LAW OF THE REPUBLIC OF BELARUS

of December 21, 1991

ON INCOME TAX FROM CITIZENS

CHAPTER 1. General provisions

ARTICLE 1.

Taxpayers In accordance with the present Law taxpayers shall be citizens of the Republic of Belarus, foreign citizens and citizens with or without a permanent residence in the Republic of Belarus (hereinafter - citizens). Citizens, who are, for the purpose of taxation, considered as having a permanent residence in the Republic of Belarus, shall be citizens, staying in the Republic of Belarus over 183 days in a calendar year.

ARTICLE 2.

Incomes subject to taxation 1. The object of taxation of citizens having a permanent residence in the Republic of Belarus shall be incomes in money and in kind obtained on the territory of the Republic of Belarus as well as outside the Republic of Belarus in cases envisaged by the legislation. "Incomes of workers in roubles or in hard currency entering to their personal accounts are also subject to taxation". Incomes of citizens having no permanent residence in the Republic of Belarus shall be subjected to taxation, if these incomes have been obtained from sources in the Republic of Belarus. 2. Taxes from incomes obtained in a foreign currency shall be paid at the will of the payer in rubles or in a foreign currency, that is purchased by the National Bank of the Republic of Belarus. For the purpose of calculation of the tax incomes in foreign currencies shall be recalculated into rubles according to a commercial rate of the National Bank of the Republic of Belarus on the day of tax calculation.

ARTICLE 3.

