THE LAW OF THE REPUBLIC OF BELARUS
of 20 December 1991
ON TAXES AND DUTIES COLLECTED TO THE BUDGET OF THE REPUBLIC OF BELARUS
Taxes and duties collected to the budget of the Republic of Belarus shall be compulsory deductions of pecuniary resources from payers in the amounts established by laws. In addition to the taxes and duties stipulated by the present Law, non-tax payments established by the legislation shall be transferred to the budget of the Republic of Belarus. Local Soviets of People's Deputies can establish local taxes, duties and fees collected on their territory within the rights provided to them by the legislation.

ARTICLE 1. TAX AND DUTY PAYERS Legal persons (including enterprises with foreign investments and foreign legal persons), branches, representations and other isolated subdivisions irrespective of their subordination and forms of ownership as well as phisical persons are obliged to pay taxes and duties to the budget in cases envisaged by the legislation of the Republic of Belarus. Record keeping of tax payers and payers of other binding payments to the budget of the Republic of Belarus is fulfiled in the Goverment Register of tax payers. The procedure of the Goverment Register keeping of taxpayers is determined by the Counsil of Ministers of the Republic of Belarus.

ARTICLE 2. TRANSFER OF TAXES AND DUTIES TO THE BUDGET All amounts of taxes and duties shall be transferred to the budget of the Republic of Belarus. Transfer of taxes and duties to local budgets shall be regulated by the Law of the Republic of Belarus "On Local Self-Administration and Local Economy in the Republic of Belarus". Amounts deducted to local budgets from general state taxes shall be fixed annually by the Law of the Republic of Belarus when approving the budget. Taxes and duties shall be paid in monetary units circulating on the territory of the Republic or in a foreign currency bought by the banks of the Republic of Belarus.

ARTICLE 3. TYPES OF GENERAL STATE TAXES AND DUTIES The following types of general state taxes and duties shall be established in the Republic of Belarus: a) value-added tax; b) excise tax; c) tax on profits and incomes; d) tax on use of natural resources (ecological tax); e) tax on immovable property; f) export and import tax; g) land tax (land payment); h) fuel tax; i) transit tax; j) state duties and fees; k) income tax on citizens. Objects of taxation, payment procedures, rates and benefits for each concrete tax or duty shall be stipulated by legislative acts of the Republic of Belarus.

ARTICLE 4. TAX AND DUTY BENEFITS AND PRIVILEGES Tax and duty benefits and privileges shall be established by the Supreme Soviet of the Republic of Belarus or, on its instructions, by the Council of Ministers of the Republic of Belarus. Local Soviets of People's Deputies or, on their instructions, executive committees of local Soviets of People's Deputies can exempt from tax payment certain payers either fully or partially in that part of taxes, that are paid to local budgets.

ARTICLE 5. ELIMINATION OF DOUBLE TAXATION 1. One and the same object can be subjected to one type of tax only once over a relevant period of payment. 2. An amount of profits or incomes received outside the Republic shall be included into the total amount of profits or incomes liable to taxation in the Republic of Belarus and accounted for when determining the tax amount, unless otherwise stipulated by international agreements ratified by the Supreme Soviet of the Republic of Belarus. 3. Tax amounts on profits and incomes received outside the territory of the Republic of Belarus and paid by enterprises, amalgamations, associations and organizations beyond the territory of the Republic of Belarus in accordance with legislations of other states shall be accounted for when they pay taxes on profits and incomes in the Republic of Belarus. In so doing, the amount of sums accounted for can not exceed the amount of tax on profits (incomes) due to be paid in the Republic of Belarus in relation to the profit (income) received outside the Republic. 4. Profits received from operations liable to income tax shall not be included into taxable profits and shall not be subjected to the profit tax.

ARTICLE 6. TIMING AND PROCEDURES FOR TAX PAYMENT Timing for paying taxes to the budget, as well as procedures for payers' presentation of accounts and account settlements (declarations) on the amounts of calculated payments shall be determined by the Council of Ministers of the Republic of Belarus, unless otherwise stipulated by the legislation of the Republic of Belarus.

ARTICLE 7. RIGHTS OF TAXPAYERS Taxpayers shall have the rights: a) to read acts of executed revisions; b) to submit to tax authorities explanations concerning calculation and payment of taxes and the acts of executed revisions; c) to appeal against the decisions, taken by tax authorities, according to the established procedures; d) to read in tax authorities all acts of tax legislation, which are applied in respect of a given taxpayer, as well as the acts of revisions executed at the taxpayer's office; e) to demand from tax authorities official explanations concerning calculation and payment of taxes and the acts of revisions executed at the payer, as well as to give to tax authorities his explanations concerning calculation and payment of taxes and the acts of tax revisions executed at the given taxpayer's office.

