VAT when providing services electronically: main aspects

The tax system of the Belarusian Republic was formed on the classical principles of taxation.

The Tax Code of the BR includes 2 parts: general and special. The first part was adopted and approved on December 19, 2002. It states that tax legislation includes legislative acts of the Tax Code and international negotiations, as well as acts of the President and state and local authorities.

The general part of the Tax Code specifies the basic terms and concepts regarding taxation in Belarus.

Read more about the standard of living in Belarus here.

The general part of the Tax Code of the Republic of Belarus came into force on January 1, 2004.

7 years after the approval of the general part, the government approved a special part of the Tax Code, which includes a description of all taxes and fees in the Republic of Belarus. The special part was adopted on December 29, 2009.

Classification of taxes in Belarus:

1. Local.
2. Republican.

Republican taxes

Republican taxes are the main taxes that form the state budget of the Belarusian Republic.

VAT

Value added tax is an indirect tax, since the payers are not entrepreneurs, but consumers of goods and services.

VAT rate in Belarus

Tax rates:

• 20% is the general rate applied when selling goods.
• 10% is the rate that applies to the sale of plants, poultry, livestock and animals, fish and beekeeping products produced in the territory of the Republic of Belarus.

Income tax

The general income tax rate is 18%. But there are a number of exceptions when the rate is reduced.

List of situations that contribute to reducing the income tax paid:

1. Production of high-tech goods – 12%.
2. Dividends – 12%.
3. Production of laser and optical equipment – ​​10%.

Income tax is paid once a year by enterprises and organizations that make a profit in the course of their activities. The declaration is submitted to the tax office by January 22, and payment must be made by March 22 each year.

Income tax in Belarus compared to other countries

Personal income tax

Income tax is paid by citizens from their monthly salary. The tax forms almost 10% of the state budget of the Belarusian Republic.

In addition, if a person has deposits in financial institutions or banks, then he is required to pay tax on the deposit. The tax contribution is equal to 13% of the income received from the deposit.

The calculation of the tax rate depends on the type of human activity. So if a resident of the Republic of Belarus receives dividends, then he is obliged to pay 13%. Income from business, lawyer or notary activities is subject to a tax of 16%. The uniform income tax rate for individuals for all other types of activities is 13%.

Persons who rent out apartments and houses for the purpose of generating income are also required to pay income tax.

Short video about taxes in Belarus

The rate for renting out an apartment depends on the region and city.

Table: tax amount for renting out apartments

Taxes levied on individuals

Income tax deductions

The standard tax deduction is the amount by which income taxes are reduced. Deductions are income tax benefits that can be used by such citizens of the Republic of Belarus as:

1. Residents of the Republic of Belarus with a monthly salary below the established limit (563 Belarusian rubles). The income tax refund is 93 Belarusian rubles.
2. A parent raising a child under 18 years of age alone. Deduction – 52 Belarusian rubles.
3. Parents with more than 2 dependent children. 52 Belarusian rubles are returned.

Property Tax Fee

Real estate tax is paid by all citizens of the Belarusian Republic who have personal real estate, that is, real estate and housing in this country. It is paid by both individuals and legal entities.

Objects subject to taxation:

1. Apartments.
2. Own rooms.
3. Garages.
4. Parking spaces.

Even if a person is not the full owner of one of the above objects, but only owns a share, then he is also obliged to pay this type of tax.

Who is required to pay real estate tax in the Republic of Belarus

According to the law, a person has the right to choose for which real estate he will pay tax. To do this, you need to write an application to the tax office. If a person does not write an application, then the tax will be imposed on the property that first appeared in the ownership of the BR resident.

The following are exempt from tax:

1. Large families (more than 3 children).
2. WWII veterans.
3. People of retirement age.
4. Disabled residents of the Republic of Belarus.
5. Persons with 1st and 2nd disability groups.

Real estate located in rural areas is not subject to taxes.

All persons who use real estate for business activities are required to pay real estate tax.

The tax rate is 0.1 percent of the total value of the property. Payment of the fee is made through a bank, post office or tax office before November 15 of each year.

The Belarusian Republic also has a tax on profits from the sale of real estate, but there are some nuances here. To understand them better, we need to consider the situation with an example. There is no inheritance tax in this country , so even if a person inherited an apartment or house, he will not have to pay anything.

