(Unofficial translation)

TAX CODE OF THE REPUBLIC OF BELARUS

(Amended as of December 30, 2019)

TABLE OF CONTENTS

GENERAL PART. 4

SECTION I  GENERAL PROVISIONS. 4

CHAPTER 1  MAIN PROVISIONS. 4

CHAPTER 2 PAYERS OF TAXES AND DUES (DUTIES). STATE AGENTS AND OTHER PERSONS. 12

CHAPTER 3 TAXATION ELEMENTS. 23

SECTION II  TAX OBLIGATION.. 29

CHAPTER 4 TAX ACCOUNTING. TAX DECLARATION. TAX OBLIGATION AND ITS FULFILLMENT. 29

CHAPTER 5 CHANGE OF TIME LIMIT ESTABLISHED BY THE LEGISLATION FOR PAYMENT OF TAXES, DUES (DUTIES), PENALTY INTEREST. 39

CHAPTER 6  MEANS OF SECURING THE FULFILLMENT OF TAX OBLIGATION AND/OR PAYMENT OF PENALTY INTEREST. 45

CHAPTER 7 ENFORCED FULFILLMENT OF TAX OBLIGATION AND COLLECTION OF PENALTY INTEREST. 52

CHAPTER 8 SETOFF, RETURN OF TAXES, DUES (DUTIES), PENALTY INTEREST. 56

SECTION III RECORD-KEEPING OF PAYERS. TAX CONTROL. 59

CHAPTER 9 RECORD-KEEPING OF PAYERS. 59

CHAPTER 10  TAX CONTROL. 64

CHAPTER 11 PRINCIPLES OF PRICE DETERMINATION FOR GOODS (WORKS, SERVICES) FOR TAXATION PURPOSES. 83

SECTION IV APPEALING THE DECISIONS OF TAX BODIES.. TAX AND CUSTOMS BODIES. 99

CHAPTER 12 ORDER AND TIME LIMITS FOR APPEALING THE DECISIONS OF TAX BODIES, ACTIONS (OMISSIONS) OF THE OFFICIALS. 99

CHAPTER 13  TAX AND CUSTOMS BODIES. 101

SPECIAL PART. 106

SECTION V  REPUBLICAN TAXES, DUES (DUTIES) 106

CHAPTER  14 VALUE ADDED TAX.. 106

CHAPTER 15 EXCISES. 217

CHAPTER 16 TAX ON PROFIT. 238

CHAPTER 17 TAX ON INCOMES OF FOREIGN ORGANIZATIONS NOT CARRYING OUT ACTIVITIES IN THE REPUBLIC OF BELARUS THROUGH A PERMANENT REPRESENTATION.. 286

CHAPTER 18 PERSONAL INCOME TAX.. 301

CHAPTER 19 TAX ON IMMOVABLE PROPERTY.. 366

CHAPTER 20 LAND TAX.. 382

CHAPTER 21 ECOLOGICAL TAX.. 399

CHAPTER 22 TAX FOR EXTRACTION (REMOVAL) OF NATURAL RESOURCES. 403

CHAPTER 23 OFFSHORE DUE. 407

CHAPTER 24 STAMP DUTY.. 409

CHAPTER 25 CONSULAR FEE. 411

CHAPTER 26 STATE DUTY.. 416

CHAPTER 27 PATENT DUTIES. 444

CHAPTER 28 UTILIZATION DUE. 454

SECTION VI LOCAL TAXES AND DUES. 458

CHAPTER 29 TAX ON DOGS. 458

CHAPTER 30 RESORT DUE. 459

CHAPTER 31  DUE FROM PURVEYORS. 461

SECTION VII SPECIAL TAXATION REGIMES. 462

CHAPTER 32  TAX UNDER THE SIMPLIFIED TAXATION SYSTEM... 462

CHAPTER 33 SINGLE TAX FROM INDIVIDUAL ENTREPRENEURS AND OTHER NATURAL PERSONS. 480

CHAPTER 34 SINGLE TAX FOR PRODUCERS OF AGRICULTURAL PRODUCE. 494

CHAPTER 35 TAX ON GAMBLING BUSINESS. 503

CHAPTER 36 TAX ON INCOMES FROM CARRYING OUT LOTTERY ACTIVITIES. 508

CHAPTER 37 TAX ON INCOMES FROM CONDUCTING ELECTRONIC INTERACTIVE GAMES. 509

CHAPTER 38 DUE FOR CARRYING OUT ARTISANAL ACTIVITY.. 509

CHAPTER 39  DUE FOR CARRYING OUT ACTIVITY ON RENDERING SERVICES IN THE SPHERE OF AGROECOTOURISM... 510

CHAPTER 40 SINGLE TAX ON IMPUTED INCOME. 512

SECTION VIII  TAXATION OF CERTAIN CATEGORIES OF PAYERS. 518

CHAPTER 41 SPECIFIC FEATURES of TAXATION IN FREE ECONOMIC ZONES. 518

CHAPTER 42  TAXATION OF PEASANT’S (FARMER’S) HOUSEHOLDS, COLLEGES OF ADVOCATES, ADVOCATES OFFICES, THE BELARUSIAN NOTARIAL CHAMBER AND ITS ORGANIZATIONAL STRUCTURES, STATE BODIES, OTHER STATE ORGANIZATIONS. 522

Excises rates for excisable goods. 524

Rates of the personal income tax in fixed sums. 527

Rates of the land tax for agricultural lands for agricultural purposes. 527

Average land tax rates for districts of the Republic of Belarus. 528

Functional use of land plots (types of valuation zones) 531

Land tax rates for land plots located in settlements, and also outside settlements, land plots of gardening partnerships and country-cottage cooperatives  532

Ecological tax rates for emissions of pollutants into the air 532

Ecological tax rates for discharge of wastewater 533

Ecological tax rates for storage or burial of production waste. 533

Tax rates for extraction (removal) of natural resources. 533

Tax rates for extraction (removal) of natural resources in relation to petroleum oil 535

Rates of consular fees. 535

Rates of the state duty when applying to the courts, with the exception of the Court Panel on cases of intellectual property of the Supreme Court of the Republic of Belarus, Court Panel on economic cases of the Supreme Court of the Republic of Belarus, economic courts of regions (the city of Minsk) 538

Rates of state duty when applying to the court panel on cases of intellectual property of the Supreme Court of the Republic of Belarus. 540

Rates of the state duty when applying to the Court Panel on economic cases of the Supreme Court of the Republic of Belarus, economic courts of regions (the city of Minsk) 540

Rates of the state duty when applying to enforcement bodies. 542

Rates of the state duty when applying to bodies of the public prosecutor's office. 542

Rates of the state duty when applying to authorized officials of local executive and administrative bodies. 543

Rates of the state duty when applying to registrars of the republican and territorial organizations on state registration of immovable property, rights thereto and transactions therewith. 544

Rates of the state duty for performance of actions connected with the registration of acts of civil status. 545

Rates of the state duty for issuance (change), certification of documents necessary for the exit from and/or the entry into the Republic of Belarus; issuance (change) or extension of the validity term of the documents connected with the stay of foreign citizens and stateless persons in the Republic of Belarus; for consideration of issues connected with the citizenship of the Republic of Belarus  545

Rates of the state duty on other objects of levying with the state duty. 546

Rates of patent duties. 561

Rates of the single tax from individual entrepreneurs and other natural persons. 569

 

 

GENERAL PART

SECTION I
GENERAL PROVISIONS

CHAPTER 1
MAIN PROVISIONS

Article 1. Relations regulated by this Code

This Code establishes a system of taxes, dues (duties) levied in the republican and local budgets, the main principles of taxation in the Republic of Belarus, regulates the power relations on the establishment, introduction, change, termination of taxes,

dues (duties) and relations arising in the process of fulfilling tax obligations, exercising tax control, appealing decisions of tax bodies, actions (inaction) of their officials, and also establishes the rights and duties of payers of taxes, dues (duties), tax bodies and other participants of tax relations.

Article 2. Main principles of taxation in the Republic of Belarus

1. Taxation in the Republic of Belarus is based on the following principles:

1.1. legality of taxation.

No one may be imposed the duty to pay taxes, dues (duties) as well as other payments having features of taxes established by this Code and not provided by this Code or established in other order than that is determined by the Constitution of the Republic of Belarus, present Code, laws adopted in accordance with it and regulating the taxation issues acts of the President of the Republic of Belarus. All participants of tax relations are obliged to observe the tax legislation;

obligatoriness of taxation.

Every person is obliged to pay legitimately established taxes, dues (duties) for which the person is considered a payer;

1.3. equality of taxation.

Taxes, dues (duties) may not be discriminatory in nature and established on the basis of racial, national, religious and other criteria. The rules of this code determining the grounds and the order of application of the tax privileges may not have an individual nature.

1.4. presumption of good faith of the payer of taxes, dues (duties).

The payer of taxes, dues (duties) shall be deemed conscientious, until otherwise is proved on the basis of date confirmed by documents;

1.5. fairness of taxation.

One and the same taxation object may be taxed with the same tax, due (duty) at one payer only once for the relevant tax period;

1.6. stability of the tax legislation.

Taxes, dues (duties) established by this Code for the next financial year are not subject to change during this financial year;

1.7. publicity of the tax legislation.

Normative legal acts regulating taxation issues are subject to official publication in the order established by the legislation;

1.8. economic justification of taxation.

Taxes, dues (duties) shall be established taking into account the need to ensure a balance between the expenses of the republican and local budgets with their incomes, and the volume of incomes from taxes, dues (duties) should exceed the costs for their administration.

2. It is not allowed to establish the taxes, dues (duties) and privileges on their payment causing the damage to national security of the Republic of Belarus, its territorial unity, political and financial stability including those limiting the free movement of natural persons, movement of goods (works and services) or financial assets within the territory of the Republic of Belarus or creating, in violation of the Constitution of the Republic of Belarus and legislative acts adopted in accordance with it, of other obstacles for carrying out the entrepreneurial and other activity of organizations and natural persons except for the one prohibited by the legislative acts.

Article 3. Tax legislation of the Republic of Belarus

1. Tax legislation of the Republic of Belarus is the system of normative legal acts adopted on the basis and in accordance with the Constitution of the Republic of Belarus that include the following:

this Code and laws adopted in accordance with it regulating the questions of taxation;

decrees, edicts and executive orders of the President f the Republic of Belarus containing the questions of taxation;

resolutions of the Council of Ministers of the Republic of Belarus regulating the questions of taxation and adopted on the basis and in pursuance of this Code, laws adopted in accordance with it regulating the questions of taxation and acts of the President of the Republic of Belarus;

normative legal acts of the republican bodies of state administration, bodies of local government and self-government regulating the questions of taxation and adopted in cases and limits provided by this Code and also laws adopted in accordance with them regulating the questions of taxation, acts of the President of the Republic of Belarus and resolutions of the Council of Ministers of the Republic of Belarus.

Inclusion of provisions regulating the taxation issues into other acts of legislation is prohibited, unless otherwise established by this Code or by the President of the Republic of Belarus.

2. Provisions of legal acts being adopted on the basis of and in order to comply with this Code may not contradict the provisions of this Code, as well as they may not exceed the limits of content of these provisions or the powers of the relevant body. Provisions of this clause do not cover the acts of the President of the Republic of Belarus issued in accordance with the Constitution of the Republic of Belarus.

3. In case of a discrepancy of an act of tax legislation with the Constitution of the Republic of Belarus, the Constitution of the Republic of Belarus shall be applied.

4. In case of discrepancy of a decree or edict of the President of the Republic of Belarus with this Code or another law regulating the questions of taxation, this Code or other law have the primacy only then, when the powers to enact the decree or the edict were granted by this Code or another law.

5. In case of a discrepancy of the act of tax legislation with acts of another branch of law containing the questions of taxation, the provisions of the acts of tax legislation are applied except for the cases provided by clauses 3 and 4 of this Article.

6. Application of the acts of tax legislation by analogy is not allowed.

If gaps are revealed in tax legislation (legal regulation), internal contradictions in acts of tax legislation or other deficiencies that create legal uncertainty, decisions should be made in favour of payers of taxes, dues (duties).

7. Acts of the tax legislation, including those that establish or abolish taxes, dues (duties), increase or decrease tax rates, establish or abolish tax privileges, change the order of calculating and paying taxes, dues (duties), shall be applied from the moment (date) of their entry into force and cover taxation or reporting periods on which falls respectively the day of actual realization, the day of actual receipt of profit, other similar day, unless otherwise is stipulated by laws of the Republic of Belarus or acts of the President of the Republic of Belarus.

Acts of tax legislation that abolish taxes, dues (duties), decrease tax rates, establish tax privileges, eliminate duties of payers, improve otherwise their situation may have retroactive effect if they directly provide for it.

Article 4. Order for computation of time limits established by tax legislation

A time limit established by the tax legislation is determined by a calendar date or the expiration of a period of time that is computed in calendar years, quarters, months, weeks or days. A time limit may be determined also by the indication to an event that should come or occur, or on an action that should be accomplished.

Running of a time limit established for accomplishment of an action and computed in years, with the exception of a calendar year, quarters, months, weeks or days, begins on the next day after the calendar date or occurrence of the event, accomplishment of an action by which its beginning is determined. The time limit computed in years, with the exception of the calendar year, expires in the corresponding month and day of the last year of the time limit. In that instance, as a year (with the exception of  a calendar year) is considered any period consisting of twelve calendar months, following one by one.

A time limit computed in calendar years expires on December 31 of the last calendar year of the time limit. In that instance  a calendar year is recognized to be the period for January 1 to December 31. If the beginning of the running of such a time limit is an indication to an event that should occur, or an action that should be accomplished, the first calendar year of such a time limit shall be recognized a period from the date of occurrence of the event or accomplishment of the action to December 31.

The time limit computed in quarters, expires in the last day of the last month of the time limit. In that instance a quarter is deemed to be equal to three months, countdown of quarters shall be conducted from the beginning of the year.

The time limit computed in months expires in the corresponding month and date of the last month of the time limit. If the ending of the time limit falls on the month which has no corresponding date, the time limit expires on the last day of this month.

The time limit  computed in weeks expires in the last working day of the last week of the time limit. In that instance the week is considered a period consisting of five working days, following one by one.

In cases where the last day of the time limit established set for accomplishment of an action falls on a day recognized in accordance with the legislation as a day off and/or a non-working public holiday (non-working holiday), the closest working day following it shall be considered as the day ending the time limit.

An action for accomplishment of of which the time limit is established, may be accomplished not later than 12 PM of the last day of the time limit.

The computation of time limits for the purposes of payment (collection) of customs payments shall be effectuated in accordance with the customs legislation.

Article 5. Effect of provisions of treaties of the Republic of Belarus on taxation matters

1. The Republic of Belarus recognizes the priority of generally recognized principles of international law and ensures the compliance of tax legislation therewith.

2. If the norms of treaties of the Republic of Belarus establish other rules than those provided by this Code and other legislative acts of the Republic of Belarus, the rules of the treaty are applied, unless otherwise established by part two of this clause.

If this Code and/or other legislative acts provide more favorable conditions for taxation than those established by a treaty of the Republic of Belarus, with the exception of treaties of the Republic of Belarus that regulate mutual trips of citizens and the treaties of the Republic of Belarus that form the contractual and legal base of the Customs Union, the provisions of this Code and/or other legislative acts shall be applied.

Article 6. Taxes, dues (duties)

1. A tax is recognized an obligatory individual gratuitous payment being collected from organizations and natural persons in the form of alienation of monetary means that belong to them on the right of ownership, economic management or operative administration to the republican and/or local budgets.

2. Due (duty) is recognized an obligatory payment to republican and/or local budgets collected from organizations and natural persons, as a rule, in the form of one of the conditions for fulfillment in relation to them by state bodies, including local councils of deputies, executive and administrative bodies, other authorized organizations and officials, of legally significant actions.

3. Payments carried out within the frameworks of relations not regulated by this Code and other acts of tax legislation as well as payments in the form of fines and other sanctions for violation of legislation are not considered taxes or dues (duties).

4. When taxes are being established, all taxation elements shall be determined. Otherwise, the tax is deemed to be not established and shall not be subject to payment.

5. The tax is deemed established when its payers and the following taxation elements are established:

taxation object;

tax base;

tax rate(s);

tax period (if its determination if possible);

procedure of calculation;

procedure and time limits of payment.

6. When a due (duty) is being established, its payments, levying objects, rates, time limits for payment and if necessary other levying elements in relation to specific dues (duties) shall be determined.

7. When a tax, due (duty) is being established, tax privileges and grounds for their application may be provided for.

Article 7. Kinds of taxes and dues (duties)

1. In the Republic of Belarus the republican taxes and dues (duties) and local taxes and dues are established.

2. Republican taxes and dues (duties) are recognized to be taxes and dues (duties) established by this Code or the President of the Republic of Belarus or by treaties that constitute the law of the Eurasian Economic Union and obligatory for payment on all territory of the Republic of Belarus.

3. As local are recognized taxes and duties established by normative legal acts of local councils of deputies in accordance with this Code and obligatory for payment on relevant territories.

Article 8. Republican taxes, dues (duties)

Republican taxes and dues (duties) are the following:

value added tax;

excises;

tax on profit;

tax on incomes of foreign organizations that are not carrying out activities in the Republic of Belarus through a permanent representation;

income tax from natural persons;

tax on immovable property ;

land tax;

ecological tax;

tax for the extraction (removal) of natural resources;

offshore due;

stamp duty;

consular duty;

state duty;

patent duties;

customs duties and customs dues, customs payments in relation to goods for personal use;

utilization due.

Article 9. Local taxes and dues

Local taxes and dues are the following:

tax on dogs;

resort due;

due from purveyors.

Article 10. Special taxation regimes

1. The special tax regime is deemed to be a special procedure of the calculation and payment of taxes, dues (duties) applicable in cases and the order established by the Special Part of this Code or the President of the Republic of Belarus.

2. Special tax regime applies to payers of:

tax under the simplified system of taxation;

single tax from individual entrepreneurs and other natural persons;

single tax for producers of agricultural products;

tax on gambling business;

tax on income from carrying out lottery activities;

tax on income from conducting electronic interactive games;

due for carrying out artisanal activities;

due for carrying out activity on providing services in the field of agro-ecotourism;

single tax on imputed income.

3. When the special regimes of taxation is established, the payers and elements of taxation, as well as tax privileges are determined in order provided by this Code or the President of the Republic of Belarus.

4. Establishment, bringing into action, change and termination of special taxation regimes are carried out in the order provided for establishment, bringing into action, change and termination of republican taxes, dues (duties).

Article 11. Procedure for establishment, bringing into action, change and termination of republican taxes and dues (duties)

1. The establishment, introduction and termination of the republican taxes and dues (duties) are carried out by adopting a law on introduction of changes and/or additions to this Code and/or adopting an act of the President of the Republic of Belarus, and the establishment, modification of payers and some elements of taxation concerning customs duties also by are treaties and acts constituting the law of the Eurasian Economic Union .

2. The laws on establishing and bringing into action of new, besides for those provided by this Code, or termination of valid republican taxes and dues (duties) as well as laws on introducing changes into valid republican taxes and dues (duties) in part of determining payers, taxation objects, tax base, tax rates, tax period, tax privileges, procedure for their computation, procedure and time limits of payment shall be adopted prior to approving the republican budget for the next financial year and enter into force not earlier than January 1 of the year following the year when they are adopted.

Article 12. Procedure for establishment, bringing into action, changing and termination of local taxes and dues

1. The establishment, introduction, modification and termination of local taxes and dues are carried out in accordance with this Code by adopting normative legal acts of the Minsk city Council of Deputies, local councils of deputies of the base territorial level.

2. The Minsk City Council of Deputies, local councils of deputies of the base territorial level are entitled to establish, introduce or not to establish, introduce a local tax and/or due or to terminate the effect of a previously introduced local tax and/or due.

3. Legal acts about establishment, bringing into action and termination of local taxes and dues as well as acts on introducing changes into valid local taxes and dues in part of their tax rates, tax privileges, procedure of calculation, procedure and time limits of their payment are taken when necessary within one month period from the day of adoption of the law on introducing changes and/or additions into this Code and enter into force not earlier than January 1 of the year following the year of its adoption.

Article 13. Terms and their definitions

1. Terms of the civil and other branches of law used in this Code are applied in the same meanings as they are used in those branches of law, unless otherwise established by this Code.

2. For the purposes of this Code the following terms and their definitions are used:

2.1. audit services are services for auditing of accounting and tax accounting, tax declarations (calculations) on taxes, dues (duties), accounting and/or financial statements, as well as other services referred to audit services in accordance with the legislation on auditing activity;

2.2. accounting services are services for organizing, management, restoration of accounting, preparation and/or presentation of accounting and/or financial and other statements;

2.3. budgetary organization is an organization recognized as such in accordance with the Budget Code of the Republic of Belarus;

2.4. dividends are income posted by an organization (except for the simple partnership) to the participant (shareholder) on stakes (stock, shares) belonging to the given participant (shareholder) in the order of distribution of the profit remaining after taxation.

2.5. designing services are services for design of art forms, appearance of products, building facades, interior space of the premises, artistic design;

2.6. income is an economic benefit, in money or in kind, determined in accordance with the tax legislation, accounted in the case, if it is possible to evaluate it, and to the extent such benefit can be evaluated;

2.7. identical works (services) are works (services) that have the same basic features characteristic for them;

2.8. identical goods are goods having the same basic features characteristic for them, unless otherwise established for determining the customs value of the goods by the customs legislation. When determining the identity of the goods, in particular their natural characteristics, quality, trademark, functional intended use, and market reputation, country of origin and the producer are taken into account. In doing so, insignificant differences in external appearance of such goods may be ignored;

2.9. property rights are rights arising from contractual and non-contractual relations, including those arising in connection with the determination of the fate of property, related to its possession, use and disposal, property rights to intellectual property objects;

2.10. engineering services are engineering and consulting services on preparation of the process of production and realization of goods (works, services), preparation of construction and exploitation of industrial, infrastructure, agricultural and other objects, as well as pre-design and design services (preparation of feasibility studies, design development, technical testing and analysis of results of such testing);

2.11. another obliged person is a person on whom, in accordance with this Code and other acts of tax legislation, the fulfillment of the tax obligation of the payer is imposed or who, in accordance with the customs legislation, has a joint and several obligation with the payer to pay the customs duties;

2.12. foreign organization rendering services in electronic form for natural persons:

foreign organization that renders services in the electronic form, the place of realization of which is recognized the territory of the Republic of Belarus, to natural persons acquiring such services and carrying out settlements with it for rendered services (foreign organization rendering services in the electronic form to natural persons in the Republic of Belarus);

foreign organization that, on the basis of contracts of commission, agency, and other similar contracts with foreign organizations rendering services in the electronic form to natural persons in the Republic of Belarus, carries out intermediary activity and settlements directly with such natural persons for for their acquiring the mentioned services (foreign intermediary in settlements);

2.13. consulting services are services on providing explanations, advice and other forms of consultation, including the identification and/or assessment of problems and/or capabilities of the person on the managerial, economic, financial (including tax and accounting) issues, as well as planning, organizing and carrying out entrepreneurial activity, human resource management;

2.14. marketing services are services related to research, analysis, planning and forecasting in the production and circulation of goods (works, services), provided for the adoption of measures to create necessary economic conditions for the production and circulation of goods (works, services), including their characteristics, development of pricing strategy and advertising strategy;

2.15. scientific research works are performance of scientific research based on the requirements specification of the customer;

2.16. homogeneous works (services) are works (services) that, while not being identical, have similar characteristics;

2.17. homogeneous goods are goods that , while not being identical, have similar characteristics and are made of similar components, which allows them to carry out the same functions and/or be commercially interchangeable, unless otherwise established for determining the customs value of the goods by the customs legislation.  When determining the homogeneity of goods, in particular, their quality, trademark, reputation in the market, country of origin are taken into account;

2.18. research and development and research and technology (technological) works are development of a prototype of a new product, design documentation for it, or new technology;

2.19. intermediary services are services on facilitating to establishment of contacts and conclusion of transactions between producers (contractors, executors) and consumers (ordering customers), sellers (suppliers) and buyers, services on searching and/or providing to the ordering customer of information about potential buyers, and also services of commissioners (agents) and other persons which act on the basis of contracts of commission, agency, and other similar civil-law contracts;

2.20. interest, unless otherwise follows from the contents of this Code, income from debt obligations of any kind, regardless of the method of their execution, including:

incomes in the form of interest for using credits, loans;

incomes on securities, whose conditions of issue stipulate receipt of incomes of the form of interest (discount);

incomes on savings and deposit certificates;

incomes from the use of temporarily free monetary means in bank accounts, placement of monetary means in deposits with the National Bank of the Republic of Belarus, bank deposits  and other similar debt obligations (with the exception of those stipulating participation in profits), regardless of the method of their execution;

2.21. work is activity the results of which have material form and can be realized for satisfaction of the needs of the organization and/or natural persons;

2.22. advertising services are services on creation, dissemination and distribution (by any means and in any form) of the information intended for an indefinite number of persons and designed to form or support the interest to a natural or legal person, goods, trademarks, works, services;

2.23. collateral sums are monetary means contributed as collateral for the fulfillment of duties to pay customs duties and taxes, ensure the fulfillment of duties of a legal person carrying out activity in the customs sphere, and ensure the performance of duties of an authorized economic operator;

2.24. account  is  an account opened on the basis of a contract concluded with a bank in the order established by the banking legislation, a deposit;

2.25. customs legislation is treaties governing customs legal relations, acts constituting the law of the Eurasian Economic Union, and legislation of the Republic of Belarus on customs regulation;

2.26. customs payments are customs payments in relation to goods for personal use, taxes, dues (duties) being levied to the republican budget by customs bodies;

2.27. goods are property (with the exception of property rights) being realized or intended to be realized, unless otherwise established by this Code or the customs legislation;

2.28. difficult life situation is an objective circumstance (set of circumstances), not depending on a natural person who cannot overcome it at the expense of its existing capabilities, and entailing non-fulfillment of the tax obligation;

2.29. managerial services are services on management of the organization (or of its divisions or activity directions of that organization), on carrying out organizational and administrative, controlling functions in relation to production, technological and/or other processes, risks, property, procurement, sales;

2.30. service is activity the results of which do not have a material form and are realized and consumed in the course of carrying out that activity or upon its completion. The provision of property for lease (financial lease (leasing)) is not a service, unless otherwise provided by this Code with respect to certain taxes, dues (duties);

2.31. electronic servises are services rendered through the global computer network Internet (hereinafter referred to as the Internet) with assistance of automatic machines using information technologies, including with the involvement of an intermediary in the calculations;

2.32. information processing services are services for the implementation of collection and compilation of information, systematization of information files (data) and providing at the disposal of the user of the results of processing of this information;

2.33. services on providing information are services on providing information (on making the information known) requested by the customer;

2.34. participants of tax relations are payers of taxes, dues (duties), other obliged persons and their representatives, tax agents, tax, customs and financial bodies, bodies of state control, republican bodies of state administration, bodies of local government and self-government, as well as authorized bodies, organizations and officials when dealing with matters referred to their competence by this Code and other legislation, or carrying out acceptance and collection of taxes and dues (duties) in accordance with the established order;

2.35. financial instrument of the forward market is a contract being a derivative financial instrument the value of which depends on the price or another qualitative factor of the basic asset of the contract stipulating the exercising the rights and/or fulfillment of obligations under said contract in the future. Derivative financial instruments include options, futures, forwards, swaps and other derivative financial instruments, including those representing a combination of the mentioned derivative financial instruments;

2.36. legal services are services of a legal nature, including providing of the explanations and consultations, preparation and expert examination of documents, representation of the interests of clients in courts.

3. Unless otherwise follows out of the contents of this Code, the following abbreviations are used for the purposes of this Code:

3.1. a advocate is an advocate who carries out advocatory activity individually;

3.2. bank is a bank of the Republic of Belarus, non-bank credit and financial organization of the Republic of Belarus, Open Joint-Stock Company Development Bank of the Republic of Belarus, Open Joint-Stock Company Belarusian Currency and Stock Exchange, Open Joint-Stock Company Asset Management Agency, another specialized financial organization of the Republic Belarus, which is not a bank, but acts on the basis of a legislative act, in accordance with which it carries out accounting in accordance with normative legal acts of the National Bank of the Republic of Belarus;

3.3. tax bodies are 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;

3.4. bodies of state control are the Committee of State Control of the Republic of Belarus, its territorial bodies, and bodies of financial investigation of the Committee of State Control of the Republic of Belarus;

3.5. court is a court of general jurisdiction, unless otherwise established by this Code;

3.6. customs bodies are the State Customs Committee of the Republic of Belarus and customs offices;

3.7. financial bodies are the Ministry of Finance of the Republic of Belarus and local financial bodies.

CHAPTER 2
PAYERS OF TAXES AND DUES (DUTIES). STATE AGENTS AND OTHER PERSONS

Article 14. Kinds of taxes and dues (duties)

1. Payers of the taxes and dues (duties) (furtherpayers) are recognized organizations and natural persons on which the duty to pay taxes, dues (duties) is imposed in accordance with the tax or customs legislation.

2. Under the organizations the following is understood:

2.1. legal persons of the Republic of Belarus;

2.2. foreign and international organizations, including those not being legal persons;

2.3. simple partnerships (participants of the contract on joint activity, except for the participants of the contract on providing syndicated credit).

3. Affiliate, representative office or another separate sub-division of a legal person of the Republic of Belarus with a separate balance sheet, for which the legal person opened an account for operations, granting the right to dispose of monetary means on such account to officials of the given separate sub-divisions (hereinafter - affiliate), compute the sums of taxes, dues (duties) and execute tax obligations of that legal person, unless otherwise established by this Code or the President of the Republic of Belarus.

4. A participant of the simple partnership (participants of a contract on joint activity) to whom in accordance with the contract of the simple partnership (contract on joint activity) the running of business of that partnership is imposed or who receives the revenue from the activity of that partnership before their distribution fulfills the tax obligation of that partnership.

5. The following is understood under the natural persons:

citizens of the Republic of Belarus;

citizens or subjects of a foreign state;

stateless persons.

Article 15. Belarusian and foreign organizations

1. The Belarusian organization is an organization the place of location of which is the Republic of Belarus.

2. The foreign organization is an organization the place of location of which is not the Republic of Belarus.

3. A Belarusian organization has the status of tax residents of the Republic of Belarus and fulfills tax obligations in relation to incomes from the sources in the Republic of Belarus, incomes for the sources outside the Republic of Belarus, and also in relation to the property located both in the territory of the Republic of Belarus and beyond its limits.

A foreign organization is not a tax resident of the Republic of Belarus and fulfills tax obligations only concerning the activity being carried out in the Republic of Belarus or in relation to the incomes from the sources in the Republic of Belarus and also in relation to the property located on the territory of the Republic of Belarus.

Article 16. Place of location of an organization

1. The place of location of the organization (except for the simple partnership) is the place of its state registration, unless otherwise established by this Article.

2. In the absence (inaction) of the organization at the location specified in clause 1 of this Article, the place of its location is recognized the location of the organizations governing body (place where its powers are exercised in accordance with the constituent documents), and in its absence (inaction) the place where powers of its permanently acting executive body are exercised.

In the absence (inaction) of the permanently acting executive body, the place of location of an organization is determined according to the place where decisions on questions of creation, liquidation and reorganization of this organization, changing the composition of its founders (participants), increase or reduction of the size of the statutory fund, acquiring or alienation of its property and other substantial questions of management of the organization are taken, or the place where prinicipal accounting documents of the organization are located.

3. The place of the simple partnership is the place of location (place of residence) of the participant that runs the business of the partnership in accordance with the contract on joint activity or that receives the earnings from the activity of this partnership before its distribution.

Article 17. Natural persons-tax residents of the Republic of Belarus

1. Tax residents of the Republic of Belarus are recognized the natural persons that actually stayed in the territory of the Republic of Belarus more than one hundred eighty-three days in a calendar year. The natural persons that actually stayed outside the territory of the Republic of Belarus one hundred eighty-three days and more in a calendar year are not recognized the residents of the Republic of Belarus.

