Top of page

Article Belarus: Further Amendments to Tax Rules

(Nov. 14, 2016) On October 26, 2016, Belarus published amendments to its Tax Code that had been adopted on October 18, 2016, as Law No. 432-Z. (Viktar Strachuk, Belarus: Tax Code Amendments for 2017 – Additional Details, TAX NEWS SERVICE (Nov. 7, 2016), International Bureau of Fiscal Documentation online subscription database (IBFD); Tax Code of the Republic of Belarus (as amended up to Law of the Republic of Belarus No. 224-Z of December 30, 2014, World Intellectual Property Organization website (click on link for text in Russian); for additional amendments made between 2014 and the current revision, see Constance A. Johnson, Belarus: Tax Code Amended, GLOBAL LEGAL MONITOR (Feb. 12, 2016) https://www.loc.gov/law/foreign-news/article/belarus-tax-code-amended/.)

The draft text of the amendments had been released in August. (Viktar Strachuk, Belarus: Draft Tax Code Amendments for 2017 Published, TAX NEWS SERVICE (Aug. 17, 2016), IBFD.)

Corporate Tax Provisions

The draft establishes that shareholders in a corporate entity are only considered to be related parties under the tax law if each owned at least 20% of the other’s capital. (Id.) The new rules ban certain expenses from being listed as deductions, including:

  • the cost of goods and services that were not received by the taxpaying entity;
  • the cost of a service performed by an individual who is employed by the taxpayer, when the service is related to the employee’s work duties; and
  • the cost of services received from the taxpaying entity’s parent or subsidiary company, when those services are related to the duties of the taxpayer’s employees (except in the case of joint-stock companies). (Belarus: Tax Code Amendments for 2017 – Additional Details, supra.)

Personal Income Tax Provisions

All citizens of Belarus who live abroad will now be eligible for a tax exemption for income gained from the sale of immovable property. In the past, only those considered tax residents were able to take advantage of this exemption. (Id.)

Tax on Foreign Entities

Foreign legal entities without permanent establishments in Belarus now will have to pay tax on income derived from two types of service: searches for and provision of information about potential buyers; and provision of access to databases. (Id.)

VAT Provisions

The amendment states that land surveying and other services related to real estate provided by the state land agencies will now be subject to value-added tax (VAT). Furthermore, the deadline for issuing VAT invoices electronically has been moved from the fifth to the tenth day of the month, for transactions in the previous month that are subject to VAT. (Belarus: Draft Tax Code Amendments for 2017 Published, supra.) However, the effective date for previously announced VAT rules for electronic services provided by foreigners has been postponed to January 1, 2018, rather than 2017. (Belarus: Tax Code Amendments for 2017 – Additional Details, supra.)

Other Provisions

Two measures were included that expand the use of digital services. The tax authorities will begin publicly listing on a website taxpayers who owe back taxes, and an online portal providing a personal web page for each taxpayer, to be used for electronic communication and submission of documents, will be opened. (Belarus: Draft Tax Code Amendments for 2017 Published, supra.)

Following a Constitutional Court decision on the subject, the right of anyone to appeal a decision of the tax authorities has been established. (Id.; Viktar Strachuk, Belarus: Right to Appeal Against Tax Authorities’ Decision for Persons Not Being Taxpayers – Constitutional Court Decision, TAX NEWS SERVICE (May 6, 2016), IBFD.)

About this Item

Title

  • Belarus: Further Amendments to Tax Rules

Online Format

  • web page

Rights & Access

Publications of the Library of Congress are works of the United States Government as defined in the United States Code 17 U.S.C. §105 and therefore are not subject to copyright and are free to use and reuse.  The Library of Congress has no objection to the international use and reuse of Library U.S. Government works on loc.gov. These works are also available for worldwide use and reuse under CC0 1.0 Universal. 

More about Copyright and other Restrictions.

For guidance about compiling full citations consult Citing Primary Sources.

Credit Line: Law Library of Congress

Cite This Item

Citations are generated automatically from bibliographic data as a convenience, and may not be complete or accurate.

Chicago citation style:

Johnson, Constance. Belarus: Further Amendments to Tax Rules. 2016. Web Page. https://www.loc.gov/item/global-legal-monitor/2016-11-14/belarus-further-amendments-to-tax-rules/.

APA citation style:

Johnson, C. (2016) Belarus: Further Amendments to Tax Rules. [Web Page] Retrieved from the Library of Congress, https://www.loc.gov/item/global-legal-monitor/2016-11-14/belarus-further-amendments-to-tax-rules/.

MLA citation style:

Johnson, Constance. Belarus: Further Amendments to Tax Rules. 2016. Web Page. Retrieved from the Library of Congress, <www.loc.gov/item/global-legal-monitor/2016-11-14/belarus-further-amendments-to-tax-rules/>.