Value Added Tax (hereinafter - VAT)

The main regulatory legal acts regulating the procedure for calculating and paying VAT are:

  • The Tax Code of the Republic of Belarus (hereinafter referred to as the Tax Code) (Chapter 14);
  • Treaty on the Eurasian Economic Union of May 29, 2014;
  • Protocol on the procedure for collection of indirect taxes and the mechanism of control over their payment when exporting and importing goods, performing works, rendering services (Appendix No. 18 to the Treaty on the Eurasian Economic Union (hereinafter - EAEU)) (hereinafter - the Protocol);
  • Resolution of the Ministry of Taxes and Levies of the Republic of Belarus of January 3, 2019 No. 2 "On some issues related to the calculation and payment of taxes, fees (duties), other payments, control over the calculation and payment of which is carried out by tax authorities" (hereinafter - Resolution No. 2);
  • Instruction on the procedure for creating (including filling), issuing (sending), receiving, signing and storing an electronic invoice, approved by Resolution No. 15 of the Ministry of Taxes and Levies of the Republic of Belarus of April 25, 2016, with amendments and additions (hereinafter - Resolution № 15).

Organizations (including foreign organizations) are recognized as VAT payers (Article 112 of the Tax Code).

Objects of VAT taxation are turnover on the sale of goods (works, services), property rights in the territory of the Republic of Belarus, as well as the importation of goods into the territory of the Republic of Belarus.

Foreign organizations, including general contractors, subcontractors, carrying out construction or assembly of objects and registered with the tax authorities of the Republic of Belarus, calculate and pay VAT from the beginning of such activities in the Republic of Belarus (paragraph 2 of Article 114 of the Tax Code).

At the same time, organizations (including foreign organizations) that are registered with the tax authorities of the Republic of Belarus are recognized as VAT payers for turnover on the sale of goods (works, services), property rights in the Republic of Belarus by foreign organizations that do not operate in the Republic of Belarus through a permanent representative office and not, in connection with this, registered with the tax authorities of the Republic of Belarus (paragraph 1 of Article 114 of the Tax Code).

For the purpose of calculating VAT, the place of sale of goods is determined in accordance with Article 116 of the Tax Code; and works, services, property rights - according to the rules of Article 117 of the Tax Code, and in relations between taxpayers of various member states of the Eurasian Economic Union - in accordance with paragraph 29 of the Protocol.

VAT rates are set by article 122 of the Tax Code, in particular, in the amount of:

  • twenty (20) percent (main);
  • ten (10) percent (when selling food products and products for children according to the List approved by the Decree of the President of the Republic of Belarus of June 21, 2007 No. 287);
  • zero (0) percent when exporting goods.

Article 118 of the Tax Code defines turnover on the sale of goods (works, services), property rights exempted from VAT.

The amounts recognized as tax deductions for VAT are determined by Article 132 of the Tax Code. The amounts of VAT indicated in clause 24 of Article 133 of the Tax Code are not deductible.

An electronic invoice is a mandatory electronic document for all taxpayers (including foreign organizations).

Creation (including filling), issuing (sending), receiving, signing and storing an electronic invoice is carried out in the manner prescribed by Resolution No. 15.

When selling goods (works, services), property rights, the VAT payer is obliged to present the corresponding amount of VAT to the buyer of these goods (works, services), property rights.

In electronic invoices and primary accounting (settlement) documents, the corresponding amount and VAT rate are highlighted in a separate line (clauses 1 and 3 of Article 130 of the Tax Code).

Excise taxes

The main regulatory legal acts regulating the procedure for the calculation and payment of excise taxes are:

  • The Tax Code (Chapter 15);
  • Resolution № 2.
  • The objects of excise tax are:
  • excisable goods produced by payers and sold (transferred) by them on the territory of the Republic of Belarus;
  • excisable goods imported into the territory of the Republic of Belarus, and (or) the occurrence of other circumstances with the presence of which this Code, other acts of tax and customs legislation, international treaties of the Republic of Belarus, including acts constituting the law of the Eurasian Economic Union, link the occurrence of the obligation for the payment of excise taxes;
  • excisable goods imported into the territory of the Republic of Belarus during their sale (transfer).

Excisable goods imported into the territory of the Republic of Belarus, in respect of which fixed (specific) excise rates are set, are not recognized as subject to excise taxation during the sale (transfer), if excise taxes are paid while these excisable goods are imported into the territory of the Republic of Belarus,  or if they are exempted from excise taxes in accordance with the law.

The list of excisable goods is set by Article 150 of the Tax Code.

Excise tax rates on excisable goods are set in accordance with Appendix 1 to the Tax Code in the absolute amount for the physical unit of excisable goods (fixed (specific) rates).

