Changes in the sphere of information and communication technologies
Revera Consulting Group reminds that on the 3th of November, 2014 the adopted Decree of the President of the Republic of Belarus № 4 "On making amendments and additions to the Decree of the President of the Republic of Belarus as of 22.09.2005 № 12" (hereinafter - the Decree № 4) introduced amendments and additions to the Regulation on the High Tech Park (hereinafter - the Regulation).The amendments and additions are aimed at the further development of the sphere of information and communication technologies in the Republic of Belarus, motivation to create and commercialize scientific and technological developments by residents of the High Tech Park.
Analysis of the main changes
Activities of HTP residents
The list of types of activities which may be carried out by HTP residents is greatly expanded. Thus, the permitted types of activities are supplemented with thirteen new items covering a wide range of services which accompany software development:
1. Development or separate stages of development (research, designing (construction), testing, engineering tests) of materials, technologies, devices and systems of micro-, opto- and nanoelectronics, microelectromechanics and implementation of the results of such the researches, as well as realization of developed by the resident of the High Tech Park materials, technologies, devices and systems of micro-, opto- and nanoelectronics, microelectromechanics and compatible with it firmware;
2. Development or separate stages of development (research, designing (construction), testing, engineering tests) of technologies, devices and systems of mechatronics, embedded systems, firmware, software and hardware complexes, components and computer equipment and implementation of the results of such the researches with provision of services to master them in production or without provision of these services;
3. Development or separate stages of development (research, designing (construction), testing, engineering tests) of equipment data transmission systems, technologies, devices and systems of radio detection and location, radio navigation, radio communication, radio control, radio-frequency identification and implementation of the results of such the researches with provision of services to master them in production or without provision of these services;
4. Activities on technical information protection, including cryptographical methods, including the use of digital signatures.
5. Services of data processing centers established by HTP residents.
6. Consulting of companies on issues of business activities and management in order to increase the efficiency thereof, along with provision of services associated with complex control of development and implementation of integrated information systems and technologies;
7. Performance of certain works (work stages) being a part of the software development process (software tool development process), support, maintenance of user’s software (software tools) or own software (software tools);
8. Creation of data bases by HTP resident in the process of development of data systems and software by such resident, preparation of records for these data bases in the agreed format, granting access to these data bases, support, maintenance thereof;
9. Analysis of informational needs of legal entities and individual entrepreneurs in the Republic of Belarus (system analysis, business analysis) and consulting on issues of using information technologies for the purpose of innovation (re-engineering) of business processes with development of technical requirements for data systems and software;
10. Audit of data systems and software during the process of development, introduction and operation thereof as for compliance with technical requirements and (or) users’ informational needs under orders of legal entities and individual entrepreneurs of the Republic of Belarus;
11. Provision of services associated with data transmission, including with access to the pan-European research and education network GEANT, to organizations owning research and education networks in the Republic of Belarus, as well as research institutions and educational organizations by state research institutions according to the procedure specified by the law;
12. Provision of services associated with system and technical maintenance of computer equipment and local area networks of state information systems;
13. Services associated with introduction, maintenance of corporate information systems or with execution of certain stages of their introduction.
Activities on technical information protection, including cryptographical methods, including the use of digital signatures are:
1. Development, production, implementation, installation, adjustment, maintenance (or selection from the specified list of works) of hardware, software tools for information processing in the secured environment, hardware, software, hardware and software tools for information protection and its protection control, cryptographical data protection tools (or selection from the specified list of tools);
2. Testing, special examination (or selection from the specified list of works) of hardware, software tools for information processing, hardware, software, hardware and software tools for information protection and its protection control, cryptographical data protection tools (or selection from the specified list of tools) as for information protection requirements;
3. Designing, creation (or selection from the specified list of works) of information protection systems for data systems;
4. Attestation of informatization objects;
5. Attestation of information protection systems for data systems;
6. Performance of works to detect special technical devices designed for a secret receipt of information;
7. Certification of a form for external representation of an e-document in hard copy;
8. Services associated with distribution of public keys for signature verification.
Within the scope of the activities there are the following types of services which can be provided by data processing centers established by HTP residents:
1. Hosting services (services associated with placement, storage of an informational resource belonging to a telecommunication service user), backing up, archiving, recovery of data;
2. Services associated with organization and implementation of distributed computing in a remote access mode, as well as remote use of software (software tools).
