|
Taxes, levies (duties) payable in the Republic of Belarus in 2011
Structure of the Belarusian taxation system
|
Basic Taxes (regularly paid)
|
Other Taxes and Levies (nonrecurring)
|
Special Tax Treatment
|
|
VAT
|
Tax on income of foreign enterprises derived from sources in
Belarus
|
Simplified Taxation
|
|
Excise Duty
|
Natural resources extraction tax
|
Single Tax for Individual Entrepreneurs
|
|
Corporate Income Tax
|
Patent Duty
|
Single Tax for Agricultural Producers
|
|
Personal Income Tax
|
Statе Duty
|
Tax on income form electronic interactive games
|
|
Real estate Tax
|
Consular Fee
|
Tax on income form lotteries
|
|
Land Tax
|
Road Fee
|
Gambling Tax
|
|
Environmental Tax
|
Offshore Fee
|
Levy on farm eco-tourism
|
|
Custom Duties and Fees*
|
Stamp Fee
|
Levy on craft activity
|
|
Payments to the State Social Security Fund*
|
Local Taxes:
Tax on Dog Owners;
Tax on Gatherers;
Resort Levy
|
Basic republican taxes
Income tax on individuals
Income tax on individuals is levied at 12% rate on total income derived from sources both in and outside the Republic of Belarus (for Belarusian residents) and on total income derived from sources in the Republic of Belarus (for non-residents).
Certain types of income (social allowances, income from sale of personal property and products cultivated on household plots and others) are exempt from this tax.
If there are sufficient grounds, taxpayers have the right to apply standard, social and other tax exemptions.
Individual entrepreneurs and private notaries are taxes at 15% rate.
Profit tax
The tax is paid at 24% rate by companies of the Republic of Belarus, foreign legal entities carrying out activity in the Republic of Belarus through permanent establishment, partnerships and economic groups.
The taxable profit is equal to the total income reduced by the amount of expenses.
Preferential tax rates are provided for:
- producers of laser optical machines – 10%;
- high-tech organizations selling own-produced high-tech goods and taxpayers transferring shares in statutory fund of organisations situated in Belarus – 24% rate reduced by 50%;
- members of the Science and Technological Association selling informational technologies and services – 5%.
Capital investments (including loans for these purposes and for residential construction) are deducted from the taxable profits in amount not exceeding 50% of the gross profits.
Profit tax declaration is submitted once a year; tax payments are made quarterly.
Tax on income of foreign enterprises which do not carry out activity in the Republic of Belarus through permanent establishment
Income received from sources in the Republic of Belarus by foreign companies which do not carry out activity in the Republic of Belarus through permanent establishment is taxed at the following rates:
6% - international transportation;
10% - interest income form debt-claims;
12% - dividends and other similar rights;
15% - royalty and other income (limiting list including all kinds of transactions with immovable property);
5% on dividends, debt-claims, royalty and licenses if the source of income is the Hi-Tech Park resident.
Value added tax
Turnover of goods (works, services), property rights on the territory of the Republic of Belarus and importation of goods into the territory of the Republic of Belarus are taxes at the following rates:
20% - general tax rate;
10% - sale of agricultural goods produced in Belarus; import and/or sale of food products and goods for children;
0% - exported goods.
VAT is levied on imported/exported goods according to the destination principle.
VAT declaration is submitted and tax payments are made each month or quarter (at taxpayer’s option).
Excise tax
Excisable goods are:
--spirit and alcohol-containing products;
--tobacco;
--motor gasoline, diesel, bio-diesel and marine fuel, gas used as a motor fuel;
--oil for diesel and/or injector engines;
--minibuses and automobiles.
Belarus applies fixed excise rates per unit of excisable goods, both produced within the territory and imported into Belarus. Alcohol-containing products and tobacco destined for sale are marked with excise stamps.
Excise tax declaration is submitted and tax payments are made each month.
Real estate tax
The tax is levied on buildings and constructions:
--owned or managed by Belarusian companies;
--owned by individuals and situated in Belarus.
Unfinished housing projects, budget-funded unfinished over-norm projects are not considered as object of real estate tax.
Annual tax rate is equal to:
1% for companies;
0,1% for individuals, individual entrepreneurs and cooperative societies;
2% for companies having unfinished over-norm projects and engaged in new construction projects.
Organizations submit real estate tax declaration once a year and make quarterly tax payments. Individuals pay real estate tax once a year but do not submit declaration as tax authorities calculate their tax liability and provide them with tax assessment notice.
Land tax
The objects of the tax are land parcels which are owned, temporarily/permanently used by companies and owned, lifetime used with the right of inheritance or temporarily occupied by individuals.
Tax rate depends on the cadastral valuation of a land parcel. Tax base is equivalent to the cadastral value of a land parcel unless otherwise provided by tax legislation.
Organizations submit land tax declaration once a year and make quarterly tax payments. Individuals pay land tax once a year but do not submit land tax declaration as tax authorities calculate their tax liability and provide them with tax assessment notice.
Ecological tax
The tax rate depends on the type of pollution:
--pollutant emission into the atmosphere;
--discharge of sewage waters or other pollutants into the environment;
--production waste storage and disposal;
--ozone depleting substances imported into Belarus.
Ecological tax declaration is submitted quarterly. Tax payment terms depend on the type of pollution.
Local taxes
Local taxes (tax on dog owners, tax on gatherers and resort levy) are introduced by local authorities within the limits established by the Tax Code:
- tax on dog owners: 17 500-52 5000 BYR depending on withers height;
- tax on gatherers: not more than 5% of the gathered products value;
- resort levy: not more than 3% of the resort voucher cost.
