(Unofficial translation)

Law of the Republic of Belarus

January 4, 2003  No. 174-Z

[Amended as of January 9, 2017]

On Declaring by Natural Persons of Incomes and Property on Demand of Tax Bodies

Adopted by the House of Representatives on November 4, 2002
Approved by the Council of Republic on December 20, 2002

 

This Law defines the legal and organizational bases for the declaring of incomes and property on demand of tax bodies by citizenship of the Republic of Belarus, as well as by foreign citizens and stateless persons, permanently residing in the Republic of Belarus (hereinafter, unless otherwise established – natural persons) and is aimed at ensuring protection of economic interests of the state, detection of incomes of natural persons concealed from taxation.

Article 1. Main terms used in this law and their definitions

For the purposes of this Law the following main terms and their definitions are used:

declared period – a period for which a natural person shall submit the declaration on incomes and property;

incomes – any monetary means, including loans (with the exception of commercial loans) and also other property received by natural persons from citizenship of the Republic of Belarus, foreign citizens, stateless persons, and organizations;

property – movable and immovable things (including monetary means and securities), other property, including property rights, established by the civil legislation;

unfinished construction object – a capital construction (building, structure) and other property, the construction of which is permitted in accordance with acts of legislation, but is not finished (the construction of which is continued, suspended, ceased or prepared for preservation) or the construction of which is finished by those objects are not registered under the procedure established by the legislation;

expenses – any monetary means and other property of natural persons directed by them for acquisition of the property, payment for works, services and also for using on other purposes.

Article 2. Legislation on declaring by natural persons of incomes and property on demand of tax bodies

Legislation on declaring by natural persons of incomes and property on demand of tax bodies is based on the Constitution of the Republic of Belarus and consists of this Law and other acts of legislation.

If a treaty of the Republic of Belarus establishes other rules than those provided by this Law, the rules of the treaty are applied.

Article 3. Scope of application of this Law

This Law regulates relations arising in the sphere of declaring by natural persons of incomes and property on demand of tax bodies (hereinafter, unless otherwise established – declaring).

The effect of this Law shall expand to relations arising at:

declaring of incomes and property of persons nominated as candidates for the President of the Republic of Belarus, their spouse and full-age close relatives residing together with them and having a common household;

declaring of incomes and property of persons nominated as candidates for deputies of the House of Representatives and members of the Council of the Republic of the National Assembly of the Republic of Belarus, for deputies of regional and the Minsk City, district, city (region-subordinated cities) Councils of deputies;

declaring of incomes and property by natural persons in the instances provided by Articles 28 – 32 of the Law of the Republic of Belarus of July 15, 2015 "On Fighting Corruption";

declaring of incomes of natural persons upon their registration as unemployed;

submission by natural persons of a tax declaration (calculation) for personal income tax.

Article 4. Participants of relations regulated by this Law

Participants of relations regulated by this Law are:

natural persons carrying out the declaring;

the Ministry on Taxes and Dues of the Republic of Belarus and inspectorates of the Ministry on Taxes and Dues of the Republic of Belarus.

The following persons not being citizens of the Republic of Belarus are exempted from the obligation to declare incomes and property:

heads, as well as diplomatic personnel, of diplomatic missions of foreign states;

heads, as well as consular officials, of consular institutions of foreign states;

heads, as well as officials, of representative offices and bodies of international organizations and interstate formations;

administrative and technical personnel of diplomatic missions of foreign states, consular institutions of foreign states, representative offices and bodies of international organizations and interstate formations;

service personnel of diplomatic missions of foreign states, consular institutions of foreign states, representative offices and bodies of international organizations and interstate formations;

other natural persons, whose incomes and property are not subject to declaring in accordance with treaties of the Republic of Belarus.

Article 5. Incomes subject to declaring

Incomes of natural persons, received within a declared period from sources in the Republic of Belarus, as well as from sources outside of the Republic of Belarus are subject to declaring, unless otherwise established by part five of Article 6 of this Law and other legislative acts.