The share of real estate taxes in total tax revenues is 5%

If he wants to sell this apartment or house (or any other real estate) for the first time, then he also does not pay any taxes. But if a resident of the Republic of Belarus sells a second property within 5 years, then he is obliged to pay income tax to the state on its sale. The tax amount is 13 percent of the difference between the purchase price of real estate and its sale.

For example: a person inherited a house (or he bought it himself) for $50,000, and he sold it for $60,000, which means that the person pays 13% of $10,000 to the state budget.

Find out how to get a Belarusian passport here.

Land tax

Land tax is paid by owners of land plots in the Belarusian Republic.

Table: land tax rates

How is land tax calculated in the Republic of Belarus?

Environmental tax

Environmental tax is paid by business entities for harmful effects on the environment.

Environmental tax is paid if enterprises carry out:

1. Emissions of pollutants into the atmosphere.
2. Storage or disposal of production waste.
3. Wastewater discharge.

Tax contribution on the extraction of natural resources

Taxes are imposed on the following types of activities:

1. Potassium mining.
2. Oil production.

Not subject to taxes:

1. Production of associated petroleum gas.
2. Sand mining.
3. Soil extraction.
4. Extraction of underground and surface waters.

Taxes on the extraction of natural resources are regulated by Ch. 20 Tax Code of the Republic of Belarus

Stamp duty

Stamp duty is paid by individuals and entrepreneurs.

Tax rates:

• 15% – transfer to international organizations.
• 20% – issuance of copies of promissory notes and bills of exchange.

If you are thinking of living in Belarus for some time, read how to apply for a residence permit in this country.

VAT in 2022

From January 1, 2022, changes to the Tax Code come into force. Let's consider the main changes and additions made to the procedure for calculating VAT by Law No. 72-Z dated December 29, 2020.

VAT on medicines, medical products, goods for children and food products

1. exemption for the import and sale of medicines and medical products . From 2022, a VAT rate of 10% will be applied to medicines and medical devices included in the relevant state register, or for which there is a conclusion (permit) from the Ministry of Health.

2. The list of food products and goods for children subject to VAT on import and sale at a rate of 10% has been reduced <*>. Goods excluded from the list will be subject to VAT at a rate of 20%.

Note! The Ministry of Taxation published a letter dated December 31, 2020 N 2-1-9/02663 with explanations of how, from January 1, 2021, VAT rates will be applied in relation to: - certain items of food products, certain items of goods for children when they are sold on the territory of the Republic of Belarus, when their import into the territory of the Republic of Belarus, which will be subject to VAT at a rate of 20% instead of the previously applied VAT rate of 10%; — sales on the territory of the Republic of Belarus of medicines, medical products (including prosthetic and orthopedic products), when imported into the territory of the Republic of Belarus, for which a VAT rate of 10% will be applied. The letter also provides clarification on the nuances of taxation of amounts increasing the tax base.

Note No later than February 1, 2022, it is necessary to re-evaluate (include VAT in the required amount) balances <*>: - food products, goods for children, located in the retail network as of January 1, 2022, the VAT rate for the sale of which from 1 January 2022 increases from 10% to 20%; — medicines, medical products located in the retail network as of January 1, 2022, the VAT rate for the sale of which from January 1, 2022 is set at 10%. The new Tax Code norms will not be applied when selling leftovers in the period from January 1, 2021 until their prices are brought into compliance with the Tax Code provisions, but no later than February 1, 2022.

VAT for individual entrepreneurs

1. Increased to 465,255 rub. revenue criterion for the purpose of recognizing individual entrepreneurs on the OSN as VAT payers <*>. In 2022, this criterion was 441,000 rubles. <*>.

2. The revenue criterion for recognizing individual entrepreneurs on the simplified tax system as VAT payers in relation to income received by them from commercial organizations in which they or their close relatives are founders or owners has been excluded. In 2022, in respect of such income, it is planned to pay tax under the simplified tax system at an increased (16%) rate <*>.

3. For individual entrepreneurs who decide to pay VAT, regardless of whether they achieve the required revenue criterion, there is an obligation to submit a notification of the decision to the tax authority in the prescribed form and within the prescribed period (no later than the 20th day of the month in which the individual entrepreneur will pay VAT) <*>.

4. The dates from which individual entrepreneurs are recognized as VAT payers are specified:

- from the 1st day of the month following the month in which the revenue criterion was achieved;

- from the 1st day of the month from which the decision to pay VAT was made;

- from the date of state registration for individual entrepreneurs who submitted a notice of VAT payment in the month of state registration.

