus: the ecological infrastructure project - the first stage" in the cities of Brest, Grodno, Vitebsk, Baranovichi, Slonim, the European Bank for Reconstruction and Development financed by the credits and Nordic Investment Bank, I decide:

1. Determine customers by reconstruction of sewage treatment plants in the cities of Brest, Grodno, Vitebsk and to construction of biogas complexes on sewage treatment plants of the cities of Baranovichi and Slonim performed within implementation of the investment project "Belarus: the ecological infrastructure project - the first stage" (further - the investment project), respectively the utility production unitary enterprise "Brestvodokanal", city unitary utility production enterprise "Grodnovodokanal", the Vitebsk regional municipal unitary enterprise of water and sewer economy of Vitebskoblvodokanal, the Baranovichi utility unitary production enterprise of water and sewer economy Vodokanal and Slonim Water Utility open joint stock company.

2. Exempt from the value added tax turnovers on realization by prime contractors on reconstruction of sewage treatment plants in the cities of Brest, Grodno, Vitebsk and to construction of biogas complexes on sewage treatment plants of the cities of Baranovichi and Slonim of goods (works, services) for the purpose of implementation of the investment project before date of its completion.

The tax amounts on value added paid by prime contractors in case of purchase of goods (works, services) used for the purpose of implementation of the investment project are deductible at prime contractors in full irrespective of the tax amounts on value added calculated from turnovers on sales of goods (works, services).

The basis for tax exemption on value added of turnovers on sales of goods (works, services) specified in part one of this Item, and implementation of the tax deductions according to the procedure, established in part two of this Item, is submission by the prime contractor to tax authority in the place of registration along with the tax declaration (calculation) for the value added tax according to the conclusions of the Brest, Grodno, Vitebsk regional executive committees containing data on the period, the name, quantity, cost of the acquired (realized) goods (works, services) with indication of tax amounts on value added, details of agreements, confirmatory:

the amounts of turnovers on realization by the prime contractor of the goods (works, services) specified in part one of this Item for the purpose of implementation of the investment project;

acquisition, payment and use by the prime contractor of the goods (works, services) specified in part two of this Item for the purpose of implementation of the investment project.

2-1. The income of the organizations called in Item 1 of this Decree, received in payment type according to the bank guarantees issued in ensuring obligation fulfillment under agreements (contracts) signed for the purpose of implementation of the investment project, the amount of penalties and penalty fee under these agreements (contracts), received since April 11, 2022 is not included non-operating incomes for the purposes of the taxation and is not considered by them in case of calculation of part of profit (income) *.

At the same time the expenses of these organizations covered at the expense of the specified means are not considered in case of determination of taxable profit and calculation of part of profit (income) *.

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* No. 637 "About procedure for calculation in the budget of part of profit of the state unitary enterprises, the national associations which are the commercial organizations and also the income from the shares (share in authorized funds) of economic societies which are in republican and utility property and about formation of the state trust budget fund of national development" is calculated according to the Presidential decree of the Republic of Belarus of December 28, 2005.

2-2. Exempt from import customs duties (taking into account the international obligations of the Republic of Belarus) the Republic of Belarus imported on the territory:

the equipment, including machines, mechanisms, and also the materials which are included in the package of delivery of the corresponding equipment, and the components (except for excisable) acquired for the purpose of implementation of the investment project at the expense of means of the credits of the European Bank for Reconstruction and Development and Nordic Investment Bank;

processing equipment, component parts and duplicate parts to it, raw materials and materials for exclusive use in the territory of the Republic of Belarus for the purpose of implementation of the investment project.

2-3. The bases and features of release from import customs duties according to Item 2-2 of this Decree are determined in appendix.

2-4. Action of Item 2 of this Decree extends to the relations following from agreements (contracts) signed for the purpose of implementation of the investment project till May 6, 2022 inclusive.

3. Determine that:

3.1. in case of development of the project documentation on reconstruction of sewage treatment plants in the cities of Brest, Grodno, Vitebsk and construction of biogas complexes on sewage treatment plants of the cities of Baranovichi and Slonim is allowed application of the construction regulations and rules similar acting in the European Union, with conducting state examinations and with adaptation of this project documentation to the construction regulations and rules existing in the Republic of Belarus;

3.2. the organizations specified in Item 1 of this Decree, and also the foreign project and (or) contract organizations attracted to implementation of the investment project based on the signed agreements, having the right to perform activities in case of implementation of the investment project without receipt of the certificates of compliance provided by the Presidential decree of the Republic of Belarus of January 14, 2014 No. 26 "About measures for enhancement of construction activities" (The national legal Internet portal of the Republic of Belarus, 17.01. 2014, 1/14755);

3.3. the income called in Item 2-1 of this Decree goes the relevant organizations for implementation of the investment project, and also for repayment of their expenses which arose because of non-execution by prime contractors, contract organizations of agreement obligations (contracts) signed for the purpose of implementation of the investment project.

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