Incomes that are not subjected to taxation 1. Income tax shall not be imposed on: a) state social insurance and state social security allowances, except allowances paid for temporary inability to work (including allowances paid for taking care of a sick child), as well as other allowances and aids in money or in kind paid to the citizens from the resources of the Belarusian Children's Fund, the Peace Fund of Belarus, the Culture Fund of the Republic of Belarus, the Charity and Health Fund of Belarus, the Red Cross Society of the Republic of Belarus, the Fund for rendering aid in liquidating the consequences of the Chernobyl Nuclear Power Plant accident on the territory of the Republic, the Belarusian charity fund "To the Children of Chernobyl" and ecological funds, the Belarusian Language Society named after F.Skoryna, the Society of Belarusians of the world "Batskaushchina" ("Fatherland") and its regional branches, the Society of invalids of the Republic of Belarus, the Charity Fund of the Council of Veterans, the Belarusian charity fund of cultural initiatives "Dzyannitsa", the Belarusian Society of Friendship and Cultural Relations with Foreign Countries, youth funds attached to committees on youth affairs; b) alimonies; c) scholarships of students of higher educational institutions and of secondary special and vocational educational institutions, including higher and secondary religious educational institutions provided by the above educational institutions, as well as scholarships granted from resources of the funds mentioned in subparagraph "a" of the present paragraph; d) payments to the students of vocational schools made by these schools for the work performed by the students; e) state pensions, as well as additional pensions paid on terms of voluntary pension insurance; f) amounts received by citizens for the donation of blood and for other kinds of donations, for donation of breast milk, as well as amounts received by workers of medical institutions for blood collection; g) amounts of money allowances (compensations) paid by the state to citizens who have suffered in connection with the Chernobyl Nuclear Power Plant accident; h) amounts received as compensation when loosing the ability to work after a mutilation or another damage to health, as well as in connection with the loss of the bread-winner; i) amounts received from selling property that belonged to citizens by the right of ownership, except for the incomes obtained from selling this kind of property while undertaking business; j) incomes of citizens from the realization of their private agricultural produce, including incomes from growing young livestock and poultry by contracts concluded with enterprises, institutions and organizations, except incomes gained from the realization of non-food products (seeds, flowers, ginseng etc.); "Incomes of citizens received from the realization of vegetable-growing seeds and fruit-trees' seedlings to the state specialized seed-growing enterprises of the Republic of Belarus"; k) amounts received as a result of succession and donation, except royalties received by the successors of an author; l) winnings from state bonds and lotteries of the Republic of Belarus and the USSR; m) interest and winnings from bank deposits and state fiscal obligations; n) amounts received by citizens from obligatory and voluntary insurance; o) amounts of the State prizes of the Republic of Belarus and, also, amounts of rewards paid for treasures handed over to the State ; p) sums of costs of the presents (payments in kind) in the amount up to 10 minimal wages at one calendar year's term from the moment of receiving a present obtained by citizens from enterprises, institutions and organizations where they work as well as sums of premiums or prizes costs received at international or Republican contests and competitions; q) amounts of material aids rendered in connection with natural calamities, other emergency circumstances, as well as in cases when such aid is rendered in accordance with the legislation of the Republic of Belarus, irrespective of the sum paid; r) paid on citizens' places of basic work amounts of material aids, cost of free of charge and privileged board and treatment authorizations and other payments in aims of social protection up to 20 minimal wages per year. Cost of free of charge or privileged board and treatment authorizations to children's sanatoriums given to citizens at their places of basic work and, also, cost of authorizations paid from means of social security; s) costs of provisions in kind envisaged by the relevant legislation, or sums paid instead of these provisions; t) amounts of labor remunerations and other incomes of citizens subject to taxation, used to buy out property of state-owned enterprises, buy shares and repay credits granted for these purposes, as well as dividends received on shares and used to buy shares of a share company or an enterprise, that paid the dividends. When selling the above property and shares, incomes previously exempted from taxation shall be liable to taxes on general grounds; u) compensatory payments in money and in kind in the amounts stipulated by the legislation of the Republic of Belarus, except compensation for a leave unused; v) wages and other kinds of remunerations for workers, clerks and other citizens, who are equal to them for taxation purposes, within an amount of their monthly minimum labor remuneration received at the place of their basic work (service, study); w) incomes (except incomes mentioned in subparagraph "v" of the present paragraph), that do not exceed the monthly minimum labor remuneration for citizens who have no place of basic work; x) dismiss allowances paid when dismissing in accordance with the legislation in force; y) amounts received gratuitously by the resolution of labour bodies of enterprises by staff-workers of these enterprises need the improvement of living conditions and paying deposits for individual building as a participant of a building co-operatives or directed to cash credits, used for this purpose. z) unemployment relief as well as scholarships paid during professional training or retraining from the State fund for employment assistance. 2. Income subject to taxation shall be reduced by: a) amounts, transferred in accordance with applications of citizens from their remunerations, paid by enterprises, institutions and organizations, into the Republican and local branches of the Belarusian Children's Fund, the Culture Fund of the Republic of Belarus, the Charity and Health Fund of Belarus, the Red Cross Society of the Republic of Belarus, youth compensation funds, funds for rendering aid to the citizens who have suffered as a result of the Chernobyl Nuclear Power Plant accident, ecological funds, the State invention fund of the USSR, regional funds for financing scientific and technical developments on the bases of inventions, enterprises and organizations for the development of invention activities, as well as to enterprises, institutions and organizations of culture, people's education, health and social security, that are fully or partially financed from the budget; b) sums transferred for the purposes enumerated in subparagraph "a" and paid by citizens from incomes subject to taxation by tax authorities in the amounts, which do not exceed a sum of incomes, taken into account when imposing taxes for a correspondent calendar year.

ARTICLE 4.