Until the provisions of part one of this clause do not allowed to determine the status of a natural person, the person is recognized the tax resident of the Republic of Belarus in the current calendar year, if the person actually stayed in the territory of the Republic of Belarus more than one hundred eighty-three days in the preceding calendar year, and in the event if the natural person actually stayed outside the territory of the Republic of Belarus one hundred eighty-three days and more in the preceding calendar year, it is not recognized to be the tax resident of the Republic of Belarus in the current calendar year.

For the purposes of this Code, the tax residency of a natural person is determined for each calendar year.

2. The time of actual presence on the territory of the Republic of Belarus is the time of actual location of the natural person in the territory of the Republic of Belarus and also the time for which this person moved outside the territory of the Republic of Belarus:

for treatment, on a business trip;

on vacation, provided that the time spent on such a vacation in the aggregate did not exceed two months during the calendar year.

3. The time during which the natural person has arrived in the Republic of Belarus for the following is not considered the time of actual location in the territory of the Republic of Belarus:

3.1. as the person having diplomatic or consular status or as the member of family of such person;

3.2. as the employee of an international organization created under the international agreement, participant of which is the Republic of Belarus or as the member of the family of such employee.

Provisions of part one of this sub-clause do not cover citizens of the Republic of Belarus;

3.3. for treatment or vacation if this natural person has been in the Republic of Belarus exclusively for these purposes;

3.4. exclusively for moving from one foreign state to other foreign state through the territory of the Republic of Belarus by one vehicle or exclusively with the purposes of transfer from one vehicle to another at such moving (transit moving).

4. To confirm the actual presence in the territory of the Republic of Belarus, the day of entry (exit) into the Republic of Belarus (from the Republic of Belarus) is determined on the basis of a mark on the crossing of state borders of foreign states made by a competent authority of a foreign state carrying out border control, in identity documents, and/or documents for entry (exit) into the Republic of Belarus (from the Republic of Belarus), as well as on the basis of information available in the tax body, provided by state bodies and organizations in the order established by the legislation.

If the provisions of part one of this clause do not allow to unambiguously determine the time of the actual location of a natural person in the territory of the Republic of Belarus, the payer shall submit to the tax body documents (or copies thereof) confirming the place of his actual location during the calendar year(s), as well as any other documents (or copies thereof), which may serve as a basis for determining the place of its actual location:

identity document;

a temporary residence permit in the Republic of Belarus, issued in the established order;

documents confirming the place of actual location, place of work, service, study of the natural person in the territory of the Republic of Belarus or a foreign state;

other documents confirming entry (exit) to the Republic of Belarus (from the Republic of Belarus) and the time of stay in the territory of the Republic of Belarus or a foreign state.

The number of days that the natural person actually stays in the territory of the Republic of Belarus in a calendar year is determined from the day following the day of entry into the Republic of Belarus and ends on the day of departure from the Republic of Belarus inclusively or on the last day of such calendar year.

5. If, in accordance with the provisions of this Article and treaties of the Republic of Belarus on taxation matters, a natural person is simultaneously recognized as a tax resident of the Republic of Belarus and a foreign state, his tax residency is determined in accordance with the provisions of such a treaty.

If a natural person is at the same time a tax resident of the Republic of Belarus and a foreign state, but there is no treaty of the Republic of Belarus on taxation with such a state and/or it does not apply, or if the natural person is not a tax resident of any state, including the Republic of Belarus, then it is recognized as a tax resident of the Republic of Belarus, if in the calendar year for which the tax residency is determined, the person has the citizenship of the Republic of Belarus or a residence permission in the Republic of Belarus (residence permit).

Article 18. Place of residence of a natural person

For purposes of this Code, the place of residence of the natural person is deemed to be a place (settlement, house, apartment or other residential premises) where that natural person is registered at the place of residence, in the absence of such a placethe place where that natural person permanently or predominantly resides, and in the case if the data about this cannot be established the place of location of the property of that person.

Article 19. Individual entrepreneurs

1. Belarusian individual entrepreneur is deemed to be a natural person registered as individual entrepreneurs in the Republic of Belarus (hereinafter - individual entrepreneur).

Foreign individual entrepreneur is deemed to be a natural person registered as individual entrepreneur outside the Republic of Belarus.

In the absence of the country of registration for determining the ability of a natural person carrying out entrepreneurial activity to be an individual entrepreneur and to have the associated rights and duties, the legislation of the country in the territory of which the principle place of carrying out entrepreneurial activities by the natural person shall be applied.

2. A natural person carrying out  entrepreneurial activity, but not registered as an individual entrepreneur in violation of the requirements of legislative acts, shall fulfill the tax obligations imposed by this Code and other acts of tax legislation on the individual entrepreneur.

Article 20. Interdependent persons

1. Natural persons and/or organizations (hereinafter in this Article persons) are recognized interdependent persons in the presence of relationships between them which influence or may exircise direct influence on the conditions or economic results of their activity and activity of the persons represented by them.

Such relationships include relations:

between persons being founders (participants) of one organization if the share of direct and/or indirect participation of each of such persons in the organization is not less than 20 percent;

between organizations if one person participates, directly or indirectly, in those organizations and the share of such participation in each of those organizations is not less than 20 percent, and also when their true owner is the same natural person;

between organizations in the collegiate executive body or board of directors (supervisory board) of which for more than 50 percent is constituted by the same natural persons jointly with interdependent persons specified in indent seven of this part.

when one person (including a natural person together with its interdependent persons specified in clause seven of this part) acts as a founder (participant) of another organization if the share of his direct and/or indirect participation is at least 20 percent. Direct and/or indirect participation of the Republic of Belarus, local executive and administrative bodies, republican bodies of state administration and other state organizations subordinated to the Government of the Republic of Belarus in organizations is not a basis for recognizing such persons interdependent;

when one person exercises (directly or indirectly) control over another person(s);

when natural persons are, in accordance with legislation, married, are close relatives, are adopted in relation between step parent and step child, guardian, trustee and ward, as well as between organizations whose founders (participants) they are, if the share of direct and/or indirect participation of such natural persons in these organizations is at least 20 percent.

2. The share of participation of a person in the organization is determined by adding the shares of direct and indirect participation of the person in the organization.

A share of direct participation of a person in an organization is recognized a portion of shares of the organization or the stake in the statutory fund of the organization, belonging to that person, and in the case of impossibility to determine such portions (stakes) a portion determined proportionally to the number of participants in the organization.

A share of indirect participation of a person in another an organization is determined in the following order:

the sequence of participation of the person in the organization through third parties is established by determining the direct participation of each previous person in each subsequent organization (hereinafter - the sequence of organizations);

the share of indirect participation of a person in an organization through third parties in the sequence of organizations is determined as the product of the shares of direct participation of persons in a subsequent organization;

if there are several sequences of organizations, the shares of indirect participation determined for each of them are summed up.

A share of a natural person in an organization is recognized as the sum of shares of direct and indirect participation of this natural person and persons interdependent with him, recognized as such in accordance with indent seven of part two of clause 1 of this Article.

3. For the purposes of this article, the true owner of an organization is understood a natural person who, directly or through persons interdependent with him, has the ability to exert a decisive influence on the management of the organization or on its entrepreneurial activity by:

realization of the right of ownership for all property of the organization;

realization of the right to appoint the sole executive body of the organization, or to form a collegial executive body or board of directors (supervisory board) of the organization, or to exert a decisive influence on the formation of its composition;

direct or indirect participation in the statutory fund of the organization in an amount that allows it to influence its decisions on carrying out entrepreneurial activity.

4. Persons may be recognized as interdependent in court on grounds other than as provided for in part two of clause 1 of this Article, if the relations between these persons have and/or can directly affect the conditions and/or economic results of their activities and/or activities of the persons they represent.

Article 21. Rights of the payer

1. The payer has the right to:

1.1. receive from the tax bodies and other authorized state bodies explanations on the questions of application of the acts of tax legislation;

1.2. represent their interest in tax bodies independently or through his representative;

1.3. enjoy tax privileges upon availability of grounds and in the order established by this Code and other acts of tax legislation. For confirmation of the right to use tax privileges, the payer may maintain separate accounting of taxation objects on which there are grounds for applying the tax privileges;

1.4. apply for changing the time limit established by the legislation for payment of taxes, dues (duties), penalty interest;

1.5. apply for the implementation of administrative procedures to the tax body at the place of putting on record, unless otherwise provided by sub-clause 2.2 of clause 2 of Article 26 of this Code;

1.6. be present during an inspection, provide explanations on issues relating to the inspection object, receive act (certificate) of the inspection;

1.7. submit to tax bodies and to their officials explanations on computation and payment of the taxes, dues (duties), as well as objections to the act (certificate) of the inspection;

1.8. request from the officials of the tax bodies to observe the acts of tax legislation when taking actions in relation to the payers;

1.9. require the observance of the tax secret;

1.10. appeal the decisions of tax bodies and actions (omissions) of their officials;

1.11. receive compensation of the damages caused by illegal decisions of tax bodies, unlawful actions (omissions) of the officials in order established by legislation;

1.12. not execute unlawful decisions of tax bodies and requests of their officials, which do not comply with provisions of this Code and other legislation;

1.13. in order to verify the credibility of business reputation, use information that is not a tax secret and is contained in state information resources (systems) provided through the single portal of electronic services of the nation-wide automated information system;

1.14. get acquainted with tax declarations (calculations), other documents and/or information that are related to the computation and/or payment of taxes, dues (duties) if it does not affect rights, freedoms and/or legitimate interests of other persons and materials do not contain information constituting state secrets, commercial and/or other secrets protected by the law.

2. Payers also have other rights established by the tax or customs legislation.

3. Payers are guaranteed the administrative and judicial protection of their rights and legal interests in order determined by this Code and other acts of legislation.

Part one of this clause also covers payers in the process of computation and payment of taxes, dues (duties) on the basis of explanations on the issues of application of acts of tax legislation, received by them from tax bodies in a written or electronic form.

4. Rights of the payers are ensured by the relevant duties of tax bodies.

5. Another obliged person enjoys the rights granted by this Code and other acts of tax legislation to the payer.

Article 22. Duties of the payer

1. The payer is obliged to:

1.1. be put on record in the tax bodies in the order and on conditions established by this Code;

1.2. pay the taxes and dues (duties) established by the tax legislation;

1.3. conduct in the established order the accounting of incomes (expenses) and other taxation objects, if such duty is provided for by the tax or customs legislation;

1.4. submit to the tax body at tax body at place of putting on record, unless otherwise provided by Article 26 of this Code:

1.4.1. in the order and instances established by the tax legislation, tax declarations (calculations) and also other documents and/or information necessary for computation, payment and collection of taxes, dues (duties);

1.4.2. not later than on March 31 of the year following the reporting year, annual individual reports drawn up in accordance with the legislation of the Republic of Belarus on accounting and reporting.

Effect of part of this sub-clause does not expand to:

budgetary organizations;

non-commercial organizations that do not carry out entrepreneurial activity;

foreign organizations that do not carry out activity that according to Article 180 of this Code is considered as activity on the territory of the Republic of Belarus through a permanent representation;

the National Bank of the Republic of Belarus and its structural divisions;

peasant's (farmer's) husbandries that conduct as of December 31 of the reporting year the accounting in the inventory book of incomes and expenses of peasant's (farmer's) husbandry.

Payers specified in part one of clause 4 of Article 40 of this Code submit such reports in the form of electronic document;

1.4.3. a copy of the dividing balance sheet or transfer act in the event of reorganization of the organization, within five working days from the day of reorganization;

1.5. conduct recordkeeping of accounts receivable and present the list of debtors with indication of the sum of the indebtedness, and also copies of documents confirming the fact of existence of accounts receivable and the expiration of the time limit for fulfillment of obligations of debtors before the payer:

to the tax body at place of putting on record not later than five working days from the arising of indebtedness on payment of taxes, dues (duties) and penalty interest. The list of debtors in the form approved by the Ministry on Taxes and Dues of the Republic of Belarus may be submitted in written or electronic form;

to the customs body that performs collection of customs payments not later than five working days from the day when the payer (his representative) has received the decision of the customs body about collection customs payments, interest, penalty interest or a decision on an act of the customs inspection.

Documents confirming the fact of accounts receivable may be a contract, commodity and/or consignment notes, acts of acceptance of works performed, services rendered, accounting registers with a breakdown of accounts receivable and other documents confirming the availability of accounts receivables of the payer and accounts payable of his debtor, for which the limitation period has not expired;

1.6. submit documents and/or information necessary for taxation, collection of unpaid sums of taxes, dues (duties) to the tax bodies, and in the part of customs payments to the customs bodies;

1.7. sign the act (certificate) of the inspection;

1.8. comply with legal requirements of the tax, customs body and their officials, including requirements to eliminate detected violations of the legislation;

1.9. report in the established form to the tax body at the place of putting on record in the order and time limit specified by the legislative acts, data the duty to report which for taxpayers is provided for by such legislative acts, and also to report not later than ten working days:

1.9.1. from the day when the payer became the participant of an organization about participation in a Belarusian or foreign organization. In this instance the natural person not being the tax resident of the Republic of Belarus or the foreign organization are not obliged to inform about the participation in other foreign organizations, if such participation is not connected with taxation in the Republic of Belarus;

1.9.2. from the day of opening or closing an account in the bank and another credit organization outside the Republic of Belarus by Belarusian organizations on opening and closing of the account;

1.9.3. from the day of adoption of the decision on liquidation or reorganization of the organization, with the exception of the organization whose putting on record was carried out alongside with its state registration, on adoption of such a decision;

1.9.4. form the day of creation or liquidation of an affiliate of the legal person of the Republic of Belarus on its creation or liquidation;

1.9.5. from the day of occurrence of a circumstance in relation to which the duty of the separate division of a Belarusian organization on fulfillment of tax obligations of that legal person on occurrence of such a circumstance;

1.9.6. from the day of changing the location of the organization, with the exception of the organization whose putting on record was carried out alongside with its state registration, on such a change;

1.9.7. from the day of changing the data reported earlier by a foreign organization when being put on record in the tax body on such a change. The message shall be submitted with each subsequent change of such data in electronic form;

1.10. submit, no later than March 31 of the year following the reporting year, to the tax body at the place of putting on record, in the established form, information on movement of monetary means on accounts opened by Belarusian organizations in a bank and other credit (financial) organization outside the Republic of Belarus, with the exception of correspondent accounts;

1.11. present documents confirming the right to tax privileges to the tax body at the place of putting on record at its request, unless otherwise provided by Article 26 of this Code, or to the tax agent, and concerning taxes, dues (duties) collected by other state bodies, other organizations, officials to such state bodies, organizations, officials;

1.12. ensure crediting the revenue from the realization of goods (works, services), property rights, and also of non-realization incomes, to their current (settlement) accounts in a bank in accordance with the legal status of those accounts and performance of payments therefrom in the order provided by the legislation. The specified order for crediting revenues must be secured from the day when indebtedness on taxes, dues (duties), penalty interest and other payments to the republican and local budgets has been formed, as well as indebtedness on fines for administrative offences in the field of entrepreneurial activity and against the order of taxation until its complete repayment.

The requirement established by part one of this sub-clause does not expand to the indebtedness in relation to which adjournment of and/or by-installment repayment, granted according to the legislation, are effective;

1.13. present to the tax body at the place of putting on record copies, certified by it, of intermediate liquidation balance sheet and liquidation balance sheet within two working days from the day of their approval in accordance with the legislation;

1.14. ensure, within the time limits established by the legislation, the safety of the documents of accounting, records of incomes (expenses) and other  taxation objects, other documents and information necessary for taxation;

1.15. ensure the availability of documents, provided for by the legislation, proving the purchase (receipt, transportation) of inventories;

1.16. ensure that primary accounting documents are checked for compliance with the legislation requirements, and in the event of their formalization in the name of a Belarusian organization or Belarusian individual entrepreneur to check their belonging to the goods shipper and validity of the form of such a document the information on which is placed in the electronic data bank of forms of documents and documents with a certain degree of protection and printed products.

The effect of part one of this sub-clause does not apply to natural persons when they perform transactions that are not related to carrying out entrepreneurial activity;

1.17. when realizing goods (works, services) for cash, ensure reception of the cash in the order established by the legislation;

1.18. when conducting inspections or arrangements to identify the property of the payer, as well as his debtors, provide tax and customs officials with the opportunity to exercise their rights and duties, including the provision of premises suitable for conducting the inspection and such arrangements (if such premises are available);

1.19. fulfill other duties established by the tax or customs legislation.

2. The payer paying the customs payments is obliged to inform about the circumstances mentioned in sub-clause 1.9.3 of clause 1 of this Article to the customs body in the zone of activity of which it is located

3. Foreign organizations are obliged to observe requirements of the legislation of the Republic of Belarus on accounting and reporting in relation to the activity that is considered according to Article 180 of this Code as activity in the territory of the Republic of Belarus through a permanent representation.

4. Documents being submitted in accordance with clause 1 of this Article, drawn up in a foreign language, must be accompanied by the translation into Belarusian or Russian language. Accuracy of the translation or the authenticity of the translator's signature must be attested by a notary or another official having the right to make such a notarial act, or the translation must be certified by the Belarusian Chamber of Commerce and Industry (its unitary enterprise, its representative office or affiliate).

Attestation (certification) specified in part of this clause is not required in relation to the translation of:

documents confirming for the purposes of application of provisions of treaties of the Republic of Belarus on issues of taxation that a foreign organization has a permanent location in the foreign state, a natural person is a resident of the foreign state;

conclusions of the audit organization (auditor) of a foreign state, contracts, primary accounting documents and other documents drawn up by foreign organizations relating to expenses (non-realization expenses) incurred outside the Republic of Belarus for the purposes of the activities of a foreign organization in the Republic of Belarus through a permanent representation.

5. Another obliged person shall fulfill the duties imposed by this Code and other acts of tax legislation on the payer.

Article 23. Tax agents

1. Tax agents are persons specified in clauses 2, 3, and 5 of Article 14 of this Code that are the source of payment of the incomes to the payer and/or on which, by virtue of the  tax legislation, the duties on computation, deduction from the payer and remittance to the budget of the taxes and dues (duties) are imposed.

2. The tax agent has the same rights as the payer, unless otherwise established by this Code.

3. Tax agent is obliged:

3.1. to compute, deduct from the monetary means due to the payer, unless otherwise provided by this Code or other acts of the tax legislation, and remit to the budget the relevant taxes and dues (duties) in the order established by this Code;

3.2. to conduct, for each payer, the record of posted and paid incomes, of taxes, dues (duties) deducted and remitted to the budget, unless otherwise provided by this Code and other acts of the tax legislation, and to give the payers, at the latters applications, references about incomes, computed and deducted taxes in the established form;

3.3. to present at the request of the tax bodies the documents and/or information necessary for carrying out the control over accuracy of computation, deduction and remittance to the budget of the relevant taxes and dues (duties);

3.4. to ensure, within the time limits established by legislation, the safety of documents and information necessary for exercising control over accuracy of computation, deduction and remittance to the budget of the relevant taxes and dues (duties);

3.5. fulfill other duties established by this Code and other acts of tax legislation.

Article 24. Right to representation in relations regulated by tax legislation

1. The payer may participate in relations regulated by the tax legislation through his legal or authorized representative.

2. Personal participation of the payer in relations regulated by the tax legislation does not deprive him the right to have his representative, the same as the participation of the representative does not deprive the payer the right to participate personally in mentioned legal relations.

3. Powers of the representative are subject to documentary confirmation in the order established by legislation.

4. Legal representatives of the payer-organization are the persons authorized to represent the mentioned organization on the basis of the acts of legislation or constituent documents of this organization.

Legal representatives of the payer-natural person are the persons acting as his representatives in accordance with legislation.

5. An authorized representative of the payer is recognized to be:

5.1. a natural or legal person authorized by the payer to represent his interests in relations regulated by the tax legislation, on the basis of a power of attorney.

The authorized representative of the payer-organization shall exercise its powers on the basis of a power of attorney being issued with the signature of its head or another person authorized for this by its constituent document.

The authorized representative of the payer - natural person, including an individual entrepreneur, exercises his authority on the basis of a power of attorney that, at the discretion of the principal, must be certified in one of the following ways:

by a notary;

in the order established by clause 3 of Article 186 of the Civil Code of the Republic of Belarus;

by an organization in which the principal works or studies, an organization operating the housing fund and/or providing housing and communal services at the place of his residence;

5.2. tax consultant authorized by the payer to represent his interests in relations regulated by the tax legislation on the basis of a contract of compensated provision of tax consulting services.

6. The rules provided for in this Article apply to tax agents.

Article 25. Actions (omission) of representatives of the payer

Actions (omission) of representatives of the payer, made in connection with participation of that payer in relations regulated by the tax legislation, are deemed to be the actions (omission) of that payer.

Article 26. Right to participate in tax relations regardless of the place of putting on record, place of residence

1. The payer has the right to receive from the tax bodies independently from the place of putting on record free information on the taxes, dues (duties) and acts of tax legislation in force and also on the rights and duties of the payers, tax bodies and officials.

2. A natural person not being individual entrepreneur has the right:

2.1. to submit to the tax bodies regardless of the place of putting on record, place of residence:

a tax declaration (calculation) for personal income tax;

tax declaration (calculation) on personal income tax from incomes of a payer not recognized to be the tax resident of the Republic of Belarus;

notification of carrying out activities recognized as taxable by the single tax from individual entrepreneurs and other natural persons;

documents confirming the right to tax privileges;

documents necessary to determine the sum of the single tax from individual entrepreneurs and other natural persons subject to offset or refund, provided for in Article 344 of this Code;

apply regardless of the place of putting on record, place of residence for the performance of administrative procedures in the inspectorate of the Ministry on Taxes and Dues of the Republic of Belarus for the district, city or district in the city.

3. The provisions provided in sub-clause 2.1 of clause 2 of this Article do not apply to a notary who carries out notarial activities in a notarys office and a advocate.

Article 27. Order of interaction with the payer

1. Documents and/or information may be submitted by the payer to the tax body or sent by the tax body to the payer in written or electronic form.

Documents and/or information in electronic form shall be sent by the tax body to the private office of the payer, and if it is not available in written form.

2. Documents and/or information in written form may be submitted by the payer and sent to the payer on paper by special messenger (courier) or by mail or presented to the payer and turned over to the payer during reception.

3. Documents and/or information in electronic form may be submitted by the payer or sent by the tax body to the payer in the form of electronic document, unless otherwise provided in parts two and three of this clause.

Documents and/or information in electronic form may be submitted to the tax body by a natural person who not being an individual entrepreneur in electronic form.

Documents and/or information in electronic form may be submitted to the tax body by a foreign organization rendering services in electronic form for natural persons, or sent by the tax body to such organization in the form of electronic document and/or in electronic form.

4. For the purposes of this Code and other acts of tax legislation under the submission of documents and/or information:

in the form of electronic document, is understood the submission of documents and/or information the confirmation of the integrity and authenticity of which is carried out using a certified electronic digital signature means;

in electronic form, is understood the submission of documents and/or information the confirmation of the integrity and authenticity of which is carried out without using a certified electronic digital signature means.

5. Documents and/or information in electronic form placed by the tax body in the private office of the payer are not handed over (not sent) to the payer in written form.

The date of sending documents and/or information in electronic form shall be the date of their placement in the private office of the payer.

6. The tax body is entitled to request originals of the documents and/or information provided by the payer in electronic form for their verification.

7. Requirements for the form of presentation (sending) of documents and/or information are determined by this Code and other acts of tax legislation.

Article 28. Private office of the payer

1. The private office of the payer placed in the global computer network Internet is an information resource maintenance  of which is carried out by the Ministry on Taxes and Dues of the Republic of Belarus in the order established by the latter.

The private office of the payer shall be used in the instances and having regard to peculiarities, provided by this Code, for receiving from and sending to the tax bodies electronic documents, documents and/or information in electronic form.

2. Access to the private office of the payer is carried out with assistance of:

private key of the electronic digital signature;

account and password. Access to the private office of the payer granted with assistance of an account and password is granted to a natural person and a foreign organization rendering services in the electronic form for natural persons;

other methods in accordance with the legislation.

3. The account and password are provided to a natural person by any tax body, regardless of his place of residence, putting on record or location of the object taxable with land tax and/or real estate tax upon presentation of an identity document, and for a representative of a natural person also a document confirming his powers.

The account and password are handed over by the tax body to a natural person or his representative against the signature.

4. The account and password of a foreign organization rendering services in electronic form for natural persons shall be sent by the inspectorate of the Ministry on Taxes and Dues of the Republic of Belarus for the city of Minsk.

Access to the private office of the payer shall be granted to a foreign organization rendering services in the electronic form for natural persons from the day of its putting on record in the tax body and is maintained during six months after its taking off record in the tax body.

5. Documents and/or information in electronic form, provided through the private office of the payer the access to which is made with assistance of an account and password are recognized to be equivalent to documents in written form, signed by a handwritten signature of a natural person or a representative of the foreign organization rendering services in the electronic form to natural persons in the Republic of Belarus.

Article 29. Tax secret

1. Tax secret is constituted by any data about taxpayers, available in tax, customs and financial bodies, bodies of state control, republican bodies of state administration, bodies of local government and self-government, authorized bodies, organizations and officials who are participants in tax relations, except for information provided to the payer in relation to himself, as well as data:

1.1. on surname, name, patronymic (if available) of the payer natural person, including individual entrepreneur, the name and the place of location of the payer organization;

1.2. revealed by the payer itself or with his consent;

1.3. being publicly available, including the annual accounting and/or financial reports of organizations published in accordance with the legislation for public knowledge;

1.4. on recording number of the payer, including the date of its assignment;

1.5. on the date of payment by persons carrying out artisanal activity, activity in the sphere of agroecotourism accordingly of the due for carrying out craft activity, due for carrying out activity for providing services in the sphere of agroecotourism;

1.6. on the name of the tax body at the place of putting on record of the payer;

1.7. on the fact that the payer is in the course of liquidation (termination of activities), on the date of the decision of the registering body about exclusion of the payer from the Unified Register of Legal Persons and Individual Entrepreneurs;

1.8. on the statutory fund (capital) of the organization;

1.9. on violations of tax and other legislation and measures of responsibility for such violations;

1.10. provided to the tax, law enforcement bodies or other bodies of other states in accordance with the treaties of the Republic of Belarus;

1.11. being provided to state bodies, other state organizations, and also to an interdepartmental or another commission to the competence of which performance of administrative procedures is referred, for purposes of their performing administrative procedures;

1.12. being provided to participants of electronic interaction within the framework of the soft- and hardware complex for recordkeeping of tax invoices ( automated information system "Recordkeeping of invoices");

1.13.  on registration as resident of free economic zone, Park of High Technologies, Special Tourist and Recreational Park "Avgustovski Canal", China-Belarus industrial park "Great Stone".

2. The tax secret is not subject to disclosure except for the cases provided by the Council of Ministers of the Republic of Belarus.

3. Information constituting the tax secret has the special regime of storage and access determined by the Council of Ministers of the Republic of Belarus.

4. The loss of documents containing the information constituting the tax secret or disclosure of such information in violation of the order provided for by the legislative acts entails the liability provided by legislation.

CHAPTER 3
TAXATION ELEMENTS

Article 30. Taxation objects

Objects of taxation are recognized the circumstances with the presence of which at the payer the tax legislation or the customs legislation connect the arising of a tax obligation.

Every tax and due (duty) has the independent object of taxation.

Article 31. Realization of goods (works, services), property rights

1. Realization of goods (works, services), property rights is deemed to be the alienation of goods by one person to another person (execution of works by one person for another, provision of services by one person to another), the transfer of property rights by one person to another person on a reimbursable or non-reimbursable basis, regardless of the way the rights to the goods (results of executed works, provided services) have been acquired or of the form of respective transactions.

Realization of goods (works, services), property rights may be deemed to be also other operations in the cases provided by the General part of this Code or by acts of the President of the Republic of Belarus.

Gratuitous transfer of goods (works, services), property rights is deemed to be the transfer of goods (performance of works, rendering of services), property rights without payment and the exemption from the duty to pay for them.

2. It is not considered to be the realization of the goods (works, services), property rights:

2.1. transfer of assets as contributions to the statutory funds of commercial organizations;

2.2. property of an organization to its participant (shareholders) in the amount not exceeding its contribution in the statutory fund of this organization upon its liquidation or withdrawal (expulsion) of the participant from participants of the organization, and also not exceeding a part of its contribution to the statutory fund of this organization upon reduction of the size of the statutory fund. In that instance the value of transferred property and the amount of contribution (or part of the contribution) of the participant (shareholder) shall be converted into US dollars at the official rate set by the National Bank of the Republic of Belarus, respectively, on the date of transfer of the property and on the date of making the contribution;

2.3. alienation of property as the result of requisitioning, nationalization or confiscation;

2.4. transfer of property rights as the result of inheritance;

2.5. transfer of goods (works, services), property rights to the consumer of the advertising:

in the absence of payment or other counter-performance of the obligation, if such goods (works, services), property rights are objects of advertising and/or contain information about objects of advertising;

in the form of a prize when conducting an advertising game in accordance with the legislation.

Provisions of part one of this sub-clause do not cover advertising services rendered to the advertisers;

2.6. turning over into ownership of the state of abandoned property, finds or treasures, and neglected animals;

2.7. gratuitous transfer of:

2.7.1. property of organization to its successor(s) at reorganization of the organization;

2.7.2. property (works, services) within one owner according to the decision of the owner or the decision of a body authorized by the owner;

2.7.3. property (works, services) to the Republic of Belarus or to its administrative and territorial units, including being represented by authorized state bodies, legal and natural persons, performed on the basis of:

normative legal acts of the President of the Republic of Belarus and the Council of Ministers of the Republic of Belarus;

decisions of the National Bank of the Republic of Belarus, the Administration of the President of the Republic of Belarus, the Administration of Affairs of the President of the Republic of Belarus, the National Academy of Sciences of Belarus, other state bodies and other state organizations subordinate to the President of the Republic of Belarus, the General Prosecutor's Office of the Republic of Belarus, the Investigative Committee of the Republic of Belarus, the State Committee of Forensic Examinations of the Republic Belarus, bodies of state control, courts, republican bodies of state administration and other state organizations subordinate to the Government of the Republic of Belarus, the Apparatus of the Council of Ministers of the Republic of Belarus, administrations of free economic zones, adopted within the limits of their powers established by the legislation;

decisions of local executive and administrative bodies adopted within the limits of their powers established by the legislation;

2.7.4. property being in the ownership of the Republic of Belarus or its administrative and territorial units to state organizations by the decision of the property owner or a body (organization) authorized by him;

2.7.5. unused property being in the republican and communal ownership into the ownership of individual entrepreneurs and non-state legal persons;

2.7.6. property belonging to a natural person, works, services to another natural person being, in accordance with legislation, in a marriage with the former, relationships of relationship of kinship or affinity, if such transfer is not connected with the entrepreneurial activity;

2.7.7. residential premises of commercial use in the ownership of citizens by the decision of the President of the Republic of Belarus;

2.7.8. objects of engineering, transport, social  infrastructure, finished by construction in the state ownership as expenditures in theorder determined by the President of the Republic of Belarus.

Article 32. Incomes and sources of their receipt

Incomes of the payer can be referred to the incomes from the sources in the Republic of Belarus or to the incomes from the sources beyond the Republic of Belarus in accordance with the tax legislation.

If the provisions of the tax legislation do not allow unambiguously refer the incomes received by the payer to incomes from sources in the Republic of Belarus, the referral of the income to one source or another, as well as determination of the share of such incomes are carried out in order established by another legislation.

Article 33. Tax base and tax rate (rates). The order for determining and adjusting the tax base and/or the sum of tax (due)

1. The tax base is the value, natural or other characteristic of the taxation object.

The tax base shall be determined in respect to a specific tax and due (duty).

2. The tax rate represents the amount of tax charges on a calculation unit of the tax base, unless otherwise established by this Code, other acts of the tax or customs legislation.

The tax rates shall be established in respect to each tax and due (duty).

3. The tax base and tax rates of the republican taxes and dues (duties) are established by this Code or other acts of the tax legislation, unless otherwise established by the President of the Republic of Belarus or acts constituting the law of the Eurasian Economic Union.