ARTICLE 8. RESPONSIBILITIES OF TAXPAYERS 1. Payers of taxes stipulated by the present Law shall be obliged to: a) register as taxpayers in the state tax authority at the place of domicile or residence in 15 day period after receiving registration documents; Banks and other credit and finance institutions shall open bank and other accounts for their clients only on presentation of documents of their registration in the state tax authority as tax-payers; b) maintain in the established order accountancy and reporting on their financial and economic activities and submit to tax authorities reports and balances, tax payment documents, declarations and other necessary documents and data connected with tax calculation and payment; c) present and in necessary cases submit to tax authorities documents confirming their rights to tax benefits and privileges; d) make due and full payments of tax amounts due from them; e) assist officials of tax authorities in their activities for checking calculation and payment of taxes by a given taxpayer; f) inform the tax authorities in 15 day period in case of stoppage of activities or including any changes into the constituent documents; 2. Legal and physical persons, realizing products (work, services) with payment in cash through the stationary trade outlets , are obliged to realize reception of money using summing cash-registers or special computer systems registered in the state tax authority. Proper requirements to the summing cash-registers and software for computer systems which are applied for these purposes are determined by the Cabinet of Ministers of the Republic of Belarus. In other cases while realizing production (work, services) for cash-payment reception of money is fulfiled by credit cash tickets or prepunched ticket stubs (tickets) registered in State Tax Authority. Application of summing cash-registers or special computer systems in case of realization of production (work, services) for cashpayment in non-stationary trade (serving) outlets is not compulsory for physical persons carring out business activities without forming legal person if fixed income tax rates are fixed for them by the regional and Minsk Municipal Councils of Deputies. Storage of goods and its realization in trade outlets without proper documents which are slips of strict reporting and confirming the purchase of goods is banned to managing persons irrespective of ownership form. Infringement of order mentioned above is regarded as income concealment. Single pattern documents which are ratified by the authorized public bodies are used for accompany and storage goods and material assets. 3. Heads and relevant officials of enterprises, institutions and organizations shall be obliged to sign acts of revision executed by the tax authority and, in case of disagreement with the facts presented in the act, submit within a 5-day period a written explanation of motives of disagreement. Also, they shall be obliged to fulfil the requirements of the tax authority concerning elimination of detected violations of the tax legislation. 4. Taxpayers, which in accordance with the legislation of the Republic of Belarus submit to tax authorities accountancy reports and balances, tax payment documents or a declaration on incomes after the revision of their activities by a self-accounting auditing organization, shall be obliged to submit, within a year following the year of account, to a tax authority a document confirming the fact of revision. Taxpayers which have not presented the above document shall be liable to measures stipulated by Article 9 of the present Law. The above measures shall not be applied, if a tax-payer is not to blame for the fact that a revision has not been executed within a specific period.