Specific tax treatments
1) Single tax for agricultural producers – 1% of the gross revenue
2) Single tax for individual entrepreneurs and other individuals – tax rates differ
3) Simplified taxation system – 6% of the gross revenue for VAT payers (number of employees not more than 100 and annual gross revenue not more than 4 120 200 000 BYR ≈ 716 560 USD) or 8% of the gross revenue for VAT non-payers (number of employees not more than 15 and annual gross revenue not more than 1 177 200 000 BYR ≈ 204 730 USD)
4) Gambling tax – tax rates differ (in euro per gambling unit)
5) Tax on income from lotteries – 8% of the lottery revenue minus prize pool
6) Tax on income form electronic interactive games – 8% of the revenue minus prize pool
7) Levy on craft activity – one basic amount per calendar year (in 2011 – 35 000 BYR)
8) Levy on farm eco-tourism – one basic amount per calendar year (in 2011 – 35 000 BYR)
Taxation of free economic zones
There are 6 free economic zones (FEZ) in Belarus enjoying preferential tax treatment in regard to production and realization of import-substituting goods and exported goods (services).
The profit of FEZ residents is exempt from profit tax during first 5 years of carrying out such activity. Later on FEZ residents can apply profit tax rate reduced by 50% but profit tax rate cannot exceed 12% rate.
Real estate tax is not payable by FEZ residents.
If import-substituting goods produced in any FEZ are sold in Belarus, 20% VAT is paid half as much.
Taxation of Hi-Tech Park (Presidential Decree № 12 of 22.09.2005)
Hi-Tech Park residents are exempt from profit tax, VAT in relation to the sale of goods/works/services/property rights on the territory of Belarus, real estate tax. Income of individuals from Hi-Tech Park residents is taxable at 9% rate instead of general 12% rate.
Besides, employees of Hi-Tech Park residents and Hi-Tech Park individual entrepreneurs are subject to compulsory state social insurance. Insurance contributions are not charged on the part of the salary exceeding the amount of the average salary in the republic for the previous month.
Income of non-residents received from Hi-Tech Park residents in the form of interest, royalty, license payments and dividends is taxed at 5% rate, unless lower rate is specified by international tax treaties applied in Belarus. If dividends are paid to founders (participants) offshore duty is not levied.
A company can become a Hi-Tech Park resident in case it carries out activity only in the sphere of IT software, technical and natural sciences (research, development and technological work). Companies that do not fully satisfy these requirements may register a business project in the Park and enjoy similar preferences in respect of business projects.
Presidential Decree № 1
One more preferential tax treatment which is applied since 2008 in accordance with the Decree of the President of the Republic of Belarus № 1 is aimed at intensified business activity in small towns and rural areas.
During first 7 years after registration companies registered in a town/village with population less than 50 000 people and carrying out activities therein are exempt from tax on profit derived from sale of own-produced goods (services). They are also exempt from real estate tax and local taxes during first 5 years after registration.
Presidential Decree № 10
Some more preferential tax treatment for investors has been recently introduced. Thus, the Presidential Decree № 4 of 06.06.2011 amended the Presidential Decree № 10 of 06.08.2009 and granted the following tax preferences to investors carrying out investment projects in Belarus under investment agreements concluded with the Republic of Belarus:
- to deduct full amount of VAT that has been paid on acquisition (import) of goods/works/services/property rights necessary for the investment project irrespective of the VAT amount included in the cost of realized goods/works/services/property rights;
- not to pay land tax or land rent for state-owned land parcels;
- not to pay allowances to innovation funds;
- not to pay import customs duties (as agreed with the Customs Union Commission) and VAT in relation to importation of technological equipment necessary for the investment project;
- not to pay stamp duty for the license to engage foreign employees;
- not to pay VAT and profit tax in relation to gratuitous transfer of fixed assets to investor.
Presidential Decree № 9
The Presidential Decree № 9 of 20.12.2007 states that till 31.12.2012 organizations and individual entrepreneurs situated (residing) in rural area and producing goods (providing services, carrying out works) there have the right:
- not to pay profit tax (organizations) and income tax (individual entrepreneurs) in relation to profit and income from the sale of goods (works, services) produced (performed, provided) in the rural area;
- not to pay real estate tax on objects situated in the rural area;
- not to pay import customs duties and VAT in relation to importation of technological equipment as equity contribution;
- to pay 50% (for organizations) or 25% (for individual entrepreneurs) of the stamp duty for the license;
- not to pay the state duty for amending the license.
Presidential Order № 358
According to Presidential Order № 358 of 11.08.2011 the following benefits are granted since 01.04.2011 till 31.12.2013:
1) organizations and individual entrepreneurs working under the simplified taxation system pay 2% tax of the gross revenue derived from the export of goods/works/services/intellectual property rights;
2) foreign organizations do not pay VAT on the sale of works/services in relation to participation of Belarusian organizations (individual entrepreneurs) in international conferences, fora, symposia, congresses, exhibitions and fairs held in foreign states;
3) full amount of VAT on goods dispatched to foreign companies from storage locations in foreign states is deducted in case such goods were taken out from Belarus under the customs procedure of export and the contract was concluded between Belarusian taxpayer and foreign company after the goods left the territory of Belarus;
4) VAT on importation is not levied in relation to goods imported by Approved Economic Operators included in the Register of owners of customs/temporary storage warehouses. This benefit is granted in case the goods are exported from the territory of the Republic of Belarus by the owner of the warehouse at zero VAT rate.
|
