1. NEW POSSIBILITIES FOR YOUR BUSINESS IN BELARUS

2. AXIUM Group was founded after strategic division of “UNITER” Group and rebranding of the Department of consulting in 2006. General area of competence of Axium Group is audit and accounting of foreing enterprises and representative offices in accordance with national standards and IFRS. AXIUM Group

3. Accounting of enterprises and representative offices in accordance with national standards and IFRS: 1.Drawing up and delivery of the reporting; 2.Statement of accounting ; 3.Restoration of accounting; 4.Reflection of economic operations on accounts of book keeping. Accounting Department of AXIUM Group

4. auditing of financial and operational activities in accordance with national standards and IFRS standards Transformation of financial reports prepared by national standards into IFRS reports. Due diligence. Audit Department AXIUM AUDIT – the leading national audit company

5. Taxation in Belarus

6. Rigidly settled system of accounting and tax registration Belarussian accounting rules essentially differ from international: Kinds of the accounting: -under national standards (for the state); -under standards of the company (for shareholders and managers); -under IFRS (for foreign shareholders or creditors).

7. One of the most complicated taxation systems in the world. complex and inconsistent tax legislation; 178th place by quantity of paid taxes according to "Doing Business 2008 “, the report of the World bank and IFC - 124 payments within a year (in view of repeating payments); in total there are 34-47 tax payments (depending on region); frequent changes of the tax legislation; the excessive reporting; high tax burden; excessively rigid system of penal sanctions; a plenty of regulatory bodies.

8. Taxation system Generalsimplified With VATexempt from VAT

9. General taxation system Accounting is maintained in accordance with general practice. The basic taxes: VAT, income tax, securities trading profit tax, ecological tax, tax duties in the support fund of agricultural producers, etc.

10. Simplified taxation system, with VAT* Criteria of application of system: 1.Number of employees, not more than 100 2.Volume of proceeds not more than BYR 1 500 million The basic features: 1.Payment of the VAT under the rate of 18 % 2.Single tax at a rate of 8 % * - except for separate kinds of activity

11. Simplified taxation system exempt from VAT * Criteria of application of system: 1.Number of employees, not more than 15 2.Volume of proceeds not more than BYR 450 million The basic features: 1.Single tax at a rate of 10 % from proceeds 2.There is no necessity of maintaining of accounting in accordance with general practice. Instead of the book of the account of incomes and charges of the organizations is maintained. 3.There is no necessity of registration of the prices for the goods and services * - except for separate kinds of activity

12. Taxation in FEZ There are 6 Free economic zones in Belarus: FEZ “Brest”, FEZ “Minsk”, FEZ “Gomel-Raton”, FEZ “Vitebsk”, FEZ “Mogilev”, FEZ “Grodno-Invest”. Preferential terms of activities are applied to the enterprises founded in FEZ.

13. Taxation in Hi-Tech park Preferential terms of activities are applied to the enterprises founded in Hi-Tech park. The list of goods is ratified which can be imported on the customs territory of Belarus by the Hi-Tech park residents without paying import customs duties and VAT to customs bodies.

14. Taxation in towns Preferential terms of activities are applied to commercial companies founded after April, 1, 2008 in towns with population up to 50 thousand people: Exemption from calculation of taxes and income tax payment, tax duties in the support fund of agricultural producers during in-house goods (services) realization, Exemption from obligatory foreign currency selling got from operations with foreign partners, In case of laws alteration, incl. that in tax area the entitles preserve the right to apply the legislation existing at the moment when such entitles were founded (for the period of 5 years from the moment of foundation).

15. Slow but real simplification of taxation Some insignificant taxes were canceled, VAT implementation is being simplified now, Accounting system of complex ecological tax is planned to be simplified in 2008.

16. AXIUM Group Smolenskaya str., 15, of. 805 Minsk, 220088, Belarus Tel./fax + 375 17 285 25 55 e-mail: axium@axium.by