ARTICLE 9. MEASURES CONNECTED WITH RESPONSIBILITIES OF THE TAXPAYER 1. Tax-payers shall bear the responsibility, established by the legislation of the Republic of Belarus, for the correct calculation and due payment of taxes to the budget and for observance of the tax legislation in force. 2. Payers of taxes, stipulated by the present Law, which do not have by the time established for tax payment accountancy reports and balances, as well as payment documents and declarations on taxes in the established form over a relevant period of accounting, shall pay 110 per cent of the tax sum calculated for the previous period of accounting. Upon presentation of the above documents the tax shall be recalculated proceeding from the actually received profits and incomes, taxable turnover or other objects of taxation. 3. Payers which have not presented in due time a declaration on their incomes liable to taxation by tax authorities shall be provided by the tax authority with a notification of tax payment in the amount of 150 per cent of the tax sum paid for he previous period of accounting or in the amount conventionally calculated on the basis of information of incomes which is at the possession of the tax authority. Upon presentation and verification of the above document, tax shall be recalculated proceeding from the actually received income adding 10 per cent of the tax sum due to pay. 4. In case profit (income) accounting is absent or executed with violations of the established procedures, as well as in case accounts, reports and other documents necessary to calculate and pay taxes have not been presented to tax authorities r have been presented in the wrong time, or in case payment documents concerning budgetary payments have not been presented to banking institutions or have been presented in the wrong time, taxpayers shall pay to the budget, as sanctions, 10 per cent of the tax sum due to pay. 5. In case of concealment, underdeclaration of profits or incomes by report (balance) the whole amount of concealed profit (or income) is enforced into the budget income. In case of concealment, underdeclaration of other objects of taxation, (exept of income or profit) the tax sum for concealed object of taxation and penalty in amount of the double sum are enforced into the budget income. In case of repeated concealment, underdeclaration of profit or income during a year (12 months) since the day of application of previous financial sanctions the concealed profit or income and the penalty in amount of concealed profit or income are enforced into the budget. The tax sum for concealed object of taxation and the penalty in tripled amount of the sum are enforced in case of repeated concealment, underdeclaration of other object of taxation. Concealments and underdeclarations revealed by audits during one accounting period irrespective of time they were made are not regarded as repeated ones if financial sanctions have been already applied during this accounting period for concealment, underdeclaration of profit, income or other object of taxation. Sums of concealed, underdeclarationed profit, income and sums of added taxes for the concealment of other objects of taxation, penalties, other financial sanctions applied for infringement of tax legislation are paid from means left at the disposal of a payer after the tax payment. In case of deficiency of financial assets on the payer's accounts after six months from the day of revealing of infringment the enforcement is applied to other assets or property of the payer according to the acting legislation. 6. Incomes, derived by a taxpayer from banned types of activities as well as from activities that can be executed only on a special permit (licence) but that are actually executed without such permit (licence), together with a fine, the amount of which is equal to the amount of income derived as a result of such activities, shall be transferred to the budget. Financial assets (receipts) accepted with infringement of fixed order of their reception in case of realization of products (work, services) for cash-payment are enforced to the republic budget income. Goods (production) keeped in trade outlets without documents (or by documents which are not slips of strict reporting), confirming their purchase (arrival), are liable to seizure with following confiscation to the income of the Republic of Belarus in fixed legislative order. In cases of buying foreign currency without license of National Bank of the Republic of Belarus and also its selling out of currency exchange offices, bought and sold foreign currency are liable to seizure with following confiscation to the income of the Republic of Belarus in fixed legilative order. 7. Concealment of incomes derived in a foreign currency shall incur recalculation of the amount of incomes at the currency rate fixed at the day of accounts payment. 8. Amounts of concealed or diminished profits (incomes) or amounts of taxes from any other concealed object of taxation, as well as a fine shall be paid by the payer to the budget within a 10-day period from the day tax authority officials wrote an act on detected violations. 9. Amounts of concealed or diminished profits (incomes) or amounts of taxes for any other concealed object of taxation, as well as amounts of financial sanctions shall be transferred: by enterprises of local subordination, consumer cooperation public associations, cooperatives, collective and state farms and other agricultural enterprises - to the local budget, while by others to the republican budget. Amounts of financial sanctions collected from the physical persons shall be transferred to local budgets. 10. Tax authorities have the right to suspend payers' operations for settlement and other accounts in banks and other finance and credit institutions in cases: when accountancy reports and balances, as well as settlement documents, declarations and other documents connected with the calculation and payment of taxes and other compulsory payments to the budget have not been presented or have been refused to be presented to state tax authorities and to their officials; when facts of concealment of profits (incomes) or other objects of taxation have been found. Banks are obliged to fulfil directions of state tax authorities about total or partial suspentions of tax payer's operations (bank client) by settlement and other accounts at the day of receiving the direction. In case the state tax authority direction about suspention of tax payer's operations (bank client) was not fulfiled, the administrative fine is imposed by the tax authority on the banks' leaders in the amount up to 5 minimum wages. In case of repeated infringement of directions tax authorities raise a question to the National Bank of the Republic of Belarus about deprivation of banking license for this bank. Banks are banned to delay the realization of orders of taxpayers on transfering taxes and other compulsory payments to the budget. In case of non-fulfilment of taxpayer's payment order or tax authority's direction through bank fault in time mentioned in directions of state tax authority the fine from the non-paied sum for every day of the payment delay since the fixed time of payment is enforced from the bank by the order of state tax authority in the amount of double discount rate of the National Bank of the Republic of Belarus. Exaction of a fine does not relieve the bank of other types of responsibility. 11. On demand of tax authorities banks, other finance and credit institutions and exchanges shall be obliged to present the necessary data on financial and finance and credit operations of payers, that are clients of the above institutions. In c se such data have not been presented within a time period established by a tax authority, the above tax authorities may fine heads of the above institutions in the amount of 500...3,000 rubles. 12. Tax authorities shall impose administrative fines: on heads of enterprises and citizens carrying out entrepreneurial activities, who have violated the procedures for tax registration in state tax authorities of the Republic of Belarus - in the amount from 1 to 3 minimum wages; on heads of enterprises engaged in banned activities - in the amounts from 5 to 10 minimum wages; on officials of enterprises who are found guilty of: diminishing, concealment of profits (incomes) or nonaccounting (concealment) of other objects of taxation or of other compulsory payments to the budget; incomplete or undue transfer of collected sums to the budget; as well as nonmaintaining of accountancy or of maintaining of such accountancy with violations of the established procedures, or of undue (in the wrong time) presentation of accountancy reports, balances, tax settlement documents, declarations and other documents connected with calculation and payment of taxes and other payments to the budget - in the amount from 2 to 5 minimum wages; on citizens engaged in entrepreneurial activities without the state registration, as well as in entrepreneurial activities banned by the law, or in activities that require special permits (licences), but who have no such permit - in the amounts from 2 to 5 minimum wages; on citizens engaged in entrepreneurial activities who conceal, diminish profits, incomes or other objects of taxation, evade from presentation of declarations on incomes and expenditures resulting from entrepreneurial activities and on other liable to income tax - in the amount from 2 to 5 minimum wages; on heads and other officials of enterprises and on citizens engaged in entrepreneurial activities which do not fulfil the requirements of officials of state tax authorities of the Republic arising from the present Law - in the amount from 1 to 5 minimum wages; on citizens engaged in entrepreneurial activities for the same actions - in the amount of 100...500 rubles. In case of non-fulfilment of the resolution of a head (his deputy) of the state tax authority concerning collection of an administrative fine from the earnings of a head or officials, the fine shall be collected in the indisputable manner from the interprise, organization or institution with the subsequent compensation of the loss at the expense of the guilty person. In case citizens engaged in entrepreneurial activities do not pay administrative fines, the above sums shall be collected through a court. 13. Deliberate concealment or diminishing of profits, incomes or other objects of taxation, as well as evasion from presentation of a declaration on incomes and expenditures resulting from entrepreneurship and on other incomes liable to the income tax, committed after application of administrative penalty measures for the same violation, shall incur criminal responsibility in accordance with the legislation of the Republic of Belarus.