Profit tax

The main regulatory legal acts are:

  • The Tax Code (Chapter 16);
  • international agreements for the avoidance of double taxation of income and property concluded by the Republic of Belarus or of which it is the leagal successor;
  • Resolution №2.

Payers of income tax are commercial organizations, including organizations with foreign investment, as well as foreign organizations operating in the territory of the Republic of Belarus through a permanent representative office.

The object of profit tax is gross profit, as well as dividends and incomes equal to them, accrued by Belarusian organizations. The income equal to dividends is any income accrued by a unitary enterprise to the owner of its property - a legal entity of the Republic of Belarus.

Gross profit is recognized:

  • for Belarusian organizations, including those with foreign investments, - the amount of profit from the sale of goods (work, services), property rights and non-operating income reduced by the amount of non-operating expenses;
  • for foreign organizations operating in the Republic of Belarus through a permanent representative office, - the amount of profit of a foreign organization obtained through a permanent representative office in the Republic of Belarus from the sale of goods (works, services), property rights and non-operating income reduced by the amount of non-operating expenses.

The basic profit tax rate is 18%.

The profit tax rate on dividend is 12%.

The profit tax rate on dividend, if during the three preceding calendar years the profit has not been consistently distributed among the participants (shareholders) of the Belarusian organization - residents in the Republic of Belarus, - 6%.

The profit tax rate on dividend, if during the five preceding calendar years the profit has not been consistently distributed among the participants (shareholders) of the Belarusian organization - residents in the Republic of Belarus, - 0%.

Profit tax exemptions are established by Article 181 of the Tax Code.

Tax on income of foreign organizations that do not operate in the Republic of Belarus through a permanent representative office (hereinafter - income tax)

The main regulatory legal acts are:

  • The Tax Code (Chapter 17);
  • international agreements on the avoidance of double taxation of income and property concluded by the Republic of Belarus or of which it is the legal successor.

The object of income tax of foreign organizations that do not carry out activities in the Republic of Belarus through a permanent representative office (hereinafter referred to as foreign organizations), is income referred to in paragraph 1 of Article 189 of the Tax Code.

For foreign organizations, tax rates are set in the following amounts:

  • 6% - payment for transportation, freight in connection with the implementation of international transportation, as well as for the provision of freight forwarding services;
  • 10% - on incomes from debt obligations of any kind, regardless of the method of their execution, including: income on loans and borrowings; income from securities whose terms of issue provide for receiving income in the form of interest (discount); income from the use of temporarily free funds on accounts in banks of the Republic of Belarus;
  • 12% - dividends and incomes equal to them; revenues from the alienation of shares in the authorized capital (shares, stocks) of organizations located in the territory of the Republic of Belarus, or their parts;
  • 15% - on other incomes specified in paragraph 1 of Article 189 of the Tax Code.

When calculating and (or) paying income to a foreign organization, the income tax is calculated, withheld and transferred to the budget by tax agents:

  • legal entities of the Republic of Belarus;
  • Belarusian individual entrepreneurs who charge and (or) pay income to a foreign organization;
  • individuals - when paying a foreign organization the incomes specified in subparagraphs 1.2.1, 1.11 and 1.13 of paragraph 1 of Article 189 of the Tax Code;
  • a foreign organization that has opened a representative office in the Republic of Belarus and (or) operating in the territory of the Republic of Belarus through a permanent representative office - if the occurrence of these revenues is related to this representative office and (or) permanent representative office;
  • foreign organizations that do not operate in the Republic of Belarus through a permanent representative office when paying out the income specified in subparagraphs 3.5.1-3.5.8 of paragraph 3 of Article 189 of the Tax Code.

When taxing income of a foreign organization, it should be borne in mind that clause 2 of Article 5 of the Tax Code establishes the priority of international treaties in force for the Republic of Belarus over national legislation. In particular, if the norms of an international agreement establish other norms than those provided for by the Tax Code and other legislative acts of the Republic of Belarus, then the norms of the international agreement are applied.

The procedure for the elimination of double taxation is determined by Article 194 of the Tax Code and the Instruction on the procedure for submitting evidence of the permanent location of a foreign organization, international organization, approved by Resolution No. 2.

Income tax on individuals

The main regulatory legal acts regulating the procedure for calculating and paying income tax on individuals are:

  • The Tax Code (Chapter 18);
  • Resolution of the Ministry of Taxes and Levies of the Republic of Belarus of December 31, 2010 No. 100 "On some issues related to the calculation and payment of taxes from individuals", with amendments and additions;
  • international treaties of the Republic of Belarus on tax matters.

Individuals are recognized as payers of income tax from individuals (hereinafter referred to as payers).