VAT on the sale of objects by non-residents

1. The scope of works and services for which foreign organizations registered with the tax authorities of the Republic of Belarus pay VAT has been clarified, adding to them installation and other works and services related to construction activities <*>. Let us note that this adjustment is aimed at “linking” with the norms of the Resolution of the Ministry of Construction and Architecture of May 10, 2011 N 17 “On establishing a list of types of work and services related to construction activities.”

2. The obligation has been established for foreign organizations carrying out construction activities and not registered with the tax authorities to register and pay VAT starting from the month on which the earliest date falls <*>:

- the day following the day of registration with the tax authority of the Republic of Belarus before the start of activities on the territory of the Republic of Belarus for more than 180 days;

- the day following the day of expiration of 180 days from the date of commencement of activities (from the date of existence of the construction project) on the territory of the Republic of Belarus.

3. The obligation of a foreign organization that operates through several permanent representative offices on the territory of the Republic of Belarus is established to submit a VAT tax return to the tax authority to which it submits a profit tax return <*>.

Objects of VAT taxation

Turnovers recognized and not recognized as objects of taxation have been adjusted. Namely:

— turnovers related to the sale of the debtor’s property within the framework of enforcement proceedings (including the transfer of the debtor’s property to the claimant) are excluded from the list of objects of taxation and are included in the composition of turnovers not recognized as objects of taxation <*>;

- excluded from the number of turnovers not recognized as objects of taxation is the gratuitous transfer of state property (with the exception of goods specified in Part 1, Subclause 2.6, Article 115 of the Tax Code of 2021) and objects to budgetary organizations of healthcare, education, culture, physical education and sports <* >. Such turnover will not be recognized as sales in accordance with the provisions of Art. 31 NK-2021.

Place of sale for VAT purposes

The list of turnovers for the sale of works, services, property rights, the place of sale of which is determined by the buyer, has been adjusted. Engineering services directly related to real estate are excluded from it, since they are taxed in accordance with subsection. 1.1 art. 117 NK-2021 <*>.

From 2022, the place of sale will not be recognized as the territory of the Republic of Belarus in relation to the part sold by one foreign organization that does not operate in the Republic of Belarus through a permanent representative office, another foreign organization of works, services, property rights to intellectual property, amounting to less than 10 percent of their value in the relevant period, which was consumed in the Republic of Belarus by a representative office, or a permanent establishment, or a branch of such another foreign organization <*>. This rule will apply to works (services), property rights, the moment of actual implementation of which falls on reporting periods starting from January 1, 2022 <*>.

VAT exemption

1. The rule on the exemption from VAT of work (services) performed (rendered) by foreign organizations that are not registered with the tax authorities of the Republic of Belarus and related to the participation of Belarusian organizations and (or) Belarusian individual entrepreneurs in events held in foreign countries has been adjusted. It has been established that conferences are classified as such events, regardless of whether they are international or not <*>.

2. It has been established that, in addition to turnover on the sale of services , starting from 2022, turnover on the sale of work and property rights to republican government bodies, paid by them from budget funds, and foreign organizations not registered with the tax authorities of the Republic of Belarus will also be exempt from VAT <* >.

3. The norm established by para. 2p. 5Decree N 503, on reducing the criterion for the number of disabled people from 50% to 30% for the purpose of applying VAT benefits. At the same time, in order to be exempt from VAT, a prerequisite is compliance with the established percentage of the number of disabled people on average for the corresponding past period <*>.

4. Services for conducting a preliminary examination of a qualifying scientific work (dissertation) and consideration of a qualifying scientific work (dissertation) by the dissertation defense council <*> are excluded from the number of services related to education that are exempt from VAT.

5. From the number of sales turnovers exempt from VAT, excluded are the sales turnovers of newly built garages, parking spaces and car parks (shares in the ownership of a car park) on the territory of the Republic of Belarus by the developer, customer, garage cooperative, cooperative operating car parking <*>.

6. The list of transactions exempt from VAT carried out by the open joint-stock company “Belarusian Currency and Stock Exchange” has been expanded. From 2022, such operations will also include operations to install and (or) maintain electronic document management systems between the exchange and its clients, as well as systems that provide remote servicing of exchange clients when carrying out clearing activities, activities for registering information on transactions made on an unorganized market and over-the-counter Forex market, organizing trade in financial assets <*>.