The tax base and tax rates for local taxes and dues are established by the local councils of deputies in accordance with this Code.

4. The tax base and/or the sum subject to payment (offset, refund) of the tax (due) according to the results of the inspection is subject to adjustment if there is at least one of the following grounds:

establishing the distortion of data about the facts (a set of facts) of economic transactions, taxation objects to be reflected by the payer in accounting and/or tax accounting, tax declarations (calculations), as well as in other documents and/or information necessary for the computation and payment of taxes (dues);

the main purpose of the economic transaction is non-payment (incomplete payment) and/or offset, the return of the sum of the tax (due);

lack of reality of the economic transaction goods (including the instances when goods (intangible assets) actually did not arrive, works were not performed, services were not rendered, property rights were not transferred).

5. If there are grounds specified in clause 4 of this Article, the tax base and/or the sum  subject to payment (offset, refund) of the tax (due) shall be determined based on actual data about the taxation objects and/or the actual circumstances of the economic operations, and/or available data on their performance when it can be established, including on the basis of documents (information, materials) provided by the payer, state bodies, other organizations and natural persons.

Availability of the grounds specified in clause 4 of this Article shall be established having regard to the evidence accumulated by the body that performed the inspection and/or submitted by the law enforcement bodies.

6. The payer is entitled, prior to the appointment of the inspection, to make the adjustment of the tax base and/or of the sum of the tax (due) subject to payment (offset, refund).

Article 34. Tax period and reporting period

1. The tax period is understood the calendar year or other period determined in respect to every concrete tax and due (duty), at the end of which the tax base is determined and the sum of this tax and due (duty) is calculated.

The tax period may consist of several reporting periods.

The reporting period, unless otherwise established by part two of Article 341 of this Code is understood a period according to results of which the payers are obliged to present to the tax body tax declarations (calculations) and/or other documents and/or information necessary for computation and payment of taxes, dues (duties).

2. In the cases established by this Code or other acts of the tax legislation, the payers may be imposed the duty to compute and pay taxes before the beginning of or during the tax or reporting period.

Article 35. Privileges on taxes, dues (duties)

1. Privileges on taxes, dues (duties) are recognized to be the advantages, in comparison with other payers, granted to certain categories of payers, provided by this Code and other acts of the tax or customs legislation, including the possibility not to pay the tax, due (duty) or to pay them in a lesser amount.

2. Privileges on taxes, dues (duties) are established in the form of:

2.1. exemption from a tax or due (duty);

2.2. tax deductions and/or discounts decreasing the tax base or the sum of the tax, due (duty), additional in relation to those taken into account when determining (computing) the tax base for all payers;

2.3. tax rates decreased in comparison with the generally established ones;

2.4. compensation of the sum of the tax and due (duty) paid;

2.5. in another form established by the President of the Republic of Belarus.

3. Privileges on taxes and dues (duties) are established by the President of the Republic of Belarus and/or this Code, other laws, unless otherwise established by the President of the Republic of Belarus and also by the treaties constituting the law of the Eurasian Economic Union..

Privileges on taxes and dues (duties) for the payers individually are granted in the form, order and on conditions, determined by the President of the Republic of Belarus.

The Minister of Foreign Affairs of the Republic of Belarus and his deputies, as well as heads of diplomatic missions and consular institutions of the Republic of Belarus have the right to reduce rates of consular fees or exempt from consular fees organizations and natural persons, upon their applications submitted in writing, and also on written petitions of the Chambers of the National Assembly of the Republic of Belarus, Council of Ministers of the Republic of Belarus, Constitutional Court of the Republic of Belarus, Supreme Court of the Republic of Belarus, Administration of the President of the Republic of Belarus, State Secretariat of the Security Council of the Republic of Belarus, State Control Committee of the Republic of Belarus, the General Prosecutor's Office of the Republic of Belarus, Central Commission of the Republic of Belarus on Elections and Holding Republican Referendums and republican bodies of state administration, and also of  diplomatic missions and consular offices of foreign states accredited in the Republic of Belarus if the reasons alleged by them will be considered meaningful.

Local council of deputies or, on their instructions, local executive and administrative bodies have the right to grant privileges on taxes and dues (duties) fully paid to local budgets:

to certain payers natural persons on taxation objects not related to carrying out entrepreneurial activity, in connection with being in a difficult life situation;

to certain categories of payers in the order and on conditions determined by the President of the Republic of Belarus, this Code and/or other laws.

4. The payer has the right to enjoy privileges on taxes, dues (duties) from the moment of arising of legal grounds for their application and within all of the period of validity of such grounds.

Privileges on the taxes, dues (duties) control over calculation and payment of which is imposed on tax bodies, which have not been used by the payer in accordance with part one of this clause, may be used by him upon availability of all following conditions:

the payer has not declared in writing a refusal to use privileges on taxes, dues (duties);

the tax obligation on taxes, dues (duties) is arisen during the validity of legal grounds for using the privileges on taxes, dues (duties);

five years have not expired from the day of arising of the tax obligation the fulfillment of which gave legal grounds for using the privileges on taxes, dues (duties), unless otherwise provided by this Code.

The payer is entitled to use the privileges on customs payments that were not used during the customs declaration of goods placed under the relevant customs procedure after the goods were released, if the duty to make these payments arose during the validity period of the legal grounds for using these privileges and three years have not expired from the date of release of goods, unless otherwise established by treaties and acts constituting the law of the Eurasian Economic Union.

The payer has the right not to use the privileges taxes, dues (duties) , refuse to use them or suspend their usage for one or several tax periods, unless otherwise established by this Code.

5. When using the tax privileges on customs payments, the payer shall provide in his customs declaration the information about the application of such privileges and about documents, confirming the right to these privileges.

If using the tax privileges on customs payments is linked with obligations of the person to observe established restrictions concerning use and/or disposal of goods and/or of requirements and conditions, the tax declaration shall be considered as a written commitment (declaration) of the declarant concerning the intended purpose of goods and/or the use of goods or about disposal of such goods for the purposes corresponding to the terms for granting privileges.

The payer is entitled, during the inspection, to use the privileges on taxes, dues (duties), not used earlier, upon observance of conditions established by part one of this clause, parts two and three of clause 4 of this Article and submission of the documents confirming the right to the privileges on taxes, dues (duties).

6. Upon transformation of a legal person of one kind into a legal person of another kind (change of its organizational and legal form), the right of the legal person reorganized to use privileges on taxes, dues (duties) are transferred to the newly created legal person.

7. With regard to privileges on taxes, dues (duties), an assessment of the effectiveness of their use shall be carried out, taking into account the results of which a decision shall be made to preserve or cancel the corresponding privileges on taxes and dues (duties). The order of performing the assessment of the effectiveness of privileges on taxes, dues (duties), and also classification thereof, is established by the Council of Ministers of the Republic of Belarus.

Article 36. Order of computation of taxes, dues (duties)

1. The payer  independently compute the sum of the tax and due (duty) in Belarusian rubles subject to payment for the tax period based on the tax base, tax rate and tax privileges, unless otherwise established by this Code and other acts of the tax or customs legislation.

2. The payable sum of the tax, due (duty) shall be computed according to the results of the tax period, taking into account the established facts of non-payment and excessive payment of the tax, due (duty) detected in the reporting period, regardless of the expiration of five years from the time limits established by the tax legislation for its payment.

Provisions of part one of this clause are not applied when computing the customs payments. The payable sums of taxes, dues (duties) customs bodies shall be determined in accordance with the customs legislation.

3. In cases provided by this Code, customs legislation and/or acts of the President of the Republic of Belarus or decisions of local Council of Deputies (in relation with local taxes and dues) the duty to calculate the sums of taxes and dues (duties) may be imposed on the tax body or tax agent. In that case, the computation for a natural person, including the one registered as an individual entrepreneur, of the tax on immovable property, land tax shall be made by the tax body for not more than three calendar years preceding the year in which such computation is made.

Article 37. Time limits for payment of taxes and dues (duties)

1. The time limits for payment of taxes and dues (duties) are established by this Code, other acts of the tax or customs legislation as applied to each tax and due (duty).

2. The change of the established time limit for payment of taxes, dues (duties)  is not allowed, with the exception of the cases provided for by this Code and other acts of the tax or customs legislation.

3. The time limits of payment of the tax and due (duty) may be determined by the calendar date, expiration of the period and also by indication to the event that shall occur or to the action that shall be committed.

Article 38. Order for payment of taxes and dues (duties), penalty interest

1. Payment of the tax, due (duty), penalty interest shall be conducted in the order established by this Code, in cash or cashless form in Belarusian rubles, unless otherwise established by this Code and other acts of the tax or customs legislation, treaties of the Republic of Belarus.

The order of payment of the tax and due (duty) is established in respect to every tax and due (duty).

2. The day of payment of the tax, due (duty), penalty interest is recognized:

2.1. the day of giving of the payment instruction on remittance of the tax, due (duty), penalty interest to the bank, including through its presentation on a paper carrier, sending in a electronic form using systems of distance bank servicing, system of settlement with the use of electronic money, subject to availability on the account, in the electronic purse, of means sufficient for fulfillment of the payment instruction by the bank. When the bank executes a payment instruction that has not been executed before due to the lack of means on the account, in the electronic purse, sufficient to execute it in full the day of execution by the bank of such a payment instruction for remittance of the sums of tax, dues (duties), penalty interest;

2.2. the day of input of the cash monetary means  for remittance of the sums of tax, due (duty), penalty interest in the bank, rural executive or administrative body, tax or customs body or a postal organization of the Ministry of Communication and Informatization of the Republic of Belarus or in the instances established by the tax or customs legislation in another authorized organization;

2.3. the day of making the payment using a bank payment card or its details under the procedure established by the legislation in order to pay the sums of the tax, due (duty), penalty interest;

2.4. the day of fulfillment by the bank of payment instructions on remittance of the sums of tax, due (duty), penalty interest from the accounts of the Ministry of Finance of the Republic of Belarus, main directorates of the Ministry of Finance of the Republic of Belarus for regions and the city of Minsk in the event of fulfillment of tax obligations of the payer at the expense of means from the budget.

2.5. the day of accepting into the respective budget of monetary means in Belarusian rubles when paying the tax, due (duty), penalty interest with buying foreign currency by the bank, and also when the payer remits the due sums of tax, due (duty), penalty interest in foreign currency from outside the Republic of Belarus;

2.6. the day when the monetary means in payment of the sums of the tax, due (duty), penalty interest accepted by the paying agent by means of the use of the automated information system for a single settlement and information space (hereinafter - SSIS system) under the procedure established by the legislation of the Republic of Belarus;

2.7. when conversing (setoff) into customs payments of security sums:

deposited to the current (settlement) bank account of the Ministry of Finance of the Republic of Belarus in Belarusian rubles, the day specified in sub-clauses 2.12.6 of this clause (depending on the form of the payment of such security), with regard to the payment of the security sums;

deposited to the current (settlement) bank account of the customs office, in the instances provided by the legislation, in the foreign currency, the day of submission to the customs office of the written application on turning the security sums into the customs payments.

3. It is allowed, in the order established by this Code to set off the excessively paid or collected sums of taxes, dues (duties) and fines and direct them for the repayment of the indebtedness and/or fulfillment of the forthcoming tax obligation, unless otherwise established by acts constituting the law of the Eurasian Economic Union. In this instance the day of payment of the tax, due (duty), penalty interest is considered the day of performance by the tax body of the setoff of excessively paid or excessively collected sums of the taxes, dues (duties), penalty interest performed by the tax body towards the indebtedness and/or towards the fulfillment of the forthcoming tax obligation and when such sums are set off by the customs body the day specified in sub-clauses 2.12.6 of clause 2 of this Article or in clause 3 of Article 61 of this Code (depending on the form in which such sums have been paid (collected)).

4. It is allowed in accordance with the customs legislation:

to count the amounts of advance payments against customs payments, interest, penalty interest, sums of security, unless otherwise provided by treaties of the Republic of Belarus. In this instance the day of payment of taxes, dues (duties), penalty interest is considered the day specified in sub-clauses 2.12.6 of clause 2 of this Article (depending on the form in which such sums have been paid (collected)), with regard to the payment of the advance payments;

to converse (count) the sums of security against customs payments, interest, penalty interest, unless otherwise provided by treaties of the Republic of Belarus. In this instance the day of payment of taxes, dues (duties), penalty interest is recognized the day specified in sub-clauses 2.1 2.6 of clause 2 of this Article (for the instance specified in indent two of sub-clause 2.7 of clause 2 of this Article) or the day of accepting in the republican budget of monetary means in Belarusian rubles received from the sale of foreign currency (for the instance specified in indent three of sub-clause 2.7 of clause 2 of  this Article).

The setoff of the taxes and dues (duties), penalty interest, payable by the payer, with the exception of import customs duties and financial obligations of recipients of budgetary means form the republican and local budgets toward this payer is allowed.

SECTION II
TAX OBLIGATION

CHAPTER 4
TAX ACCOUNTING. TAX DECLARATION. TAX OBLIGATION AND ITS FULFILLMENT

Article 39. Tax accounting

1. Tax accounting is deemed to be the fulfillment by the payer of the accounting of taxation objects and determining of the tax base on taxes and dues (duties) through calculating corrections to the data of the accounting, unless otherwise established by the tax legislation.

The tax accounting is conducted exclusively for the purposes of taxation and carrying out the tax control.

2. The accounting record keeping is based on the data of the accounting and/or on other data confirmed be documents about the objects subject to taxation or connected with taxation.

3. Foreign organization rendering services in electronic form for natural persons shall ensure the record keeping of:

3.1. data allowing to compute the sum of tax obligation for the tax period, which include:

the sum of the tax base, indicating the currency of payment and the date of rendering the service;

the sum of the tax base change that occurred in the tax period (tax periods) following the tax period in which the tax base was reflected in connection with the return of monetary means to buyers (including by offsetting against the rendering another service in electronic form) and the date of such a return (setoff) of means;

the sums of payments received, including the sums of advance payments, and the dates of receipt of the mentioned payments;

3.2. data used by it to determine the place of the actual location of the natural person (to indicate surname, own name, patronymic (if available), if such data are provided by the buyer), which include the data on the country of location of the physical person (if such information is provided by the buyer), network (IP) address of the device used by the buyer when purchasing services in electronic form, the international country code of the phone number used to purchase or pay for services (if available), postal index of the place of residence (if such data given by the buyer), bank identification code used by the natural person on the acquisition of services in electronic form, and other information provided by the natural person and allowing to determine the country of his actual location. Accounting is carried out in an optional form for each natural person who was provided with the service in the tax period in electronic form.

Article 40. Tax declaration (calculation)

1. The tax declaration (calculation) is recognized to be an application of the payer in the established form with indication of the data necessary for computation of the tax, due (duty).

If it is provided by the form of the tax declaration (calculation), then it shall indicate:

full name (surname, own name, patronymic (if available) of the payer, the place of his location (place of residence), number of the contract phone, name and code of the tax body in which the tax declaration (calculation) is being submitted;

type of declaration (calculation);

incomes received and expenses incurred;

sources of incomes;

data on tax privileges used;

computed sum of the tax, due (duty);

average payroll number of workers for the reporting period and the preceding calendar year;

payroll (wages) fund;

code of the economic activity type;

net profit (loss) remaining at the disposal of the organization after payment of taxes, dues (duties), reflected in the established order on book keeping accounts;

total space of capital constructions (buildings, structures), parts thereof, car parking spaces, determined by the payers of the tax under the simplified system of taxation in the order established by this Code;

sum of the personal income tax computed on incomes actually paid in the reporting period (if absent, in the tax period), and also remitted to the budget in the reporting period;

sum of the personal income tax from natural persons, retained from incomes actually paid to the payers, but not remitted (excessively remitted) to the budget as of January 1 of the reporting year and also as of the last day of the reporting period;

other data necessary for computing and payment of the tax, due (duty).

2. The tax declaration (calculation) shall be presented by each payer for each tax, due (duty) in relation to which he is recognized as payer and upon availability of taxation objects in the tax period. In cases established by this Code, the tax declaration (calculation) is submitted by the tax agent.

For taxes, dues (duties) calculated on an accrual basis from the beginning of the tax period, the tax declaration (calculation) is to be presented for the reporting period in which the taxation object is arisen and also for all following reporting periods of this tax period.

In the absence of taxable object in the tax period, the tax declaration (calculation) is presented for:

tax on profit;

value added tax in the presence of tax subject to be paid (returned), including in connection with the performance of tax deductions in full, regardless of the amount of value added tax, computed on the realization of goods (works, services), property rights. The tax declaration (calculation) is submitted for the reporting period in which the tax subject to payment (refund) arose, as well as for all subsequent reporting periods of that tax period;

value added tax when rendering services by foreign organizations in electronic form.

Tax declarations (calculations) are not submitted in the cases established by this Code and also:

within time limits and in the part of activity specified in clause 1 of Article 384 of this Code;

by payers specified in clause 1 of Article 385, clause 1 of Article 386 of this Code;

in the part of activity and subject to observance of conditions for exemption from taxes, dues (duties) specified in clauses 2 and 3 of Article 386 of this Code.

3. The tax declaration (calculation) shall be submitted to the tax body at the place of putting on record in written form or according to the established formats in the form of an electronic document in the order and within the time limits established by this Code or by other acts of the tax legislation.

A natural person not being individual entrepreneur may submit a tax declaration (calculation) to the tax body regardless of the place of putting on record or in electronic form through the private office of the payer.

4. Tax declarations (calculations) according to the established formats in the form of an electronic document are obliged to submit:

payers whose average number of employees for the preceding calendar year is 15 or more. The average payroll number of workers is determined in the order established by the National Statistical Committee of the Republic of Belarus;

payers of value added tax.

Requirement established by part one of this clause does expand to the payers:

 in relation to which, in accordance with the legislation on the economic insolvency (bankruptcy), procedures of economic insolvency (bankruptcy) are being applied, with the exception of the procedure of financial rehabilitation;

being in the process of liquidation (termination of activities).

When payers specified in part one of this clause submit a tax declaration (calculation) in written form, such tax declaration (calculation) is not considered to be submitted, with the exception of the case when its submission is impossible due to the inaccessibility of the portal of the Ministry on Taxes and Dues of the Republic of Belarus which is an information resource of this Ministry, the single portal of electronic services of the nation-wide automated information system (including due to the lack of power supply and/or failure of equipment (part thereof)), insufficient portal resources, errors in portal software, unavailability and/or lack of communication channels with those portals, including insufficient width of communication channels with them, impossibility to sign the tax declaration (calculation) in connection with the inaccessibility of the foreign cellular operator and/or due to the lack of delivery by the latter of the message necessary for the use by the payer of the electronic digital signature. When such cases occur, the deadline for the submission of a tax declaration (calculation) shall be extended by the time necessary to eliminate the reasons because of which the organization cannot submit it.

5. When the tax declaration (calculation) is sent in written form by post, the day of its submission is deemed to be the date of acceptance of the postal item, and in electronic form the date of its acceptance fixed with the assistance of software of the tax bodies.

The tax body is not entitled to refuse accepting the declaration (calculation) if it is submitted by the payer according to the established form (established format) and is obliged, at the request of the payer, to put a note on the additional exemplar of the tax declaration (calculation) or its copy about its acceptance and the date of its receipt when receiving the tax declaration (calculation) in written form or to transmit to the payer an acknowledgement of its receipt in electronic form.

6. When detecting incomplete information or mistakes in a tax declaration (calculation) submitted for the previous tax period or for the past reporting period of the current tax period, the payer is obliged to introduce the changes and additions into the tax declaration (calculation), with the exception of the cases provided by part four of this clause, at to submit it according to the form effective in the tax period for which respective changes and/or additions are being introduced.

If, in relation to taxes, dues (duties) being computed on an accrual basis from the beginning of the tax period, incomplete information or mistakes have been detected during the reporting period of the previous tax period, then the changes and/or additions are reflected in the tax declaration (calculation) for the previous tax period. When detecting incomplete information or mistakes for the last reporting period of the current tax period, changes and/or additions are reflected in the tax declaration (calculation) provided for the next reporting period of the current tax period.

In respect of taxes, dues (duties) calculated without the accrual basis from the beginning of the tax period, changes and/or additions are reflected in the tax declaration (calculation) for that reporting (tax) period in which the incomplete information or mistakes were detected.

The tax declaration (calculation) on the tax, due (duty) with changes and/or additions made is not presented during the period of inspection for the tax or reporting period being subjected to the inspection, and also is not submitted for the tax or reporting period that was subjected to the inspection, with the exception of instances when such changes and/or additions are related to reflection of the results of the inspection in the accounting or in the tax accounting or with the reflection in the accounting or tax accounting of the circumstances which occurred after the beginning of the inspection but are referred to the period subjected to the inspection.

7. The specific features of the submission of tax declarations (calculations) for specific tax, due (duty) are determined by the Special Part of this Code or other acts of the tax legislation.

Article 41. Tax obligation

1. Tax obligation is deemed to be the duty of the payer to pay a tax, due (duty) in the presence of circumstances established by the tax or customs legislation.

2. Grounds for arising, change and termination, and also the order and conditions of fulfillment of the tax obligation are determined by the tax or customs legislation.

3. Tax obligation is imposed on the payer from the moment of arising of the circumstances providing for the payment of the relevant tax, due (duty).

4.  The tax obligation is terminated by its fulfillment or with arising of the circumstances with which the tax and/or customs legislation connect the termination of the tax obligation under the given tax, due (duty).

Article 42. Fulfilment of tax obligation

1. Fulfillment of the tax obligation is deemed to be the payment of the owed sums of tax and due (duty).

2. Fulfilment of tax obligation shall be carried out:

directly by the payer;

by another obliged person in the cases established by the tax or customs legislation.

The fulfillment of a tax obligation may be carried out for the payer by another person who is not entitled to demand a return (offset) from the budget of the tax, due (duty) paid for the tax payer.

3. Fulfillment of the tax obligation is carried out by the payers (other obliged persons) regardless of their bringing to liability for violation of the legislation, with the exception of the tax obligation arisen in connection with the income (part of income) in relation to which (a part of which) the confiscation is applied.

4. A tax obligation is deemed to be fulfilled also in the following cases:

after the tax or customs body makes a decision on offsetting the sums of taxes, dues (duties) excessively paid by or excessively collected, in the order established by this Code;

after the setoff by the customs body of advance payments against customs payments or conversion (setoff) of security sums into customs payments in accordance with the customs legislation, unless otherwise established by treaties of the Republic of Belarus;

after the customs body makes a decision on offsetting the sums of taxes, dues (duties) subject to return, in the order established by this Code;

erroneous indication by the payer of the name (code) of the bank and the number of the account for record keeping of means of the republican budget  in the payment instead of the name (code) of the bank and the number of the account for record keeping of means of a local budget and vice versa.  This provision applies to the tax, the crediting of which in the Budget Code of the Republic of Belarus is provided both in the republican and local budgets.

5. A tax obligation is deemed not to be fulfilled also in the following cases:

recall by the payer or return by the bank to the payer of the payment instruction for payment of the tax, due (duty) to the budget and if by the moment of such recall (return)), the tax, due (duty) has not been paid (collected) in the established order;

 if at the moment of submitting the payment instruction on paying the tax and due (duty) to the bank by the payer, that payer has other monetary obligations presented and not fulfilled that in accordance with the legislation are to be fulfilled in the extraordinary or first-turn order.

6. Fulfillment of the tax obligation by the payer is not required upon:

reimbursement of the cause loss in the form of non-paid sums of taxes, dues (duties) by the owner of the property of the payerorganization, founder (participant) or another person, including the head of the organization, who has the right to give instructions mandatory for the organization or has the possibility to determine its actions otherwise;

reimbursement of the caused loss in the form of non-paid customs payments in the order established by the legislation for payment (collection) of customs payments;

occurrence of the circumstances provided for by the tax or customs legislation upon which the tax obligation is terminated.

7. An organization or a natural person, recognized in accordance with sub-clause 1.2. of clause 1 of Article 180 of this Code as a permanent representation of a foreign organization is subject to:

the fulfillment of the tax obligations of such a foreign organization, as well as the responsibility for their fulfillment, established for payers and tax agents;

duty to pay the tax on profit at the expense of monetary means of the foreign organization the permanent representation of which they are, and if they are insufficient and absence of other property of the foreign organization at the expense of own monetary means with indication in the tax declarations (calculations) and payment instructions for payment of taxes, dues (duties) of the accounting number of the payer assigned to the foreign organization in the Republic of Belarus.

8. Non-fulfillment and improper fulfillment of the tax obligation constitute grounds for application of measures of enforced fulfillment of the tax obligation and payment of penalty interest and also for application to the payer of measures of responsibility in the order and on the conditions established by the legislative acts.

9. Recognition of the debt on taxes and dues (duties) as bad debt and its writing off is carried out in the order established by the President of the Republic of Belarus.

Article 43. Duties of banks on fulfilling payment instructions on payment of taxes, dues (duties), penalty interest, decisions about collection of taxes, dues (duties), penalty interest and payment orders

1. The bank, in the presence of means in the account, electronic money in an electronic purse, is obliged to execute, in the priority order established by the legislative acts, a payment instruction for the payment of tax, due (duty), penalty interest, or the decision of the tax or customs body to collect the tax, fee (duty), penalty interest with enclosure of the payment order, including with the sale of foreign currency, and in the absence of monetary means for their execution in full - upon receipt of monetary means in the account, electronic money in the electronic purse.

The purchase of foreign currency is carried out by the bank at the official exchange rate of the Belarusian ruble established by the National Bank of the Republic of Belarus on the day of the execution of the payment instruction to pay taxes, dues (duties), penalty interest, or of the decision of the tax or customs body to collect tax, dues (duty), penalty interest with enclosure of the payment order.

2. Fulfillment by the banks of the payment instructions on payment of the tax, due (duty), penalty interest or of the decision of the tax or customs body on collecting the tax, due (duty) or penalty interest at the expense of the monetary means (electronic money) with enclosure of the payment order shall be conducted in the priority order, in which those payment instructions are received by the bank.

3. Remittance of the tax, due (duty) or penalty interest is deemed to be the crediting of the mentioned sums of the tax, due (duty) or penalty interest to the account for record keeping of means of the relevant budget.

Remittance by the banks of taxes and dues (duties) and penalty interest accepted in the cash register of the bank on payment instructions in cash monetary means shall be effectuated not later than on the day following the day of acceptance of mentioned payments.

In the case of accepting cash monetary means in foreign currency when paying the tax, due (duty), and penalty interest, the bank shall purchase such currency at the official exchange rate of the Belarusian ruble established by the National Bank of the Republic of Belarus on the day of acceptance of cash monetary means.

4. Banks are not allowed to charge for:

servicing on operations specified in this Article, including for acceptance of cash monetary means when paying (reimbursing) taxes, dues (duties), penalty interest to the republican and local budgets;

purchase of foreign currency when paying (collecting) taxes, dues (duties), penalty interest;

acceptance, transfer of the documents used by the tax or customs bodies while performing duties imposed on them by this Code and other acts of legislation, including at their transfer in the republican centralized system of the interbank correspondence exchange, in the form of electronic documents.

Collection of payment by other authorized organizations for receipt of cash monetary means from natural persons, including those registered as individual entrepreneurs, when taxes, dues and other obligatory payments to republic and local budgets are paid (reimbursed) is not allowed.

5. In case of non-fulfillment or improper fulfillment by the bank in the established term of the payment instruction on payment of the tax, due (duty), penalty interest or the decision of the tax or customs body on collection of the tax, due (duty), penalty interest at the expense of the monetary means, electronic money with enclosure of the payment order, except for the instances of non-fulfillment due to the causes than do not depend on the bank, the bank shall pay the penalty interest in the order established by the Article 55 of this Code, and also bears responsibility in accordance with the legislative acts.

Article 44. Specific features of the submission of a tax declaration (calculation) and the fulfillment of tax obligation in case of liquidation of organization, termination of activities of individual entrepreneur, termination of contract of simple partnership (contract on joint activity)

1. The tax declaration (calculation) in case of liquidation of an organization, termination of activity of an individual entrepreneur shall be submitted in accordance with the requirements of part one of clause 2 of Article 40 of this Code:

within five working days from the day of submission the registering body of the application about liquidation (termination of activities) for the expired tax period and/or for the period from the beginning of the current tax period to the day of submission of the application for liquidation (termination of activities) inclusively, unless otherwise established by this Code. The tax obligation shall be fulfilled and due penalty interest be paid not later than on the 22nd day of the month following the month in which such tax declaration (calculation) is submitted;

not later than ten days prior to the day on which the organization being liquidated, individual entrepreneur terminating its activity submits to the registering body the liquidation balance sheet, notification about the termination of the process of termination of activities (upon availability of taxation objects in the course of liquidation of the organization, termination of activities of the individual entrepreneur). The tax obligation shall be fulfilled and due penalty interest be paid within five working days from the day of submission of such tax declaration (calculation).

Upon occurrence of the deadlines for submission of the tax declaration (calculation) established by this Code or by other acts of the tax legislation in the period between the time limits specified in indents two and three of part one of this clause, the tax declaration (calculation) shall be submitted in accordance with requirements of part one of clause 2 of Article 40 of this Code. |A tax obligation shall be fulfilled and due penalty interest be paid in the order and within the time limits established by this Code.

2. The tax obligation of an organization being liquidated is fulfilled and the penalty interest subject to payment is paid by the liquidation commission (liquidator) of this organization.

Specific features of the fulfillment of the tax obligation and payment of the due penalty interest by the organization in liquidation with respect to goods under customs control are established by the Law of the Republic of Belarus of January 10, 2014 "On customs regulation in the Republic of Belarus".

If there is not enough monetary means of the liquidated organization, including those received from the realization of its property, to completely fulfil the tax obligation and to pay due penalty interest, the remaining debt is paid by the owner of the property of such organization, founders (participants) and other persons, including the head of such organization, which have the right to give instructions obligatory for that organization or which have other possibilities to determine otherwise its actions, in the cases and within the limits established by civil legislation, including the legislation on economic insolvency (bankruptcy) or by constituent documents of the organization, and non-paid sum of the debt afterwards is considered a bad debt and is written off in the order established by the President of the Republic of Belarus.

3. The tax declaration (calculation) upon liquidation of an affiliate fulfilling the tax obligations of the legal person shall be submitted in accordance with requirements of part one of clause 2 of Article 40 of this Code concerning the activity of such affiliate for a period prior to its liquidation not later than on the 20th day of the month following the month in which the liquidation took place.

The tax obligation shall be fulfilled and due penalty interest be paid by the legal person the tax obligations of which the affiliate being liquidated fulfilled not later than on the 22nd day of the month in which such tax declaration (calculation) has been submitted.

Provisions of this clause also covers the instance of occurrence of a circumstance in relation to which the obligation of the affiliate of a legal person  to fulfill tax obligations the that legal person is terminated.

4. When a foreign organization terminates activity in the territory of the Republic of Belarus through the permanent representation, the tax declaration (calculation) shall be submitted not later than five working days prior to the termination of such activity.

The tax obligation shall be fulfilled and due penalty interest be paid not later than one working day from the day of submission of such tax declaration (calculation).

5. Upon termination of notarial activity, advocatory activity, the tax declaration (calculation) shall be submitted by the notary carrying out notarial activity at a notarial office, advocate in accordance with requirements of part one of clause 2 of Article 40 of this Code not later than within five working days from the day of taking the decision on termination of activities for the period from the beginning of the tax period until the day of their submitting information about the termination of activity in the order established by the legislation inclusively.

The tax obligation shall be fulfilled and due penalty interest be paid not later than on the working day following the day of submission of such tax declaration (calculation) is submitted.

6. A tax declaration (calculation) upon termination of a contract of simple partnership (contract on joint activity) shall be submitted in accordance with the requirements of part one of clause 2 of Article 40 of this Code not later than five working days prior to the termination of such a contract for the expired tax period and/or for the period from the beginning of the current tax period to the day of termination of the contract of simple partnership (contract on joint activity).