The object of income tax on individuals is income received by payers:

  • from sources in the Republic of Belarus and (or) from sources outside the Republic of Belarus, - for individuals recognized as tax residents of the Republic of Belarus in accordance with Article 17 of the Tax Code;
  • from sources in the Republic of Belarus, - for individuals who are not recognized as tax residents of the Republic of Belarus.

Revenues received from sources in the Republic of Belarus include, in particular, remuneration for performing labour or other duties, including monetary remuneration and allowances for special working conditions (services), work performed, service rendered, action (inaction) received by payers from Belarusian organizations, Belarusian individual entrepreneurs (notaries carrying out notarial activities in a notary’s office, lawyers), foreign organizations operating in the territory of the Republic of Belarus through a permanent representative office, representative offices of foreign organizations opened in the manner prescribed by the legislation of the Republic of Belarus, regardless of the place where the duties imposed on these payers were actually fulfilled or where these rewards were paid from (subsection 1.6, paragraph 1, Article 197 of the Tax Code).

Income tax from individuals is calculated at the rates of 16%, 13%, 9%, 10%, 6%, 4% and 0% in accordance with the provisions of Article 214 of the Tax Code, Decree of the President of the Republic of Belarus of June 8, 2015 235 "On the socio-economic development of the south-eastern region of the Mogilev region", Decree No. 8 and Decree No. 12.

Belarusian organizations, foreign organizations operating in the territory of the Republic of Belarus through a permanent representative office, representative offices of foreign organizations opened in accordance with the procedure established by the legislation of the Republic of Belarus are recognized as tax agents, have rights and have obligations to calculate, retain the payer and transfer to the budget the calculated amount of the income tax on individuals in accordance with Article 23 of the Tax Code and Chapter 18 of the Tax Code.

Property tax.

The main regulatory legal acts are:

  • The Tax Code (Chapter 19);
  • Decision of the Minsk City Council of Deputies dated December 21, 2016 No. 255 "On the establishment of coefficients for real estate and land tax rates and recognition of certain decisions of the Minsk City Council of Deputies as becoming invalid" (with amendments and additions, hereinafter - Decision No. 255).

The real estate taxpayers are organizations (both Belarusian and foreign), taking into account the features established by Article 226 of the Tax Code.

The objects of taxation are:

  • capital buildings (buildings, structures) that are the property owned or economically managed, or under the operational management of payer organizations;
  • capital buildings (buildings, structures), their parts located in the territory of the Republic of Belarus and leased by organizations from Belarusian organizations, if under the terms of the financial lease agreement these objects are not on the balance of organizations - lessors;
  • capital buildings (buildings, structures), their parts located in the territory of the Republic of Belarus and leased by organizations (financial lease (leasing)), other paid or free use from individuals (both recognized and not recognized as tax residents of the Republic of Belarus ).
  • capital buildings (buildings, structures), their parts, the creation, change or the emergence, transfer of ownership, economic management or operational management of which are subject to state registration, which are registered (on balance) with payer organizations, prior to state registration of their creation, change or occurrence, transfer of ownership, economic management or operational management.

The list of benefits for property tax is established by article 228 of the Tax Code.

The annual property tax rate is set in the following amounts:

- one (1) percent - for payer organizations;

- in relation to capital structures erected by payer organizations after January 1, 2019:

  • zero point two (0.2) percent - during the second year from the date of acceptance of capital buildings into operation;
  • zero point four (0.4) percent - during the third year from the date of acceptance of capital buildings into operation;
  • zero point six (0.6) percent - during the fourth year from the date of acceptance of capital buildings into operation;
  • zero point eight (0.8) percent - during the fifth year from the date of acceptance of capital buildings into operation.

The tax period for property tax is a calendar year.

The annual amount of property tax is calculated as the product of the tax base and the tax rate.

Local Councils of Deputies have the right to increase (decrease) not more than two and a half times the rates of real estate tax to certain categories of taxpayers.

On the territory of Minsk in 2019, the coefficients for real estate tax rates are established by Decision No. 255.

IMPORTANT!

When acquiring property rights and other rights to immovable property located in the territory of the Republic of Belarus, foreign organizations are subject to registration with the tax authority at the location of such property prior to state registration of the occurrence of property rights, other rights to immovable property, transactions with immovable property.

The tax liability of a foreign organization regarding the payment of property tax to the budget of the Republic of Belarus arises if there are objects of taxation on property tax located in the territory of the Belarusian state.

Land tax

The main regulatory legal acts are:

  • The Tax Code (Chapter 20);
  • Decree of the President of the Republic of Belarus of August 6, 2009 No. 10 "On the creation of additional conditions for investment activity in the Republic of Belarus" (with amendments and additions; hereinafter - Decree No. 10);
  • Decision No. 255.

