Belarus - Raiffeisen Bank International AG

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12 Excise tax takes the form of fixed amounts in Belarusian rubles (BYR) charged per unit of goods. For instance, the excise tax on champagne and sparkling wine (1 litre) is BYR2,740 (€0.73), the tax on wine (1 litre) is €0.21 and the tax on a cigar is €0.57. When importing goods that attract excise tax, the importer must apply for and buy the excise tax stamp (proving payment of excise tax) and affix it to the product. Tax on the sale of car fuels Belarusian companies must pay this tax when buying car fuels. The tax is levied at a rate of 10 per cent of the price of the gasoline or diesel. This tax is normally paid by the fuel wholesaler. Profit tax A profit tax of 24 per cent is imposed on company profits in Belarus. The profit tax is regulated in the Special Part of the Tax Code No. 71-3 of 29 December 2009. This tax must be paid by Belarusian legal entities and foreign legal entities with a permanent establishment in Belarus, but the tax levied on a permanent establishment of a foreign company in Belarus is limited to the profits recorded by that permanent establishment. Under the double tax agreement between Austria and Belarus of 23 April 2002, the profits of Austrian companies operating in Belarus without setting up a permanent establishment are taxed in Austria. However, the profits that can be attributed to a permanent establishment of an Austrian company in Belarus (e.g. a subsidiary) are subject to Belarusian profit taxation. The representative office of an Austria company is not subject to profit taxation in Belarus so long as the Belarusian tax authorities have not deemed it to be a permanent establishment on the grounds of its activities. The double tax agreement also sets out special rules allowing the Belarusian taxation at source of the profit distributions of Belarusian companies with Austrian shareholders/members/partners (5 per cent if stake > 25 per cent: otherwise 15 per cent) as well as of profits from securities transactions (24 per cent) and transportation services (6 per cent). When rendering services in Belarus, one must take into account that the Belarusian tax code specifies that, when a foreign company renders a service in Belarus, the revenues from that service will be taxed at source at a rate of 24 per cent of the value of the order. The recipient of the service must withhold the tax applying the reverse charge system. Installation and assembly services may be exempted.
Profit tax in a number of areas of activity Profit tax is levied on banks and insurers at a rate of 24 per cent. The tax on profits from securities transactions levied on other organizations is likewise 24 per cent. Income tax The progressive tax system was abolished on 1 January 2009 and the income tax rate has been 12 per cent since that time. Income tax is assessed on the basis of all monetary and non-monetary income of natural persons with a permanent residence in Belarus. Foreign citizens are assumed to have a permanent residence in Belarus if they are in Belarus more than 183 days a year. Social security contributions Employers must pay contributions into the social insurance fund in the amount of 35 per cent of all wage and salary payments (monetary and non-monetary) as well as premiums based on civil law contracts for the benefit of employees. Social security contributions are legally regulated by Law No. 138-XIII of 29 February 1996 concerning obligatory contributions to the social fund of the ministry of social security of the Republic of Belarus. In addition, an insurance premium of up to 0.34 per cent of all wage and salary payments (depending on the sector or industry) must be paid to the Belarusian Republican Unitary Insurance Company Belgosstrakh, which is state-owned. Land tax Land tax takes the form of a fixed annual amount per cadastral valuation of a hectare (2.47 acres) of land. The taxable object is land owned, possessed or used by a legal entity or natural person. The tax rate is 0.015 per cent – 12 per cent of the cadastral valuation per hectare and year, and this rate increases by a factor of 1.6 if the land is not registered in the cadastre. Natural persons must pay land tax in the amount of about BYR60,000 (approx. US$20) or 0.45 per cent of the cadastral valuation per hectare and year depending on the cadastral valuation. The legislative basis for this tax is provided by the Special Part of the Tax Code No. 71-3 of 29 December 2009 concerning land payments. 13
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 and 10: Forming a limited liability company
Page 11: 3. Taxation and Legislation VAT The
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

Belarus - Raiffeisen Bank International AG

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