The tax obligation shall be fulfilled and due penalty interest be paid not later than on the working day following the day of submission of such tax declaration (calculation) is submitted by the participant of the partnership specified in clause 4 of Article 14 of this Code, and he has no possibility to fulfill the tax obligation, to pay the penalty interest, then partipants are obliged to fulfill the tax obligation, to pay penalty interest jointly and severally.

Article 45. Specific features of submission of the tax declaration (calculation), fulfillment of the tax obligation upon reorganization of the organization and return (setoff) of sums of taxes, dues (duties)

1. The successor(s) of reorganized legal person, when submitting the tax declaration (calculation), fulfilling the tax obligation and paying penalty interest, enjoys all rights of the payer and fulfills all duties provided by this Code for the payer of the taxes and dues (duties).

Specific features of the fulfillment of the tax obligation and payment of the due penalty interest by the reorganized organization with respect to goods under customs control are established by the Law of the Republic of Belarus of January 10, 2014 "On customs regulation in the Republic of Belarus".

2. The tax declaration (calculation) upon reorganization of the organization in the form of transformation shall be submitted in accordance with the requirements of part one of clause 2 of Article 40 of this Code, the tax obligation shall be fulfilled and due penalty interest  shall be paid by the successor of that organization in the order and within time limits established by this Code and other acts of the tax legislation.

3. The tax declaration (calculation) upon reorganization of the organization in the form of split-off shall be submitted in accordance with the requirements of part one of clause 2 of Article 40 of this Code by the reorganized organization in the order and within time limits established by this Code and other acts of the tax legislation.

When splitting off one or several organizations from the organization, the succession concerning the fulfillment of the tax obligation or payment of the penalty interest does not arise for split-off organizations. If in the result of such split off, the reorganized organization has no possibility to fulfill the tax obligation, to pay the penalty interest, and that split off entailed the non-fulfilment of the tax obligation, non-payment of the penalty interest, such split off organizations are obliged, at the decision of the tax body at the place of putting on record of the reorganized organization, to fulfil out  the tax obligation, to pay the penalty interest, jointly and severally with the reorganized organization.

4. The tax declaration (calculation) upon reorganization of an organization in the form of separation shall be submitted no later than on the 20th day of the month following the month of reorganization by one of the successors of the reorganized organization in accordance with the separation balance sheet separately for the activities of such organization for the period before the state registration of the legal successor.

The tax obligation shall be fulfilled and due penalty interest  shall be paid by the successors in accordance with the participation share of the successor, determined in the dividing balance sheet, in fulfillment of the tax obligation, payment of the penalty interest of the reorganized organization not later than on the 22nd day of the month following the month of reorganization of the organization.   In that instance, if the dividing balance does not allow to determine the participation share of the successor of the reorganized organization in fulfillment of the tax obligation or exclude the possibility of fulfillment of tax obligation in full and payment of the penalty interest by one of the successors, successors are obliged, at the decision of the tax body at the place of putting on record of the reorganized organization,  joint and several responsibility to fulfil, jointly and severally, the tax obligations, to pay the penalty interest.

5. Upon reorganization of the organization in the form of accession, the tax declaration (calculation) shall be submitted by the successor of that organization in accordance with requirements of part one of clause 2 of Article 40 of this Code not later than on the 20th day of the month following the month of reorganization, separately for the activity of the reorganized and affiliated organization for the period prior to the entry into the Unified State Register of Legal Persons and Individual Entrepreneurs of the record about the termination of activity of the affiliated organization.

The tax obligation shall be fulfilled and due penalty interest  shall be paid by the successor not later than on the 22th day of the month following the month of entry into the Unified State Register of Legal Persons and Individual Entrepreneurs of the record about the termination of activity of the affiliated organization by the successor of the reorganized organization.

6. The tax declaration (calculation) on activity of the reorganized organization in the form of merger shall be submitted by the successor of that organization in accordance with requirements of part one of clause 2 of Article 40 of this Code not later than on the 20th day of the month following the month of reorganization, separately for the activity of each reorganized organization for the period prior to the state registration of the successor.

The tax obligation shall be fulfilled and due penalty interest be paid by the successor not later than on the 22nd day of the month following the month of reorganization of the organization.

7. For the purposes of this Article the month of the reorganization is considered the month when the following happens respectively:

the date of entry of the record about the termination of activity of the affiliated legal person into the Unified State Register of Legal Persons and Individual Entrepreneurs;

the date of state registration of newly created legal persons.

8. In the absence of unfulfilled tax obligations, unpaid penalty interest for the reorganized organization and its successor(s), sums of the tax, due (duty) and penalty interest excessively paid by the reorganized organization or collected prior to its reorganization are subject to setoff for fulfillment by the successor(s) of such organization of tax obligations, payment of penalty interest by the reorganized organization or to return to the successor(s) of the reorganized organization.

When several successors are available, sums of the tax, due (duty), penalty interest excessively paid by the reorganized organization or excessively collected prior to its reorganizations, subject to setoff and/or return to its successor(s) are determined in accordance with the participation share of each successor in fulfillment of the tax legislation to be determined in accordance with the dividing balance sheet.

Article 46. Specific features of submission of the tax declaration (calculation), fulfillment of the tax obligation when the property is transferred into trust management

In respect of property transferred in trust management (acquired by the trustee at the expense of the monetary means of the trustor in connection with the trust management of the property), as well as on taxation objects arising in connection with the trust management of such property, the tax declaration (calculation) shall be presented, the tax obligation shall be fulfilled and due penalty interest shall be paid by the trustor independently, and in the cases established by this Code, by the trustee. 

Article 47. Specific features of fulfillment of tax obligation of a deceased person, a person declared deceased, missing or incapable and of return (setoff) of sums of taxes, dues (duties), penalty interest

1. The tax obligation of the deceased natural person is fulfilled by his heir(s) that have accepted the inherited property of the deceased within the limits of the cost of the inherited property and proportionally to the share in the inheritance not later than two months from the day of accepting the inheritance. In this instance the succession concerning the fulfillment by the heir(s) of the duty to pay the penalty interest of the deceased natural person does not arise.

Upon the application of the heir(s) of the deceased natural person the tax body, within three working days from the day of submitting such an application, is obliged to hand out to the heir(s) of the deceased natural person an extract from the recordkeeping data of tax bodies on computed and paid sums of taxes, dues (duties), penalty interest on the tax obligation of the deceased natural person.

When there is no heir(s) or if the heir(s) refuse(s) to accept the inheritance as well as in case if the amount of the tax obligation of the deceased exceeds the value of the inherited property or, in the absence of the inherited property, the non-paid sum of the debt of the deceased is recognized a bad debt and is written off in the order established by the President of the Republic of Belarus.

Fulfillment of the tax obligation of the natural person declared deceased is conducted in the similar order.

Provisions of parts one-four of this clause do not apply to the performance of the duty to pay the customs duties, taxes, arising for a natural person, who was a declarant of goods for the personal use, moved through the customs border of the Eurasian Economic Union. Such duty terminates in relation to the death of the declarant or with declaring him dead. 

2. The tax obligation of the natural person recognized missing or incapable is fulfilled and the penalty interest due to be paid is paid by the person authorized by the body of trusteeship and guardianship or directly by the body of trusteeship and guardianship not later than two months from the day of entry into force of the court judgment on recognizing the natural person missing or incapable at the expense of the property of that natural person.

The tax body at the place of putting on record of the natural person recognized as missing or incapable is obliged to hand out to the person authorized by the body of trusteeship and guardianship or to the body of trusteeship and guardianship an extract from the recordkeeping data of tax bodies on computed and paid sums of taxes, dues (duties), penalty interest on the tax obligation of the natural person recognized as missing or incapable, within three working days from the day of receipt from the mentioned authorized person (authorized body) of the data about recognition of the natural person as missing or incapable.

The indebtedness on the tax obligation of the natural person recognized missing or incapable as well as the penalty interest unpaid by him, if there is not enough property (no property) of this natural person to fulfill the obligation and pay the penalty interest, is recognized a bad debt in the part in which it exceeds the value of the mentioned property and is written off in the order established by the President of the Republic of Belarus.

When taking the decision on abolishing the recognition of the natural person missing or abolishing the decision on declaring the natural person deceased or taking the decision on recognition of the natural person capable, from the day of enters into force of the mentioned decision, the effect of the tax obligation not fulfilled or written off earlier and the accruing of the penalty interest (including the earlier accrued) are renewed.

3. When there is no indebtedness of the natural person deceased, declared as deceased on fulfilment of the tax obligations, the sums of the tax, due (duty) and penalty interest excessively paid by or excessively collected are subject to return or setoff to the heirs proportionally to their share in the inheritance in the order established by this Code.

CHAPTER 5
CHANGE OF TIME LIMIT ESTABLISHED BY THE LEGISLATION FOR PAYMENT OF TAXES, DUES (DUTIES), PENALTY INTEREST

Article 48. Main provisions on change of the time limit established by the legislation for payment of taxes, dues (duties), penalty interest

1. According to a decision of the President of the Republic of Belarus or a decision of the regional and the Minsk City, district, urban (of region-subordinated cities) councils of deputies or on their instructions by corresponding local executive and administrative bodies in the order established by this Chapter, the time limit established by the legislation for payment of taxes, dues (duties), penalty interest, with the exception of taxes, dues (duties), collected by customs bodies, the order and conditions of changing which are determined by the customs legislation, may be changed for payers individually.

In doing so regional and Minsk City, urban (of region-subordinated cities) councils of deputies or, on their instructions, respective local executive and administrative bodies are entitled to change the time limit established by the legislation for payment of taxes, dues (duties), penalty interest, fully payable by an organization, individual entrepreneur or another natural person to corresponding local budgets in the form and on the conditions determined by this Chapter, and in the order established by a regional, Minsk City, urban (of region-subordinated cities) councils of deputies.

In respect of an organization or an individual entrepreneur, the time limit established by the legislation for the payment of taxes, dues (duties) and penalty fully paid to the republican budget may be changed by the decision of the President of the Republic of Belarus.

2. The time limit established by the legislation for payment of taxes, dues (duties), penalty interest may be changed in the form of:

adjournment, with one-time payment of the sums of taxes, dues (duties), penalty interest (hereinafter - adjournment);

by-installment payment, with stage-by-stage payment of the sums of indebtedness of taxes, dues (duties), penalty interest (hereinafter by-installment payment);

adjournment with subsequent by-installment payment;

tax credit, with one-time or stage-by-stage payment of the sum of taxes, dues (duties) within the period of validity of that credit (hereinafter tax credit).

3. A condition for using adjournment, by-installment payment or adjournment with subsequent by-installment payment shall be the payment of:

payment of current payments to the budget within the time limit established  by the legislation;

payments for repaying sums of the indebtedness on taxes, dues (duties), penalty interest being adjourned or to be paid by installments, payments for repaying the sums of taxes, dues (duties) on which the tax credit has been granted, and the interest for using adjournment and/or by-installment payment, tax credit within the time limit established by the decision on granting adjournment, by-installment payment or adjournment with subsequent by-installment payment, tax credit.

For the purposes of this Article current payments to the budget are understood to be payment on taxes, dues (duties) to be carried out within the period of changing the time limit established by the legislation for payment of taxes, dues (duties), penalty interest.

Article 49. Grounds and order for changing the time limit established by the legislation for payment of taxes, dues (duties), penalty interest in the form of adjournment,  by-installment payment or adjournment with subsequent by-installment payment

1. Adjournment, by-installment payment or adjournment with subsequent by-installment payment are granted to an organization or individual entrepreneur for a sum of indebtedness on taxes, dues (duties), penalty interest for a period of not more than one year each, upon availability of one of the following grounds;

threat of economic insolvency (bankruptcy) in case of one-time payment of the indebtedness on taxes, dues (duties), penalty interest;

delay of financing from the budget, including delay of payment for a completed state order;

in case of damage as a result of act of natural disaster, technological catastrophe or other force majeure circumstances.

2. Adjournment, by-installment payment or adjournment with subsequent by-installment payment are granted to a natural person on taxation objects not related to carrying out entrepreneurial activity for a sum of indebtedness on taxes, dues (duties), penalty interest for a period not more than one year each in connection with his being in a difficult life situation.

3. Adjournment, by-installment payment or adjournment with subsequent by-installment payment may be granted in relation to all payable sums of indebtedness on taxes, dues (duties), penalty interest or a part thereof, for one or several kinds of taxes, dues (duties).

4. Charge of the penalty interest on sums of indebtedness on taxes, dues (duties) for which adjournment, by-installment payment or adjournment with subsequent by-installment shall be terminated from the first day of the period for which the adjournment, by-installment payment or adjournment with subsequent by-installment payment are being granted.

5. When adjournment, by-installment payment or adjournment with subsequent by-installment payment are granted in the instance specified in indent two of clause 1 of this Article, the interest shall be charged and paid at a rate of not less than 1/4 of the interest rate equal to 1/360 of the refinancing rate of the National Bank, effective on the day of payment (collection) of payments for discharge of adjourned (to be paid by installments) sums of indebtedness on taxes, dues (duties), penalty interest for each day of the period of using the adjournment, by-installment payment or adjournment with subsequent by-installment payment.

Interest for using adjournment, by-installment payment or adjournment with subsequent by-installment payment shall be paid for using:

adjournment - as one-time payment on the day of repayment of adjourned sums of indebtedness on taxes, dues (duties), penalty interest;

by-installment payment in equal payments simultaneously with payments being made for repayment of the indebtedness to be paid by installments;

adjournment with subsequent by-installment payment, the interest is paid on the sum of adjourned indebtedness on taxes, dues (duties), penalty interest simultaneously with the payment of the first installment for discharge of the indebtedness to be paid by installments, and on the sum of indebtedness to be paid by installments in equal installments simultaneously with payments made for discharge of the indebtedness to be paid by installments.

The computation of the interest for using adjournment, by-installment payment or adjournment with subsequent by-installment payment shall be made on the sum of payment to be paid (collected) for discharge of sums adjourned (to be paid by installments) of indebtedness on taxes, dues (duties), penalty interest, and also based on the number of days in the period for which such a payment is made.

6. Adjournment, by-installment payment or adjournment with subsequent by-installment in the instances specified in indents three and four of clause 1 of this Article are granted, accordingly, within the limits of sums of monetary means not received from the budget for financing, including non-payment for a completed state order, or sums of monetary means for which the damage has been caused.

Article 50. Tax credit

1. The tax credit is recognized to be the postponing of the time limit established by the legislation for payment of taxes, dues (duties) falling on the period of the tax credit validity.

The tax credit is not granted for the taxes, dues (duties) which have already become due.

2. The tax credit may be granted to an organization or individual entrepreneur for one or several kinds of taxes, dues (duties) in relation to the full sum or a part thereof.

The size of the tax credit shall not exceed the sum of tax, due (duty) to be paid during the period for which the tax credit is granted.

3. The tax credit shall be granted for a period of one to three years,  upon a threat of economic insolvency (bankruptcy) in case of one-time payment of the tax, due (duty).

The period for which the tax credit is granted includes term of repayment of the credit.

In the period of using the tax credit, charge of penalty interest on the sums of granted tax credit is not effectuated.

4. When the tax credit is being granted, the interest shall be paid in the amount of not less than ½ of the interest rate equal to 1/360 of the refinancing rate of the National Bank effective on the day of making (collecting) payment for repaying sums of taxes, dues (duties) for which the tax credit is granted, for each day of the period of using that credit.

The interest for using the tax credit shall be paid as a lump sum simultaneously with payment for discharge of the sums of taxes, dues (duties) on which the tax credit is granted.

Calculation of the interest for using the tax credit is made on the sum of payment to be paid (collected) for discharge of the sums of taxes, dues (duties) on which the tax credit is granted, and also based on the number of days in the period for which such a payment is made.

Article 51. Order for adoption of the decision on changing the time limit established by the legislation for payment of taxes, dues (duties), penalty interest

1. The payer applying for change of the time limit established by the legislation for payment of taxes, dues (duties), penalty interest is to submit the application for changing the time limit established by the legislation according to the form established by the Ministry on Taxes and Dues of the Republic of Belarus.

The application shall be lodged:

by an organization that is in subordination or under the jurisdiction of (makes part of) of a republican body of state administration, another organization subordinated to the Government of the Republic of Belarus, accordingly, to the republican body of state administration, another organization subordinated to the Government of the Republic of Belarus;

by an organization that is in subordination or under the jurisdiction of (makes part of) of a republican body of state administration, another organization subordinated to the Government of the Republic of Belarus, by an individual entrepreneur to a regional (Minsk City) executive committee at the place of location of the organization or at the place of residence of the individual entrepreneur;

by a natural person to the district, urban (of region-subordinated cities) council of deputies or, on its instruction, to the respective local executive and administrative body at the place of residence, and in respect of the land tax and/or the tax on immovable property at the place of location of taxation objects for such taxes.

2. The application specified in clause 1 of this Article shall be accompanied by:

2.1. an organization and individual entrepreneur:

annual and/or interim individual reports for the last reporting period drawn up in accordance with the legislation of the Republic of Belarus on accounting and reporting. The effect of this indent covers payers in relation to which the duty of draw up of such reports is established by the legislation;

statement on the last reporting date about basic economic parameters, according to the form approved by the Ministry of Economy of the Republic of Belarus;

expert reports of an authorized body (organization) about the cost of damage suffered by the organization or individual entrepreneur as a result of a natural disaster, technological catastrophe or other force majeure circumstances, and also about the cost of reparation of this damage (in case of change of the time limit established by the legislation for payment of taxes, dues (duties), penalty interest according to the corresponding ground);

2.2. a natural person data on incomes of the natural person for the last 12 months preceding the month of lodging the application and/or data on the natural person's difficult life situation, with enclosure of confirming documents (if available).

3. The state body. organization, specified in clause 1 of this Article shall:

within three working days after the receipt of the application and documents specified in clause 2 of this Article, request data about the settlements of the organization or individual entrepreneur with the budget from the tax body at the place of putting on record. The tax body shall provide the mentioned data within three working days after the receipt of the request;

not later than within five working days after the receipt of the data requested in accordance with indent two of this clause, make a conclusion on expediency (inexpediency) of granting the adjournment, by-installment payment or adjournment with subsequent by-installment payment, tax credit;

within five working days after preparation of the conclusion about expediency of granting the adjournment, by-installment payment or adjournment with subsequent by-installment payment, tax credit, prepare an appropriate draft decision

 send the draft draft decision of the President of the Republic of Belarus for obtaining the consent to the Ministry of Economy of the Republic of Belarus, the Ministry of Finance of the Republic of Belarus, the Ministry on Taxes and Dues of the Republic of Belarus, and the Ministry of Justice of the Republic of Belarus. Upon obtaining the consent of the mentioned state bodies, the draft decision is subject to be consented with the Committee of State Control of the Republic of Belarus.

In the instance of preparation of the conclusion about the inexpediency of granting adjournment, by-installment payment or adjournment with subsequent by-installment payment, tax credit, the state body, organization, specified in clause 1 of this Article shall, within five working days from the preparation of the conclusion, shall notify thereabout the organization or individual entrepreneur, which applied for changing the time limit for paying taxes, dues (duties), penalty interest, established by the legislation.

4. The draft decision of the President of the Republic of Belarus with enclosure of documents specified in clauses 2 and 3 of this Article shall be forwarded to the President of the Republic of Belarus through the Administration of the President of the Republic of Belarus within a fifteen-day period from the day of its introduction in the established order in the Council of Ministers of the Republic of Belarus.

In case of adoption by the President of the Republic of Belarus of the decision on changing the time limit for payment of taxes, dues (duties), penalty interest, established by the legislation, a copy of that decision shall be sent by the Council of Ministers of the Republic of Belarus to:

the organization or individual entrepreneur for which the time limit established by the legislation for payment of taxes, dues (duties), penalty interest is changed;

the Ministry of Economy of the Republic of Belarus, the Ministry of Finance of the Republic of Belarus, the Ministry on Taxed and Dues of the Republic of Belarus;

to the republican bodies of state administration, other state organizations subordinated to the Council of Ministers of the Republic of Belarus, regional executive committees (Minsk City Executive Committee) on which the control over fulfillment of the adopted decision is imposed.

5. With a view of adoption of the decision on changing the time limit established by the legislation for payment of taxes, dues (duties), penalty interest, the state body specified in clause 1 of this Article:

within three working days after the receipt of the application, shall request the data about his settlements with the budget from the tax body at the place of putting on record of the natural person or at the place of location of taxation objects for the land tax and/or tax on immovable property. The tax body shall provide the mentioned data within three working days after the receipt of the request;

not later than within five working days after the receipt of the data specified in indent two of this clause, shall prepare a conclusion on expediency (inexpediency) of changing the time limit established by the legislation for the payment of taxes, dues (duties), penalty interest;

within five working days after the preparation of the conclusion about expediency of the change of the time limit established by the legislation for payment of taxes, dues (duties), penalty interest, shall prepare a respective draft decision of the district, urban (of region-subordinated cities) councils of deputies or on their instruction of the corresponding local executive and administrative body.

In the instance of preparation of the conclusion about the inexpediency of changing the time limit established by the legislation for the payment of taxes, dues (duties), penalty interest, the state body specified in clause 1 of this Article shall, within five working days from the preparation of such a conclusion, shall notify thereabout the natural person who applied for changing the time limit established by the legislation for paying taxes, dues (duties), penalty interest.

6. The draft decision on changing the time limit established by the legislation for payment of taxes, dues (duties), penalty interest for the organization or individual entrepreneur shall specify:

full name of the organization or the surname, own name and patronymic (if available) of the individual entrepreneur, applying to change of the time limit for payment of taxes, dues (duties), penalty interest, established by the legislation;

kinds of taxes and dues (duties) on which the time limit established by the legislation and/or sums of indebtedness on taxes, dues (duties), penalty interest is being changed, the date on which the indebtedness is subject to adjournment, by-installment payment or adjournment with subsequent by-installment payment;

period for which adjournment, by-installment payment or adjournment with subsequent by-installment payment, tax credit are being granted;

amount of the interest for using adjournment, by-installment payment or adjournment with subsequent by-installment payment, tax credit;

time limits and the order for paying taxes, dues (duties), penalty interest and also of the interest for using adjournment, by-installment payment or adjournment with subsequent by-installment payment, tax credit ;

condition of making current payments to the budget, as well as payments for repaying sums of the indebtedness on taxes, dues (duties), penalty interest being adjourned (paid by installments), payments for repaying the sums of taxes, dues (duties) on which the tax credit has been granted, and the interest for using adjournment, by-installment payment or adjournment with subsequent by-installment payment, tax credit;

names of republican bodies of state administration, other state organizations subordinated to the Government of the Republic of Belarus, regional executive committees (Minsk City Executive Committee), exercising control over fulfillment of the decision made.

7. The draft decision on changing the time limit established by the legislation for payment of taxes, dues (duties), penalty interest for the natural person shall specify:

, surname, own name and patronymic (if available) of the natural person applying for change of the time limit established by the legislation for payment of taxes, dues (duties), penalty interest;

kinds of taxes and dues (duties) on which the time limits established by the legislation for payment are being changed , and sums of indebtedness on taxes, dues (duties), penalty interest and the date on which the indebtedness is subject to adjournment, by-installment payment or adjournment with subsequent by-installment payment;

period for which adjournment, by-installment payment or adjournment with subsequent by-installment payment are being granted;

time limits and order for payment of taxes and dues (duties), penalty interest;

conditions for making payments for repayment of sums of indebtedness on taxes, dues (duties), penalty interest, adjourned (to be paid by installments);

name of the tax body exercision control over fulfillment of the adopted decision.

In case of adoption of the decision on changing the time limit established by the legislation for payment of taxes, dues (duties), penalty interest, a copy of that decision shall be sent by the body that adopted it to:

the natural person whom the time limit established by the legislation for payment of taxes, dues (duties), penalty interest has been changed;

the tax body on which the control over fulfillment of the adopted decision has been imposed.

Article 52. Termination of effect of the change of the time limit established by the legislation for payment of taxes, dues (duties), penalty interest

1. The effect of adjournment, by-installment payment or adjournment with subsequent by-installment payment, tax credit is terminated upon expiration of the period for which they are granted on in the event of:

1.1. early payment of taxes, dues (duties), penalty interest for using adjournment, by-installment payment or adjournment with subsequent by-installment payment, tax credit;

1.2. adoption, in the order established by the legislation within the period of using adjournment, by-installment payment or adjournment with subsequent by-installment payment, tax credit, of a decision on liquidation of the organization or termination of activities of the individual entrepreneur;

1.3. formation of the indebtedness of the payer on current payments to the budget, payments for repaying sums of the indebtedness on taxes, dues (duties), being adjourned (paid by installments), payments for repaying the sums of taxes, dues (duties) on which the tax credit has been granted, on penalty interest, interest for using adjournment, by-installment payment or adjournment with subsequent by-installment payment, tax credit;

1.4. death of the natural person, declaring him deceased. 

2. In the instances specified in sub-clauses 1.2 and 1.3 of clause 1 of this Article:

the payer loses the right to using adjournment, by-installment payment or adjournment with subsequent by-installment payment, tax credit;

the tax body shall collect the sums of taxes, dues (duties), penalty interest on which adjournment, by-installment payment or adjournment with subsequent by-installment payment, tax credit have been granted, and also interest for using adjournment, by-installment payment or adjournment with subsequent by-installment payment, tax credit for the full period of use;

The tax body shall apply means of securing the fulfillment of tax obligation and/or payment of penalty interest specified in sub-clauses 1.1 1.3 of Article 54 of this Code. In that instance the penalty interest shall be charged on the sums of taxes, dues (duties) in relation to which adjournment, by-installment payment or adjournment with subsequent by-installment payment, tax credit have been granted, in the order established by this Code, beginning from the day on which the right to use the adjournment, by-installment payment or adjournment with subsequent by-installment payment, tax credit has been lost.

Article 53. Control over fulfilment of the decision on changing the time limit established by the legislation for payment of taxes, dues (duties), penalty interest

1. Control over the fulfillment of decisions on changing the time limit established by the legislation for payment of taxes, dues (duties), penalty interest for the organization or individual entrepreneur shall be exercised by:

republican bodies of state administration, other state organizations subordinated to the Council of Ministers of the Republic of Belarus, in relation to the organizations which are subordinated or under the jurisdiction thereof (make part thereof);

regional (Minsk City) executive committees in relation to the organizations which are not subordinated or under the jurisdiction of to the bodies specified in indent two of this clause (do not make part of such organizations), individual entrepreneurs;

tax bodies over fulfilment of the conditions for changing the time limit established by the legislation for payment of taxes, dues (duties), penalty interest, as well as over payments for repaying sums of the indebtedness on taxes, dues (duties), penalty interest being adjourned (paid by installments), payments for repaying the sums of taxes, dues (duties) on which the tax credit has been granted, and the interest for using adjournment, by-installment payment or adjournment with subsequent by-installment payment, tax credit.

2. Control over fulfilment of the decision on changing the time limit established by the legislation for payment of taxes, dues (duties), penalty interest for the natural person shall be exercised by the tax bodies.

CHAPTER 6
MEANS OF SECURING THE FULFILLMENT OF TAX OBLIGATION AND/OR PAYMENT OF PENALTY INTEREST

Article 54. Means of securing the fulfillment of tax obligation and/or payment of penalty interest

1. Means of securing the fulfillment of tax obligation and/or payment of penalty interest are:

1.1. penalty interest;

1.2. suspension of operations on accounts, electronic purses;

1.3. arrest of property;

1.4. pledge of property;

1.5. shuretyship;

1.6. bank guarantee.

2. The tax or customs body shall secure the fulfillment of the tax obligation by the means specified in sub-clauses 1.1-1.3 of clause 1 of this Article, and the payment of penalty interest by the means specified in sub-clauses 1.2 and 1.3 of clause 1 of this Article.

3. The payer shall secure the fulfillment of the tax obligation and/or payment of penalty interest by several or one mean from the means specified in sub-clauses 1.41.6 of clause 1 of this Article, at his option, upon:

3.1. non-fulfillment of tax obligation, non-payment of penalty interest charged according to the results of inspections, including on the basis of an act of the chamber inspection, for a period specified in the contract on property pledge, contract of shuretyship or bank guarantee, but not more than three months;

3.2.non-fulfillment of tax obligation, non-payment of penalty interest charged by the customs bodies for a period specified in the contract on property pledge, contract of shuretyship or bank guarantee, but not more than three months from the day when the payer provided such means.

4. During the validity period of the means applied in accordance with clause 3 of this Article, in respect of the unfulfilled tax obligation and/or unpaid penalty interest secured by such means, the tax or customs body:

4.1. do not adopt decisions on the collection of tax, due (duty), penalty interest at the expense of monetary means on accounts, electronic money in electronic purses, cash monetary means of the payer, on imposition of arrest on his property, suspension of operations on accounts, electronic purses;

4.2. do not perform measures on detecting the property of the payer, and also of his debtors.

5. The legal relations arising during the validity period of the means specified in sub-clauses 1.4-1.6 of clause 1 of this Article are regulated, respectively, by the provisions of the Civil Code of the Republic of Belarus and the Banking Code of the Republic of Belarus for those types of obligations, taking into account the specific features established by Articles 58-60 of this Code.

6. Application by customs bodies of means for securing the fulfillment of the tax obligation and/or payment of the penalty interest specified in sub-clauses 1.4-1.6 of clause 1 of this Article shall be carried out in the order determined by the State Customs Committee of the Republic of Belarus in accordance with the provisions of the customs legislation established in respect of securing the duty on payment of customs duties, taxes.

Article 55. Penalty interest

1. The penalty interest ir recognized monetary sum that the payeris obliged to pay in the case of non-fulfillment or fulfillment of the tax obligation later in comparison to time limits established by the tax or customs legislation.

2. Penalty interest is charged on the sum of the tax obligation not fulfilled on time, defined as the difference between the sum of the tax, due (duty) computed, including according to the results of the inspection or the presentation of the tax declaration (calculation) with introduced changes and/or additions, and the paid (collected) one.

Penalty interest is charged for each calendar day of delay within the whole period of non-fulfillment of the tax obligation beginning from the day following the day of payment, including the day of fulfillment of of the tax obligation, established by the tax legislation, unless otherwise provided by part three of this clause. At the same time, the amount of penalty interest charged on the sum of the tax, due (duty) payable as a result of inspection shall not exceed the amount of the tax, due (duty) payable according to the result of inspection.

If, as a result of an inspection or submission of the tax declaration (calculation) with introduced changes and/or additions, the circumstances specified in clause 2 of Article 36 of this Code occur, the penalty interest shall be charged on the sum of the unfulfilled tax obligation computed according to the results of the tax period. In that instance, during such a tax period, penalty interest shall be charged taking into account the deadlines established by the tax legislation and excessively computed sums of the tax, dues (duty), regardless of the expiration of the five-year period from the date of their payment.

3. Penalty interest is not charged:

3.1. on payable sums of taxes, dues (duties), if they are not paid (not fully paid) on the basis of an explanation concerning the application of tax legislation received by the payer from the tax body in written or electronic form. This provision ceases to be applied in ten calendar days after an explanation has been sent to the payer on the same issue, which differs in content from the explanation, on the basis of which taxes, dues (duties) have not been paid (not fully paid) by the payer;

3.2. on sums of consular fee, state duty, patent duty.

4. The penalty interest is determined in the percentage points from the unpaid tax obligation taking into account the interest rate equal to 1/360 of the refinancing rate of the National Bank of the Republic of Belarus that was effective for the respective periods of non-fulfillment of the tax obligation.

The calculation of the penalty interest is performed on each such period according to the formula:

 

P = (NTO x CD x RR) / (360 x 100),

 

where:   P is the amount of the penalty interest calculated in the respective period of non-fulfillment of the tax obligation;

NTO is the amount of non-fulfilled tax obligation in the respective period of non-fulfillment of the tax obligation determined with regard to the provisions of clause 2 of this Article;

CD is the number of calendar days during which the unpaid sum of tax, due (duty) and the refinance rate of the National Bank of the Republic of Belarus remained constant, including the day of payment (collection) of the respective sum of the tax, due (duty) or the day preceding the day when the refinance rate of the National Bank of the Republic of Belarus was changed;

RR is the refinance rate of the National Bank of the Republic of Belarus valid for the respective periods of non-fulfillment of the tax obligation.