Land tax payers are organizations, including foreign ones, that own land plots in the territory of the Republic of Belarus as private property, of permanent or temporary use.

In the territory of the Republic of Belarus, land tax is imposed on land plots:

  • which are owned by organizations as their private property, of permanent or temporary use;
  • other land plots in respect of which, in accordance with the legislation, payers have the right to use;
  • land plots granted for temporary use and not timely returned in accordance with the law, unauthorized land plots.

The cadastral value of a plot is used to determine the tax base for land tax (with the exception of plots for which the tax is calculated on the basis of their area). Information about the cadastral value of land plots is available on the official site of the State Unitary Enterprise "National Cadastral Agency".

The calculation of land tax is made depending on the functional use of the land plot (type of appraisal zone), which is indicated in the documents certifying the organization’s right to the land plot (for example, in the decision on the provision of a land plot).

Land tax rates, depending on the category of land, are determined in accordance with Article 241 of the Tax Code.

The amount of land tax is calculated as the product of the tax base and the corresponding land tax rates.

Local Councils of Deputies have the right to increase (decrease) (but not more than two and a half times) land tax rates for certain categories of taxpayers.

In 2019, Decision No. 255 established coefficients for land tax rates in the territory of Minsk.

The tax period for land tax is a calendar year.

Benefits in the form of exemption from land tax are established by Article 194 of the Tax Code and certain regulatory legal acts of the President of the Republic of Belarus.

In accordance with paragraph 3 of sub-clause 3.2 of clause 3 of Decree No. 10, the investor (investors) and (or) the organization is exempt from land tax for land plots that are in public or private ownership. At the same time, this exemption applies to land plots provided for the construction of facilities provided for in the investment agreement (for servicing these facilities after the completion of their construction, if such plots were previously provided for the specified construction), from the first day of the month in which the investment agreement came into force, until December 31 of the year following the year in which the last of the objects provided for by the investment agreement was accepted for operation.

It should be noted that in accordance with sub-clause 6.1 of clause 6 of Decree No. 10, if an investment contract is terminated due to the investor’s fault, the investor must reimburse all amounts of benefits and preferences, as well as pay a penalty (fine, penalty) provided for by the contract.

The rent for state-owned land plots

The main regulatory legal acts are:

  • Decree of the President of the Republic of Belarus of March 1, 2010 No. 101 "On the collection of rent for land plots owned by the state" (with amendments and additions);
  • Decree No. 10;
  • Decision of the Minsk City Executive Committee dated February 17, 2012 No. 457 "On establishing coefficients for the annual rent for state-owned land plots" (with amendments and additions, hereinafter - Decision No. 457)

The rent for land plots is calculated by organizations on the basis of:

  • the decision of the local executive committee, the decision of the administration of the Free Economic Zone (hereinafter - the FEZ) on the lease of land;
  • a certificate of state registration confirming the transfer of the lease right to a land plot (a share in the lease right to a land plot) as a result of the state registration of the transfer of the right to a capital structure located on it (building, structure);
  • a land lease agreement concluded with the auction winner or the sole participant of the failed auction, registered in the manner prescribed by law;
  • an agreement to amend the land lease agreement, registered in the prescribed manner.

The amount of the annual rent for state-owned land plots is determined by the local executive committee, the FEZ administration when leasing a land plot, extending the lease term for a land plot, concluding an agreement on amending the lease agreement or a land lease agreement with the winner or the only participant of the failed auction .

Decree No. 101 establishes a number of benefits for leasing land plots.

In accordance with paragraph 3 of sub-clause 3.2 of clause 3 of Decree No. 10, the investor (investors) and (or) the organization is exempt from rent for state-owned land plots. At the same time, this exemption applies to land plots provided for the construction of facilities provided for in the investment agreement (for servicing these facilities after the completion of their construction, if such plots were previously provided for the specified construction), from the first day of the month in which the investment agreement came into force, until December 31 of the year following the year in which the last of the objects provided for by the investment agreement was accepted for operation.

It should be noted that in accordance with sub-clause 6.1 of clause 6 of Decree No. 10, if an investment contract is terminated due to the investor’s fault, the investor must reimburse all amounts of benefits and preferences, as well as pay a penalty (fine, penalty) provided for by the contract.

Local executive committees, as well as the administrations of the FEZ, have the right to increase (decrease) the amount of the annual rent to certain categories of payers.

In 2019, Decision No. 457 established for certain categories of taxpayers coefficients for the rent for land plots in the territory of Minsk.

Payment of the rent for land plots (parts of the land plot) occupied by objects of the above-standard unfinished construction is made in the amount increased by a factor of 2.