Incomes in the form of loans (with the exception of commercial loans) received in the period preceding the declared period and not returned as of the date of submission of the declarations on incomes and property are subject to declaring. Such incomes shall be indicated in the amount of received loans.

Incomes specified in parts one and two of this Article are subject to declaring regardless whether they are taxation object or exempted from the taxation in accordance with legislative acts.

Article 6. Property subject to declaring and determination of its value. Incomes and property not subject to declaring

The following objects being in the ownership of natural persons as of the date of submission of the declaration on incomes and property are subject to declaring:

land plots, capital constructions (buildings, structures), isolated premises, car parking spaces, unfinished construction objects, and parts thereof;

vehicles (with the exception of mopeds and similar motor vehicles, bicycles, animal-drawn vehicles), self-propelled vehicles, sea vessels, inland-waterway vessels and mixed (river-sea) vessels, aircraft;

stakes in the statutory funds (shares) of economic partnerships and companies, enterprises as property complexes for a sum exceeding two thousand base units (in relation to the property acquired prior to March 1, 2002 – two thousand minimum wages) on the date of acquisition;

other property the value of one unit of which exceeds two thousand base units (in relation to the property acquired prior to March 1, 2002 – two thousand minimum wages) on the date of acquisition, with the exception of the property specified in part five of this Article.

The following being in the ownership of natural persons as of the date of submission of the declaration on incomes and property are also subject to declaring:

stakes in the right of ownership to the property specified in indents two and three of part one of this Article;

stakes in the right of ownership to the property specified in indents four and five of part one of this Article if their value exceeds the limits established by respective indents of part one of this Article.

The value of property declared (including stakes in the right of ownership to the property) shall be indicated by a natural person in the declarations on incomes and property in the amount of monetary means spent on its acquisition, and for capital constructions (buildings, structures), isolated premises, car parking spaces, unfinished construction objects, including if the construction (reconstruction) has been carried out without engagement of a  builder or contractor, – in the amount of monetary means directed to construction (reconstruction) thereof. If property (including stakes in the right of ownership to the property) has been received by a natural person gratuitously, in inheritance, or on transactions not stipulating performance of settlements, the value of such property (including stakes in the right of ownership to the property) is not indicated in the declarations on incomes and property.

When the value of declared property (including stakes in the right of ownership to the property), provisions of the legislation on valuation activity are not applied, unless otherwise established by the President of the Republic of Belarus.

The following is not subject to declaring:

monetary means being in the ownership of natural persons, including placed by natural persons on accounts and/or in deposits in the banks of the Republic of Belarus (including interest thereon), issuance thereof, and also transfer from accounts (deposits) in bansk of other states to the banks of the Republic of Belarus;

remuneration for the sum of payment of goods (works, services) using bank payment cards, systems of distance bank servicing, including in the form of interest;

goods received within the frameworks of performing advertising and advertisement games, if according to the conditions of their performance, the data about recipient of such goods are not available;

incomes received within the framework of bonus, marketing and/or other similar programs;

discounts from the price (tariff) of goods (works, services);

bonds (including coupon or interest income thereon), bills of exchange (promissory notes) and other securities being in the ownership of natural persons with the exception of securities specified in indent four of part one of this Article.

Article 7. Demand of tax body for submission of the declarations on incomes and property

Declaration on incomes and property shall be submitted by a natural person upon a written demand of a tax body:

upon availability of the information in the tax body on the excess of the value of property belonging to the natural person and the expenses of that person over his incomes received from legitimate sources in the amount of not less than 250 base units based on the amount of the base unit established on the day of establishing such excess;

on the basis of a written request of bodies of the Committee of State Control of the Republic of Belarus, bodies of internal affairs, bodies of state state security, bodies of public prosecutor's office and the Investigative Committee of the Republic of Belarus (in connection with conducting an administrative process, and also on criminal cases and materials on applications and reports about crimes, being the proceedings);

in other cases, according to a decision of the Minister on Taxes and Dues of the Republic of Belarus and his deputies.

A demand on submission of a declarations on incomes and property may be presented in the name of tax bodies by the Minister on Taxes and Dues of the Republic of Belarus and his deputies, heads of inspectorates of the Ministry on Taxes and Dues of the Republic of Belarus and their deputies (hereinafter - head of the tax body).