5. Penalty interest shall be paid (collected) additionally to the sum of non-fulfilled tax obligation simultaneously with payment (collection) of sums of the tax, due (duty) or after their payment (collection) in full, regardless of the application of other means of securing the fulfillment of the tax obligation and also of sanctions for the violation of the tax legislation.

6. After fulfilling the tax obligation the payer may be exempted from payment of the penalty interest in the order established by the President of the Republic of Belarus.

7. The customs legislation may determine the specific features for computing the amount of penalty interest charged on customs payments and the utilization fee collected by the customs bodies, and for their payment.

Article 56. Suspension of operations on accounts, electronic purses

1. Suspension of operations on accounts, electronic purses is recognized to be the termination by the bank of all expenditure transactions on those accounts, electronic purses according to a decision of the head (his deputy) of the tax or customs body, with the exception of:

operations connected with performance of payments to the budget or state non-budgetary funds, including the state non-budgetary fund of social protection of the population of the Republic of Belarus on obligations of the person the operations at the account, electronic purse of which are suspended;

operations in the part of the sum of excess of the sum of non-fulfilled tax obligation and/or unpaid penalty interest, specified in the decision taken on suspension of the operations on accounts, electronic purses of the payer, adopted in accordance with part four of sub-clause 2.1 of clause 2 of this Article;

other operations upon availability of a permission of the taxation or customs body in the instances established by the legislative acts.

2. A decision on suspension of operations on accounts, electronic purses shall be adopted:

2.1. upon non-fulfillment of the tax obligation within the established time limit, non-payment of penalty interest.

In that instance, if the payer, in the course of six calendar months preceding the month in which the debt has arisen:

fulfilled tax obligations within the time limits established by the legislation, then the decision to suspend operations on its accounts, electronic purses shall be made not earlier than ten working days following the date established by the legislation for the payment of taxes, dues (duties), or the day of submission of the tax declaration with introduced changes and/or additions;

did not have indebtedness on each 1st day of the month following the reporting month, then the decision to suspend operations on its accounts, electronic purses shall be made not earlier than five working days following the date established by the legislation for the payment of taxes, dues (duties), or the day of submission of the tax declaration with introduced changes and/or additions.

Part two of this sub-clause does not apply in case of non-fulfillment of the tax obligation, non-payment of penalty interest detected as a result of an inspection, as well as if there are grounds listed in sub-clauses 2.22.4 of this clause, and when the customs bodies adopt a decision to suspend operations on accounts, electronic purses.

If the fact of availability of non-fulfilled tax obligation or unpaid penalty interest is detected as a result of an inspection of the tax body, then a decision on suspension of the operations on accounts, electronic pursesof the payer must contain an obligatory indication to the sums of non-fulfilled tax obligation and/or unpaid penalty interest on the date of issuance of such a decision;

2.2. upon a failure to submit tax declarations (calculations) on taxes, dues (duties);

2.3. upon failure to submit to the tax bodies or their officials the documents of accounting and/or tax recordkeeping, special permits (licenses), other documents and/or information for conducting the inspection;

2.4. if the sum of monetary means credited to accounts of a commercial organization, individual entrepreneurs in banks for one month has exceeded 5000 base units and the head of this commercial organization, individual entrepreneur or another person authorized under the established procedure to act in the name of the commercial organization, individual entrepreneur do not possess the data about actual circumstances of carrying out entrepreneurial activity as a result of which the mentioned means were received.

3. A decision on suspension of operations on accounts, electronic purses shall not be adopted in respect of:

correspondent accounts;

charity accounts open for remittance (input) of foreign gratuitous aid in the form of monetary means, including in the foreign currency;

special accounts opened in accordance with the legislative acts;

accounts for record keeping of republican and local budgets, budgets of state non-budgetary funds, external state loans attracted by the Republic of Belarus, the Council of Ministers of the Republic of Belarus, other budgetary  and state means, opened to republican bodies of state administration, local executive and administrative bodies, bodies and other organizations;

accounts used for carrying out settlements in the form of letters of credit at the expense of means of the republican and local budgets.

4. A decision on suspension of the operations on accounts, electronic purses shall be brought to the bank not later than on the working day following the day of its adoption and is subject to unconditional fulfillment by the bank.

5. Suspension of the operations on accounts, electronic purses is effective from the moment of receipt by the bank of the decision on suspension of such operations until its cancellation.

6. A decision on suspension of the operations on accounts, electronic purses shall be cancelled, about which the tax or customs body shall inform the bank not later than on the working day following the day of:

receipt by the tax or customs authority of the information on occurrence of a circumstance with which the tax or customs legislation connects the termination of the fulfillment of a tax obligation, or of documents confirming the elimination of violations that served as a ground for the suspension of operations on accounts, electronic purses in the cases specified in sub-clauses 2.12.3 of clause 2 this Article;

application of the means specified in sub-clauses 1.41.6 of clause 1 of Article 54 of this Code to secure the fulfillment of a tax obligation and/or payment of penalty interest in the sum of the unfulfilled tax obligation, unpaid penalty interest. When using several of such means of securing the fulfillment of a tax obligation - not later than on the working day following the latest date for concluding the contract, issuing the bank guarantee;

obtaining information on the availability of one or several accounts of monetary means in the sum sufficient to fulfill the tax obligation by the payer to pay the penalty interest according to results of the inspection in full;

receipt by the tax body of information from the head of that legal person, individual entrepreneur or other person authorized in the established order to act on behalf of the legal person, individual entrepreneur about actual circumstances of carrying out the entrepreneurial activity, as a result of which more than 5,000 base units have been credited to accounts of the legal person, individual entrepreneur in the banks for a month.

7. Decisions specified in clauses 2 and t of this Article shall be adopted according to the established form as resolutions.

The order of transfer, receipt and processing of decisions of tax, customs bodies about suspension of operations on accounts, electronic purses or about the cancellation thereof, sent to the bank according to established formats in the form of electronic document is to be established, accordingly, by the Ministry on Taxes and Dues of the Republic of Belarus, the State Customs Committee of the Republic of Belarus and the National Bank of the Republic of Belarus.

8. The decision on suspension of operations on accounts, electronic purses or on cancellation thereof shall be sent to the payer in a written or electronic form, not later than one working day following the day of its adoption

9. Banks are not entitled to open  accounts, electronic purses to the payer, with the exception of accounts for record keeping means of the budget of the state non-budgetary fund of social protection of the population of the Republic of Belarus, if there are:

a decision on suspension of operations on accounts, electronic purses;

information about the suspension of the operations of the payer on accounts, electronic purses in other banks, received from the automated information system used for the interaction of the registering bodies with the authorized bodies and organizations, including tax and customs bodies, banks (hereinafter AIS Interaction).

The procedure under which the banks receive the information about the suspension (cancellation of suspension) of the operations of payers on accounts from AIS Interactionis determined by the Council of Ministers of the Republic of Belarus.

10. Non-fulfillment or improper fulfillment by the bank of the decision of the tax or customs body on suspension of operations of the payer on accounts, electronic purses shall be a ground for bringing this bank and/or its officials to the responsibility established by the legislative acts.

Article 57. Arrest of property

1. Arrest of property is deemed to be an action of the tax or customs body on limitation of the property rights of the payer (pledgor, surety upon availability of grounds specified accordingly in clause 3 of Article 58 and clause 3 of Article 59 of this Code (hereinafter - pledgor, surety)) in relation to property belonging to the payer (pledgor, surety) on the right of ownership, economic management or operative administration.

A decision on arrest of property of the payer (pledgor, surety) is taken by the head (his deputy) of the tax or customs body in the form of a resolution on imposing the arrest on the property.

The arrest of property consists in making an inventory of the property and declaration of a ban on disposing of it, and when necessary in seizure of the property arrested and its transfer for storage to the payer (pledgor, surety) (their representative) or to another person warning such persons of the responsibility for the preservation of the property attached.

2. Arrest of property is conducted in case of non-fulfillment, within established time limits, of the tax obligation or non-payment of the penalty interest.

3. Arrest of property may be imposed on the part or on all property of the payer (pledgor, surety) with the exception of the property on which in accordance with legislation the execution may not be levied.

Only property which is necessary and enough and ensures the execution of the tax obligation, payment of the penalty interest is a subject to arrest, unless otherwise established by the part three of this clause.

In case if the payer (pledgor, surety) possesses undivided property the value of which exceeds the sum of non-executed tax obligation, unpaid penalty interest, and other property adequate to secure such execution is absent, this property may be arrested.

4. Arrest of the property of the payerorganization (pledgor, surety) shall be conducted with participation of their legal or authorized representative at presence of witnesses.

In absence of a legal or authorized representative of the payer (pledgor, surety) or upon refusal to be present at the arrest of the property, the arrest of property shall be conducted in the presence of two witnesses with subsequent notification of the payer or its representative about the arrest effectuated.

5. Arrest of property of the payer natural shall be conducted at his presence and/or in the presence of his representative. In absence or upon refusal of the payer or his representative to be present at the arrest of the property, the arrest of property shall be conducted in the presence of two witnesses with subsequent notification of the payer or its representative about the arrest effectuated.

Arrest of the property of the payernatural person, which is in a dwelling premises, another legitimate possession, besides or against his will, shall be conducted according to a resolution on imposing the arrest on property  with the sanction of the public prosecutor.

6. Access of officials of the tax, customs bodies to the territory or premises of the payer (pledgor, surety) for purposes of the arrest of property shall be conducted upon presentation by those persons of the resolution on imposing the arrest and official identifications, and in the instances provided for by part.two of clause 5 of this Article, the sanction of the public prosecutor.

Before the arrest of property, the officials conducting the arrest of property are obliged to present to the payer (pledgor, surety), his legal or authorized representative and/or witnesses the resolution on imposing the arrest of property and documents confirming their powers, and in the instance provided by part two clause 5 of this Article, the sanction of the public prosecutor.

7. Data related to the property to be arrested, provided for by the legislation,  shall be indicated in the inventory of the property.

All items subject to arrest of property shall be shown to the witnesses and the payer (pledgor, surety) or to his legal or authorized representative. When necessary the property is packed and sealed at the place of the arrest.

8. The head (his deputy) of the tax or customs body that have issued the resolution on imposing the arrest on the property determines the place, where the arrested property shall be located till determining the place of its storage in accordance with legislation.

9. Seized property is transferred for storage to the payer (pledgor, surety) (his representative) in the cases established by legislation, or to another person, with warning such persons about liability in accordance with the legislative acts for damage, disbursement, concealment or alienation of the seized property, about which a written pledge should be taken.

If the arrested property has not been seized, such property is entrusted to the payer (pledgor, surety) (his representative) according to the property inventory with a warning about the liability in accordance with the legislative acts for damage, disbursement, concealment or alienation of the property transferred, about which a written pledge should be taken.

The person to which the property included in the inventory is transferred for storage, if that person is not the payer (pledgor, surety) or its representative, is to be reimbursed for expenses on storage of the property at the expense of the payer (pledgor, surety) in the order established by legislative acts.

10. Damaging, spending, concealing or alienating the property included in the inventory are not allowed. The non-observance of the established order of storage of the said property is a ground for bringing the guilty persons to liability provided by the legislative acts.

11. The decision on imposing arrest on property is effective from the moment of imposing the arrest till its cancelling by the head (his deputy) of the tax or customs body which has made such decision, or till its cancelling by the superior tax or customs body, or till its cancelling on the basis of a court resolution.

The decision on imposing arrest on property shall be cancelled by the head (his deputy) of the tax or customs body which has adopted of the decision on imposing the arrest within three working days after:

fulfillment of tax obligation and payment of penalty interest;

return of the materials on the property of the payer (pledgor, surety) on which the execution is levied by the court if the property had not been realized by a subject of trade within two months after its re-evaluation (or of three months after its transfer for the realization), and for immovable property within one year;

occurrence of other circumstances when this method of securing the fulfillment of a tax obligation and/or payment of penalty interest is no longer necessary or when the arrest of property impedes the satisfaction of the claims of creditors of the payer who is in the process of liquidation (termination of activity) in accordance with the priority order established by the legislative acts;

application of several or one means of securing the fulfillment of tax obligation and/or payment of penalty interest specified in sub-clauses 1.41.6 of clause 1 of Article 54 of this Code.

The cancelling of the decision on imposing arrest on property on the basis specified in indent 3 of part 2 of this clause, does not terminate the tax obligation of the payer (pledgor, surety), payment of the penalty interest.

Article 58. Pledge of property

1. The contract on property pledge is concluded between the pledgor and the tax body at the place of putting on record of the payer. The pledgor may be both the payer himself and a third person.

The contrac of pledge shall be concluded for periods specified in clause 3 of Article 54 of this Code.

2. The residual value of the property pledged (in the case when the fulfillment of a tax obligation and/or the non-payment of penalty interest are secured only with a pledge of property) must be no less than the sums of unpaid (not fully paid) taxes, dues (duties), penalty interest, including penalty interest accrued during the validity period of the contract of pledge.

3. When the tax obligation is not fulfilled and/or the penalty interest secured by the pledge is not paid, the tax body shall impose arrest on the pledged property in the order established by Article 57 of this Code and levies the execution on it in the order established by Article 65 of this Code.

Article 59. Suretyship

1. The contract on suretyship is concluded between the surety resident of the Republic of Belarus and the tax body at the place of putting on record of the payer.

By virtue of a suretyship, the surety undertakes to the tax body to fulfill the tax obligation of the payer and/or pay penalty interest, including penalty interest accrued during the validity period of the contract of suretyship, if the payer fails to fulfill the tax obligation and/or does not pay penalty interest during the period specified in sub-clause 3.1 of clause 3 of Article 54 of this Code.

The suretyship is terminated by the fulfillment of the tax obligation and/or the payment of the penalty interest secured by the suretyship.

2. When the tax obligation is not fulfilled and/or the penalty interest secured by the suretyship is not paid, the tax body shall send a notice to the surety in the established form not later than on the working day following the day of expiration of the time limit specified in sub-clause 3.1 of clause 3 of Article 54 of this Code.

3. When the surety fails to fulfill its obligations under the contract of surety, the tax body is entitled to impose arrest on its property in the order established by Article 57 of this Code, and collect from it unpaid (not fully paid) tax, due (duty), penalty interest in the order established by Articles 62, 63 and 65 of this Code, upon expiration of five working days after the notification is sent to the surety.

Article 60. Bank Guarantee

1. By virtue of a bank guarantee, the bank undertakes to the tax body at the place of putting on record of the payer to fulfill the tax obligation of the payer and/or pay penalty interest, including penalty interest accrued during the validity period of the bank guarantee, if the payer fails to fulfill the tax obligation and/or does not pay penalty interest during the period specified in sub-clause 3.1 of clause 3 of Article 54 of this Code.

2. The bank guarantee must meet the following requirements:

2.1. the contents of the bank guarantee must comply with the requirements established by the Banking Code of the Republic of Belarus;

2.2. bank guarantee must be irrevocable, transfer of bank guarantee is not allowed;

2.3. the sum for which the bank guarantee has been issued (in the case when the fulfillment of a tax obligation and/or the non-payment of penalty interest are secured only with a bank guarantee) must secure the sums of unpaid (not fully paid) taxes, dues (duties), penalty interest, including penalty interest accrued during the validity period of the bank guarantee;

2.4. the validity period of the bank guarantee must be not less then the time limits specified in clause 3 of Article 54 of this Code.

3. When the tax obligation is not fulfilled and/or the penalty interest secured by the bank guarantee is not paid, the tax body shall send a demand to the bank-guarantor in the established form not later than on the working day following the day of expiration of the time limit specified in sub-clause 3.1 of clause 3 of Article 54 of this Code.

4. A demand of the tax body must contain a declaration that the payer did not fulfilled or fulfiled improperly the duty on payment of the tax obligation and/or penalty interest, and also the following data:

amount of the non-fulfilled tax obligation and/or non-paid penalty interest, secured by the  bank guarantee;

sum payable by the bank-guarantor.

5. The obligation under a bank guarantee is subject to execution by the guarantor bank within five working days from the date of receipt of the demand for payment of monetary means under the bank guarantee.

The guarantor bank is not entitled to refuse to satisfy the demands for payment of monetary means under a bank guarantee, with the exception of the fulfillment by the payer of the tax obligation and/or payment of penalty interest secured by the bank guarantee.

The guarantor's undertaking toward the tax body stipulated by the bank guarantee is limited by the payment of the monetary sum for which such guarantee is issued.

CHAPTER 7
ENFORCED FULFILLMENT OF TAX OBLIGATION AND COLLECTION OF PENALTY INTEREST

Article 61. Collecting tax, due (duty) and penalty interest

1. Collecting the tax, due (duty), penalty interest is recognized to be the enforced payment of penalty interest through levying the execution on monetary means and/or another property of the payer and/or its debtors in the case of non-fulfillment and improper fulfillment by the payer within the established time limit of the tax obligation, non-payment (not full payment) of the penalty interest.

The collection of tax (duty), penalty interest  shall be conducted by the tax or customs body in accordance with this Code:

from an organization in an indisputable manner at the expense of the property specified in Articles 6264 of this Code, and at the expense of the property specified in Article 65 of this Code, on the basis of a court judgment on collecting the tax, due (duty), penalty interest;

from an individual entrepreneur at the expense of the property specified in Articles 6265 of this Code, on the basis of a notarys executive inscription or a court judgment on the collection of the tax, due (duty), penalty interest.

Collection of the tax, due (duty), penalty interest from a natural person not being an individual entrepreneur, shall be conducted in the order provided by by the legislation on enforcement proceedings.

2. Collection of the tax, due (duty) from an organization or an individual entrepreneur shall not be effectuated if the demand to pay them has not been submitted within five years from the date of the expiration of the payment period, with the exception of the cases when:

the inspected period in accordance with the legislative acts exceeds five years;

the payer submitted a tax declaration (calculation) with changes and/or additions introduced.

3. The day of payment of taxes, dues (duties), penalty interest is recognized:

3.1. when collecting a tax, dues (duty), penalty interest in accordance with Articles 62 and 64 of this Code - the day when the bank fulfills the decision of the tax or customs body to collect the tax, due (duty), penalty interest with enclosure of the payment order;

3.2. when collecting a tax, fee (duty), interest at the expense of cash monetary means in accordance with Article 63 of this Code - the day when cash monetary means are credited to the appropriate budget;

3.3. when collecting a tax, due (duty) and penalty interest at the expense of the property in accordance with Article 65 of this Code and also when levying the execution, under the procedure established by the legislation, on the object of pledge in order to pay the tax, due (duty), penalty interest the day of accepting monetary means from the realization of the property in the respective budget;

3.4. when collecting a tax, due (duty) and penalty interest from accounts in foreign currency the day of accepting of monetary means in Belarusian rubles when the bank buys foreign currency in the respective budget;

3.5. when collecting a tax, due (duty) and penalty interest at the expense of electronic money in electronic purses the day of redemption of electronic money;

3.6. when collecting taxes, dues (duties) remitted by a state body of a member state of the Eurasian Economic Union in accordance with the customs legislation the day of accepting monetary means in Belarusian rubles in the respective budget.

4. Specific features for collection of a tax, due (duty), penalty interest are established by the customs legislation.

Article 62. Collecting tax, due (duty) or penalty interest at the expense of monetary means on account, electronic money in electronic purse

1. Collection of the tax, due (duty) or penalty interest at the expense of the monetary means on an account, electronic money in the electronic purse shall be conducted on the ground of a decision of the head (his deputy) of the tax or customs body, adopted according to an established form.

2. A decision on the collection of tax, due (duty), penalty shall not be adopted in regard of:

correspondent accounts;

charity accounts open for remittance (input) of foreign gratuitous aid in the form of monetary means, including in the foreign currency;

special accounts opened in accordance with the legislative acts;

accounts for record keeping of republican and local budgets, budgets of state non-budgetary funds, external state loans attracted by the Republic of Belarus, the Council of Ministers of the Republic of Belarus, other budgetary  and state means, opened to republican bodies of state administration, local executive and administrative bodies, bodies and other organizations;

accounts used for carrying out settlements in the form of letters of credit at the expense of means of the republican and local budgets.

3. Collection of a tax, due (duty) and penalty interest from accounts opened in foreign currency shall be effectuated with sale in a sum equivalent to the sum of payment in Belarusian rubles at the official rate set by the National Bank of the Republic of Belarus on the date of collecting.

4. A decision on collecting a tax, due (duty), penalty interest at the expense of monetary means on accounts, electronic money in the electronic purses with enclosure of the payment order shall be sent by the tax or customs body to the bank servicing the give tax or customs body in a written or electronic form.

5. Upon receipt by the tax or customs body of documents evidencing the fulfillment of a tax obligation, payment of penalty interest, the payment order shall be recalled not later than one working day following the day of receipt of such documents.

The payment demand shall also be revoked if the means of securing the fulfillment of the tax obligation and/or payment of the penalty interest specified in sub-clauses 1.4-1.6 of clause 1 of article 54 of this Code are applied in relation to to the unfulfilled tax obligation and/or unpaid penalty interest.

An application of the tax or customs body on revocation of the payment demand is subject to unconditional fulfillment by the bank.

6. In the instances established by the legislation , the tax or customs body is entitled to send to the bank an application for changing the payment demand.

7. The procedure of transfer, acceptance and processing of decisions of tax or customs bodies about collection of the tax, due (duty), penalty interest at the expense of monetary means on accounts, electronic money in the electronic purses, payment requests and application about recall (change) of payments requests, sent to the bank according to established formats in the form of electronic document is to be established, accordingly, by the Ministry on Taxes and Dues of the Republic of Belarus, the State Customs Committee of the Republic of Belarus and the National Bank of the Republic of Belarus.

Article 63. Collecting of tax, due (duty), penalty interest at the expense of cash monetary means

1. Collection of the tax, due (duty) or penalty interest at the expense of the cash monetary means shall be conducted on the basis of a resolution of the head (his deputy) of the tax or customs body, adopted according to an established form.

The resolution shall specify the sum to be collected and the sum of actually collected monetary means. In this instance the sum of actually collected monetary means shall not exceed the sum subject to collection.

2. Cash monetary means is subject to be put in the bank on the day of their collection for remittance to the respective budget. When it is impossible to put in the cash monetary means within the same day, it shall be put in the bank on the following working day.

3. Ensuring the safety of the cash monetary means shall be carried out by the corresponding tax or customs body until the handing over the monetary means to the bank.

Article 64. Collecting of tax, due (duty), penalty interest at the expense of means of the debtor

1. Collection of tax (duty) and penalty interest at the expense of means of the debtor (organization or individual entrepreneur) shall be effectuated on the basis of the decision, adopted according to the established form, of the head (his deputy) of the tax body at the place of putting on record of the payer or of the customs body that effectuates collection of customs payments.

The decision on the collection of tax, due (duty), and penalty interest at the expense of the debtors means shall be adopted upon expiration of the time limit for fulfillment of obligations of the debtor toward the payer. The decision must indicate the sum subject to collection from the debtor and the account, electronic purse of the debtor. In that instance the sum subject to collection may not exceed the sum of accounts payable of that debtor to the payer.

The decision on the collection of tax, due (duty), and penalty interest at the expense of the debtors means shall be adopted in relation to accounts payable for which the limitation period has expired.

2. The decision on the collection of tax, due (duty), and penalty interest at the expense of the debtors means shall be adopted in relation to one or several debtors on the basis of:

2.1. application of the payer on cession of the claim of the creditor and the document (act of comparison or other document signed by the debtor and the payer) confirming the availability of accounts receivable for the payer and accounts payable for the debtor;

2.2. statement on availability of accounts receivable at the payer formalized according to the established form on the basis of :

documents presented by the payer in accordance with part two of sub-clause 1.5 of clause 1 of Article 22 of this Code;

documents presented by a body of state control;

results of measures conducted in accordance with Article 84 of this Code on detecting the property of the payer and his debtors;

results of an inspection conducted by the tax or customs body.

3. Collection of a tax, due (duty) and penalty interest from an account opened in foreign currency shall be effectuated with sale in a sum equivalent to the sum of payment in Belarusian rubles at the official rate set by the National Bank of the Republic of Belarus on the date of adoption of the decision on collection of the tax, due (duty), penalty interest.

4. A decision on the collection of tax, due (duty), penalty shall not be adopted in regard of:

correspondent accounts of the payer's debtor;

charity accounts opened to the debtor for remittance (input) of foreign gratuitous aid in the form of monetary means, including in the foreign currency;

special accounts opened in accordance with the legislative acts;

accounts for record keeping of republican and local budgets, budgets of state non-budgetary funds, external state loans attracted by the Republic of Belarus, the Council of Ministers of the Republic of Belarus, other budgetary  and state means, opened to republican bodies of state administration, local executive and administrative bodies, bodies and other organizations;

accounts used for carrying out settlements in the form of letters of credit.

5. The tax body shall send to the debtor a communication in the form of electronic document through the private office of the payer about the adopted decision on collection of the tax, due (duty), penalty interest at the expense of means of the debtor.

6. Responsibility for the accuracy of the data on the debtors and the sums of accounts receivable bears the payer.

When the tax or customs body establishes that the payer provided inaccurate information about the availability of accounts receivable, the collected sum of accounts receivable shall be returned to the debtor.

7. Upon receipt by the tax or customs body of documents evidencing the fulfillment of a tax obligation, payment of penalty interest, the payment order shall be recalled not later than one working day following the day of receipt of such documents.

The payment demand shall also be revoked if the means of securing the fulfillment of the tax obligation and/or payment of the penalty interest specified in sub-clauses 1.4-1.6 of clause 1 of article 54 of this Code are applied in relation to to the unfulfilled tax obligation and/or unpaid penalty interest.

An application of the tax or customs body on revocation of the payment demand is subject to unconditional fulfillment by the bank.

8. In the instances established by the legislation , the tax or customs body is entitled to send to the bank an application for changing the payment demand.

9. The decision on collecting the tax, due (duty) and penalty interest at the expense of means of the debtor, a payment request and application about recall (change) of the payment request shall be sent to the bank servicing the given tax or customs body in a written form or in the form of electronic document.

10. The procedure of transfer, acceptance and processing of decisions of tax or customs bodies about collection of the tax, due (duty), penalty interest at the expense of the debtor's means, payment requests and application about recall (change) of payments requests, sent to the bank according to established formats in the form of electronic document is to be established, accordingly, by the Ministry on Taxes and Dues of the Republic of Belarus, the State Customs Committee of the Republic of Belarus and the National Bank of the Republic of Belarus.

The forms of statements on availability of accounts receivable at the payer are established by the Ministry on Taxes and Dues of the Republic of Belarus (for use by tax bodies) and also by the State Customs Committee of the Republic of Belarus (for use of customs bodies).

Article 65. Collecting tax, due (duty) and penalty interest at the expense of property of the payer (pledgor, surety)

1. Collecting of the tax, due (duty) and penalty interest at the expense of the property of the payer (pledgor, surety) specified in Articles 6264 shall be conducted on the basis of:

a notarys executive inscription on the collection of the tax, due (duty), penalty interest at the expense of the payer-natural person, including that being an individual entrepreneur;

a court judgment on collecting the tax, due (duty) and penalty interest at the expense of property of the payer (pledgor, surety).

Prior to the recourse to the notary or the court, the tax or customs body is entitled to adopt a decision on imposing arrest on the property of the payer (pledgor, surety).

2. Collection of the tax, due (duty) and penalty interest at the expense of the property of an organization or individual entrepreneur shall be conducted consecutively in relation to:

the property not participating directly in the process of production of goods (performance of works, rendering of services);

other property, except for the property on which the collection may not be levied in accordance with the legislation.

3. Collecting of the tax, due (duty) and penalty interest at the expense of the property of the payer (pledgor, surety) shall be conducted via remittance to the relevant budget of the monetary means from its realization in the order established by the legislation.

4. Expenses of tax and customs bodies on collection of the tax, due (duty), penalty interest at the expense of the property of the payer (pledgor, surety) shall be reimbursed at the latter's expense in the order established by the legislation.

5. Means remaining after the fulfillment of the tax obligation, payment of penalty interest and reimbursement of expenses on their collecting are subject to return or setoff to the payer (pledgor, surety).

6. Officials of tax or customs bodies have no right to acquire the property of the payer (pledgor, surety) being realized in the order of fulfilling the decision or the executive inscription on collecting the tax, due (duty) and penalty interest.

CHAPTER 8
SETOFF, RETURN OF TAXES, DUES (DUTIES), PENALTY INTEREST

Article 66. Setoff, return of the excessively paid sum of tax, due (duty), penalty interest

1. Excessively paid sum of the tax, due (duty) and penalty interest is subject to setoff or return, unless otherwise established by the customs legislation.

The setoff or return of the excessively paid sum of the tax, due (duty) and penalty interest shall be effectuated without charging the interest on that sum, with the exception of the instance specified in clause 6 of this Article.

The setoff or return of the excessively paid sum of the tax, due (duty) and penalty interest, remittance of the interest charged on those sums shall be effectuated in Belarusian rubles.

2. The setoff or return of the excessively paid sum of the tax, due (duty) and penalty interest shall be effectuated by the tax body itself not later than five years from the payment of the mentioned sum consecutively for payment of:

that tax, due (duty), interest thereon. Such offset shall be effectuated using software and hardware means not later than on the day when the tax body became aware of the sum of that tax, due (duty), and penalty interest thereon;

unfulfilled tax obligation or unpaid penalty interest on other taxes, dues (duties). Such setoff shall be effectuated within three working days from the day of detecting the fact of availability of an unfulfilled tax obligation or unpaid penalty interest for the payer.

3. A setoff of an excessively paid sum of the tax, due (duty), penalty interest may be effectuated upon an application of the payer according to the established form against:

fulfillment of the tax obligation on other taxes, dues (duties) or payment of penalty interest thereon;

fulfillment of the tax obligation of anothe person, payment of the penalty interest charged for that person. In that instance, the payer is entitled to lodge such an application upon absence of an unfulfilled tax obligation or unpaid penalty interest.

An application for the setoff of the excessively paid sum of the tax, due (duty) and penalty interest shall be lodged with the tax body not later than five years from the day of payment of the mentioned sum in a written or electronic form.

The decision about the setoff or refusal to effectuate the setoff of the tax, due (duty), penalty interest is to be adopted not later than three working days (concerning the state duty not later than within fifteen working days) from the day of submission of the application by the payer in a written form for setoff of the excessively paid sum of the tax, due (duty), penalty interest, and upon lodging such an application in electronic form from the day of transfer to the private office of the payer of an acknowledgement of its receipt.

4. The tax body shall inform the payer according to the established form:

on the setoff effectuated or refusal of its effectuating not later than within three working days from the day of adopting a respective decision according to the results of consideration of his application. In the instance specified in indent three of part one of clause 3 of this Article, the communication shall be also sent to the other person;

on the setoff effectuated in accordance with indent three of clause 2 of this Article not later than within three working days from its effectuation.

5.  Return of an excessively paid sum of the tax, due (duty), penalty interest shall be effectuated on an application of the payer in the absence of an unfulfilled tax obligation or unpaid penalty interest for the payer.

An application for the return of the excessively paid sum of the tax, due (duty) and penalty interest shall be lodged with the tax body according to the established form not later than five years from the day of payment of the mentioned sum in a written or electronic form.

The decision about the return or refusal to effectuate the return is to be adopted not later than within fifteen working days from the day of submission of the application by the payer in a written form for return of the excessively paid sum of the tax, due (duty), penalty interest, and upon lodging such an application in electronic form from the day of transfer to the private office of the payer of an acknowledgement of its receipt.

The tax body shall inform the payer according to the established form on the return effectuated or refusal of its effectuating not later than within three working days from the day of adopting a respective decision according to the results of consideration of his application.

6. When the time limit mentioned in part three of clause 5 of this Article is violated, the sum of the excessively paid tax, due (duty) and penalty interest shall be returned to the payer with the interest charged thereon for every day of violation of the time limit of return at the rate equal to 1/360 of the rate of refinancing of the National Bank of the Republic of Belarus in effect on the day of adoption of the decision on return of that sum. The interest shall be charged from the day following the day of expiration of the time limit for the adoption of the decision on return of the excessively paid sum of the tax, due (duty) and penalty interest till the day of adoption of such a decision.