Tax benefits 1. Income tax benefits for certain categories and groups of payers shall be established by the laws of the Republic of Belarus; 2. For the category of payers mentioned in part 1 of the present point the sums of incomes of entrepreneur activity, fulfilment of treaties of civil law character, royalties are fully privileged in dimentions not more than 5 minimum wages per month (60 minimum wages per year). 3. On income tax calculation the wages and other payments, connected with the fulfilment of labour obligations to the following category of persons: a) persons who suffered from irradiation sickness caused by the consequences of the Chernobyl nuclear power plant disaster, as well invalids, who have been proven to become invalids due to the Chernobyl disaster, persons who have become invalids due to their participation in the liquidation of the consequences of the Chernobyl nuclear power plant disaster, and invalids from the population suffered from the Chernobyl nuclear power plant disaster; b) persons who participated in 1986-1987 in work for liquidating the consequences of the Chernobyl nuclear power plant disaster within the zone of evacuation or engaged during this period in operations or other work at the above plant (including those sent for a period of time), including servicemen and reservists, called up specially for fulfilling work, connected with the liquidation of the consequences of this disaster; c) Heroes of the Soviet Union, persons awarded with the Order of Glory of all three degrees, invalids of the Great Patriotic war and other invalids from servicemen, who became invalids as a result of wound, contusion or mutilation inflicted when defending their Motherland or discharging other military duties, or as a result of a disease connected with their staying at the front, invalids from former partisans, as well as other invalids who have pension rights equal to the rights of the above mentioned categories of servicemen, - in connection with all their incomes; d) participants of the Civil and the Great Patriotic wars, or of other war operations for the defense of the Motherland from servicemen who discharged their service in military units, head-quarters or organizations constituting part of acting army, and former partisans - in connection with all their incomes; e) citizens who participated in war operations against fascist Germany and its allies during the Second World War on the territory of foreign countries in partizan units, clandestine groups and other anti-fascist units and organizations - in connection with all their incomes; f) invalids from commanders and rank and file persons of internal affairs authorities, who became invalids after a wound, a contusion or mutilation inflicted when discharging their service duties - in connection with all their incomes; g) invalids from childhood, as well as other invalids of the 1 and 2 groups - in connection with all their incomes; h) parents rearing six or more children under 18 - in connection with all their incomes; From the sums more than 5 minimum wages per month ( 60 minimum wages per year) the income tax shall be payed in generally established order. The following category of persons shall be tax free: a) pensioners, house-wives, students,pupils and school-children, teachers post-graduate students, clinical students, workers, clerks, who participate in agricultural work in state farms and other agricultural enterprises during harvesting season without being enlisted into the staff and arranging labor contracts and who receive labor remunerations and other types of pecuniary payments for the fulfilment of these works; b) acting servicemen and reservists called up for training and verification purposes - in connection with pecuniary provisions, daily allowances and other sums, received at the place of their service or for their training or verification time period; c) persons who suffered as a result of repressions which have taken place from the 20-s till the 80-s years and who were subsequently rehabilitated - in connection with their compensation sums, paid at the place of their previous work; d) citizens - in connection with incomes gained as a result of provision of medicinal plants, berries, mushrooms, nuts and other wild plants and their products at purchasing prices; e) officers of all ranks, re-enlisted servicemen, rank and file persons and commanders of internal affairs authorities, as well as servicemen of state security authorities - in connection with allowances and remunerations and other payments received by them in connection with their discharge of the service. 3. The tax amount shall be reduced: a) for parents and wives of servicemen died as a result of a wound, contusion or mutilation inflicted when defending the Motherland or when discharging their military duties or as a result of a disease connected with their stay at the front - by 50 per cent for all their incomes received; b) for servicemen and reservists call up for training or verification purposes, who fulfilled their internationalist duties in the Republic of Afghanistan and other countries, where there were war operations - by 50 per cent for their received remunerations, pecuniary allowances and other incomes of a similar status; c) for workers, clerks and other citizens who are regarded equal to them by the norms of taxation, who have three or more dependants - by 30 per cent for their incomes received at their basic place of work or for their remunerations received for the creation, publishing, performance or any other use of works of science, literature and art, discoveries, inventions and industrial samples if their authors have no place of basic work; d) for citizens engaged in entrepreneurial activities who have three or more dependants - by 30 per cent for their incomes from these activities if they have no place of basic work; e) for unmarried mothers having two or more children under 18 - y 30 per cent for all their incomes; f) for widowed persons, having two or more children under 18 and receiving no pension due to the loss of the bread-winner - by 30 percent for all their incomes; g) for one of the parents who rears an invalid from childhood living together with him (her) and needing permanent care - by 30 per cent for all his (her) incomes; h) for both parents rearing five children under 18 - by 70 per cent for all their incomes; i) for both parents rearing three and four children under 18 - by 50 per cent for all their incomes. j) for workers and clerks and equaled to them in connection with taxation of the citizens on wages and other kinds of money reward on the tax ammount calculated from monthly minimum wages on every child up to 18 years old and dependant from every citizen. the privilege in analogy is presented to the citizens fulfilling entrepreneur activity without forming juridical person, according to incomes of this activity on absence of another place of job. 5. Local executive and governmental bodies may, taking into account material status, exempt some payers from income taxes, and reduce tax amounts for some payers. 6. When citizens enjoy the right for tax benefits on several grounds, they shall be given the benefit which envisages the least tax amount. 7. Citizens shall acquire the right for benefits from the day they submit relevant documents established by the Ministry of Finance of the Republic of Belarus.