In the instances specified in indent three of part one of this Article, a written request about demanding a declaration on incomes and property may be directed to the tax body in the name of:

bodies of the Committee of State Control of the Republic of Belarus – by the Chairman of the Committee of State Control of the Republic of Belarus and his deputies, chairmen of committees of state control of regions and their deputies, heads of bodies of financial investigations and their deputies, chairmen of inter-district committees of state control and their deputies;

bodies of internal affairs – by the Minister of Internal Affairs of the Republic of Belarus and his deputies, heads of territorial bodies of internal affairs and their deputies;

bodies of state security – by heads of bodies of state securities and their deputies;

bodies of public prosecutor's office – by the Prosecutor General of the Republic of Belarus and his deputies, prosecutors of regions, city of Minsk, districts, districts in the cities, cities, inter-district prosecutors and their deputies and equated transport prosecutors and their deputies;

the Investigative Committee of the Republic of Belarus – by the Chairman of the Investigative Committee of the Republic of Belarus and his deputies, heads of directorates of the Investigative Committee of the Republic of Belarus on regions and the city of Minsk, heads of district (interdistrict) city, city-district sections of the Investigative Committee of the Republic of Belarus and their deputies;

Tax body is entitled to demand submission of the declarations on incomes and property for a full calendar year preceding the year in which the demand on submission of the declaration on incomes and property is directed to the natural person and for full calendar months of the current calendar year, preceding the month in which the demand on submission of the declaration on incomes and property is directed to the natural person.

Declaration in incomes and property shall be submitted within a period of not later than ten working days from the day of handing in of the demand on submission of the declarations on incomes and property to the natural person.

The order of directing a demand on submission of the declaration on incomes and property by the tax body to the natural person is established by the Council of Ministers of the Republic of Belarus.

In the instances determined by the Council of Ministers of the Republic of Belarus the time limit for submission of the declarations on incomes and property may be changed by the head of the tax body that demanded the declaration on incomes and property upon an application of the natural person, and also the demand on submission of the declaration on incomes and property may be abolished.

Declaration on incomes and property may be submitted by the natural person personally, through a representative or by post. When the tax declaration on incomes and property is sent by post, the day of its submission is deemed to be the date of the postal item.

Article 8.  Declaring incomes and property of minors, and also of natural persons restricted in capacity by the court and recognized incapable by the court

Declaring incomes and property of:

a minor under the age of up to fourteen years (child) is carried out by one of his legal representatives (parent, adoptive parent or guardian). In case of dissolution of the marriage by parents (adoptive parents), declaring of incomes and property of a minor under the age of up to fourteen years (child) is carried out by the parent, adoptive parent with whom such minor remains residing;

minors under the age of fourteen to eighteen years, with the exception of a natural person who have acquired full active capacity as the result of emancipation or marriage, is carried out by that minor with a written consent of one of his legal representatives (parent, adoptive parent or tutor);

a natural person recognized restricted in capacity by the court is carried out by that person with a written consent of his tutor;

a natural person recognized incapable by the court is carried out by his guardian.

Article 9. Form of declaration on incomes and property and the order of its completion

Declaration on incomes and property shall be submitted in the form established by the Council of Ministers of the Republic of Belarus.

Blank forms of the declaration on incomes and property shall be issued by the tax body that requested the declaration on incomes and property, free of charge.

The order of completion of the declaration on incomes and property is established by the Ministry on Taxes and Dues of the Republic of Belarus.

In the declaration on incomes and property, natural person may indicate data (explanations) about the sources and amounts of incomes at the expense of which the property specified in the declaration on incomes and property was acquired (obtained), and also at the expense of which the expenditures indicated in the demand for submission of the declaration on incomes and property have been made.