Note Let us remind you that from January 1, 2022, the list of housing and communal services services exempt from VAT <*> has been expanded.

Tax base VAT

1. The norm sub-clause has been moved to the Tax Code 2021. 1.2 Decree No. 546 of November 24, 2005 on the procedure for determining the VAT tax base for the sale by legal entities and individual entrepreneurs of vehicles purchased by them without VAT from individuals, including individual entrepreneurs, on the territory of the Republic of Belarus. Thus, the VAT tax base for the sale of vehicles in accordance with Appendix NK-2021 will be determined as the difference between the sales price including VAT and the purchase price of these vehicles <*>.

2. A procedure has been established for determining the tax base for leasing agreements for vehicles purchased from individuals. The tax base of the leased asset in terms of the contract value will be determined as the difference between its contract value including VAT and the lessor's investment expenses for the purchase of the vehicle <*>.

3. the rule on determining the VAT tax base when selling the debtor’s property within the framework of enforcement proceedings in connection with the exclusion of such turnover from the composition of turnover subject to VAT <*>.

Moment of actual implementation (MFR)

1. The rule on determining the MFR of works and services, the result of which cannot be used until their completion, has been adjusted. It is stipulated that the current procedure for determining the MFR applies to individual stages of such work (services) <*>.

2. The rule on the procedure for determining the MFR for rent has been adjusted. Thus, if the rental period does not exceed one month, the last day of the lease <*> is set as the day of delivery of the leased object.

3. The MFR has been determined in relation to amounts that increase the tax base in accordance with clause 4 of Art. 120 Tax Code, for banks as the day these amounts are reflected in accounting <*>.

VAT rates

1. The norm sub-clause has been moved to the Tax Code 2021. 1.2 Decree No. 296 dated 05.08.2019 on establishing a 0% VAT rate for turnover on sales of goods of own production on the territory of the Republic of Belarus to the owner of a duty-free store for their subsequent sale on board aircraft as supplies exported from the customs territory of the EAEU <*> .

2. The application of a 0% VAT rate is fixed on a permanent basis for the implementation of work (services) for repairs and maintenance of vehicles registered in foreign states, performed on the territory of the Republic of Belarus by authorized service centers for foreign organizations or individuals, with the exception of citizens of the Republic of Belarus (instead of restrictions on the application of the zero VAT rate until January 1, 2022) <*>.

3. An editorial amendment has been made regarding the non-application of the 20% VAT rate when importing into the territory of the Republic of Belarus goods specified not only in subparagraph. 2.2, but also in sub. 2.1 and 2.21st. 122 NK <*>.

4. It has been established that it is possible to apply a VAT rate of 20% not only on turnover on the sale of goods subject to VAT at a rate of 10%, but also when importing such goods <*>.

5. It has been determined that in relation to amounts increasing the tax base in accordance with clause 4 of Art. 120 Tax Code, the estimated rate does not apply <*>.

6. The list of data to be indicated in the register of electronic customs declarations for goods has been clarified for the purpose of applying a 0% VAT rate when exporting goods outside the EAEU when declaring goods in the form of an electronic document. The numbers of declarations for goods for express cargo and the date of release of goods <*> have been added to this list.

7. It has been established that exported transport services for the purpose of applying the 0% VAT rate do not include auxiliary transport services (OKRB code 007-2012 -52.29.20.100), consulting services, cargo storage services provided under a separate contract that does not provide for the organization and (or) ensuring international transportation of goods <*>.

8. The rule on the procedure for filling out the ESCF created during the sale of exported transport services, subject to VAT at a rate of 0%, has been adjusted. Thus, in the ESChF it is obligatory to indicate the code of the type of economic activity of the national classifier of the Republic of Belarus OKRB 005-2011 “Types of economic activity”, and forwarders must indicate in the ESChF both the details of the transport document and the details of the application <*>.

9. It has been determined that in order to apply a 0% VAT rate when implementing work (services) for the repair, modernization, re-equipment of aircraft and their engines, units of railway rolling stock, performed (rendered) for foreign organizations or individuals, supporting documents must be available from the payer <*>. Let us remind you that in 2022, copies of such documents were subject to submission to the Tax Inspectorate.

Tax deductions

1. It has been established that foreign organizations that pay VAT in accordance with sub. 2.2 Art. 114 NK-2021, deduct amounts of “input” VAT after they are registered with the tax authority of the Republic of Belarus <*>.