The following services can be rendered within the activities connected with services associated with introduction, maintenance of corporate information systems: preparation of a project, development of a conceptual design (description of business processes and analysis thereof, development of design solutions), implementation of a pilot system (system adjustment, development of test specifications, development of system enhancement ways, system functional testing), preparation of a system for beta testing (development of design documents and operational documentation, help information uploading, historic record uploading, training how to work with a system, integration testing), support at the stage of beta testing.
Grounds for a refusal of registration
The list of grounds for a refusal of applicant registration as a resident of the High Tech Park was narrowed. Cl. 10 of the Regulation excludes the grounds "submission of not all documents or unduly executed documents". Consequently cl. 6 of the Regulation was supplemented with the norm, in accordance with which in case of unduly executed documents submission or an incomplete set of documents, they are returned to the applicant by HTP Administration stating the reasons of the return.
Rights and obligationsof the residents
Rights and obligations of HTP residents have been broadened and determined.
Thus HTP resident is obliged to "carry out an annual compulsory audit of annual accounting (financial) statements, and to submit not later than July 1 of the year following the reporting year, an audit report on the results of the audit of statements to the Administration of the Park" (earlier the term has not been set).
What's more there is a new duty of HTP residents: they are obliged to keep separate accounts of gain (income) received from realization of goods (works, services, property rights) as for performance of such types of activities listed in clauses 6-13 and above, as well as such activity as “analysis, designing of data systems and provision of software for such systems”. Similarly gain (income) received from activities on leasing of immovable property (part thereof) is also subject to separate accounting, at the same time it is clarified what is meant by this gain.
Amendments stipulate that:
- HTP residents are entitled to carry out types of activities listed in clauses 6-13 and above, providing that the total gain (income) amount received from realization of goods (works, services, property rights) per a calendar year as for performance of such types of activities is no more than 50% of the gain (income) received from realization of goods (works, services, property rights) as for carrying out activities on analysis, designing of data systems and provision of software for such systems for the period from January 1 till December 31 of the year directly preceding the year in which such activities are carried out;
- to carry out types of activities listed in paragraphs 2-9 of cl.3 of the Regulation which were not stated during registration as a resident of the High Tech Park, after the decision of the Supervisory Board on the approval of a new (additional) business project in accordance with the procedure established by the Regulation to take a decision on registration (refusal of registration) of a legal entity or individual entrepreneur as a resident of the High Tech Park.
Government support
Today the tax privilege in the form of exemption from value added tax due to realization of goods (works, services, property rights) in the Republic of Belarus is not applied to realization of goods under the customs procedure of export (previously privileges were not applied to goods under the customs procedure of re-export).
Cl.25 and cl. 29 of the Regulation which stipulate real-estate tax privileges and tax privileges regarding income of foreign organizations not carrying out activities in the Republic of Belarus by a permanent representative office are amended.
Tax objects located in the territory of the High Tech Park are exempted from this real-estate tax, when taxpayers are HTP residents, with the exception of objects which are leased.
The rate of tax on income of foreign organizations not carrying out activities in the Republic of Belarus by a permanent representative office, when paying dividends, the interest (coupon) income from debt obligations, royalties, when HTP resident is a source of payment of such income, is 5%, if the more favorable treatment is not stipulated by international treaties of the Republic of Belarus.
It is clarified that offshore tax is not paid by HTP residents when paying (transferring) dividends to the founders (shareholders), part of profits accrued to the owner of their property.
Remark
Amendments and additions provided for by the Decree No. 4 shall enter into force from January1, 2015. It solves the long-standing needs to broaden types of activities that may be carried out by HTP residents due to activities directly related to software development activities. At the same time analysis, designing of data systems and provision of software for such systems shall remain as before the prevailing type of activity of a resident with regard to the structure of the gain which he receives.
How we can assist
Revera Consulting Group experts are prepared to consult on any issues related to IT subject area and the High Tech Park, to give a legal evaluation of the actions of legal entities and individual persons concerning their compliance with the requirements of the new Decree.