ARTICLE 5.

Elimination of double taxation Incomes received abroad by persons having a permanent residence in the Republic of Belarus shall be included into the incomes subject to taxation in the Republic of Belarus. In so doing, the amount of incomes received in a foreign currency shall be recalculated into rubles on the basis of the commercial rate, fixed by the National Bank of the Republic of Belarus at the day incomes were received. Sums of taxes paid abroad in accordance with legislation of foreign states by persons having a permanent residence in the Republic of Belarus, who are payers of the income tax in the Republic of Belarus, shall be accounted for when they pay the income tax in the Republic of Belarus. In so doing, the amount of thus accounted for tax sums paid abroad can not exceed the sum subject to payment in the Republic of Belarus.

ARTICLE 6.

International and inter-republican agreements If an international or inter-republican agreement (a treaty) establishes the rules other than those contained in the present Law, then the rules of the agreement (treaty) shall prevail.

CHAPTER 2. Taxation of pay amounts, received by citizens for the fulfillment of their labor duties, and other incomes of equal status

ARTICLE 7.

Categories of taxpayers and objects of taxation In accordance with the provisions of the present Chapter of the Law the following persons shall be subjected to payment of the tax: a) workers and clerks - on sums of remunerations, premiums, bonuses and other remunerations and payments connected with their fulfillment of labor duties, including incomes arising as a result of provision of material and social benefits, accorded by enterprises, institutions and organizations to their workers from their resources; b) other categories of payers, which are equal in taxation to workers and clerks; members of collective farms, cooperatives and persons employed by them by labor contracts - on incomes paid by these collective farms and cooperatives; citizens employed at joint ventures, their subsidiaries, branches and representations formed on the territory of the Republic of Belarus with participation of foreign organizations, firms and managerial bodies, as well as in international associations (amalgamations) and organizations, foreign firms, banks and their representations, in foreign diplomatic, consular or any other official representations and in representations of foreign offices of mass media - on sums of remunerations, premiums, bonuses and other remunerations and payments connected with their fulfillment of labor duties; citizens working by labor contracts on farms and with other entrepreneurs and having no other (basic) place of work - on sums of labor remunerations, premiums, bonuses and other remunerations and payments connected with their fulfillment of contractual commitments; lawyers - on sums of remunerations received for their work in juridical consultations; citizens, including clergymen, working in religious organizations, at enterprises set up by religious organizations, as well as in charity institutions set up by them, - on incomes paid by these organizations, enterprises and institutions.

ARTICLE 8.