2. An editorial amendment has been made stating that in order to deduct the submitted VAT amounts (including for payers calculating VAT “on payment”) and the amounts of “import” VAT in the reporting period in which the conditions for the deduction are met, filing a VAT return must be carried out within the prescribed period <*>.

3. To the list of dates, the last of which determines the date of the right to deduct VAT amounts paid when importing goods from the EAEU, the date of submission of the VAT declaration, which reflects the amount of VAT, is added, if such a declaration is submitted after the established deadline <*>.

4. The possibility of deducting VAT amounts paid when importing goods from outside the EAEU is established in the reporting period, the deadline for filing a VAT return for which follows after the issuance of the ESCHF, if such ESHF is issued after the filing of the VAT return for the reporting period, in in which the conditions for deduction are met, and the date in line 3ESChF falls on the same period <*>.

5. It is determined that the amounts of VAT attributable to the costs incurred by the customer, developer, shareholder, constituting the cost of goods (works, services) transferred free of charge to state operating organizations during the reconstruction, repair of engineering and transport infrastructure facilities that are under their right of economic management (operational management) are accepted for deduction in the manner established for the deduction of VAT on purchased goods (work, services), property rights <*>.

6. It has been established that the deduction of VAT in the manner prescribed for turnover on the sale of objects at a rate of 20% will not be applied to the amounts of VAT on goods (works, services) transferred free of charge by the customer, developer, shareholder to state operating organizations during reconstruction, repair objects of engineering and transport infrastructure that are under their right of economic management (operational management), in connection with the fulfillment of technical conditions for engineering and technical support of the object, received in the prescribed manner for the purpose of constructing the object <*>.

7. The restriction on the deduction of “input” VAT amounts on gratuitously transferred goods (work, services), property rights to budgetary organizations of healthcare, education, culture, physical education and sports, which are planned not to be subject to VAT from 2022 in accordance with Art. 31NK, as well as amounts of “input” VAT associated with the receipt of income from the provision of services by organizations that are payers of the single tax on imputed income, services for the maintenance and (or) repair of motor vehicles and their components, the sales turnover of which is not recognized as an object VAT taxation in accordance with Part 1, Clause 7, Art. 378 NK <*>.

8. The rule on reducing tax deductions when returning goods imported from the EAEU for their replacement or repair has been adjusted. It is stipulated that such an adjustment will be made if, when returning goods for the specified purposes, an updated part II of the VAT declaration is submitted <*>.

9. The possibility of transferring VAT deductions to a legal successor without transferring goods (work, services), property rights has been established, if this is provided for in the separation balance sheet (transfer deed) <*>.

10. Norm sub. 27.3 Art. 133 of the Tax Code 2021 is set out in a new edition, which establishes the need to reduce tax deductions by amounts of VAT previously accepted for deduction in full in connection with liquidation, in the event of cancellation of the liquidation procedure.

Informing about the election of the reporting period

A deadline has been established for informing about the selection of a quarter as a reporting period if, during the transition to the use of a special taxation regime without paying VAT, and the absence of an appropriate mark on the selection of the reporting period in the VAT return for the previous year, an obligation arose to calculate and pay VAT in the current year. The mark must be put down no later than the 20th day of the month following the quarter in which the obligation to calculate and pay VAT arose (the object of taxation arose). This procedure also applies to individual entrepreneurs who are not VAT payers <*>.

Confirmation of VAT payer status

The Tax Code 2021 establishes the procedure for confirming the status of a Belarusian organization as a VAT payer. Such confirmation will be carried out on the basis of the payer’s application by issuing a certificate in the established form by the tax authority at the place of registration or by certifying the certificate in the form established in a foreign state <*>.

VAT refund

Article 137 of the Tax Code 2021 is set out in a new wording, taking into account the current law enforcement practice. In particular, it stipulates that the offset of the amount of excess VAT against the fulfillment of the tax obligation is carried out if the tax authority has a corresponding declaration.

Tax Free

The procedure for processing documents for VAT refund under the Tax Free system has been simplified. Now you do not need to create a VAT refund receipt in two copies and attach the original confirmation of the export of goods to the VAT refund document. The card check is recognized as a payment document for VAT refund <*>.

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Local taxes

Dog ownership tax

People who have dogs are subject to taxation. In 2022, the dog tax was slightly changed. Let us remind you that until 2022, the amount of tax on pets depended on the size of the pet.