The rent for land plots that are used for purposes other than the intended purpose, which are not used for the periods specified in legislative acts, and which are occupied prior to the execution of legal documents, is charged 10 times.

Ecological tax

The main regulatory legal act is:

  • The Tax Code (Chapter 21)

Ecological tax payers are organizations and individual entrepreneurs.

The objects liable to ecological tax are:

  • emissions of pollutants into the air specified in permits for emissions of pollutants into the air or integrated environmental permits, with the exception of such emissions with a total volume per the payer as a whole less than 3 tons per year;
  • discharge of wastewater into the environment on the basis of permits for special water use or integrated environmental permits;
  • storage of waste products.
  • waste disposal.

The tax period of the ecological tax is the calendar quarter.

The amount of environmental tax is calculated as the product of the tax base and the tax rate.

The tax base of the ecological tax is determined as the actual amounts of the specified objects of taxation.

The rates of ecological tax on objects of taxation are set in size according to Appendices 7-9 to the Tax Code, coefficients are applied to them.

The owners of industrial waste are recognized as payers of the ecological tax for the disposal of production waste at waste disposal sites. The ecological tax for the disposal of production waste at waste disposal sites is calculated by the owners of the waste disposal facilities and charged to the owners of production waste in addition to tariffs for the disposal of production waste at waste disposal facilities.

Tax for the extraction (removal) of natural resources.

The main regulatory legal act is:

  • The Tax Code (Chapter 22)

Taxpayers are organizations and individual entrepreneurs.

The object of taxation for the extraction (removal) of natural resources is the extraction (removal) of the following natural resources:

  • sand used as molding, for the production of glass, porcelain and faience products, refractory materials, cement;
  • sand and gravel boulder material;
  • building stone, facing stone;
  • water (surface and groundwater);
  • mineral waters, mineralized industrial waters;
  • sand;
  • clay, sandy loam, loam and tripoli;
  • bentonite clays;
  • potassium salts (in terms of potassium oxide), rock salt;
  • oil and gas condensate;
  • chalk, marl, limestone and dolomite;
  • gypsum;
  • iron ores;
  • peat moisture 40 percent;
  • sapropel 60% humidity;
  • bog oak;
  • amber;
  • gold;
  • snails;
  • chironomid larvae;
  • green frog (pond, edible, lake);
  • common viper;
  • brown coal (in terms of equivalent fuel);
  • combustible shale (in terms of equivalent fuel);
  • long-footed (narrow-fingered) crayfish.

The tax base of the tax for the extraction (removal) of natural resources, with the exception of potassium salt, is determined as the actual amount of the extracted (withdrawn) natural resources.

The tax base of the tax for the extraction (removal) of natural resources in relation to potassium salt is defined as:

  • the actual amount of the extracted (withdrawn) potassium salt (in order to apply the tax rate set in a fixed amount);
  • the product of the actual sales volume of potash fertilizers and the weighted average sales price of 1 ton of potash fertilizers outside the Republic of Belarus (in order to use the tax rate set as a percentage).

Tax rates for the extraction (removal) of natural resources, with the exception of oil and potassium salt, are set in size according to Annex 10 to the Tax Code.

Article 257 of the Tax Code defines the tax rate for the extraction (removal) of natural resources in relation to potassium salt.

Offshore collection

The main regulatory legal act is:

  • The Tax Code (Chapter 23).

Payers of offshore collection are Belarusian organizations and Belarusian individual entrepreneurs (hereinafter referred to as residents of the Republic of Belarus).

Offshore tax rate - 15%.

Objects of taxation:

  • transfer of funds by a resident of the Republic of Belarus to a non-resident of the Republic of Belarus registered in an offshore zone, to another person under an obligation to that non-resident or to an account opened in an offshore zone, except as provided for in paragraph 2 of Article 263 of the Tax Code;
  • fulfillment of non-monetary obligations to a non-resident of the Republic of Belarus registered in an offshore zone;
  • transfer in accordance with the legislation of property rights and (or) obligations in connection with the change of persons in an obligation, whose parties are a resident of the Republic of Belarus and a non-resident of the Republic of Belarus registered in an offshore zone.

Offshore tax exemptions are established by article 264 of the Tax Code.

An offshore fee is paid by the payer prior to the transfer of funds in Belarusian rubles at the official exchange rate set by the National Bank of the Republic of Belarus on the date of their transfer, except for the cases specified in part two of paragraph 6 of Article 267 of the Tax Code.

The list of offshore zones was approved by Decree of the President of the Republic of Belarus of May 25, 2006 No. 353 "On Approval of the List of Offshore Zones" (including changes and additions).