Tax rates Income tax, imposed on incomes enumerated in Article 7 of the present Law, shall be paid in the following amounts; Monthly income Tax rate 1. Up to 10 minimum monthly salaries (MMS) 9% from the tax amount 2. From 10 minimum montly The amount of tax per salaries + 1 rouble to item 1 + 12% from the 15 MMS amount in excess of 10 MMS 3. From 15 MMS + 1 rouble The amount of tax per to 20 MMS item 2 + 15% from the amount in excess of 15 MMS 4. From 20 MMS + 1 rouble The amount of tax per to 30 MMS item 3 + 20% from the amount in excess of 20 MMS 5. From 30 MMS + 1 rouble The amount of tax per to 60 MMS item 4 + 25% from the amount in excess of 30 MMS 6. From 60 MMS + 1 rouble The amount of tax per to 80 MMS item 5 + 30% from the amount in excess of 60 MMS 7. From 80 MMS + 1 rouble The amount of tax per to 100 MMS item 6 + 35% from the amount in excess of 60 MMS 8. From 100 MMS + 1 rouble The amount of tax per and more item 7 + 40% from the amount in excess of 100 MMS.

ARTICLE 9.

Particular features for determining the taxable object 1. Labor remuneration amounts paid by enterprises, institutions and organizations for the work which lasted over one month without monthly payments over this period or with partially paid labor remunerations shall be distributed in proportion to the number of work months. Similar procedures shall be adopted in industries with seasonal work when distributing for taxation premiums and bonuses received at the end of the season or the year. 2. Amount of one-time remunerations for a long service (long service bonuses) shall be taxed at the rate of 12 per cent. 3. Amount received by citizens as share dividends, as well as incomes received as a result of allocation of profits (incomes) of an enterprise, institution or organization in proportion to their share in the ownership capital shall be taxed at the rate of 15 per cent when paying the above sums. 4. From the sums adding to the wages for the work on the Extreme North, equal to it areas with hard climate as well as from the amounts of addition for working record in mentioned areas the tax is payed at the rate of 12 per cent.

ARTICLE 10.

Determining taxable income when liquidating or reorganizing an enterprise or an organization All income amounts received by citizens from enterprises and organizations being liquidated or reorganized, including income amounts to be paid to citizens in connection with the realization of property of such enterprises and organizations, shall be taxed collectively together with other incomes (earnings) for the month when said incomes are paid, without their distribution by months.

ARTICLE 11.

Procedures for collecting income tax and transferring same to the budget 1. Income tax imposed on earnings and other incomes in money or in kind, as envisaged in the present Chapter of the Law, shall be calculated and collected by enterprises, institutions and organizations making these payments. 2. Sums of remunerations and other incomes received for part-time work, performed at a place other than the place of basic work (service, study) shall be taxed at the rates mentioned in Chapter 3 of the present Law. 3. Enterprises, institutions and organizations shall transfer to the budget the amount of collected taxes at the time when they receive in banking institutions money for paying sums due to their citizens. Organizations that pay labor remunerations from their receipts from the realization of products and services shall pay the amounts of taxes collected to banking institutions at the day following the day labor remunerations were paid. 4. It shall be banned to pay the tax levied on citizens' earnings from the resources of enterprises, institutions and organizations. 5. The procedures envisaged in the present Article shall be used for collecting and transferring to the budget tax amounts by entrepreneurs, who carry out their activities both individually and in a group of entrepreneurs, as well as by other citizens who pay labor remunerations and other incomes to workers and clerks employed by them.

CHAPTER 3. Taxation of incomes, received when fulfilling single work, and of other payments received at a place other than the place of basic work

ARTICLE 12.

Taxable incomes and tax rates 1. In accordance with the provisions contained in the present Chapter of the Law taxes shall be imposed on: a) earnings and other incomes in money or in kind received from enterprises, institutions and organizations by outside citizens (who are not members of their staff) for the fulfillment of single and other work by a contract (agreement), as well as for a part-time work; b) amounts of material aid, including pension bonuses, paid by enterprises, institutions and organizations to citizens, who are not in their staff, as well as sums of material aid including privileged apply for a sanatorium ( except board and treatment authorization and applies for a place at children's sanitary establishments) payed from the means of trade unions, if the sums of such help exceed 20 minimum wages. 2. Income tax, imposed on incomes mentioned in the present Chapter, shall be collected at the rates mentioned in article 8 without having privileges provided by sub-point "f" of point 1 of Article 3 of the present law.