Article 10. Rights and duties of natural person while declaring

A natural person has the right to:

receive, on a gratuitous basis, from the tax body that demanded the declaration on incomes and property, a consultation about the form and content of documents being submitted and the procedure of completion of the declaration on incomes and property;

represent his interests in tax bodies personally or through a representative;

receive, on a gratuitous basis, from organizations and individual entrepreneurs that are the source of issuance (payment) of income or have a respective information a statement on the amount of issued (paid) income, including the value of transferred property;

reimbursement of damages (harm) caused by the non-fulfillment or improper fulfillment by officials of tax bodies of their duties;

submit an updated declaration of incomes and property to the tax body conducting inspection of the completeness and accuracy of the data indicated in the declaration of incomes and property, before the act of a chamber inspection of the natural person by that tax body;

receive, on a gratuitous basis, from the tax body that demanded the declaration on incomes and property information about the results of control in the sphere of declaring.

A natural person is obliged to:

submit the declaration on incomes and property in the order established by the legislation on declaring;

provide explanations about the sources of incomes and property in the order established by the legislation on declaring;

not obstruct the tax body's exercising control in the sphere of declaring.

Article 11. Control in the sphere of declaring

Control in the sphere of declaring is carried out in the form of a chamber inspection in the order established by the Council of Ministers of the Republic of Belarus, having regard to requirements of the Tax Code of the Republic of Belarus, this Article, Articles 12 and 13 of this Law.

When conducting the chamber inspection, the tax body has the right to receive from other state bodies, other organizations and individual entrepreneurs, on a gratuitous basis, information about incomes received by a natural person, and also about property being in his ownership, with the exception of information containing data referred to state secrets or other secrets protected by the law.

Control in the sphere of declaring shall be carried out on the basis of data indicated by the natural person in the declaration on incomes and property and of information available in the tax body.

The tax body shall compare amounts of expenses and incomes of the natural person for a full calendar month (several full calendar months) of the current calendar year for which the declaration on incomes and property was demanded, as well as for ten full calendar years preceding the year in which the tax the body has sent the demand for submission of a declaration on incomes and property to the natural person. In case if incomes declared by the natural person at the expense of which the expenditures have been made were received within a period exceeding ten full calendar years preceding the year  in which the tax the body has sent the demand for submission of a declaration on incomes and property to the natural person, the comparison of sums of expenses and incomes of such a natural person shall be performed by the tax body also for a period beginning from the year in which such incomes were received.

When comparing sums of expenses and incomes of the natural person, his expenses shall include monetary means for acquisition of a minimal set of foodstuffs and non-food goods and services, necessary for maintaining the health of the natural person and maintenance of his life activity, in the amount of the average per-capita minimum subsistence income. In case of disagreement of the natural person with the amount of such expenses, the natural person shall inform about it the tax body in a written form, and expenses for acquisition of a minimal set of foodstuffs and non-food goods and services, necessary for maintaining the health of the natural person and maintenance of his life activity, shall be taken into account by the tax body in the amount of monetary means actually spent by the natural person for those purposes.

If, when carrying out control over compliance of expenses with incomes of a natural person, the tax body established that expenses of the natural person exceeds his incomes indicated in the declaration on incomes and property or the fact of receiving income has not been confirmed, the tax body shall send a demand to the natural person for submission of explanations about sources of incomes The mentioned demand shall be drawn up in a written form in two copies. The first copy of the demand shall be handed in to the natural person personally or sent by registered mail with a return receipt requested. The second copy of the demand shall be kept in the tax body that demanded explanations about sources of incomes.

Explanations about sources of incomes must be submitted by the natural person to the tax body in a written form within thirty calendar days from the day of handing in of the demand for submission of explanations about sources of incomes. Explanations about sources of incomes submitted by the natural person upon expiration of such time limit shall not be taken into account by the tax body. The indicated time limit shall be extended for a period of temporary incapability of the natural person to work or of his staying outside the Republic of Belarus, upon documentary confirmation of such a period.

Explanations about sources of incomes must contain data a bout the source of income (surname, own name, patronymic (if available) of the natural person, place of his residence (if data about the place of residence available), name of the legal person, place of its location), about the amount and date (period) of receiving of the income, and also other data about the source of income if available.