ARTICLE 10. PROCEDURES FOR COLLECTING TO THE BUDGET AND RETURN FROM THE BUDGET OF PAID TAXES 1. Amounts of taxes, unpaid in due time, as well as amounts of concealed (diminished) profits (incomes) and taxes for any other concealed object of taxation, and fines for delayed payments shall be collected for the entire period of payment evasion he instruction of tax authorities in the indisputable manner from legal persons and judicially from phisical persons. In case of shortage of rubles and provided payers have foreign currencies on their currency accounts, the amounts due to the budget (payment indebtedness, financial sanctions, fines) shall be paid in a currency at the rate existing at the day of collection. 2. Tax sums which are not paid to the budget in time are enforced from the payers with calculation of a fine for every day of delay (including the day of payment) in the amount of the discount rate of the National Bank of the Republic of Belarus acting at the moment of assets collection. Payment sums excessively enforced to the budget by the results of audits should be returned to the payer with fine calculation in the amount of the discount rate of the National Bank of the Republic of Belarus acting at the moment of returning of assets to the settlement account of payer for every day of the whole period including the day of repayment from the budget. The repayment is realizing during 10 days from the moment of payment's request. 3. The tax on sums liable to taxation at the source of their payment that was not collected in due time, or was not collected fully, or was not transferred to the budget, shall be collected in the indisputable manner by the tax authorities from enterprises, institutions and organizations that have paid such sums to enterprises or citizens. Collection of arrears on taxes or other compulsory payments to the budget, as well as of fines, financial or other sanctions stipulated by the present Law and other legislative acts of the Republic of Belarus from payers, if they have no pecuniary resources, shall be imposed on their property. Tax payment sums transferred in excess of the norm as a result of their incorrect calculations or due to violation of the established procedures for their collection shall be returned, on the application of a payer, or counted in as part of in other sums due from the payer, provided one year has not expired from the day of their reception. Submission of an application on the return of payment sums received in excess shall terminate the duration of the above period of time. The return of incorrectly paid taxes from the budget shall be effected for a period that does not exceed one year before the detection of incorrect payment.

ARTICLE 11. SUPERVISION BY TAX AUTHORITIES State tax authorities of the Republic of Belarus shall exercise supervision over the correct application of the tax legislation. Officials of the state tax authorities shall bear responsibility in accordance with legislation of the Republic of Belarus for the divulgence of commercial secrets and for other illegal actions.

ARTICLE 12. APPEAL AGAINST ACTIONS OF TAX AUTHORITIES' OFFICIALS

1. Appeals against actions of tax authorities' officials executed while collecting taxes shall be submitted to the body which exercises direct jurisdiction over the above officials. The appeals shall be considered and relevant decisions shall be taken within 30 days maximum from the day of their submission. Decisions taken in regard to appeals can be protested within a month time in a superior tax authority or in a people's court of justice at the place of location of the taxpayer. 2. Appellation of actions of tax authorities' officials connected with imposition of the administrative penalty shall be exercised in accordance with the laws of the Republic of Belarus. 3. Submission of an appeal shall not stop tax collection, nontax payments and financial sanctions to the budget. A body considering an appeal shall have the right to suspend the collection of a tax amount liable to payment till the appeal has been settle.

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