SPECIAL TAXATION MODES

Tax under the simplified taxation system (hereinafter - tax under the STS)

The main regulatory legal acts regulating the calculation and payment of tax under the STS are:

  • The Tax Code (Chapter 32);
  • Resolution № 2.

Taxpayers under the simplified tax system are recognized, including legal entities of the Republic of Belarus, that have started, in accordance with the procedure established by Article 327 of this Code, to use the tax under the simplified tax system or started its application in the manner and under the conditions established by paragraphs 3 and 4 of Article 327 of this Code.

Foreign organizations operating through permanent representative offices are not authoriz\ed to apply the STS.

Criteria for the transition to the simplified tax system from the beginning of the next calendar year:

  • the average number of employees is not more than 100 people;
  • the gross revenue for the first 9 months of the previous year is not more than 1,465,565 Belarusian rubles.

Cases in which organizations are not entitled to use the STS are named in paragraph 2 of article 324 of the Tax Code.

The object of taxation in case of the STS is gross revenue.

The tax base of the tax under the STS is defined as the monetary expression of the gross revenue. The gross revenue is recognized as the amount of revenue from the sale of goods (works, services), property rights and non-operating income.

This procedure of taxation provides for the replacement of the payment of taxes, fees (duties) paid in accordance with the general taxation procedure, except for those specified in subsection 1.1 of clause 1 of Article 326 of the Tax Code, to pay tax under the STS at the following rates:

  • 5% - for entities that do not pay VAT;
  • 3% - for entities paying VAT;
  • 16% - in relation to the cost of received goods (works, services), property rights, other assets, amounts of donated money (including received goods (works, services), property rights, other assets in case of release from the obligation to pay them, money received in the event of exemption from the obligation to return them), as well as amounts of foreign gratuitous or international technical assistance not exempted from taxation in the manner and on the terms established by the President of the Republic of Belarus.

Tax on gambling

The main regulatory legal acts are:

  • Decree of the President of the Republic of Belarus of November 19, 2010 No. 599 "On some measures to improve the procedure for carrying out activities in the field of gambling business";
  • Decree of the President of the Republic of Belarus of January 10, 2005 No. 9 "On approval of the Regulation on the implementation of activities in the field of gambling business in the Republic of Belarus";
  • Decree of the President of the Republic of Belarus of August 7, 2018 N 305 "On improving the legal regulation of the gambling business";
  • The Tax Code (Chapter 35).

Payers of gambling business tax are legal entities of the Republic of Belarus. Incomes received by payers from the implementation of activities in the gambling business are not recognized as objects of taxation:

VAT, with the exception of VAT levied on the importation of goods into the territory of the Republic of Belarus;

income tax.

In carrying out activities that are not related to activities in the field of gambling, taxpayers pay taxes, fees (duties) on these activities in the manner prescribed by law.

Objects of taxation on gambling business are:

gaming tables; gaming machines; cash sweepstakes; cash book of bookmakers; the positive difference between the amount of bets taken in gambling and the amount of winnings paid (returned non-played bets).

According to Article 358 of the Tax Code on the gambling business tax rates are set in the following amounts per unit of taxation:

7140.0 Belarusian roubles - on the game table;

240.0 Belarusian roubles - on the gaming machine;

2250.0 Belarusian roubles - to the cashier of the tote;

1500.0 Belarusian roubles - to the cashier of the bookmaker office.

The tax rate on the gambling business on the positive difference between the amount of accepted rates in gambling and the amount of paid winnings (returned non-playing rates) is set at four (4) percent.

The tax base of the tax on gambling business is determined separately by such types of taxable items as gaming tables, slot machines, betting cash registers, bookmakers cash registers and the positive difference between the amount of accepted gambling rates and the amount of paid winnings (returned non-playing rates).

Tax on income from the implementation of lottery activities.

The main regulatory legal acts are:

  • Decree of the President of the Republic of Belarus of May 4, 2007 No. 209 "On lottery activities in the territory of the Republic of Belarus";
  • The Tax Code (Chapter 36).

The taxpayers of income from the implementation of lottery activities are organizations that are organizers of lotteries.

Payers in terms of income received from the organization and holding of lotteries are exempt from:

  • VAT, with the exception of VAT levied when goods are imported into the territory of the Republic of Belarus;
  • income tax.

In carrying out activities that are not related to the organization and conduct of lotteries, taxpayers pay taxes, fees (duties) on these types of activities in the manner established by the Tax Code.

The object of taxation is the tax on income from the implementation of lottery activities, which are income received from organizing and conducting lotteries.

The tax base of the tax on income is defined as the difference between the amount of income received from the organization and holding of lotteries, and the amount of the accrued prize fund of the lottery.