ARTICLE 13.

Taxation procedures 1. Taxation of incomes received as a result of the fulfillment of single work, as well as taxation of other payments received at a place other than the place of the basic work shall be performed according to the procedures envisaged in Article 11 of the present Law. 2. In case when the place of basic work of a citizen is outside the Republic of Belarus, enterprises, institutions and organizations making payments shall inform, not later than the following month, the place of basic work of the income receiver about all the sums paid to him (her) on the territory of the Republic of Belarus for part-time work and about tax amounts collected from such paid sums. Upon receiving an analogous report from outside the Republic of Belarus the accounting department at the place of basic work in the Republic shall calculate taxes on income sums mentioned in the report according to the rates of Article 12 of the present Law and depending on the results of this recalculation the citizen shall pay the sum of additionally calculated tax or shall be repaid the sum taxed in excess of the rate.

CHAPTER 4. Taxation of royalty sums

ARTICLE 14.

Categories of taxpayers and objects of taxation The following persons shall be subjected to tax payment according to the procedures and in the amounts envisaged in the present Chapter of the Law: a) authors of works of science, literature and art, their successors and heirs - on sums of royalties for the creation, publication, performance or any other use, or giving the right to use these works; b) authors of translations of works of science, literature and art, their successors and heirs - on sums of royalties; c) authors of discoveries, inventions and industrial samples - on sums of royalties; d) citizens, who edit or review works of science, literature and art - on sums of royalties for these types of work; e) other citizens, who receive royalties according to the copyright law - on sums of royalties.

ARTICLE 15.

Tax rates 1. Sums of royalties, paid to citizens enumerated in Article 14 (including heirs of authors, whose works, translations, discoveries, inventions or industrial samples are used for the first time) shall be taxed at the rates of Article 8 of the present Law from annual income and the ammount of minimum wages in the sum per year. A person obtained royalties has a right to apply in generally determined terms at an organ of taxation for recomputation of tax in connection with incomes per year and expenses at the rates mentioned in Article 18 of the present Law. 2. Sums of royalties, paid to heirs of authors repeatedly (several times), shall be taxed in the amount of 70 per cent when paying out royalties.

ARTICLE 16.

Procedures for calculation and payment of the tax Tax on incomes of citizens mentioned in the present Chapter of the Law shall be calculated and collected directly at the place of remunerations payment. When making every subsequent payment, the tax shall be recalculated proceeding from the total sum of payments, which have been maid in the year of account. 2. In case of contracts for the creation, publication, performance or any other use of science, literature and art, royalties paid according to this contract in advance and when making final account settlement shall be summed up and distributed for the purposes of taxation over the number of years the contract is valid.

CHAPTER 5. Procedures for taxation of incomes from entrepreneurial activities

ARTICLE 17.

Categories of tax payers and objects of taxation 1. Payers of income taxes from entrepreneurial activities shall be citizens carrying out independent initiatory activities without the formation of a legal person for the purpose of obtaining the private income, as well as citizens having other incomes, not mentioned in Articles 7, 12, 14, 21. 2. Taxable income shall be the difference between a gross income (in money and in kind) and expenses involved in income gaining, confirmed by documents. The expenses connected with income gaining shall include: a) material expenses; b) work and services for industrial purposes performed by other enterprises and organizations; c) depreciation deductions (payments) made for full restoration of fixed productive assets; d) expenses, incurred for labor remuneration of citizens who concluded contracts for the use of their labor; e) deductions made for state social insurance; f) payments made for obligatory insurance of property; g) payments for labor and natural resources; h) expenses for nature protection measures; i) expenses for erasers and design work; j) rental payments; k) payment of interest for short-term bank credits, except interest on bad and deferred (delayed) loans; l) expenses for all types of repair of fixed productive assets. 3. The following sums shall not be subtracted from taxable incomes of citizens carrying out entrepreneurial activities: a) pecuniary fines and sums vindicated by a court decision; b) expenses for parties and mass public movements having political goals. 4. Collection and transfer of income taxes from citizens, who have concluded a contract for the use of their labor, shall be performed by entrepreneurs.

