Belarus - Raiffeisen Bank International AG
Belarus - Raiffeisen Bank International AG Belarus - Raiffeisen Bank International AG
10 possible mistake of registering a fraudulent company. When one is opening a representative office, forming a company, closing a representative office or liquidating a company in Belarus, it is therefore advisable to engage an experienced local lawyer. Good lawyers can process a company formation or the opening of a representative office inside of two months. Local lawyers can be expected to charge between roughly € 500 and € 1,500 plus any official fees (approx. € 1,000).
3. Taxation and Legislation VAT The legal framework for the tax system in Belarus consists of the Tax Code (Law No. 166-Z of 19 December 2002), the Special Part of the Tax Code No. 71-3 of 29 December 2009 and a number of acts that regulate individual taxes (excise tax act, VAT act, profit and income tax act). Tax burdens in Belarus total about 50.9 per cent of GDP, but this does not include mandatory contributions to funds specially set up by Presidential decrees. The tax burden on companies in Belarus varies considerably from industry to industry (agricultural businesses: about 5 – 6 per cent; manufacturers of alcoholic beverages: about 72 – 78 per cent) and averages 15 – 25 per cent of revenues. However, these figures do not include payments to various state funds, so one can assume an average (tax) burden on companies of about 40 per cent. VAT is regulated in the Special Part of the Tax Code No. 71-3 of 29 December 2009. Tax is levied on the sale or importation of goods and services and of intellectual property within or to Belarus. The standard VAT rate is 20 per cent, and a reduced VAT rate of 10 per cent is applicable to foodstuffs, goods for children and a number of agricultural products. Exports from Belarus are generally exempted from Belarusian VAT. There are also VAT exemptions for securities, pharmaceutical products, medical products, medical and cultural services, insurance and legal advice. It is precisely those exemptions that are regulated by Belarusian governmental and presidential legal acts. The country of destination principle has applied to trade between Russia and Belarus since 1 January 2005. As a result, import VAT is also payable on goods imports from Russia to Belarus. On the other hand, exports from Russia to Belarus are exempted from Russian VAT and from any excise tax so long as the Russian tax authorities receive proof of delivery within 90 days of the date of delivery. The basic principles underlying the Belarusian VAT system are similar to those underlying the system in Austria and other European countries. VAT paid can be deducted from VAT owed as input tax, reducing one’s tax liability. The reverse charge principle applies when services are exported from Austria to Belarus. Excise tax Excise tax is an additional tax levied on the sale of technical alcohol (with exceptions that include medicines, veterinary pharmaceuticals, perfumes and cosmetic products), alcoholic beverages, beer, tobacco products, crude oil, gasoline, diesel, motor oil, jewellery, microbuses and passenger cars. 11
- Page 1 and 2: Financial Market Report Belarus In
- Page 3 and 4: The Belarusian Financial Market Imp
- Page 5 and 6: The continuation of expansive polic
- Page 7 and 8: The general view is that representa
- Page 9: Forming a limited liability company
- Page 13 and 14: Profit tax in a number of areas of
- Page 15 and 16: Special tax regimes Unified tax on
- Page 17 and 18: 4. Privatization Roughly 75 per cen
- Page 19 and 20: The arbitration clause of the Inter
- Page 21 and 22: Who can apply? All natural persons
- Page 23 and 24: 7. Risk Mitigation and Finance Guar
- Page 25 and 26: Investment of €100 Austrian Compa
- Page 27 and 28: 8. Payment and Account Services at
- Page 29 and 30: 9.3. Clearing Mechanisms Settlement
- Page 31 and 32: 10. Your International Business Spe
- Page 33 and 34: Notes 33
- Page 35 and 36: Notes 35
10<br />
possible mistake of registering a fraudulent company. When one is opening a representative office, forming<br />
a company, closing a representative office or liquidating a company in <strong>Belarus</strong>, it is therefore advisable<br />
to engage an experienced local lawyer. Good lawyers can process a company formation or the opening of<br />
a representative office inside of two months. Local lawyers can be expected to charge between roughly<br />
€ 500 and € 1,500 plus any official fees (approx. € 1,000).
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