7. In the instances and the order established by this Code, setoff or return of sums of the personal income tax excessively retained and remitted by tax agents shall be effectuated by the tax body or by the tax agent.

8. This Article is to be applied at the setoff or return of an excessively paid sum of the patent duty, as well as of customs payments and penalty interest with regard to the specific features established by the customs legislation.

Setoff of an excessively paid sum of the tax, due (duty), penalty interest against an unfulfilled tax obligation or non-payment of penalty interest shall be effectuated by the customs body within five working days from the day of detecting the fact that the payer has an unfulfilled tax obligation or did not pay penalty interest.

The decision about the setoff or refusal to conduct the setoff is to be taken not later than five working days from the day of submission of the application by the payer for such setoff.

Article 67. Setoff, return of the excessively collected sum of tax, due (duty), penalty interest

1. Excessively collected sum of the tax, due (duty) and penalty interest is subject to setoff or return, unless otherwise established by the customs legislation upon availability of a decision of the tax body or the court on recognition of the tact of the excessive collection of such a sum.

Setoff of the excessively collected sums of tax, due (duty) or penalty interest shall be effectuated in accordance with Article 60 of this Code, unless otherwise established by the customs legislation.

2. The tax body shall inform the payer on an excessively collected sum of the tax, due (duty), penalty interest not later than within three working days from the day of issuance of a decision of the tax body or receipt of the court judgment on recognition of the fact of the excessive collection of such a sum.

3. Return of the excessively collected sum of the tax, due (duty) and penalty interest shall be effectuated in Belarusian rubles without charging the interest on that sum, with the exception of the instance established by clause 4 of this Article.

Return of an excessively collected sum of the tax, due (duty), penalty interest shall be effectuated on an application of the payer in the absence of an unfulfilled tax obligation or unpaid penalty interest.

The application on return of the excessively collected sum of the tax, due (duty) and penalty interest shall be lodged to the tax body in a written or electronic form not later than within five years from the day of collecting the mentioned sum.

The decision on return of an excessively collected sum of the tax, due (duty), penalty interest, and the interest charged on that sum or on refusal to effectuate the return shall be adopted by the tax body within fifteen working days from the day of submission of the application by the payer in a written form for return of the excessively collected sum of the tax, due (duty), penalty interest, and upon lodging such an application in electronic form from the day of transfer to the private office of the payer of an acknowledgement of its receipt.

The tax body shall inform the payer according to the established form on the return effectuated or refusal of its effectuating not later than within three working days from the day of adopting a respective decision according to the results of consideration of his application.

4. The sum of the tax, due (duty) and penalty, excessively collected as a result of the unlawful decisions of the tax bodies, unlawful actions (omission) of their officials, shall be returned to the payer with the interest charged thereon for every day of collection at the rate equal to 1/360 of the refinancing rate of the National Bank of the Republic of Belarus in effect on the day of adoption of the decision on return of that sum.  The interest on the mentioned sum shall be charged from the day of collection till the day of adoption by the tax body of the decision on return of that sum.

5. This Article is to be applied at the setoff or return of an excessively collected sum of customs payments, penalty interest with regard to the specific features established by the customs legislation.

Article 68. Setoff, return of monetary means exceeding the sum of accounts receivable

1. If, as a result of the banks execution of a tax or customs bodys decision to collect taxes, fees (duties) and penalty interest at the expense of the debtors means, it is established that the sum of accounts receivable collected exceeds the sum of accounts receivable to be collected (hereinafter in the Article as the sum of excess of accounts receivable), then such sum is subject to be returned to the debtor in the absence of the debtors unfulfilled tax obligation, unpaid penalty interest.

2. If the debtor has an unfulfilled tax obligation, unpaid penalty interest, the tax or customs body shall, within two working days from the date of detecting such a fact, effectuate the setoff of the sum of excess of accounts receivable against the fulfillment of the tax obligation, payment of penalty interest. The tax body shall inform the debtor according to the established form on the setoff effectuated via placing a communication adopted in electronic form in his private office of the payer not later than within three working days from the day of conducting such a setoff.

3. In the absence of an unfulfilled tax obligation or unpaid penalty for the debtor, the tax or customs body itself shall effectuate the return of the sum of of excess of accounts receivable not later than two working days from the day of detection of such fact.

The return of the sum of excess of accounts receivable shall be effectuated in the currency in which the legislative acts envision the payment of the tax, due (duty) or penalty interest collected at the expense of the monetary means of the debtor of the payer and without charging the interest.

SECTION III
RECORD-KEEPING OF PAYERS. TAX CONTROL

CHAPTER 9
RECORD-KEEPING OF PAYERS

Article 69. Record-keeping of payers. Order of putting on record and taking off record in the tax body

1. The payers are subject to putting on record in the tax body regardless of circumstances established by tax legislation with the availability of which the arising and fulfillment of the tax obligation concerning one or another tax, due (duty) are connected.

When being put on record, each payer shall be assigned a single tax payer number for all taxes, dues (duties), including for customs payments.

The accounting number of the payer whose putting on record is carried out in the course of his state registration is similar to the registration number in the Unified State Register of Legal Persons and Individual Entrepreneurs.

The payment for assigning the tax payer number, for taking off record and issuance of respective documents to the payer is not charged.

The order and conditions for assigning, applying and also changing the payer number and for recognition thereof as invalid are established by the Ministry on Taxes and Dues of the Republic of Belarus.

The data on the payer are considered tax secret from the moment of its putting on record, unless otherwise established by this Code.

2. The tax bodies carry out the entering of the date on putting on record of payers in the State Register of Payers (other obliged persons).

The order of maintaining the State Register of Payers (other obliged persons) is established by the Council of Ministers of the Republic of Belarus.

3. Unless otherwise established by Article 70 of this Code, putting on record shall be carried out:

of an organizations at the place of its location;

of a natural person  at the place of its residence;

of a natural person not having a place of residence in the Republic of Belarus, upon his acquiring the ownership, other rights to immovable property being in the territory of the Republic of Belarus at the place of location of such immovable property;

of an affiliate of the legal person of the Republic of Belarus, executing in accordance with this Code tax obligations of that legal person at the place of location of such an affiliate;

of a trusteeat at the place of location of the organization (place of residence of the natural person) being the trustee;

of a simple partnership (participants of a contract on joint activity) at the place of location of the organization (place of residence of the natural person) on which the running of business of this partnership is imposed or which receives the earnings from the activity of the partnership (contract of joint activity).

4. Putting on record of legal persons of the Republic of Belarus not specified in clause 5 of this Article and individual entrepreneurs shall be carried out in the course of their state registration within two working days from the day of receipt from the registering body via AIS Interactionof the information card.

5. Putting on record of a religious organization, and also of another non-commercial organization, the putting on record of which has not been carried out in the course of its state registration, shall be carried out on the basis of an application to be lodged by them to the tax body at the place of their location not later than within ten working days from the day of receipt of the certificate of state registration. Such organizations shall enclose to the application copies of the certificate of state registration, of the statute, of documents confirming the official status of the head of the legal person, a person being the acting head, and also confirming the powers of the person fulfilling the management of accounting, with simultaneous presentation of originals of such documents for verification.

Putting on record of a state body, state legal person, the regulation on which is approved by an act of legislation, shall be carried out on the basis of an application to be lodged with the tax body at the place of its later than ten working days from the day of issuance (adoption) of the normative legal act in accordance with which they are formed. The application shall be accompanied by the data about the normative legal acts in accordance with which they have been created.

Putting on record of a simple partnership (participants of a contract on joint activity) shall be carried out on the basis of an application being lodged with the tax body at the place of location (place of residence) of the participant on whom in accordance with the contract on joint activity the running of business of the partnership is imposed, not later than within ten working days from the day of conclusion of the contract on joint activity. The application according to the established form shall be enclosed copies of the given contract, of the power of attorney issued to the participant of the simple partnership (contract on joint activity) on whom in accordance with that contract the running of business of the partnership is imposed (when such powers are not granted to the participant by the contract), with simultaneous presentation of originals of such documents for verification.

6. Putting on record of a trustee shall be carried out on the basis of its application being lodged with the tax body at the place of location of the organization (place of residence of the natural person) being the trustee, not later than within ten working days from the day of conclusion of the contract of trust management of property. A trustee is not subject to be put on record if he concluded the contract of trust management of:

stakes (shares, rights) in the statutory funds of commercial organizations, being in the ownership of individual state officials;

monetary means;

securities;

a bank-managed fund.

The application specified in part one of this clause shall be accompanied by the information on the conclusion of the contract on trust management of property with indication of its number, date of conclusion, validity period, and also the name of the legal person or the surname, own name, patronymic (if available) of the natural person in whose interests the property trust management of the property is being carried out (trustor or beneficiary).

7. Putting on record of an affiliate, fulfilling the tax obligations of the legal person, shall be carried out on the basis of a communication of the legal  person on occurrence of circumstances in connection with which the duty of the affiliate of the Belarusian organization arises on fulfilling of tax obligations of that organization to be lodged with the tax body at the place of putting on record of the legal person, not later than within ten working days from the day of occurrence of such a circumstance.

The communication specified in part one of this clause shall be accompanied by a copy of the regulations on the affiliate with simultaneous presentation to the tax body of the original of such regulations for verification.

8. Putting on record of a notary carrying out notarial activity in a notarial office, advocate shall be carried out on the basis of an application being lodged with the tax body not later than within ten working days from the day of receipt, accordingly, of the certificate of the notary, certificate about registration of the advocate.

The application specified in part one of this clause shall be accompanied by a copy of the certificate of the notary, certificate about registration of the advocate with simultaneous presentation to the tax body of the originals of such documents for verification.

9. Putting on record of a natural person not being individual entrepreneur may be carried out on the basis of documents and/or information on such a payer and/or on taxation objects, received by the tax body, or on the basis of his application.

10. Putting on record shall be carried out by the tax body within two working days after the receipt of the application (notification) of the payer with enclosure of necessary documents (data) specified in clauses 58 of this Article.

11. In the event of change of the place of location or the place of residence of the payer which entails the necessity of his putting on record in another tax body, the taking off record in the tax body at the previous place of location or residence shall be carried out within two working days, accordingly, from the day of:

receipt by the tax body of the communication of the organization on changing the place of its location;

lodging with the tax body by the natural person of an application on the change of the place of residence;

receipt by the tax body of documents and/or information on the change of the place of location or place of residence of the payer.

12. Taking off record in the tax body shall carried out within ten working days from the day of:

entering the record in the Unified State Register of Legal Persons and Individual Entrepreneurs about the exclusion of the organization, individual entrepreneur from that register or termination of activities of the organization as a result of its reorganization;

termination of the contract of trust management of property (of all contracts on trust management of property when two and more contracts are concluded), contract of simple partnership (participants of a contract of joint activity);

receipt of a communication from the legal person on the liquidation of the affiliate, and also upon arising of a circumstance in connection with which the obligation of the affiliate to fulfill tax obligations the that legal person is terminated;

receipt of information about termination of activities of the notary carrying out activity notarial activity in a notarial office, advocate;

receipt of information about the death of the natural person and the declaring him as deceased. 

Article 70. Specific features of putting on record and taking off record of foreign organizations in the tax body

1. Foreign organizations are subject to putting on record in the tax body upon their application submitted:

1.1.by a foreign organization which received a permit to open a representative office in the authorized body in the cases established by the legislation, to the tax body at the place of location of the representative office not later than ten working days from the day of receipt of such permit.

The following shall be enclosed to the application:

original and a copy of the permit to open a representative office (in relation to a representative office of a foreign bank a copy of the notice of the National Bank of the Republic of Belarus about the authorization to open the representative office of the foreign bank);

original and a copy of the regulations on the representative office;

original and a copy of the power of attorney for the head of the representative office;

copy of the constituent document of the foreign organization;

copy of the extract from the commercial register of the country of the place of location of the foreign organization or another equivalent evidence of its legal status in accordance with the legislation of the country of the place of its location;

1.2. by a financial organization when acquiring ownership, other rights to the immovable property located in the territory of the Republic of Belarus, with the exception of the property which, upon state registration of arising of the ownership, other rights to immovable property, transactions with immovable property, is transferred by the foreign organization into the economic management of the Belarusian organization or as a contribution to its statutory fund to the tax body at the place of location of such property prior to the state registration of arising of the ownership, other rights to immovable property, transactions with immovable property.

The following shall be enclosed to the application:

original and a copy of a power of attorney or another document confirming the powers to make transactions, other legally significant actions on behalf of the foreign organization, including the powers to represent its interests in relations regulated by the tax legislation;

original and a copy of documents or of an extract from the documents being a ground for the state registration of the ownership, other rights to immovable property being in the territory of the Republic of Belarus;

copy of the extract from the commercial register of the country of the place of location of the foreign organization or another equivalent evidence of its legal status in accordance with the legislation of the country of the place of its location;

1.3. by a foreign organization when holding in the territory of the Republic of Belarus amusements and wild beast shows, to the tax body at the place of holding such events prior to the beginning of their holding.

The following shall be enclosed to the application:

original and a copy of a power of attorney or another document confirming the powers to make transactions, other legally significant actions on behalf of the foreign organization, including the powers to represent its interests in relations regulated by the tax legislation;

copy of the extract from the commercial register of the country of the place of location of the foreign organization or another equivalent evidence of its legal status in accordance with the legislation of the country of the place of its location;

1.4. by a foreign organization when cultural events and shows are being organized and held in the territory of the Republic of Belarus with the exception of the said activity under contracts with legal persons of the Republic of Belarus or individual entrepreneurs registered in the Republic of Belarus, recognized as tax agents, which stipulate the receipt of revenue to the accounts of such agents to the tax body at the place of holding the first cultural event and show till the beginning of holding a cultural event and show in the territory of the Republic of Belarus.

The following shall be enclosed to the application:

original and a copy of a power of attorney or another document confirming the powers to make transactions, other legally significant actions on behalf of the foreign organization, including the powers to represent its interests in relations regulated by the tax legislation;

copy of the extract from the commercial register of the country of the place of location of the foreign organization or another equivalent evidence of its legal status in accordance with the legislation of the country of the place of its location;

1.5. by a foreign organization that, on the basis of contract, performs works and/or renders services in the territory of the Republic of Belarus within a period exceeding the time limits established by clauses 3 and 4 of Article 180 of this Code to the tax body at the place of carrying out activity in the territory of the Republic of Belarus prior to the beginning of such activity.

The following shall be enclosed to the application:

a statement of the tax body of the country of location of the foreign organization about its registration as payer in this country with indication of the code of the payer or payer code analogue;

original and a copy of the contract according to which the foreign organization performs works and/or renders services in the territory of the Republic of Belarus within a period exceeding the time limits established by clauses 3 and 4 of Article 180 of this Code;

original and a copy of the power of attorney or another document confirming the powers of the representative of the foreign organization in the territory of the Republic of Belarus to make transactions, other legally significant actions on behalf of the foreign organization, including the powers to represent its interests in relations regulated by the tax legislation;

copy of the constituent document of the foreign organization;

copy of the extract from the commercial register of the country of the place of location of the foreign organization or another equivalent evidence of its legal status in accordance with the legislation of the country of the place of its location;

1.6. by a foreign organization carrying out or planning to carry out activity, in the territory of the Republic of Belarus, through an organization or a natural person, recognized as permanent representation of the foreign organization, respectively to the tax body at the place of location of such organization or at the place of residence of such natural person, prior to beginning such activity.

The following shall be enclosed to the application:

original and a copy of the contract of the foreign organization with the organization or natural person, through which the foreign organization is planning to carry out its activity in the territory of the Republic of Belarus

original and a copy of a power of attorney or another document confirming the powers to make transactions, other legally significant actions on behalf of the foreign organization, including the powers to represent its interests in relations regulated by the tax legislation;

copy of the constituent document of the foreign organization;

copy of the extract from the commercial register of the country of the place of location of the foreign organization or another equivalent evidence of its legal status in accordance with the legislation of the country of the place of its location;

1.7. by a foreign organization rendering services in the electronic form for natural persons to the inspectorate of the Ministry on Taxes and Dues of the Republic of Belarus for the city of Minsk in electronic form through the single electronic services portal prior to the expiration of the quarter in which the taxation object for the value added tax has arisen.

The application shall be accompanied by a copy of the extract from the commercial register of the country of the place of location of the foreign organization or another equivalent evidence of its legal status in accordance with the legislation of the country of the place of its location.

If within the time limit established by part one of this sub-clause, lodging of the application for putting on record in the tax body by the foreign organization is impossible due to the inaccessibility of the portal of the Ministry on Taxes and Dues of the Republic of Belarus which is an information resource of this Ministry, of the single portal of electronic services of the nation-wide automated information system (including due to the lack of power supply and/or failure of equipment (part thereof)), insufficient portal resources, errors in portal software, unavailability and/or lack of communication channels with those portals, including insufficient width of communication channels with them, this time limit shall be extended by the time necessary for eliminating the causes due to which the foreign organization cannot lodge the application.

2. Originals of documents submitted to the tax body for putting on record shall be returned to the payer after their comparative check with the copies.

The documents drawn up in foreign languages shall be translated into Belarusian or Russian language. The accuracy of the translation or authenticity of the signature of the translator shall be attested by a notary or diplomatic representations or consular institutions of the Republic of Belarus.

The extract from the commercial register of the country of the place of location of the foreign organization or another equivalent evidence of its legal status in accordance with the legislation of the country of the place of its location shall be issued  not later than three months from the day of presentation of documents for putting on record in the tax body of the Republic of Belarus.

A copy of the extract from the commercial register of the country of the place of location of the foreign organization or another equivalent evidence of its legal status in accordance with the legislation of the country of the place of its location must be formalized in accordance with legislation of the state that issued it, certified by competent bodies of that state and legalized in the diplomatic missions or consular institutions of the Republic of Belarus, unless otherwise stipulated by treaties of the Republic of Belarus.

Requirements established by parts two four of this clause do not expand to documents being submitted for putting on record in the tax body by the foreign organization specified in sub-clause 1.7 of clause 1 of this Article.

3. A foreign organization being put on record in the tax body is obliged, in the order and within the time limits specified in clause 1 of this Article, to inform the tax body about the occurrence of circumstances specified in that clause. Simultaneously shall be presented documents specified in clause 1 of this Article, the duty to present which was absent when the foreign organization had been put on record in the tax body.

4. Taking off record of a foreign organization is carried out by the tax body within ten working days:

from the day of receipt of information of an authorized body about the termination of activity of the representative office of the foreign organization, provided that from the day of fulfillment of tax obligations by the foreign organization, and also of its paying the penalty interest, more than twelve months have passed and within this period the tax body did not receive communications about occurrence of circumstances specified in clause 1 of this Article;

upon expiration of twelve months from the day of fulfillment of tax obligations by the foreign organization, and also of payment of penalty interest by it if during that period the tax body did not receive communications about additional grounds for putting on record (in relation to a foreign organization that did not obtain in the authorized body a permit to to open a representative office).

CHAPTER 10
TAX CONTROL

Article 71. Tax control and forms of its carrying out

1. The tax control is the system of measures on control over fulfillment of the tax legislation carried out by the officials of the tax bodies within their powers through:

record-keeping of payers (other obliged persons);

conducting of inspections.

Conducting inspections by the tax bodies shall be carried out with application within the limits of their competence of methods and procedures established by the Ministry on Taxes and Dues of the Republic of Belarus.

2. The customs bodies, within their competence, carry out the control over observance of the tax legislation in connection with importation (exportation) of goods to (from) the territory of the Republic of Belarus under the procedure provided by this Code and the customs legislation. In doing so the customs bodies enjoy the rights and bear responsibilities provided by this Code for the tax bodies.

Article 72. Inspection

1. The order of the organization and conduct of inspections is established by the President of the Republic of Belarus, unless otherwise established by the President of the Republic of Belarus.

When conducting inspection in the order established by the President of the Republic of Belarus, the tax bodies are entitled to apply the time-keeping method on the conditions and in the order established by Article 76 of this Code.

The order of the organization and conduct of inspections specified in clause 2 of this Article are established by this Code.

2. In accordance with this Code, tax bodies conduct the following inspections:

2.1. chamber inspections;

2.2. field inspections, including additional:

inspections conducted upon liquidation of organizations or termination of activities individual entrepreneurs, including on instructions of criminal prosecution bodies on an initiated criminal case and courts on cases being in their proceedings for recognition of the state registration of legal persons and individual entrepreneurs as invalid, as well as upon the availability of information and facts evidencing the failure to carry out entrepreneurial activities for 24 consecutive months;

inspections of the state bodies;

thematic operative inspections of a natural person not being individual entrepreneurs (with the exception of a notary carrying out notarial activity in a notarial office, advocate, person carrying out artisanal activity or activity in the field of agroecotourism);

in order to fulfill commitments accepted in accordance with treaties of the Republic of Belarus;

inspections conducted upon the termination of activity of foreign organizations in the territory of the Republic of Belarus and their representative offices, and also upon termination of activities in the territory of the Republic of Belarus of permanent representations of foreign organizations;

inspection of the documents of financial and tax accounting and/or other documents restored by the inspected subject, related to taxation, submitted to the tax body within the time limit determined by part two of clause 3 of Article 107 of this Code;

for confirmation of the substantiation of the return the inspected subject from the budget of the difference between the sum of tax deductions and the total sum of value added tax computed on realization of goods (works, services), property rights;

upon an application of the payer;

upon reorganization of the payer;

checking the fact of the failure of a legal person or an individual entrepreneur to carry out activities for the past six consecutive months (in order to recognize the indebtedness of such subject as bad debt and to write it off).

3. Inspection specified in indent two of sub-clause 2.2 of clause 2 of this Article shall not be conducted:

3.1. in relation to legal persons and individual entrepreneurs, not carrying out activity from the day of the state registration or after an inspection conducted by the tax bodies, according to the results of which violations of the tax and other legislation the control over observance of which is imposed on the tax bodies have not been established;

3.2. in case of liquidation of an organization or termination of the activity of an individual entrepreneur who do not have cash flow on accounts opened with banks, electronic purses and/or there are no mentioned accounts, electronic purses for 36 consecutive months preceding the day of:

entering in the Unified State Register of Legal Persons and Individual Entrepreneurs of a record on the beginning of the procedure of liquidation according to a decision of the owner of property (founders, participants) or by the body of the legal person authorized by the statute (constituent contract for a commercial organization which operates only on the basis of the constituent contract) or termination of activities of an individual entrepreneur;

sending to the registering body of a recommendation (proposal) about the liquidation (termination of activities) of an economic entity. In that instance the tax body shall send to the registering body statements and data on the basis of available information about activities of such legal person, individual entrepreneur;

3.3. in relation to a private unitary enterprise or a peasant's (farmer's) husbandry, if more than twelve months have passed from the day of the death (declaring as deceased) of the natural person who was simultaneously the founder and the head of that unitary enterprise or who was the head of the peasant's (farmer's) husbandry created by him alone and the heirs did not accept inheritance, refused to accept it, in the established order.

Article 73. Chamber inspection

1. The chamber inspection is conducted at the location of the tax body on the basis of examination of tax declarations (calculations), declarations on incomes and property,  other documents and/or information about the payer, available in the tax body.

The chamber inspection is conducted without issuing the prescription for its conduct.

2. The chamber inspection includes a preliminary and/or subsequent stages of its conducting.

3. The purpose of the chamber inspection is to provide the payer with the right to independently eliminate the violation detected by the tax body and to additionally pay the tax, due (duty).

4. The tax body is entitled to obtain from the payer, when conducting:

a preliminary stage of the chamber inspection, explanations on computation and payment of the taxes, dues (duties), and observance of the order for filling in the tax declarations (calculations);

a subsequent stage of the chamber inspection, primary accounting documents confirming the substantiation of the application of tax privileges, the legality of the application of tax deductions, the substantiation of expenses, non-realization expenses, taken into account for taxation, and/or documents on the basis of which the sums of taxes, dues (duties) payable to the budget in relation to other elements of taxation are reduced, and/or information, explanations on the computation, payment of taxes, dues (duties), as well as the economic substantiation of the price in the order and instances provided for by Chapter 11 of this Code.

From a foreign organization rendering services in the electronic form for natural persons, the tax body is entitled to request the information confirming that the place of realization of services in the electronic form is recognized the territory of the Republic of Belarus, sum of revenue received form rendering services in the electronic form, and also other information related to rendering of such services.

5. The preliminary stage of the chamber inspection shall establish:

5.1. timeliness of putting on record in the tax bodies;

5.2. timeliness of submission of tax declarations (calculations);

5.3. observance of the order for filling in tax declarations (calculations);

5.4. correctness of completion of the requisites of the tax declaration (calculation);

5.5. conformity of the payers requisites indicated in the tax declaration (calculation) to the data contained in the State Register of Payers (Other Obliged Persons);

5.6. correctness of arithmetical reckoning of final amounts of taxes, dues (duties), penalty interest to be paid to the budget according to submitted tax declaration (calculation);

5.7. timeliness and completeness of the payment of taxes, dues (duties), penalty interest to the budget;

5.8. observance of requirements of sub-clause 1.12 of clause 1 of Article 22 of this Code.

6. The preliminary stage of the chamber inspection in order to establish the circumstances specified in sub-clauses 5.35.6 of clause 5 of this Article is carried out using software and hardware means upon:

drawing up by the payer of the tax declaration (calculation) submitted to the tax body in the form of an electronic document;

receipt by the tax body of the tax declaration (settlement), including the one submitted on paper carrier.

If the payer, in the preparation of a tax declarations (calculation) in the form of an electronic document, fails to observe the procedure for filling it out, a list of errors shall be formed, after correcting which the payer shall send the tax declaration (calculation) to the tax body.

If the tax body detects, during the preliminary stage of the chamber inspection, errors in filling out the tax declaration (calculation), a message shall be sent to the payer with a proposal to make appropriate corrections and/or provide explanations not later than within five working days from the day of receipt of the message. The message shall be sent in an electronic or written form according to the established form.

The preliminary stage of the chamber inspection in accordance with the procedure established by this Article may be conducted with respect to other documents, the duty of presentation of which is established by the legislation.

7. The subsequent stage of the chamber inspection shall establish:

7.1. completeness of the computation of taxes, dues (duty) and the accuracy of the information specified by the payer in tax declarations (calculations) and other documents, the duty to submit which is established by law, or their non-submission;

7.2. conformity of data contained in the tax declaration (calculation) and documents and/or information enclosed to it to other documents and/or information, available in the tax body, about activity of the payer;

7.3. substantiation of application by the payer of tax rates and tax privileges;

7.4. observance of requirements of the legislation the control over which is imposed on tax bodies, including compliance of the data contained in declarations on volumes of production and/or turnover of alcohol, non-food alcohol-containing products, ethyl alcohol and tobacco raw materials and tobacco products, balances of production and turnover of alcohol, non-food alcohol-containing products, ethyl alcohol and tobacco raw materials and tobacco products, the duty of submission of which is established by the legislation, with other documents, data about the activity of payer, available in the tax body;

7.5. other matters related to timely and complete fulfillment of tax obligations.

8. When in the course of the subsequent stage of the chamber inspection,  incompleteness of data, mistakes in the tax declaration (calculations) and/or documents submitted by the payers in accordance with the legislation, their inconformity to documents and/or information available in the tax body, or upon failure to submit a tax declaration (calculation) when taxation objects are available (established), the payer shall be given a notification with the proposal to submit additional documents, information and/or explanations, documents the duty of submission of which is established by the legislation, or to make corresponding corrections in the tax declaration (calculation) and/or documents, to submit the tax declaration (calculation) (later on in this Article the notification), not later than within ten working days from the day of sending the notification. The notification shall be sent in an electronic or written form according to the established form. The notification shall be sent to the payer by registered mail with a return receipt on its handing in to the payer or his representative.

The time limit specified in part one of this clause may be extended by the head (his deputy) of the tax body on the basis of an application submitted by the payer with the justification for the need to extend it.

If, after receiving the notification, the payer does not submit additional documents, information and/or explanations, or the corresponding corrections are not made, or the tax declaration (calculation) is not submitted, the tax body, when conducting the chamber inspection , is entitled to request from the payer in accordance with clause 1 of Article 79 of this Code, primary accounting documents and/or documents specified in indent three of part one of clause 4 of this article, and/or other information on the circumstances determined by part one of this clause.

If according to results of examination of additional data and/or explanations, documents submitted by the payer, including at the request of the tax body, or upon failure to submit them, a fact of committing an offence has been established, and/or the right to tax privileges, legality of the application of tax deductions, the substantiation of expenses, non-realization expenses, taken into account for taxation, or the right to reduction of sums of taxes, dues payable to the budget in relation to other elements of taxation, has not been confirmed, and/or corresponding changes and/or additions have not been made in the tax declaration (calculation) at the proposal of the tax body, or the tax declaration (calculation) is not submitted, an act of the chamber inspection shall be drawn up.

9. The message specified in part three of this Article or notification are deemed to be received by the payer on the day of their placement in the private office of the payer or upon expiration of three working days from the day of sending in a written form.

10. The tax body, when drawing up an act of the chamber inspection, shall compute the sums of taxes, dues (duties) to be paid without taking into account of tax privileges, tax deductions, costs, non-realization expenses reducing the sum of the tax, due (duty) payable to the budget substantiation of the application of which have not been confirmed in the established order, and also with account of other taxation elements.

An act of the chamber inspection shall be drawn up not later than within three months from the day following the day of expiration of the time limit established by part one of clause 8 of this Article. The time limit for drawing up an act of the chamber inspection may be extended by a decision of the head (its deputy) of the tax body for a period not exceeding three months and in the case of sending a request to state bodies, other organizations and individual entrepreneurs, including to the competent bodies of foreign states.

The act of the chamber inspection shall be drawn up according to the established form in two copies. The signing and handing in of the act of the chamber inspection, issuance of a decision shall be carried out in the order established by Article 81 of this Code.

The day of drawing up of the act of the chamber inspection is deemed to be to day of signing of the act by the official of the tax body who has performed the inspection.

11. Results of the chamber inspection, during which no violations of legislation have been detected, are not documented.

An act of the chamber inspection is not drawn up in the case of detection during a chamber inspection of a violation of the legislation containing elements of an administrative offence, but not entailing additional payment of taxes, dues (duties).

12. A chamber inspection in the sphere of declaring by a natural person of incomes and property at the request of the tax body shall be conducted in the order established by the Council of Ministers of the Republic of Belarus with regard to requirements of this Code and the Law of the Republic of Belarus "On declaring by natural persons of incomes and property at request of tax bodies". The forms of documents applied by the tax bodies and their officials when conducting the chamber inspection shall be established by the Ministry on Taxes and Dues of the Republic of Belarus.

When exercising the control in the sphere of declaring incomes and property, the tax bodies, other state bodies (organizations) to which the declarations on incomes and property are submitted have the right to receive from other state bodies, other organizations, on a gratuitous basis, information about incomes received by persons who submitted such declarations, as well as on the property being in their ownership, with the exception of the information containing data referred to state secrets or other secrets protected by the legislation.

13. Upon detection, in the course of the chamber inspection, of circumstances indicating that the payer has committed offences which cannot be fully confirmed by the chamber inspection on the basis of documents submitted (not submitted) by the payer in accordance with the legislation, an inspection may be appointed in the order established by the legislation.

Article 74. Field inspection

1. Field inspections shall be appointed by the head (his deputy) of the tax body conducting the inspection.

2. The field inspection shall be conducted, as a rule, by officials of the tax body at the place of putting on record of the payer. Officials of inferior tax bodies may take part in the field inspection appointed by the head (his deputy) of the superior tax body.