ARTICLE 18.

Tax rates 1. Income taxes from the incomes mentioned in Article 17 of the present Law shall be collected at the rates of Article 8 of the present Law from annual income and wages per year. On the absence of the basic place of work the annual minimum wages are payed as tax from actual annual income of an employer.

ARTICLE 19.

Procedures for calculation and payment of the tax 1. The tax shall be calculated on the basis of the total annual income, proceeding from the declarations of payers about actual incomes received during the year, materials of revisions in relation to the activities of citizens performed by tax authorities, and other data on payers' incomes. Calculation of taxes from the actual annual income shall be performed by a tax authority at the place of permanent residence of a payer. 2. During the year payers shall make quarterly payments to the budget of 25 per cent of the annual tax sum, calculated by the previous year income, while payers who shall pay the tax for the first time - 25 per cent of the annual tax sum calculated for them by a tax authority by an assumed income for the current year. The following terms shall be established for making advance tax payments; by March 15th, May 15th, August 15th, and November 15th. In case of a substantial increase or decrease of payer's incomes during the year, advance tax payments for the terms yet to come can be recalculated. 3. In receiving during the year incomes from enterprises, institutions, organizations and citizens registrated as employers the tax shall be collected by them from the source of income payment. When making every subsequent payment, the tax shall be recalculated proceeding from the total income amount, which has been paid in the current year at the given place of payment. The collected tax amounts shall not be taken from the source of income on producing a certificate of registration as an employer. 4. At the end of the year all tax payers shall be obliged to submit, not later than February 15th, to the tax authority at the place of their permanent residence a declaration of the total amount of income received in the passed year. A difference between the annual tax amount calculated on the year shall be collected from or returned to the payer not later than March 15th. 5. When a source of income appears during the year, citizens shall submit a declaration within a 5-day period upon the expiration of the first month from the day the source of income appeared, in which they shall show the amount of actual income for the first month of activity and the amount of anticipated income till the end of the current year. In case a source of income ceases to exist during the year, a declaration of incomes received shall be submitted within a 5-day period from that moment, while recalculation, collection or return of previously calculated tax amounts shall be performed. 6. Citizens who render communal services to the population on the bases of contracts with enterprises and organizations, that do not stipulate the surrender of their entire receipts and payment of labor remunerations, shall be obliged to submit to tax authorities, by January 15th, declarations of incomes actually received over the passed year. 7. Enterprises, institutions and organization shall be obliged to submit every year, not later than January 15th, to tax authorities at the place of their residence data on payments to citizens and on tax amounts collected from said citizens; the above tax authorities shall transfer these data to tax authorities at the place of permanent residence of income receivers. 8. Total incomes of a group of entrepreneurs shall be distributed, for the purpose of taxation, among its participants according to their agreement; the above fact shall be mentioned in a declaration of incomes of the group of entrepreneurs submitted to the tax authority. CHAPTER 6. Taxation of foreign citizens and stateless persons, as well as persons having no permanent residence in the Republic of Belarus.

ARTICLE 20.

Taxation of foreign citizens and stateless persons Taxable income shall be determined and income tax from foreign citizens and stateless persons, who are considered as having a permanent residence in the Republic of Belarus, shall be calculated according to the procedures and in the amounts stipulated by the present Law for imposition of the income tax on analogous incomes of citizens of the Republic of Belarus. Incomes of owners of privately-owned companies shall be taxed in the amounts stipulated by Article 18 of the present Law. Instructions on the application of the present Article shall be given by the Ministry of Finance of the Republic of Belarus on coordination with the Ministry of Foreign Affairs of the Republic of Belarus.

ARTICLE 21.