Income received from the organization and holding of lotteries is recognized as the total amount received from the sale of lottery tickets (receiving lottery rates), calculated on the basis of the number of lottery tickets sold (accepted lottery rates) and their sale value (cost of participation in the lottery).

The tax rate is set at 8%.

Tax on income from electronic interactive games.

The main regulatory legal acts are:

  • Decree of the President of the Republic of Belarus of April 10, 2008 No. 6 "On certain issues of organizing and conducting electronic interactive games";
  • Decree of the President of the Republic of Belarus of April 10, 2008 No. 201 "On electronic interactive games";
  • The Tax Code (Chapter 37).

Taxpayers of income from conducting electronic interactive games are organizations that are organizers of electronic interactive games.

Payers in terms of income received from conducting electronic interactive games are exempt from:

  • VAT, with the exception of VAT levied on the importation of goods into the territory of the Republic of Belarus;
  • income tax.

When carrying out activities that are not related to conducting electronic interactive games, taxpayers pay taxes and fees (duties) on these activities in the manner established by the Tax Code.

The object of taxation is the income received from conducting electronic interactive games.

The tax base is defined as the difference between the amount of income received from conducting electronic interactive games, and the amount of a winning fund.

The tax rate on income from conducting electronic interactive games is 8%.

A single tax on imputed income

The main regulatory legal acts are:

  • The Tax Code (Chapter 40).

Payers of the single tax on imputed income are legal entities of the Republic of Belarus.

The application of a single tax on imputed income begins on the 1st day of the month:

  • in which the activity of providing services for the maintenance and (or) repair of motor vehicles and (or) their components (hereinafter referred to as maintenance and repair services) was carried out;
  • for which the list number of employees of the organization amounted to no more than 15 people.

The object of taxation of a single tax on imputed income is recognized income from the provision of services for maintenance and repair.

The turnover of sales of maintenance and repair services rendered by the single tax payer on imputed income is not recognized as an object of VAT taxation and is not taken into account when determining gross profit for the purposes of calculating income tax. Payers of the single tax on imputed income are entitled to calculate and pay VAT when reflecting this decision in the accounting policy.

The tax base of the single tax on imputed income is defined as the monetary expression of income from the provision of maintenance and repair services. Income from the provision of maintenance and repair services is recognized as the amount of imputed income for the tax period and revenue from the sale of maintenance and repair services for the tax period in an amount exceeding the imputed income for the tax period.

Imputed income for the tax period is calculated as the product of the basic income per employee per month and the average number of employees of the organization for the reporting month. The base rate of return per employee per month in 2019 is 2900.0 Belarusian roubles in the city of Minsk.

For the purpose of calculating the single tax on imputed income, regional (Minsk City) Councils of Deputies have the right to increase (decrease), but not more than twice the basic income per employee per month for the entire territory of the respective administrative unit and (or) depending on the place of implementation by the payer of activities for the provision of services for maintenance and repair (settlement, outside the settlement, place of activity within the settlement (center, margin)).

The amount of the single tax on imputed income is calculated as the product of the tax base and the single tax rate on imputed income of 5%.

TAXATION OF HIGH-TECHNOLOGY PARK RESIDENTS

The main regulatory legal acts are:

Decree of the President of the Republic of Belarus of September 22, 2005 No. 12 "On the High-Tech Park", which approved the Regulations on the High-Tech Park (hereinafter - the Regulations).

Decree of the President of the Republic of Belarus of December 21, 2017 No. 8 "On the Development of the Digital Economy".

For residents of the High-Tech Park (hereinafter – HTP) a number of exemptions on taxes (fees) are provided, including exemption from:

  • income tax (with the exception of income tax, calculated, withheld and transferred when performing the duties of a tax agent), except as provided for in paragraph 28 of the Regulations;
  • VAT for the turnover from the sale of goods (works, services), property rights in the territory of the Republic of Belarus, unless otherwise provided for in paragraph 28 of the Regulations;
  • offshore collection in relation to objects of offshore taxation when paying for advertising, marketing, intermediary services, as well as when paying (transferring) dividends to their founders (participants), part of the profit accrued to the owner of their property;
  • land tax on land plots within the boundaries of the HTP for the period of construction on it by its residents, but not more than for three years, of capital structures (buildings, structures) intended for carrying out their activities;
  • real estate tax on objects of taxation by this tax, located on the territory of the HTP, for which the residents of the HTP are recognized as payers, with the exception of such objects that are leased out by them

If a HTP resident is a source of income payment specified in clause 33 of the Regulations, then the tax rate on income of foreign organizations not operating in the Republic of Belarus through a permanent representative office is applied to such income in the amount of 0 (zero) percent.