Table: tax rate for keeping pets

The base rate is 24.5 Belarusian rubles.

How much will you have to pay to own a dog in one of the ancient cities of Belarus?

Resort fee

The resort fee refers to local taxes and fees in the Belarusian Republic. The resort fee is paid by individuals who are on vacation in such institutions as:

1. Dispensary.
2. Sanatorium.
3. Health Center.
4. Health Camp.
5. Pension.
6. Recreation center.

Existing VAT rates

In addition to the settlement rates applied in a special regime (clause 4 of Article 164 of the Tax Code of the Russian Federation), there are basic VAT rates.
These include: 1. The VAT rate is 0%, the application of which is given in paragraph 1 of Art. 164 Tax Code of the Russian Federation.

See also the material “What is the procedure for refunding VAT at a rate of 0% (receiving confirmation)?” .

2. VAT at a rate of 10% is calculated on the basis of the conditions given in paragraph 2 of Art. 164 Tax Code of the Russian Federation.

See also the materials “What is included in the list of goods subject to VAT at a rate of 10%”.

3. The VAT rate of 20% is applied on the basis of clause 3 of Art. 164 Tax Code of the Russian Federation.

ConsultantPlus experts spoke about the nuances of applying VAT rates:

Learn the material by getting trial access to the system for free.

Other tax contributions

Tax on parasitism

The tax on parasitism in Belarus is a special levy that all citizens of the Republic of Belarus who have been unemployed for more than six months are required to pay. This tax contribution was introduced to prevent social dependency and reduce unemployment in the republic .

This tax contribution is not paid:

1. Individuals under 18 years of age.
2. Pensioners. Let us remind you that in the Belarusian Republic women retire at the age of 55, and the stronger sex at the age of 60.
3. Students who are undergoing full-time study (full-time study). But the exception applies only to students who are receiving their first education. If a person is a full-time student and receives a second higher education, then he is not exempt from paying tax.

   Decree on the introduction of a tax on parasitism

4. Persons with a disability group.
5. Incapacitated citizens of the Republic of Belarus.
6. Individuals who are on the territory of the republic for less than 183 days a year.
7. Representatives of religious organizations.
8. People who live in rural areas. For this group of the population such an exception was made due to the small number of vacancies in villages. The government considered that village residents mainly earn their living from farming, which means they work, so it is illegal to collect taxes from them.
9. Parents who have children under 3 years of age.
10. Individual entrepreneurs.
11. Representatives of jurisprudence (lawyers, notaries) whose annual income is more than 70 basic units.
12. Parents with more than 3 children.
13. Unemployed people who have been registered for no more than 3 years.
14. Owners of rented apartments. But only non-owners who pay a fee for rented apartments in Belarus can avoid paying tax.
15. People in prison.

Let us remind you that the size of the basic value from January 1, 2022 is equal to 24.5 Belarusian rubles.

Tax evasion is regarded as an administrative violation and is punishable by a fine.

One of the most absurd taxes in Belarus. Watch the video

In 2022, the tax on parasitism was 20 basic units.

Despite the fact that due to the introduction of the tax, the state budget was significantly replenished and unemployment decreased, the authorities canceled this fee in 2018.

Mushroom tax

The mushroom tax is one of the latest taxes adopted in the Belarusian Republic. The resolution was approved on December 31, 2016. It implies that from this date, all people who collect mushrooms, berries and herbs are required to pay a tax contribution. The tax amount is directly tied to the base value and depends on the type of product collected.

So, for example, mushroom pickers will have to pay a tax of 0.01 base value per kilogram of collected porcini mushrooms, boletuses or chanterelles. The same tax applies to the collection of lingonberries, blueberries, raspberries and blueberries. A tax of 0.03 basic units is paid per kilogram of collected dandelions, rowan, bird cherry or hawthorn.

But there is an amendment to the law that regulates that individuals are allowed to collect the above products, as well as wood or tree branches for free. The tax is paid only by legal entities whose products are used to make a profit.

Extract from the resolution of the Council of Ministers of the Republic of Belarus on the use of forest resources

Tax on winnings

According to the current tax legislation, every citizen of the Belarusian Republic who has won a lottery or gambling is required to pay a tax fee. The bet for the winner is 4%.

The tax rate is applied when winning:

• in a casino;
• poker;
• on slot machines;
• at the betting shop;
• in a lottery draw;
• in bookmakers' offices.