Taxation of incomes of persons, having no permanent residence in the Republic of Belarus Taxes imposed on incomes received from sources in the Republic of Belarus (except the incomes mentioned in Chapter 2 and 3 of the present Law) by persons, having no permanent residence in the Republic of Belarus, shall be collected from the source of income payment at the rate of 20 per cent without using privileges provided by the present Law. The incomes from selling of agricultural production are tax free. The list of the tax free production is to be established by the Cabinet of Ministers of the Republic of Belarus CHAPTER 7. Insuring the observance of the present law

ARTICLE 22.

Responsibilities of citizens, enterprises, institutions and organizations 1. Citizens liable to taxation in accordance with the present Law shall: a) submit in cases, stipulated by the present Law, to tax authorities declarations on incomes and expenditures and other necessary documents and data, confirming validity of data shown in the declaration, as well as account for incomes subject to taxation and expenditures connected with drawing of said incomes; b) present and, if need be, submit documents confirming their right to tax benefits; c) make due and full payments to the budget of tax amounts required by tax authorities; d) allow tax officials into the premises (rooms), which are used for drawing incomes or connected with maintenance of taxation objects irrespective of their place of location. 2. Enterprises, institutions and organizations shall: a) duly and properly calculate, collect and transfer to the budget tax amounts from labor remunerations of workers and clerks and from other incomes liable to taxation at the source of payments; b) duly provide tax authorities with data on incomes, paid by them to citizens, liable to taxation by tax authorities. 3. When concluding foreign economic transactions, it shall not be allowed to include tax specifications, in accordance with which enterprises, institutions and organizations paying incomes take responsibilities for tax expenditures instead of foreign physical persons.

ARTICLE 23.

Procedures for collection and return of tax amounts collected improperly Tax amounts from labor remunerations of workers and clerks and from other monthly taxed incomes of citizens, that have not been collected in due time by enterprises, institutions and organizations, can be collected for a period that does not exceed three months, while the return of tax amounts collected in excess of the norm shall be permitted for a period that does not exceed one year before the improper tax collection was detected. Collection or return of taxes, concerning citizens whose incomes are taxed by the declaration and who were not taxed in due time or were taxed improperly, shall be executed for a period that does not exceed one year before the improper tax collection was detected. Tax amounts, that have not been collected as a result of tax evasion by payers, shall be collected for the whole period of evasion. DECREE OF THE SUPREME SOVIET OF THE REPUBLIC OF BELARUS ON ENTERING INTO FORCE OF THE LAW OF THE REPUBLIC OF BELARUS "ON INCOME TAX FROM CITIZENS" The Supreme Soviet of the Republic of Belarus decrees the following; 1. The Law of the Republic of Belarus "On Income Tax from Citizens" shall enter into force as of 1 January 1992. Labor remunerations and other payments connected with the fulfillment of labor duties, as well as other incomes equal to them in respect of taxation paid after entry into force of the Law for work and other activities performed before 1 January 1992, shall be subjected to income tax according to the procedures and in the amounts, which were in force 1 January 1992. All other incomes of citizens shall be subjected to taxation according to the procedures and in the amounts established by the Law, irrespective of the time incomes were drawn. 2. Taxation of earnings of members of collective farms shall be imposed beginning from payments for work fulfilled after 1 January 1993. Income tax imposed on taxable funds of collective farms used for paying labor of collective farmers shall be retained during 1992, with the tax rate being fixed at 8 per cent. Collective farms shall to come under the provisions of paragraph 4 of article 11. 3. Non-taxable income shall be liable to indexation with due account of the price rise index when approving a budget for the coming year. 4. The Council of Ministers of the Republic of Belarus, within a month period, shall make the decisions of the Government of the Republic of Belarus correspond to the Law of the Republic of Belarus "On Income Tax from Citizens".


HOME ll CATALOG ll HISTORY ll CATEGORY ll INVEST ll CATEGORY l

 

Please visit our sponsors.
Click Here to Visit our Sponsor

Webmasters, need money? Click here!
Click Here to become a ValueClick Member Site