October 13, 2003

The Decision of the Ministry on Taxes and Dues of the Republic of Belarus of September 19, 2003 No. 86 approve the Instruction on Peculiarities of Calculation and Payment of Profit Tax by Commercial Organizations with Foreign Investments. The Instruction regulates such peculiarities and states that commercial organizations with foreign investments calculate and pay the profit tax in accordance with legislation of the Republic of Belarus, if otherwise is not provided by legislative acts of the Republic of Belarus. For the purposes of the Instruction the commercial organizations with foreign investments are legal persons of the Republic of Belarus is statutory fund of which foreign investments comprise not less than 20 000 US dollars, and also the foreign investments of which comprise 100 percent. According to the Instruction the balance profit of the commercial organizations with foreign investments is reduced to the sum of deduction to the reserve (insurance) fund at amounts established in statutory documents but not more than 25 percent of actually formed statutory fund. The sum reducing the balance profit of commercial organization with foreign investments is privileged and payment and calculation of profit tax of it is not conducted. The total privileged profit sum at the course of activity of the commercial organization for all account period when the privilege has been applied cannot exceed the sum of deductions to reserve fund and also cannot exceed 25 percent of actually formed statutory fund.

The Decision of the Council of Ministers of the Republic of Belarus of October 3, 2003 No. 1258 On Conducting an Obligatory Insurance of Civil Liability of Vehicles Owners establishes that from January 1, 2004 the obligatory insurance of the civil liability on the territory of the Republic of Belarus will be carried out by insurance organizations, the share of the state in which is more than 50 percent.

The Decree of the President of the Republic of Belarus of October 8, 2003 No. 21 brings in alternations and amendments to the Decree of the President of the Republic of Belarus of March 16, 1999 No. 11 that establishes the Regulation on State Registration and Liquidation of Economic Entities. The amendments and alternations concern the possibility to create and register the chambers of commerce and industry.