Specified in clause 32 of the Regulations sales in the territory of the Republic of Belarus to HTP residents by foreign organizations that do not operate in the Republic of Belarus through a permanent representative office and are not registered in this connection with the tax authorities of the Republic of Belarus are exempted.

In addition, personal income tax is levied on individuals at a rate of 9 percent for income of individuals (except for employees who maintain and guard buildings, premises, land plots) received during the calendar year from HTP residents under labour agreements (contracts).

TAXATION OF FEZ RESIDENTS

The main regulatory legal acts regulating the taxation of residents of the FEZ are:

  • Decree of the President of the Republic of Belarus of June 9, 2005 No. 262 "On some issues of the activity of free economic zones in the territory of the Republic of Belarus", with amendments and additions;
  • Law of the Republic of Belarus of December 7, 1998 No. 213-З "On Free Economic Zones", with amendments and additions;
  • The Tax Code (Chapter 41);
  • Decree No. 101.

Legal entities of the Republic of Belarus with the location within the boundaries of this FEZ that have entered into an agreement with the FEZ administration on the conditions of activity in the FEZ are registered as residents of the FEZ.

The specifics of taxation in the FEZ established by the Tax Code, unless otherwise provided for by paragraphs 4 and 5 of Article 383 of the Tax Code, apply to sales by residents of the FEZ:

  • to foreign legal entities and (or) individuals outside the Republic of Belarus, in accordance with the contracts concluded between them, of their own goods (works, services) produced by these residents on the teritory of the FEZ;
  • to foreign legal entities and (or) individuals outside the Republic of Belarus of the goods produced by them on the territory of the FEZ (on the basis of contracts of commission, contracts of agency or other similar civil law contracts concluded by these FEZ residents, who are members of a holding registered in the Republic of Belarus, with the commission agent (attorney), another similar person who is a member of the same holding).
  • outside the Republic of Belarus, to foreign legal entities and (or) individuals, in accordance with the contracts concluded between them, of the goods produced by these residents on the territory of the FEZ;
  • of goods (works, services) of own production, which are produced by them on the territory of the FEZ, to other residents of the FEZ in accordance with the agreements concluded with them.

For residents of the FEZ, Article 383 of the Tax Code provides the following features of taxation.

The profit of the residents of the FEZ received from the sale of goods (works, services) of own production is exempt from income tax.

FEZ residents are exempt from property tax:

  • within three years, calculated from the beginning of the quarter on which the date of registration of the organization as a resident of the FEZ falls, on objects located in the territory of the respective free economic zones acquired (originated) in the specified three-year period, regardless of the direction of their use. This exemption does not apply to property taxation objects taken and (or) leased (transferred) by the resident of the FEZ for rent (financial lease (leasing)), other paid or free use.
  • on objects of taxation with a tax on real estate located in the territory of the relevant free economic zones, regardless of the direction of their use. This exemption is granted in the quarter if in the immediately preceding quarter, a resident of the FEZ sold goods (works, services) to which the tax features in the FEZ apply (clause 4 of article 383 of the Tax Code).

Exempted from land tax:

  • land plots of residents of the FEZ located within the boundaries of the FEZ and provided to them after registration as residents of the FEZ for the construction of facilities (except for land plots granted for temporary use and not timely returned in accordance with the legislation), from the 1st day of the month, which is the date of the specified registration, till the month (inclusive), in which the last of the objects, for the construction of which the land plot was provided, was taken into operation, but not more than five years calculated from the month in which falls the date of registration as the FEZ;
  • land plots of residents of the FEZ, regardless of their purpose, located within the boundaries of the FEZ (with the exception of land plots granted for temporary use and not returned in time, in accordance with the law, self-employed). This benefit is granted from the 1st day of the first month to the last day of the third month of the quarter, if in the quarter immediately preceding it, the resident of the FEZ sold goods (works, services) to which the particular taxation rules in the FEZ apply.

In addition, no rent is charged for:

  • land plots of residents of the FEZ located within the boundaries of the FEZ and provided to them after registration as residents of the FEZ for construction of facilities, from the 1st day of the month that the registration date falls on, up to a month (inclusive) in which the last of objects for the construction of which the land plot was provided, but not more than five years, calculated from the month on which the date of registration as a resident of the FEZ falls (sub-clause 1.7.10 p. 1 of Decree No. 101);
  • land plots of residents of the FEZ, regardless of their purpose, located within the boundaries of the FEZ. This benefit is granted from the 1st day of the first month to the last day of the third month of the quarter, if in the quarter immediately preceding it, the resident of the FEZ sold goods (works, services) to which, in accordance with Article 382 of the Tax Code, the particularities of taxation in the FEZ apply (Sub. 1.7.10-1 p. 1 of Decree No. 101).