Unless the natural person has submitted explanations about sources of incomes in the order, time limit and volume, established by parts seven and eight of this Article, or submitted explanations about the sources of incomes allow to establish the source of incomes (to exclude the fact of incurring expenses), incomes of the natural person computed based on sums of excess of expenses over incomes are subject to taxation in accordance with the legislative acts.

Article 12. Specific features of carrying out the control in the sphere of declaring when declaration on incomes and property is not submitted

If a natural person receives a demand to submit a declaration on incomes and property and fails to submit the declaration on incomes and property within thirty calendar days from the date of the established deadline for its submission, the tax body is entitled to carry out control in the sphere of declaring on the basis of information available in the tax authority about incomes, property and expenses of the natural person without demanding a declaration on incomes and property.

Comparison of sums of expenses and incomes of the natural person in the case specified in part one of this Article is conducted on the basis of information available in the tax body. The period for which the tax body conducts comparison of sums of expenses and incomes of the natural person represents a full calendar month (several full calendar months) of the current calendar year preceding the month in which the tax the body has sent a demand for submission of a declaration on incomes and property, and also ten full calendar years preceding the year in which the tax body has sent such demand, unless otherwise established by part six of this Article.

If, when carrying out control over compliance of expenses with incomes of a natural person, the tax body established that expenses of the natural person exceeds his incomes information about which is available in the tax body or the fact of receiving income has not been confirmed, the tax body shall send a demand to the natural person for submission of explanations about sources of incomes The mentioned demand shall be drawn up in a written form in two copies. The first copy of the demand shall be handed in to the natural person personally or sent by registered mail with a return receipt requested. The second copy of the demand shall be kept in the tax body that demanded explanations about sources of incomes.

Explanations about sources of incomes must be submitted by the natural person to the tax body in a written form in the order, time limit and volume, established by parts seven and eight of Article 11 of this Law.

The natural person who received the demand for submission of explanations about sources of incomes is entitled , within the period established by part seven of Article 11 of this Law, to submit to the tax body documents confirming explanations provided by him, and also explanations in a written form and/or documents about expenses and amount thereof unless such expenses have not been incurred or have been incurred by him in an amount different from the amount of expenses the information about which is available in the tax body.

In case if incomes declared by the natural person in his explanations about sources of incomes have been received within a period exceeding ten full calendar years preceding the year in which the tax the body has sent the demand for submission of a declaration on incomes and property to the natural person, the comparison of sums of expenses and incomes of such a natural person shall be performed by the tax body also for a period beginning from the year in which such incomes were received.

Unless the natural person has submitted explanations about sources of incomes in the order, time limit and volume, established by parts seven and eight of Article 11 of this Law, or submitted explanations about the sources of incomes allow to establish the source of incomes (to exclude the fact of incurring expenses), incomes of the natural person computed based on sums of excess of expenses over incomes are subject to taxation in accordance with the legislative acts.

Article 13. Time limit for carrying out control in the sphere of declaring

The time limit for carrying out control in the sphere of declaring may not exceed thirty working days.

The running of the specified time limit begins on the day following the day when the natural person submits a declaration on incomes and property, and when exercising control in the sphere of declaring in the order established by Article 12 of this Law - upon expiration of thirty calendar days from the day of the established deadline for submitting the declaration on incomes and property.

Conducting of a chamber inspection may be suspended by a decision of the head of the tax body for a period not exceeding three months (in the case of sending a request to the competent bodies of foreign states - not exceeding six months), in the presence of the following circumstances:

sending a demand to the natural person for submission of explanations about sources of incomes;

sending a request to the state bodies, other organizations and individual entrepreneurs, including to the competent bodies of foreign states;

impossibility to conduct a chamber inspection due to the absence of the inspector due to temporary disability or due to temporary disability of the inspected natural person, as well as by other reason.

The period for which a chamber inspection is suspended is not included in the total duration of the chamber inspection. The inspected natural person shall be notified in writing about the suspension of the chamber inspection.

By the decision of the head of the tax body, the period of the chamber inspection may be extended one time, but not more than by 15 working days in the presence of considerable volume of documents subject to study, as well as in the need to conduct a considerable number of control actions.

 

 

President of the Republic of Belarus

A. Lukashenko