3. The field inspection is conducted by the tax bodies on the basis of a prescription of the head (his deputy) of the tax body conducting the inspection, verified by the stamp of the tax body or drawn up on the letterhead. The prescription shall indicate:

the number and date of the issuance of the prescription;

ground for performing the inspection;

the name of the tax body performing the inspection;

surname, own name, patronymic (if available) of the payer natural person, name of the payer organization, and when inspections mentioned in indent four of sub-clause 2.2 of clause 2 of Article 72 of this Code are conducted, the territory or the place of carrying out activity where the inspection will be conducted;

name and initials of the official of the tax body performing the inspection, its position (composition of the group of officials performing the inspection, the name and initials of the person who heads the group, its position);

complete list of issues to be inspected (not indicated in relation to the inspections mentioned in indent two and four of sub-clause 2.2 of clause 2 of Article 72 of this Code);

inspected period (not indicated in relation to the inspections mentioned in indent four of sub-clause 2.2 of clause 2 of Article 72 of this Code).

the term of inspection (date of beginning and end of the inspection). About prolongation of the period of inspection, a note shall be made in the prescription with which the payer or his representative is to be familiarized.

If from the date of issuance of the prescription to conduct an inspection until the moment of its completion, it will be necessary to change the composition of the inspectors, list of issues to be checked, inspected period(s),  time limit of the inspection, the head (his deputy) of the tax body is entitled to introduce corresponding changes and/or additions in the prescription.

4. In the part of issues concerning  compliance with the tax legislation, inspections shall be conducted for a period not exceeding five calendar years preceding the year in which, in the established order, a decision on the appointment of the inspection has been made, and also for the expired period of the current calendar year. In the case of submission of a tax declaration (calculation) for the tax on profit with changes and/or additions, according to which the sum of the loss received increases (arises) as compared with the previously submitted tax declaration (calculation) for the tax on profit, or a tax declaration (calculation) on the value-added tax with changes and/or additions, according to which tax deductions increase in comparison with the previously submitted tax declaration (calculation) for the value-added tax, for the period exposure exceeding the mentioned five-year period , the inspection shall be conducted for the period for which the tax declaration (calculation) with changes and/or additions is submitted. As regards other issues within the competence of the tax bodies, the period under inspection is limited to three calendar years preceding the year when the decision on the appointment of the inspection has been made, and the expired period of the current calendar year.

The period size specified in part one of this clause is not limited in the event of:

conducting the inspection on instructions of the President of the Republic of Belarus, Council of Ministers of the Republic of Belarus, Chairperson of the Committee of State Control of the Republic of Belarus and his deputies, the Prosecutor General and his deputies;

conducting the inspection on instructions of criminal prosecution bodies on initiated criminal cases;

conducting an additional inspection.

5. Prior to the beginning of the field inspection, the official of the tax body who conducts the inspection (the person heading the group) is obliged to present to the payer or to its representative the official identification and the prescription to conduct the inspection (in the cases indicated in part four of this clause a copy of the prescription and the enclosure thereto), and also to enter necessary data into the in the book of inspections records (if the given book has been presented).

In the case of failure to present (absence) of the book of inspections records, that information is indicated in the act (certificate) of the inspection.

If the field inspection commences with making a control purchase of commodity material valuables or with placing a control order for performing works (rendering services), the official identification and the prescription to conduct the inspection (in the cases indicated in part four of this clause a copy of the prescription and the enclosure thereto) are presented to the payer or his representative after completion of making the control purchase or placing a control order for performing works (rendering services). The data about the field inspection with the use of the method of a control purchase of commodity material valuables or with placing a control order for performing works (rendering services), shall be entered in the book of inspections records after the presentation of the official identification and the prescription to conduct the inspection.

In the event of absence of the payer at the place of location (residence) indicated in the constituent documents (certificate of state registration) and/or at the last known to the tax body, a corresponding note is to be maid in the prescription to conduct the inspection. In that instance a copy of the prescription is to be sent to the payer, his representatives by post to the place of location (residence) last known to the tax body. In doing so the payer is deemed to be duly notified about the prescription upon the expiration of three days from the day of such sending.

6. An additional inspection shall be appointed to confirm the validity of arguments set forth in objection to the act (certificate) of inspection or a complaint against the decision of the tax body, study additional questions on cases (materials) received by law enforcement bodies, courts, except of those earlier agreed upon by an official of the tax body conducting the inspection and by officials of the criminal prosecution bodies, courts on cases being in their proceedings, or because of failure of the official of the tax body to comply with the established order for the appointment and conduct the inspections .

7. Thematic operative inspections of natural persons not being individual entrepreneurs are conducted by tax bodies at places of activities of those natural persons to proactively identify and prevent violations of legislation when they are being committed, in a limited area or in relation to objects, vehicles, other places of activity, including for establishing the facts of unregistered entrepreneurial activity, intelligence gathering, verification of applications and complaints of organizations and natural persons.

8. The time limit of the inspection, with the exception of an thematic operational and additional inspections, may not exceed:

of an individual entrepreneur, notary carrying out notarial activity in the notarial office, advocate, person carrying out artisanal activity or activity in the field of agroecotourism,  of temporary (anti-crisis) manager, not being legal persons or individual entrepreneurs fifteen working days;

other inspected subject thirty working days.

The time limit specified in part one of this clause may be extended by the head (his deputy) of the tax body. That time limit does not apply to inspections conducted at the instructions of criminal prosecution bodies on an initiated criminal case.

The time limit of an thematic operational audits concerning one inspected subject or its separate division shall not exceed three working days.

The term of an additional audit may not exceed ten working days. That time limit does not apply to additional inspections conducted at the instructions of criminal prosecution bodies on an initiated criminal case.

9. Conducting of an inspection, with the exception of a thematic operational inspection, may be suspended by the decision of the head (his deputy) of the tax body for a period not exceeding three months (in the case of a request sent to the competent bodies of foreign countries not exceeding six months) with simultaneous consideration of the issue of expediency for removing restrictions on the activities of the inspected subject, if they were applied by the tax body, under the following circumstances:

conducting research (tests), technical attestation or expert examination, operational search actions aimed at establishing the facts for purposes of the inspection;

the need to restore by the inspected subject documents required for the inspection;

direction of a request to the competent bodies, including those of foreign countries;

the need for the inspected subject to obtain documents and information requested by the tax body from outside the Republic of Belarus;

impossibility to continue the inspection due to the absence of the inspecting person due to a temporary incapability or by virtue of temporary disability of the representative of the inspected subject, as well as by other reason.

The period for which a field inspection is suspended shall not be included in the overall duration of the field inspection. The representative of the audited subject acquaints with a note which is made in the prescription on the suspension of the audit.

By the decision of the head (his deputy) of the tax body, the conducting of the field inspection may be extended one time, but not more than for fifteen working days in the presence of considerable volume of documents subject to be inspected, as well as in the need to conduct a considerable number of control actions (inventories, research, counter inspections and others).

Article 75. Counter inspection

1. Counter inspection is a method (way) for conducting an inspection to establish (confirm) the credibility and legality of the execution of financial and economic operations between the inspected subject and its contractors or third persons related to inspected financial and economic operations (hereinafter counter inspection).

2. A counter inspection of counterparties (third persons) of the inspected subject shall be conducted on the basis of the prescription issued in regard to the inspected subject in the order established for conducting inspection.

When it is necessary to perform the counter inspection of the payer with the place of location (residence) in another settlement, such inspection is performed by the tax body at the place of putting on record of this payer on the basis of a written request about the conducting of the counter inspection, sent by the tax body for which its conducting is necessary. The following shall be enclosed to the request:

a copy of the prescription to conduct the inspection of the inspected payer, certified by the tax body that issued such prescription;

enclosure to the prescription in which the data about the counterparties (third persons) that are subject to the counter inspection and the data about the officials of the tax body that are sent to conduct the counter inspection are indicated. In that instance the data about the counterparties (third persons) are to be signed by the head (his deputy) of the tax body that issued the prescription and certified by the seal of this body. The data about the officials of the tax body that are sent to conduct the counter inspection are to be signed by the head (his deputy) of the tax body that issued the prescription and certified by the seal of this body.

3. Within the framework of inspections specified in indent two of sub-clause 2.2 of clause 2 of Article 72 of this Code, counter inspections are not conducted when the amount of individual financial operation (the amount of the monetary value of economic operations) at the time of it performance, undertaken with legal persons and individual entrepreneurs of the Republic of Belarus, does not exceed 250 base units; with foreign organizations and natural persons that are registered as individual entrepreneurs outside the Republic of Belarus 500 base units.

The provisions of part one of this clause are not applied in cases of financial and economic operations using state support measures, detecting facts of formalization of financial economic operations by documents containing inaccurate information and/or formalized with violations of legislative requirements, as well as if a counter inspection is appointed in an initiated criminal case or by the instruction of the criminal prosecution bodies and courts on cases being in their proceedings.

4. According to the results of an  counter inspection, measures of responsibility in relation to a counter party or third persons of the inspected subject shall not be applied.

Article 76. Observance by time-keeping method during field inspection

1. Observance by time-keeping method (later on in this Article observance) is a method of inspection having the objective of which is to establish the actual revenue (income) of a payer for the period during which the observance is carried out.

2. Observance is carried out in servicing objects in the course of conducting the field inspection of the payer:

carrying out public catering;

carrying out consumer services to the population;

rendering medical services.

For the purposes of this Article, servicing objects are understood to be objects of public catering, other object in which consumer services, medical services are being rendered or acceptance of order for rendering these services is carried out.

Observance is not carried out in the course of a thematic operational inspection and also in relation to payers from the day of state registration of which less than two years have passed (with the exception of organizations created in the process of reorganization).

3. The minimal duration of observance in each of servicing objects shall be seven consecutive calendar days of its functioning. In doing so observance must be carried out for all time of functioning of such an object in the course of the day.

4. Upon the end of each day of observance, the established actual revenue (income) of the payer shall be indicated in a time-keeping observance card the form of which is established by the Ministry on Taxes and Dues of the Republic of Belarus.

Upon completion of observance the time-keeping observance card shall be signed by the inspecting official (head of the inspection) and the payer or his representative. The payer or his representative is entitled to receive a copy of the time-keeping observance card.

Copies of documents received during the observance may be enclosed to the time-keeping observance card.

The time-keeping observance card shall be an inalienable part of the inspection act (certificate). Results of the observance shall be included in the inspection act (certificate).

5. Upon completion of the observance an average daily revenue (income) of the payer for the period of observance is calculated on the basis of data of the time-keeping observance card for the period of observance (later on calculated average daily revenue (income)).

Calculated average daily revenue (income) shall be compared with average daily revenue (income) determined based on the data indicated by the payer in the tax declaration (calculation) for the tax on profit, tax declaration (calculation) on the value added tax, tax declaration (calculation) for the single tax on imputed income, tax declaration (calculation) for the tax under the simplified taxation system, tax declaration (calculation) for the single tax from individual entrepreneurs and other natural persons, tax declaration (calculation) for the personal income tax of the individual entrepreneur (notary carrying out notarial activity in a notarial office, advocate), submitted for the reporting period preceding the beginning of the inspection.

If functioning of servicing objects has exclusively seasonal nature (summer coffee shops and likewise), calculated average daily revenue (income) shall be compared with average daily revenue (income) determined based on the data indicated by the payer in the tax declaration (calculation) for the tax on profit, tax declaration (calculation) on the value added tax, tax declaration (calculation) for the tax under the simplified taxation system, tax declaration (calculation) for the single tax from individual entrepreneurs and other natural persons, tax declaration (calculation) for the personal income tax of the individual entrepreneur (notary carrying out notarial activity in a notarial office, advocate), submitted for the similar reporting period of the last calendar year.

For determining in accordance with parts two and three of this clause the average daily revenue (income) based on the data indicated by the payer in the tax declaration (calculation) shall be taken into account days of functioning of servicing objects in which observance has been carried out for the reporting period for which such declaration (calculation) is drawn up, to be established on the basis of the data confirmed by documents (employee time sheet, cash register operator journal etc.).

Comparison of average daily revenues (incomes) shall be carried out in comparable prices with application of the index of consumer prices established by the National Statistical Committee of the Republic of Belarus for the month preceding the month of the beginning of the inspection. The consumer prices index is applied only when comparing average daily revenues (incomes) of servicing objects the functioning of which has exclusively seasonal nature.

6. In case the sum of calculated average daily revenue (income) exceeds the sum of average daily revenue (income) determined in accordance with parts two and three of clause 5 of this Article based on the data indicated by the payer in a respective tax declaration (calculation) by 30 percent and more, the tax body shall perform correction of the revenue (income) for purposes of computation of the value added tax, tax on profit, single tax on imputed income, tax under the simplified taxation system, single tax from individual entrepreneurs and other natural persons, personal income tax and the recalculation of taxes, dues (duties) for the respective reporting period the average daily revenue (income) of which had to be compared in accordance with clause 5 of this Article.

7. Correction of the revenue (income) and recalculation of taxes, dues (duties) specified in clause 6 of this Article shall not be performed if the in reporting period preceding the beginning of the inspection (in the instance specified in part three of clause 5 of this Article in the similar reporting period of the last calendar year) or later, circumstances of a productive, organizational or economic nature (in particular increase of working places, change of technology, modernization of facilities) took place which could considerably affect the amount of revenue (income) of the payer.

Article 77. Engaging expert and/or specialist while conducting field inspection

1. For rendering assistance and/or participation in concrete actions while conducting the field inspection, the tax bodies are entitled to engage, on a contractual basis, an expert or a specialist having special knowledge in science, engineering, art, crafts and other spheres of activities. The contract shall be signed by the head (his deputy) of the tax body conducting the inspection.

The questions posed before the expert and/or specialist, and their opinions may not go beyond the their special knowledge.

The expert is obliged to refuse to give an opinion, and the specialist a participation and/or facilitation to conducting control arrangements, if they do not possess the necessary knowledge for conducting the expert examination.

Payment for conducting the expert examination and the specialist's services shall be made at the expense of the budget means provided for maintenance of tax bodies, and in the case when the results of the inspection reveal infringements on issues for which the expert examination was appointed or a specialist has been engaged at the expense of the payer. If the tax body engages as an expert and/or specialist of an employee of another controlling (supervisory) body, the tax body does not pay for conducting the expert examination or specialist's services.

The payment procedure and the sum amounts payable to experts and specialists are determined by the Council of Ministers of the Republic of Belarus.

2. The expert examination shall be appointed according to the decision of the head (his deputy) of the tax body conducting the inspection. The decision shall specify grounds for the appointment of the expert examination, the experts surname and/or the name of the expert institution that shall carry out the expert examination, questions posed before the expert, and materials provided to the expert.

The payer must be familiarized with the decision about the appointment of the expert examination; he must be apprised of his rights as specified in clause 7 of this Article, about which an entry is made in the decision on appointment of the expert examinations.

3. The expert is entitled:

to get acquainted with the materials of the inspection related to the subject of examination;

to move petitions on providing him additional materials;

to refuse to give opinion if materials provided to him are insufficient.

4. The expert gives the opinion in a written form in his name. The opinion shall present data about research made, the conclusions made as a result of the research and substantiated answers to the questions posed. If the expert, while conducting the expert examination, establishes circumstances important to the case, in connection to which questions have been raised, he has the right to include conclusions regarding those circumstances into his opinion.

For giving a knowingly false opinion, the expert bears liability provided by the legislative acts.

5. Additional expert examination shall be appointed by the head (his deputy) of the tax body conducting the inspection, in the event of:

insufficient clearness or incompleteness of the opinion;

arising of new issues concerning previously researched circumstances.

Additional or repeat expert examination may be entrusted to the same or to another expert(s).

A repeat expert examination shall be appointed in the case of an unsubstantiated opinion of the expert or of doubts in its accuracy, and its conduct shall be entrusted to other expert(s).

6. The specialist is entitled:

to get acquainted with the materials of the inspection connected with his participation and/or rendering assistance to conduct control actions;

to refuse participating and/or rendering assistance in control actions, if materials presented to him are not sufficient.

7. When an expert examination is appointed and conducted, the payer in relation to whom the inspection is conducted has the right:

to challenge the expert or specialist;

to request the appointment of an expert or specialist from among persons specified by him;

to submit additional questions to receive the opinion of an expert or specialist on them;

to be present, with the permission of the official of the tax body, during the expert examination and give explanations to the expert and declare objections to him;

to familiarize with the opinion of the expert or specialist;

to ask for appointment of an additional or repeat expert examination.

A petition of the payer to appoint an expert or specialist from among the persons specified by him, and also to pose additional questions for obtaining the experts opinion on them shall be reasonably satisfied or rejected by the head (his deputy) of the tax body conducting the inspection.

Article 78. Access of officials of tax bodies to the territory or the premises of the payer for conducting field inspection

1. Access to the territory or the premises of the payer of officials of the tax bodies is carried out upon the presentation, by those persons, of official identifications and the prescription on conducting the inspection of that payer (in relation to objects admission to which is restricted in accordance with legislation, of other documents specified by the legislation for admission to those objects).

Access of officials of the tax bodies to residential premises, other lawful possessions of natural persons aside from or against their will is permitted only with the sanction of the prosecutor on the basis of a motivated decision of the head (his deputy) of the tax body and with the participation of witnesses upon the presence of documents confirming the need to check the information:

about the storage and/or realization of goods, fulfillment of works, provision of services in residential premises and/or in other lawful possessions in violation of the established order;

about the lease (sub-lease), rent (sub-rent) of residential and non-residential premises without paying tax.

2. Officials of tax bodies may conduct the examination of the territory or premises of the payer, or other objects, used for fulfillment of the activity, for determining the compliance of the actual information about the objects with the documentary information presented by the payer (at his possession).

An examination of territories or premises, or other objects used for carrying out activities is executed in the presence of the payer or its representative, and an examination of premises where inventories are stored is executed in the presence of a financially responsible person. Officials of the tax bodies are obliged to take measures to ensure that the examination was carried out in the presence of the mentioned persons. Upon failure to ensure the presence of the financially responsible person the inspection is carried out with the participation of workers of the payer organization, determined by its head and/or at least two witnesses. Persons present during the examination also sign documents drawn up on the results of the examination.

Upon non-admission of the official of the tax body conducting the inspection to the mentioned territories or to the premises, the official of the tax body draws up the act signed by that person and the payer or his representative.

Upon refusal of the payer o his representative to sign the act, a corresponding note shall be made in the act.

3. Unlawful obstruction to access of officials of the tax body conducting the inspection to the territory or premises of the payer entails the liability provided by the legislative acts.

Article 79. Request of documents and/or other information, seizure of original documents while conducting inspection

1. The official of the tax body carrying out an inspection has the right to request from the inspected payer, as well as from the state bodies, other organizations and natural persons possessing documents and/or information concerning the activity and/or property of the inspected payer the presentation, on a gratuitous basis, of the documents and/or information, including in an electronic form, necessary for the inspection.

2. Documents and/or information are to presented at a written request of the official of the tax body, in which a reasonable time limit (not less than two working days) for the presentation of documents and/or information shall be established, with the exception of the cases provided for by legislation, when the documents shall be at the place of the inspection, and the information shall be presented without delay.

The person to whom the request for information and/or documents is addressed is obliged, within a term specified in accordance with part one of this clause, to send or give them to the official of the tax body requesting the mentioned documents and/or information or to report on the absence of the requested documents and/or information.

The documents are presented in the form of a duly certified copy or extract of the documents, and if it is impossible to present such copies or extracts, the originals of the documents are presented.

3. The official of the tax body carrying out the field inspection is entitled to conduct the seizure of original documents if there are indisputable grounds to suppose that the originals of the documents will be destroyed, hidden, corrected or replaced (including the fact that the documents are drawn up in violation of requirements of legislation and/or contain false information, or with such documents is formalized the movement of commodity and material valuables, including their arrival or departure when those valuables remained without movement or are absent).

The seizure of original documents shall be conducted in the present of the payer (his representative), and in the event of their absence in the presence of at least two witnesses, on the basis of a resolution of the tax body. The resolution must be signed by an official of the tax body conducting their seizure, and not later than the end of the working day following the day of the seizure of documents, be approved by the head (his deputy) of the tax body. Upon seizure of original documents the payer makes copies of them at its own expense.

4. Seized documents are listed and described in the act of seizure or in the enclosed lists with the precise indication of the name and number of the seized documents. A copy of the act of seizure of documents shall be presented against signature or sent to the payer (his representative).

Article 80. Summons to the tax body during inspection

1. When conducting the inspection, the tax body is entitled to summon the natural person, including an official of the organization having documents and/or information about the activities of the payer.

A notice containing an indication to the purpose, time of summons, address where he shall appear shall be handed in against signature or sent in advance by other means ensuring its proper notification.

2. When it is impossible to appear in the location mentioned in the notice and/or at the time, the natural person is obliged to inform the tax body, indicating the reasons and also to agree on another location and/or time of arrival.

3. Upon refusal of the natural person to appear under the summons of the tax body or upon failing to appear, the tax body has the right to take action established by the legislation to ensure his appearance.

Article 81. Results of the inspection

1. Upon the results of the inspection, the official of the tax body shall draw up an act (certificate) of the inspection according to the established forms.

Results of a field inspection, during which no violations of legislation have been detected, are formalized by a certificate of the inspection.

With regard to the facts of detected violations, the official of the tax body may, within his competence, draw up a protocol on an administrative offence and/or a resolution may be issued on the case of an administrative offence.

2. The act of audit must be compiled with clarity and precision of the presentation of findings. Various unconfirmed documented facts and data on activities of the payer may not be included in the act of inspection.

When conducting an inspection, officials of the tax body are obliged to find out all facts and circumstances essential to making a substantiated decision.

Unaccepted corrections in the act (certificate) of inspection are not allowed.

In the case when during the inspection there are questions that require answers from state bodies, other organizations on the requests addressed to them, an entry shall be made in the act of inspection about the request to the specified bodies and organizations.

3. The act (certificate) of inspection shall be signed by the official of the tax body conducting the inspection, and also:

by the head of the payer organization (affiliate of the organization), in his absence by other representative of the payer organization (affiliate of the organization) or by the payer natural person, in his absence by the representative of the payer natural person;

by the person carrying out the management of accounting of the payer organization (affiliate of the organization).

If necessary the act or certificate of the inspection is signed by other participants of the inspection.

4. Persons, specified in clause 3 of this Article, are entitled to sign the act (certificate) of inspection, indicating the existence of objections to the act (certificate) and, not later than fifteen working days from the day of signing the act (certificate) of inspection, to submit objections in written form on their content to the tax body conducting the inspection. Upon the expiration of the established period, objections shall not be accepted.

The validity of arguments stated in the objection is to be considered by the official of the tax body that conducted the inspection and according to those objections, within 15 working days a written opinion shall be drawn up which shall be sent to the payer by registered mail with a return receipt requested or be given to him or his representative against signature.

If necessary, in order to confirm the validity of arguments stated in the objections, an additional inspection concerning the payer may be appointed, not later than ten working days from the receipt of the objection. Such inspection is conducted by that tax body which was the primary performer of the inspection. In this case, a written opinion concerning the objections is sent to the payer  by registered mail with a return receipt requested or is given to him or his representative upon signature, no later than 10 working days from the date of the completion of the additional inspection.

5. The act (certificate) of inspection shall be handed in against signature or sent by registered mail with a return receipt requested to the payer or his representative.

In the even of refusal of persons specified in clause 3 of this Article to sign the act (certificate) of inspection, a relevant note shall be is made therein. In that case, the person who has refused to sign the act (certificate) of inspection has the right to provide written reasons for refusing to sign it.

When persons, specified in clause 3 of this Article, fail to appear in the tax body for signing and receiving the act (certificate) of inspection, or refuse to receive the act (certificate) of inspection against signature or when it is impossible to determine the place of residence (stay) of the said persons, the act (certificate) of inspection is to be sent to the place of location (residence) of the payer or his representative, last known to the tax body, by registered mail with a return receipt requested. In that case the payer is deemed to be duly informed about the results of the inspection, and the act (certificate) of inspection received, upon the expiration of tree days from the day of sending.

6. Changes and/or additions may be introduced in the act (certificate) of inspection:

upon detecting errors (omissions), incomplete clarification of circumstances, as well as after receiving answers from state bodies and other organizations to request addressed to them;

according to results of additional and counter inspections.

Such changes and/or additions shall be signed, handed in (sent) to the payer or his representative, objections on them shall be submitted in the order established by this Article for signing, handing in (sending) the act (certificate) of inspection, submitting objections thereon.

7. On the basis of the act of inspection (with the exception of the act of inspection in which only the fact of a committed administrative offence is fixed and no additional calculation of taxes, dues (duties) and/or calculation of penalty interest is made), within 30 working days from the day of its handing in (sending) to the payer or his representative, and in the case of submission of objections from the day of handing in (sending) to the payer or his representative of the conclusion on those objections by the head (his deputy) of the tax body, the decision on the act of inspection shall be made.

The indicated period may be extended for not more than 15 working days by the decision of the Minister on Taxes and Dues of the Republic of Belarus. In that instance, the indicated time limits do not include the time for inspecting materials in criminal prosecution bodies and courts.

8. A decision on the act (certificate) of inspection shall be handed in against signature or sent by registered mail with a return receipt requested to the payer or his representative.

When the payer or his representative fails to appear in the tax body to receive the decision on the act or certificate of the inspection and/or the request (prescription) about elimination of violations established during its conduct, or refuse to receive the said documents against signature or the payer is absent at the place of location (residence) indicated in the constituent documents (certificate of state registration) and/or at the last known to the tax body, a corresponding note is made in the decision on the act or certificate of the inspection and/or the request (prescription), and they are to be sent by registered mail with a return receipt requested to the place of location (residence) of the payer or his representative, last known to the tax body. In that instance, the decision on the act or certificate of inspection and/or the request (prescription) are deemed to be received by the payer upon the expiration of three days from the day of such sending.

9. Changes and/or additions may be introduced in the act of inspection:

upon detecting errors (omissions),  incomplete clarification of circumstances;

upon introducing changes and/or additions in the act of inspection if those changes and/or additions refer to the data indicated in the decision.

Such changes and/or additions shall be handed in (sent) to the payer or his representative in the order established by this Article for handing in (sending) the decision on the act of inspection.

Article 82. Specific features of tax control over large payers

1. For the purposes of tax control, tax bodies carry out study and analysis of main parameters of financial and economic activity of organization included in the list of large payers and of other information about such organizations available at disposal of tax bodies.

2. The list of large payers is approved by the Ministry on Taxes and Dues of the Republic of Belarus till October 1 of the year preceding the year when it becomes effective.

The list of large payers becomes effective from January 1 of the year following the year of its approval and is not subject to be changed within two calendar years, unless otherwise provided by part three of clause 5 of this Article.

3. The list of large payers includes Belarusian organization having revenues (incomes) of not less than 180 000 000 Belarusian rubles from realization of goods (works, services), property rights according to the tax declarations (calculations) for the tax on profit for the year preceding the year in which the list of large payers is to be approved upon availability of one of the following parameters:

total volume of taxes, dues (duties) computed by the organization within the year preceding the year in which the list of large payers is to be approved exceeds 14 000 000 Belarusian rubles;

difference between the sum of tax deductions and the total sum of the value added tax computed for realization of goods (works, services), property rights according to the tax declaration (calculation) for the value added tax for the year preceding the year in which the list of large payers is to be approved exceeds 14 000 000 Belarusian rubles.

4. The tax body at the place of putting on record of the organization included in the list of large payers shall, till January 1 of the year when it becomes effective, shall send to such an organization a notification in the form of electronic document through the private office of the payer, about inclusion of the organization into the list of large payers, according to the established form.

5. In the event of reorganization of an organization included in the list of large payers, it and its successor (successors) retain duties specified in clause 6 of this Article till the next list of large payers becomes effective.

If on October 1 of the year preceding the putting into effect of the list of large payers, an organization the meets the criteria established by clause 3 of this Article in the process of liquidation, such an organization is not subject to be included in the list of large payers.

In the event of liquidation of the organization, including as a consequence of recognition thereof as economically insolvent (bankrupt), such organization is subject to be excluded from the list of large payers.

6. Organizations included in the list of large payers shall submit to tax bodies at the place of putting on record, according to formats established by the Ministry on Taxes and Dues of the Republic of Belarus in the form of electronic document:

annual individual accounting and/or financial statements not later than on March 31 of the year following the expired calendar year;

interim individual accounting and/or financial statements (with the exception of monthly statements) not later than on the 15th day of the second month following the reporting quarter.

Article 83. Specific features for organizing and conducting inspections of state bodies

1. Field inspections of state bodies are performed on the basis of the plan of such inspections, formed by the inspectorates of the Ministry on Taxes and Dues of the Republic of Belarus for regions and the city of Minsk for the calendar year. However, inspections of the same state body are performed not oftener than one time for five years. Beyond the said plan the field inspections of the state bodies are performed on instructions of the Minister on Taxes and Dues and his deputies, heads of the inspectorates of the Ministry on Taxes and Dues of the Republic of Belarus for regions and the city of Minsk and their deputies (in relation to the inferior tax bodies) upon availability of the data on violations of the legislation or receipt of the appeals requiring performance of the inspection.

2. The act (certificate) of inspection of a state body shall be signed:

by the official of the tax body conducting the inspection;

by the head (another authorized person) of the state body;

by the person carrying out the account management of the state body.

3. When an inspection of the main directorate of justice of a regional (Minsk City) executive committee is conducted, as a rule the activity of archives of bodies registering acts of civil status, of the main directorate of justice (later on in this Article the institutions) is simultaneously subject to the inspection. In this instance the prescription to conduct the inspection is issued in relation to the main justice department of the regional (Minsk City) executive committee by the tax body at the place of its putting on record or by a superior tax body.

The inspection of the activity of the institutions is conducted on the basis of:

a copy of the prescription to conduct the inspection, issued in relation to the main justice department of the regional (Minsk City) executive committee, certified by the tax body that issued such prescription;

enclosure to the prescription according to the form established by the Ministry on Taxes and Dues of the Republic of Belarus. The data about the activity of the institutions that is subject to the inspection shall be signed by the head (deputy head) of the tax body conducting the inspection of the main justice department of the regional (Minsk City) executive committee and shall be certified by the seal of that body. The data about the officials of the tax body that are sent to conduct the inspection of the activity of the institutions are to be signed by the head (deputy head) of the tax body that issued the prescription and certified by the seal of this body.

The act (certificate) of inspection shall be drawn up in relation to each institution in the order established by Article 81 of this Code.

Results of the inspections of the institutions are to be included in the consolidated act (certificate) of inspection of the main justice department of the regional (Minsk City) executive committee.

Article 84. Measures on detection of property of payer and his debtors

1. Measures on detection of the property of the payer and of his debtors (later on in this Article the measures) shall be conducted in relation to the payer that has tax obligations non-fulfilled within the established time limits, unpaid penalty interest at the place of his location and/or at the place of location of his property in the order established by this Code.

2. The measures are conducted in the event of:

failure of the payer to present documents (copies thereof), other information concerning the property of the payer, at the request of the tax, customs body;

failure of the payer to present, within the established term, documents specified in sub-clause 1.5 of clause one of Article 22 of this Code;

insufficiency of the sum of accounts receivables indicated in the documents presented by the payer in accordance with sub-clause 1.5 of clause one of Article 22 of this Code for collection of the tax, due (duty), penalty interest at the expense of means of the payers debtor;

in other instances when there tax obligations unfulfilled, penalty interest unpaid within established time limits.

3. The decision on conducting the measures shall be taken by the head (his deputy) of the tax, customs body and shall be formalized as a notification on conducting the measures.

The forms of notifications on conducting the measures are established by the Ministry on Taxes and Dues of the Republic of Belarus (for use by tax bodies) and the State Customs Committee of the Republic of Belarus (for use of customs bodies).

4. Access of officials of the tax, customs bodies to the territory or premises of the payer is carried out upon presentation by these persons of the notification on conducting measure and official identifications.

Access of officials of the tax, customs body to residential premises, other lawful possessions of a natural person whether at or against his will is permitted only with the sanction of the public prosecutor on the basis of a motivated decision on conducting the measures in accordance with clause 3 of this Article and with the participation of witnesses.

5. The measures are conducting in the presence of the payer or his representative as a rule in the course of one working day.

6. According to the results of the measures a statement shall be formalized which indicates the availability of the accounts receivables of the payer  and/or imposes arrest on his property in the order established by this Code.

Results of the measures in the course of which no property or debtors of the payers have been detected are not formalized by documents.

7. Unlawful obstruction to access of officials of the tax, customs bodies to conducting the measures entails the liability provided by the legislative acts.