This tax still causes negative emotions among the population of Belarus

Tax on debt

Debt tax is an income tax on the amount borrowed. The debt tax in Belarus was introduced on January 1, 2015. The essence of this tax is that a person who has loans or credit from a foreign organization or from a private individual who does not have a permanent establishment in the Belarusian Republic is obliged to pay a certain amount to the state for the use of money. Unrepaid debt is subject to tax. The income tax rate is 13% of the debt.

But it is worth remembering that funds that were borrowed or credited from Belarusian banks or financial organizations are not subject to tax.

You also won’t have to pay tax if the money was borrowed from relatives.

Mining tax

On December 21, 2017, the President of the Belarusian Republic Alexander Grigoryevich Lukashenko approved the legislative act “On the development of the digital economy.” This law officially came into force in April 2022. This is the law on cryptocurrencies and mining. Let us recall that a cryptocurrency is a Bitcoin or other digital symbol (token) that is used in international circulation as a means of exchange.

Now Belarus is among the countries that have recognized cryptocurrency

Mining is an activity aimed at ensuring the functioning of the register of transaction blocks. In other words, people who carry out mining automatically become owners of tokens, which they receive as a reward.

The President of the Republic of Belarus stated that the tax on cryptocurrency and mining will take effect only from January 1. 2023.

This tax will not be paid by individuals. Tax will be charged only when exchanging cryptocurrency into the currency of one of the countries (for example, exchanging cryptocurrency for the US dollar). The tax rate depends on the currency.

Car sales tax

The car sales tax is an income tax that relates to the republican taxes and fees of the Republic of Belarus.

The sale of the first car is not subject to taxes , but the sale of the second car in a year means that a person is obliged to pay a tax to the treasury of the Republic of Belarus. The tax return must be submitted no later than March 1, and the tax itself must be paid by May 15.

In Belarus, every fourth resident has a car

Tax calculation: rate – 13%. Example #1: A person bought a second car for $3,000 and sold it for $3,500. Tax – 13% of the difference, that is, 13% of $500.

Example No. 2: a resident of the Republic of Belarus bought a second car for $3,000 and sold it for $2,800. In this case, no tax is paid, since the person did not receive any profit from the sale.

Taxpayers: who are they?

The objects of taxation are either the cost of imported goods or the cash flow that is obtained as a result of the sale of property rights, services, works, and products in the country.

But not everyone pays taxes. Mandatory persons include:

1. Individual entrepreneurs and private entrepreneurs, if the amount of money received exceeds the figure specified in the documents or if the entrepreneur himself began to pay VAT;
2. foreigners and legal entities registered for tax purposes, provided that they conduct economic activities;
3. physical. They are determined by the state;
4. trustees for turnover related to the management of the property entrusted to them.

Note! If you are a foreign entrepreneur, but are not registered with the tax authorities, then you are not required to pay VAT. A similar fee will be paid by the person who orders services from you or buys a certain product.

Electronic declaration

Electronic declaration of payment of indirect taxes and import of products from the territory of the republics of the Eurasian Economic Union was introduced in Belarus in 2015 on January 1.

Countries included in the EAEU:

1. Armenia.
2. Belarusian Republic.
3. The Republic of Kazakhstan.
4. Kyrgyzstan.
5. Russian Federation.

Let us remind you that the following taxes are considered indirect:

1. Excise taxes.
2. Value added tax.
3. Fiscal monopolies.
4. Customs duty.

   All necessary information can be obtained on the official portal of the customs service of the Republic of Belarus

Electronic declaration allows not only to control the export and import of goods, but also to exchange information with other EAEU countries.

What taxes may still be introduced in the Republic of Belarus?

Tax contribution on plastic bags

A tax on plastic bags has not yet been introduced, but the authorities of the Republic of Belarus are planning to introduce it in the near future. According to the government, polyethylene poses a danger to the environment of the Republic of Belarus, therefore, in order to reduce the number of consumed plastic bags, a decision was made to introduce such a fee.

A plastic bag takes 200 years to decompose

The authorities claim that many citizens will not want to pay taxes for using plastic bags, so they will find a more environmentally friendly alternative.

The government of the Belarusian Republic decided to adopt the experience of EU countries, where a tax on packages was introduced a long time ago. For example, in Greece the tax on 1 plastic bag is 9 cents.