Article 85. Interaction with state bodies, other organizations, notaries in relationships relations regulated by the tax legislation

1. State bodies and organizations carrying out the state registration of organizations and individual entrepreneurs are obliged to communicate to the tax body at the place of location of an organization or at the place of residence of the individual entrepreneur the data about:

state registration of an organization not specified in indent three of this clause within ten working days from the day of such registration;

state registration of an organization the putting on record in the tax body of which shall be carried out upon its state registration or an individual entrepreneur within one working day from the day of state registration;

liquidation of an organization or termination of activities of an individual entrepreneur within three working days from the day of entry into the Unified State Register of Legal Persons and Individual Entrepreneurs, accordingly, of a record about the exclusion therefrom of the organization or individual entrepreneur.

2. State bodies and organizations carrying out the record keeping and/or state registration in relation to the property and rights thereto are obliged, not later than on 15th day of the month following the quarte, to communicate to tax bodies the data needed for carrying out tax control according to the list established by the Ministry on Taxes and Dues of the Republic of Belarus.

3. Notaries are obliged to report to the tax bodies at their place of putting on record, on a quarterly basis, no later than the 15th day of the month following the quarter, on their issuance of certificates on the right to inheritance and/or certification during the quarter during the quarter of contracts of alienation (gift, exchange, sale, rent) of the property.

4. Bodies of trusteeship and guardianship, other organizations that in accordance with the legislation carry out the trusteeship, guardianship or management of the property of the ward are obliged to inform the tax bodies at the place of their location within five working days form the day of adoption of a corresponding decision:

about the establishing of the guardianship over the natural persons recognized incapable by the court;

on trusteeship over a minor and management of his property;

on guardianship of the not full aged natural persons, natural persons limited by the court in capability, capable natural persons over which the guardianship in the form of patronage has been established;

on the subsequent changes connected with the mentioned guardianship, trusteeship or management of the property.

5. Registrators carrying out the state registration of transactions that are not attested by notaries about alienation of the taxable immovable property belonging to a citizen of the Republic of Belarus who resides permanently outside the Republic of Belarus, to a foreign citizen, stateless person or to a foreign or international legal person (organization not being a legal person), that does not have a place of location in the Republic of Belarus, and also notaries certifying transactions about alienation of such property, receive the information about the payment of respective taxes from the tax body in the order established by Ministry on Taxes and Dues of the Republic of Belarus.

6. The Fund of Social Protection of Population of the Ministry of Labour and Social Protection of the Republic of Belarus submits to the Ministry on Taxes and Dues of the Republic of Belarus information on incomes of natural persons for the last calendar year not later than 1 June of the year following the last calendar year.

7. Postal operators shall submit to the tax bodies at the place of their putting on record the information on monetary means delivered and/or transferred by them, remitted to natural persons by an order from abroad, not later than the 15th day of the month following the quarter in which the specified monetary means were handed out and/or remitted to natural persons.

8. For carrying out the tax control the customs bodies transfer to the tax bodies the information received from the payers on customs affairs.

9. In order to monitor fiscal risks, the customs bodies shall quarterly submit to the Ministry of Finance of the Republic of Belarus information on the export and import of goods (works, services) carried out by state organizations and organizations, shares (stakes in statutory funds) of which are in the ownership of the Republic of Belarus and/or its administrative and territorial units.

10. The procedure for communicating information specified in clauses 24 and 7 of this Article, obtaining information specified in clause 5 of this Article, the forms and formats of such information shall be established by the Ministry on Taxes and Dues of the Republic of Belarus.

11. For non-fulfillment or improper fulfillment of the duties imposed on state bodies, other organizations and notaries, they shall bear liability in accordance with the legislative acts.

Article 86. Interaction with banks, other legal persons being professional participants of the securities market and carrying out depositary activity in relationships regulated by the tax legislation

1. The Ministry on Taxes and Dues of the Republic of Belarus shall be informed in written or electronic form:

1.1. by a bank, the National Bank of the Republic of Belarus about:

opening, closing of the account, electronic purse for an organization and individual entrepreneur, electronic purse of a natural person, within one working day after, accordingly,  opening, closing of the account, electronic purse. At the same time, with regard to special accounts opened in accordance with the legislative acts, the data on the numbers and dates of the relevant legislative act shall be additionally submitted;

opening, closing of accounts for recording deposits and/or a correspondent account of a foreign bank, opening, closing of an account, electronic purse of another foreign organization, within one working day after, accordingly, opening, closing, of the account, electronic purse.

Information specified in indents two and three of part one of this sub-clause shall be submitted in the order established by an agreement concluded by the National Bank of the Republic of Belarus with the Ministry on Taxes and Dues of the Republic of Belarus. The list of accounts, electronic purses such information with regard to which is to be submitted shall be determined by the Ministry on Taxes and Dues of the Republic of Belarus;

1.2. another legal person being professional participant of the securities market and carrying out depositary activity is obliged to inform about opening, closing or transforming of the account Depotwithin one working day, accordingly, after opening, closing of such account:

to an organization, with the exception of a foreign organization and individual entrepreneur to the tax body at the place of their putting on record;

to a foreign organization at the place of putting on record of the legal person being the professional participant of the securities market and carrying out depositary activity.

2. At the request of the tax body, the bank is obliged to communicate in written or electronic form not later than within three working days after the receipt of such a request:

2.1. data on the availability of accounts, electronic purses and/or on balances monetary means on them, charged (paid) interest on deposits, data on credits (issued, returned, repaid), specific transactions, on transactions without opening an account, property being in safekeeping in the bank.

In that instance in relation to natural persons such information may be requested by the tax body:

on the basis of a request of an authorized body of the foreign state in the cases provided for by the legislation or treaties of the Republic of Belarus;

if the natural person who submitted the declaration on incomes and property declared credits, interest on deposits and/or deposited monetary means as a source of monetary means used for acquisition of the property;

2.2. data on the holder of the electronic purse, operations performed on that electronic purse, on balances of electronic purse, date of the suspension of operations with electronic money in the electronic purse.

The data specified in part one of this sub-clause shall be submitted by the bank also to a body of state control at the latter's request;

2.3. data on movement of monetary means on accounts, electronic purses of the payers.

Forms, formats and the order of submission of the data specified in part one of this sub-clause are established by the Ministry on Taxes and Dues of the Republic of Belarus and the National Bank of the Republic of Belarus.

3. The Ministry on Taxes and Dues of the Republic of Belarus and/or the inspectorate of the Ministry on Taxes and Dues of the Republic of Belarus for the city of Minsk shall be informed, not later than within three working days after receipt of the respective request:

by a bank, processing center, owner of a payment system based on the use of bank payment cards, owner of a payment system using electronic money - on operations on money transfer performed to the address of a foreign organization rendering services in the electronic form for natural persons;

telecommunication operator, Internet provider - data about rendering of services by a foreign organization rendering services in the electronic form for natural persons.

4. The National Bank of the Republic of Belarus, banks are obliged to submit the data constituting bank secrecy of natural persons on the basis of an agreement concluded with the Ministry on Taxes and Dues of the Republic of Belarus. The list of such data is determined by the Ministry on Taxes and Dues of the Republic of Belarus and the National Bank of the Republic of Belarus.

5. Banks are obliged to submit to the Ministry on Taxes and Dues of the Republic of Belarus data to be transferred to the tax body of a foreign state on the basis of a treaty, including those constituting the banking secrets of organizations and natural persons (hereinafter - list of data about accounts and foreign trade contract to be transferred within the framework of the international tax exchange of information), on accounts opened by foreign organizations and natural persons in banks, and operations on such accounts.

The Ministry on Taxes and Dues of the Republic of Belarus shall inform the National Bank of the Republic of Belarus after receiving information from:

the Ministry of Foreign Affairs of the Republic of Belarus, on entry into force of a treaty containing commitments on provision through the Ministry on Taxes and Dues of the Republic of Belarus of the list of data about accounts and foreign trade contract to be transferred within the framework of the international tax exchange of information;

the tax body of a foreign state, on its completing the procedures established by the legislation, necessary for the beginning of exchange with the Ministry on Taxes and Dues of the Republic of Belarus of the list of data about accounts and foreign trade contract to be transferred within the framework of the international tax exchange of information, with regard to treaties than entered into force earlier than the date of entry into force of this clause.

The order, forms, formats and periodicity of submission of the data specified in this clause shall be determined on the basis of an agreement concluded by the Ministry on Taxes and Dues of the Republic of Belarus with the National Bank of the Republic of Belarus.

6. Banks shall submit to the tax bodies at the place of their putting on record the information on monetary means delivered and/or transferred by them, remitted to natural persons by an order from abroad, not later than the 15th day of the month following the quarter in which the specified monetary means were handed out and/or remitted to natural persons.

The order, forms and formats of submission of the data specified in this clause shall be determined by the Ministry on Taxes and Dues of the Republic of Belarus

CHAPTER 11
PRINCIPLES OF PRICE DETERMINATION FOR GOODS (WORKS, SERVICES) FOR TAXATION PURPOSES

Article 87. General approaches and definitions

1. For the purposes of this Chapter the following terms and their definitions are used:

1.1. analyzed transaction is a transaction subject to control over compliance with market prices, determined by Article 88 of this Code;

1.2. analyzed party to the transaction - a party to the analyzed transaction in respect of which the price, profitability indicator in accordance with the chosen method of determining market prices shall be checked;

1.3. foreign trade transaction is a transaction for realization or acquisition of goods (works, services), property rights, provision (receipt) of property for use (including on the basis of contracts of commission, agency or other similar civil law contracts), concluded with a foreign organization, foreign citizen;

1.4. range of market profitability indicators is a series of values of profitability indicators calculated in accordance with this Chapter, containing the minimum and maximum values of the profitability indicators of comparable transactions (in their absence, organizations engaged in comparable activities);

1.5. range of market prices is a series of market price values containing the minimum and maximum value of market prices determined as a result of applying one of the market price determination methods established by this Chapter;

1.6. homogeneous transactions are comparable transactions, the subject of which are identical (in their absence - homogeneous) goods (works, services), property rights, provision (receipt) of the property for use;

1.7. resident of an offshore zone is a person with a place of location (place of residence) in an offshore zone - a state (in the territory) in which a preferential tax regime is in force and/or it does not provide for the disclosure and provision of information about financial transactions. The list of such offshore zones states (territories) is determined by the President of the Republic of Belarus;

1.8. market price is the price of identical (in their absence, homogeneous) goods (works, services), property rights, provision (receipt) of property for use, formed in a comparable transaction;

1.9. market of goods (works, services) is the sphere of circulation of goods (works, services), property rights, determined based on the ability of the seller (buyer) to realize (acquire) goods (works, services), property rights, to provide (receive) property for use;

1.10. comparable transaction is a transaction for the sale (acquisition) of goods (works, services), property rights, granting (receiving) of the property for use with a person who is not interdependent, and/or with a person who is not a resident of the offshore zone.

2. For the purposes of this chapter, provision (receipt) of the property for use is recognized as realization (acquisition) of a good (work, service), property rights.

3. When determining the tax base, taking into account the price of the good (work, services), property rights applied by the parties to the transaction, for taxation purposes, that price corresponds to the market price, unless the tax body has proved the opposite and/or unless the payer himself did adjust the sums of the tax (loss).

The price of a good (work, services), property rights, provision (receipt) of the property for use in the analyzed transaction (hereinafter price of the analyzed transaction) corresponds to the market price if its value is in the range of market prices and/or the value of profitability indicators is in the range of market profitability indicators. At the same time, the price of the analyzed transaction shall be taken taking into account the mark-up (discounts) to the price,  premiums, bonuses provided when the buyer (customer) fulfills the conditions.

The price of the analyzed transaction also corresponds to the market price if:

the transaction was made on the stock exchange and its price was based on the results of exchange trading conducted in accordance with the legislation;

the transaction price was determined during the trading held in the course of an auction in accordance with the legislation;

the payer has made a transaction, the price (tariff) of which is regulated by the President of the Republic of Belarus, state bodies (organizations) that regulate prices (tariffs);

the property is realized in accordance with the legislation regulating the relations on the pledge of property;

the price is determined in accordance an agreement on pricing concluded in accordance with this Chapter;

the price is determined by the appraiser if, in accordance with the legislation, performance of assessment is an obligatory condition for making the transaction.

4. If commercial and/or financial conditions different from those that would have occurred in comparable transactions, are established between the parties to the transaction being analyzed , and that resulted in an lowering of the sum of tax on profit (raising the sum of loss), then, for taxation purposes, accordingly:

revenue (income, profit) on such a transaction shall be taken in the amount of the sum of revenue (income, profit) that could be obtained by the payer in the transaction being analyzed, but because of this difference was not received by him;

costs (expenses) of such a transaction shall be accepted in the amount of the sum of costs (expenses) that should have been incurred by the payer in the transaction being analyzed, but because of the indicated difference they were incurred in a different amount.

Determination of revenue (income, profit) that could have been obtained by the parties to the analyzed transaction, but was not received by them because of the difference in the commercial and/or financial conditions of the said transaction from the same conditions of a comparable transaction, shall be made using the methods of determining market prices established by Article 91 of this Code.

5. When detecting in the case specified in part one of clause 4 of this Article a lowering of the sum of the tax on profit or raising of the sum of loss, a correction of the tax base of the tax on profit or of the sum of loss shall be made, accordingly. In that instance, the payer is entitled to make a correction of the tax base of the tax on profit or of the sum of loss and to additionally pay the tax on profit.

The payer who made the correction of the tax base or of the sum of loss, together with the tax declaration (calculation) on the tax on profit, shall submit to the tax body the data:

about the transaction in respect of which the correction was made, which indicate the date of its performance, name of the good (work, service) with the code of the Single Commodity Nomenclature for Foreign Economic Activity of the Eurasian Economic Union  (code of the national classifier of the Republic of Belarus OKRB 007-2012 "Classifier of products by kinds of economic activity" approved by the Resolution of the State Committee for Standardization of the Republic of Belarus of December 28, 2012 No. 83 On approval, introducing changes and cancellation of the state classifier of the Republic of Belarus), type of property rights, price (income, profit), applied earlier, and the market price (income, profit), name (surname, own name, patronymic (if available)) of the counterparty on the transaction;

on sums of the corrected tax base for the tax on profit or loss.

The data specified in part two of this clause shall be presented in any form and may be supplemented by the payer with other information characterizing the correction made.

The correction of the tax base of the tax on profit or loss in accordance with this clause shall be made unless it leads to a decrease in the amount of the sum of tax on profit.

Article 88. Transactions subject to control over compliance with market price

1. For the purposes of this Chapter and Chapter 16 of this Code, the transactions subject to control over compliance with market prices include the following transactions:

1.1. foreign trade transaction with an interdependent person;

1.2. transaction for realization or acquisition of goods (works, services), property rights, made with an interdependent person - tax resident of the Republic of Belarus, which does not compute and pay the tax on profit (exempted from the tax on profit) in the calendar year in which the transaction was made. For the application of this sub-clause, such persons include:

residents of free economic zones;

payers applying special taxation regimes;

payers carrying out activity in the territories determined by legislative acts, residents of the Park of Hight Technologies, of the Special Tourist and Recreational Park Avgustovski Canal, China-Belarusian Industrial Park "Great Stone";

1.3. a transaction made with an interdependent person, with a payer applying special taxation regimes for realization or acquisition of:

immovable property (a part thereof), including transactions as a result of which the transfer of the shared construction object to the interestholder,  of a dwelling and/or non-dwelling premises to the holder of housing bonds takes place;

housing bonds in the process of their circulation (with the exception of operations of issuers with bonds of own issue), performed after the state registration of the creation of construction object.

transactions as a result of which a natural person acquired a dwelling in the ownership in which he had resided for at least five years are not subject to the control over conformity of market prices;

1.4. foreign trade transaction on realization or acquisition of strategic goods according to the list determined by the Council of Ministers of the Republic of Belarus.

2. The following transactions are equated to transactions with an interdependent person:

2.1. a set of transactions made with the participation (through mediation) of a third person who is not interdependent, provided that such person:

does not perform in that set of transactions essential functions, with the exception of organizing the realization and/or acquisition of goods (works, services), property rights by one person to another person recognized as interdependent with that person;

does not use no assets and/or accepts risks for organizing the realization and/or acquisition of goods (works, services), property rights by one person to another person recognized as interdependent with that person;

2.2. transaction on realization or acquisition of (works, services), property rights with a resident of an offshore zone.

3. Transactions specified in clauses 1 and 2 of this Article are subject to control if the transaction price (the sum of transaction prices) determined in accordance with this Chapter, with one counterparty in a calendar year exceeds:

3.1. on transactions specified in sub-clause 1.1 of clause 1 of  this Article:

400 000 Belarusian rubles (without account of the value added tax, excises) - for an organization not included in the list of large payers;

2 000 000 Belarusian rubles (without account of the value added tax, excises) -  for an organization included in the list of large payers, with the exception of transactions specified in sub-clause 2.2 of clause 2 of this Article;

3.2. on transactions specified in sub-clause 1.2 of clause 1 of  this Article:

400 000 Belarusian rubles (without account of the value added tax, excises) - for an organization not included in the list of large payers;

2 000 000 Belarusian rubles (without account of the value added tax, excises) - for an organization included in the list of large payers;

3.3. on a transaction specified in sub-clause 1.4 of clause 1 of this Article 2 000 000 Belarusian rubles (without account of the value added tax, excises);

3.3. on a transaction specified in sub-clause 2.2 of clause 2 of this Article 4000 000 Belarusian rubles (without account of the value added tax, excises).

4. The sum of the prices of transactions with one counterparty is determined by summing the values of the price of each transaction with it for realization of goods (works, services), property rights or the value of the price of each transaction with it for the purchase of goods (works, services), property rights.

5. Regardless of whether or no the transaction satisfies the conditions specified in clauses 1-3 of this Article, they are not subject to control over conformity to market prices:

transactions on realization of goods (works, services), property rights if the price (value) of the transaction is determined by a treaty of the Republic of Belarus;

alienation to the bank of immovable property transferred earlier in the pledge in order to secure its claims for the repayment of accounts payable;

operations with securities, financial instruments of forward transactions negotiated on the organized securities market, with the exception of the transaction specified in sub-clause 1.3 of clause 1 of this Article.

Article 89. Comparable transactions

1. In order to determine the market price (profit, income) of the analyzed transaction for purposes of applying the methods provided for in Article 91 of this Code, the analyzed transaction (a group of similar analyzed transactions) shall be compared with one or several comparable transactions.

The analyzed and compared transactions are recognized as comparable when they are made in comparable commercial and/or financial conditions.

Commercial and/or financial conditions of the analyzed and compared transactions are considered comparable if the differences between them:

do not have a significant impact on the financial result of the transaction;

can be eliminated by correcting the conditions and/or financial results of the transactions being analyzed or compared (for the sums of customs duties, transportation costs, the official exchange rate of the Belarusian ruble against foreign currencies, established by the National Bank of the Republic of Belarus, price index, etc.).

2. To determine the comparability of the analyzed and compared transactions, as well as to carry out, if necessary, corrections of their commercial and/or financial conditions, the following shall be taken into account:

2.1. transaction characteristics that affect the pricing:

amount of goods, volume of works performed (services rendered), transferred (granted) property rights;

time limit for fulfillment of obligations on the transaction;

payments conditions;

exchange rate of the foreign currency applied in the transaction against the Belarusian ruble or other currency and its change;

conditions of distribution of rights and duties between the parties to the transaction;

the size of ordinary mark-ups or discounts to the price of goods (works, services), property rights, including discounts because of seasonal and other fluctuations in consumer demand for goods (works, services), property rights, loss of qualities and other consumer properties of goods, end (approximation of the expiration date) of the time of storage (shelf life, realization), sale of illiquid goods;

2.2. functions performed by the parties to the transaction:

carrying out design of goods and technological development thereof;

carrying out production of goods;

carrying out assembly of goods or components thereof;

carrying out mounting and/or installation of equipment;

conducting research-and-development and technological-and-experimental works;

purchasing of commodity material valuables;

carrying out wholesale or retail trade of goods;

carrying out function on repair and warranty servicing;

promotion of goods (works, services) to the new markets, marketing, advertising;

storage of goods;

transportation of goods;

insurance;

rendering of services on recruiting and hiring of personnel;

carrying out agency functions, mediation;

financing, carrying out financial operations;

carrying out quality control;

carrying out strategic administration, including determination of the price policy, strategy of the production and realization of goods (works, services), property rights, volume of sales, range of goods (offered works, services), their consumer properties, and also carrying out operative administration;

organization of sales and/or production of goods with engagement of other persons disposing of corresponding capacities;

other functions performed by the parties to the transaction that may influence the pricing in such a transaction;

2.3. tangible and intangible assets (property, including monetary means, property rights used by the party to the transaction to obtain revenue (profit, income)) being at the disposal of the parties to the transaction;

2.4. risks influencing the transaction conditions:

production risk, including the risk of below capacity operation of industrial capacities;

risk of changes in market prices for purchased materials and manufactured products due to changes in the economic situation, foreign currency exchange rate in relation to the Belarusian ruble or other currency, interest rates, credit risks, risk of changes in other market conditions;

risk of depreciation of supplies, loss of the quality or other consumer properties by goods;

risk associated with loss of property, property rights;

investment risk associated with possible financial losses due to mistakes made in making investments, including the choice of objects for investment;

risk of causing environmental damage;

economic (commercial) risk associated with carrying out strategic administration, including determination of the price policy and the strategy of realization of goods (works, services), property rights;

risk of absence of demand for the goods (increase of warehouse inventory);

other risks to which the parties (party) are subject when performing a transaction, which may influence the pricing in such a transaction;

2.5. characteristics of markets for goods (works, services);

geographical location of the market for goods (works, services) and its scope;

availability of competition at the market for goods (works, services) and competitiveness of sellers and buyers at the market;

availability at the market of homogeneous goods (works, services), property rights;

supply and demand at the market for goods (works, services), and also purchasing power of consumers;

level of industrial and transport infrastructure development;

other characteristics of the market for goods (works, services) influencing the price of the transaction, including the level of state influence on the price level.

3. In the case of absence or insufficiency of information on market prices or market profitability indicators for comparable transactions, the data of the accounting and/or financial reports of organizations engaged in comparable activities shall be used.

For the purposes of this Chapter, organization carrying out comparable activities means an organization that meets the following criteria:

the organization carries out activity comparable in relation to the analyzed party to the transaction. Comparability of activity shall be determined taking into account the types of economic activity provided by the National Classifier of the Republic of Belarus OKRB 005-2011 "Types of economic activity", approved by the Resolution of the State Committee on Standardization of the Republic of Belarus of December 5, 2011 No. 85 "On approval, putting into effect of the National Classifier of the Republic Belarus , and, if necessary, by international classifiers of types of activities;

aggregate value of net assets of the organization are not negative according to its accounting and/or financial reports as of December 31 of the last year of several years for which profitability indicators are being calculated;

the organization has no losses from realization of goods (works, services), property rights according to the data of its accounting and/or financial reports in more than one year of several years, for which profitability indicators are being calculated;

the organization does not participate directly and/or indirectly in another organization with a share of such participation of more than 20 percent or does not have an organization with a share of direct participation of more than 20 percent as a founder (participant). If, as a result of the consistent application of the conditions contained in this clause, fewer than four organizations remain, then the participation rate criterion may be increased from 20 to 50 percent;

the organization does not conduct transactions with interdependent persons that coincide with the type of transaction being analyzed (if such information available).

Article 90. Information used when comparing transaction conditions

1.  In order to establish the correctness of determining the tax base for the tax on profit or the amount of loss in accordance with this Chapter, the following shall be consecutively used:

information on the prices and quotations established as a result of exchange trading (auctions, other public trading) for identical (if absent homogenous) goods, held in the Republic of Belarus or foreign states;

information on the prices based on the statistics of the foreign trade of the Republic o Belarus or statistics of mutual trade of the Republic of Belarus with the member states of the Eurasian Economic Union, published or provided by the customs body, body of state statistics;

information on the prices and/or price fluctuation limits (profitability indicators), contained in the official sources of information of the state bodies and other state organizations, official information sources of authorized bodies or organizations of foreign states or international organizations or in other publicly accessible editions and/or information systems;

information on the prices for identical (if absent - homogeneous) goods (works, services), property provided by the the tax or customs body of a foreign state;

information on transactions made by the payer with a person who is not interdependent, or with the non-resident of an offshore zone;

data of information and price agencies that have information about the prices of organizations and/or their accounting and/or financial reports;

information on the market value of the appraisable objects carried out in accordance with the legislation of the Republic of Belarus on evaluation activities, determined on the basis of actually established market prices for identical (in their absence homogeneous) goods in a comparable tax period;

information obtained by the tax body within the framework of international agreements.

2. In the absence (insufficiency) of the information mentioned in clause 1 of this Article, the following shall be used:

information about the market price for identical (if absent homogenous) goods (works, services), property rights received from the authorized state bodies (organizations) of the Republic of Belarus, in their absence from the bodies (organizations) of foreign states, carrying out the maintaining of state statistics in relation to the organizations being under their subordination (supervision), and also on issues of their competence;

data from the accounting and/or financial reports, state statistic reports of organizations, including those published in publicly accessible information systems, and also placed on official sites of Belarusian (in their absence foreign) organizations in the network Internet;

information contained in other information sources on comparable transactions.

Article 91. General provisions on methods for determining market prices. Financial indicators

1. When comparing the results of commercial and/or financial conditions of the analyzed and compared transactions, the following methods for determining market prices shall be used:

method of comparable market prices;

method of the subsequent realization price;

cost-based method;

method of comparable profitability;

method of profit distribution.

It is allowed to combine two and more methods.

2. In order to determine the market price, the method shall be used which, taking into account the actual circumstances and conditions of the transaction being analyzed, makes it possible to make the most reasonable conclusion about the conformity or non-compliance of the price of the analyzed transaction to the market price.

When selecting a method for determining market prices, one should be guided by the following approaches:

to proceed from the functions of the organization when making the analyzed transaction, assets used and risks incurred;

to take into account the degree of comparability of the analyzed transaction and the compared transaction, including the accuracy of the corrections made to eliminate differences between the transactions (if applicable);

take into account the availability of complete and accurate information necessary to apply the chosen method for determining market prices.

3. If it is possible to use:

method of comparable market prices or any other method - the method of comparable market prices shall be used;

method of the subsequent realization price, or cost-based method, or method of comparable profitability, or method  of profit distribution - the method of subsequent realization price shall be applied.

When it is impossible to use the method of comparable market prices, method of subsequent realization price, one of the following methods shall be selected:

cost-based method;

method of comparable profitability;

method of profit distribution.

The method of profit distribution shall be used when:

it is impossible to use other methods for determining market prices and when there is a interconnection of the activity carried out by the parties to the transaction being analyzed (a group of homogeneous transactions being analyzed) that are interdependent parties;

availability in the ownership (use) of the parties to the transaction being analyzed of rights to intangible assets that have a significant impact on the level of profitability (in the absence of homogeneous transactions the subject of which are intangible assets made with persons who are not interdependent).

4. For the purpose of applying methods for determining market prices, calculating profitability indicators, and informing tax bodies, two or more analyzed transactions may be combined into a group of homogeneous transactions to be analyzed, provided that such transactions are interrelated or have continuous or regular nature and in relation to such transactions the functions carried out by the party (partiess) to the transaction, accepted risks, used assets coincide.

5. In case of application of the method of subsequent realization price , cost-based method, method of comparable profitability, the analyzed party of the transaction shall be selected, in relation to which the application of the method of determining market prices is the most reasonable, for which it is possible to find the most comparable transactions (in their absence, organizations performing comparable activities) and which meets the following requirements:

performs less complicated functions in the analyzed transaction;

accepts lesser economic (commercial) risks than the other party to the analyzed transaction;

does not have intangible assets that have a significant impact on the level of profitability.

If the party to the analyzed transaction does not simultaneously meet all the requirements provided for in part one of this clause, for comparison with the range of market profitability indicators, that party to the analyzed transaction shall be selected that mostly meets the specified requirements.

6. The tax body shall monitor the control ove conformity of the price to the market price in the transaction being analyzed using the method for determining the market price applied by the payer, with the exception of  the cases when the tax body justifies that the method used by the payer does not allow to determine the market price as accurately as possible with regard to the transaction being analyzed.

In that instance the tax body is entitled to determin another method for determining market prices.

7. When applying methods for determining market prices, the price (profitability indicators) of the analyzed transaction shall be compared with the range of market price (market profitability indicators) determined on the basis of two or more comparable transactions (in their absence, two or more organizations carrying out comparable activities), unless otherwise established by this Chapter.

8. When determining the revenue (income, profit) of the transaction being analyzed, the following profitability indicators may be used, determined on the basis of accounting data:

gross profitability defined as a ratio of the gross profit to the revenue from realization of products, goods (works, services), property rights (without account of the value added tax);

gross profitability of costs defined as a ratio of the gross profit to the prime costs of realized products, goods (works, services), property rights;

profitability of realization defined as a ratio of the profit from realization of products, goods (works, services), property rights to the revenue from realization of products, goods (works, services), property rights (without account of the value added tax);

profitability of cost defined as a ratio of the profit from realization of products, goods (works, services), property rights to the prime costs of the realized products, goods (works, services), property rights administrative expenses and expenses on realization;

profitability of administrative expenses and expenses on realization defined as a ratio of the gross profit to the administrative expenses and expenses on realization;

profitability of assets defined as a ratio of the profit from realization of products, goods (works, services), property rights to the value of assets used in the analyzed transaction. In the absence of necessary information on the value of assets, the profitability of assets may be determined on the basis of the data of accounting and/or financial reports;

another profitability indicator reflecting the interrelation between performed functions, used assets and accepted economic risks and the level of remuneration, including taking into account established price mark-ups (price discounts) or premiums, bonuses when the buyer fulfills the conditions of the analyzed transaction..

9. The selection of the profitability indicator shall be carried out with regard to the following factors:

activity of the analyzed party to the transaction (a group of homogeneous transactions being analyzed)

distribution of functions, risks, assets of the parties to the transaction being analyzed (a group of homogeneous transactions being analyzed);

economic feasibility of the selected indicator;

independence of the indicator from incomes and/or expenses recognized in the analyzed transaction being analyzed (group of homogeneous transactions being analyzed), made between interdependent parties;

completeness, accuracy and comparability of data used to calculate the profitability indicator.

10. When forming the range of market profitability indicators, the data of accounting and/or financial report shall be used, available as of the day of making the analyzed transaction, but no later than December 31 of the calendar year in which it was made, or data of accounting and/or financial reports for three calendar years preceding the year in which the analyzed transaction was made (or the calendar year in which the prices were established in the analyzed transaction).

When using several calendar years, a weighted average value of profitability indicators shall be calculated.

When forming a range of market profitability indicators based on accounting and/or financial reports of organizations carrying out comparable activities, corrections shall be made in order to ensure comparability to eliminate differences in the indicators of accounts receivable and payable, inventories according to the accounting and/or financial reports of the party to the analyzed transaction and organizations carrying out comparable activities.

Article 92. Method of comparable market prices

1. The method of comparable market prices consists in comparing the price in the analyzed transaction with the range of market prices of identical (in their absence - homogeneous) goods (works, services), property rights applied in comparable transactions.

The range of market prices may be formed from prices calculated with application of corrections to the prices of comparable transactions.

Comparison of the price of the analyzed transaction with the range of market prices of identical (in their absence - homogeneous) goods (works, services), property rights shall be carried out on the basis of information on prices established before the date of making the analyzed transaction In doing so, the dates nearest to the analyzed transaction shall be selected.

In the absence of information on comparable transactions in the tax period being inspected and the availability of such information for other tax periods preceding the tax period being inspected, data on market prices for such previous tax periods shall be taken with their correction for price indices determined by the National Statistical Committee of the Republic of Belarus or for a change in the official exchange rate of the Belarusian ruble established by the National Bank of the Republic of Belarus in relation to other currencies.

2. To apply the method of comparable market prices, it is possible to use information about a transaction made by the payer, provided that it is comparable with the analyzed transaction.

3. In the case of the transaction being analyzed on the basis of a forward or futures contract, the price comparison shall be made on the basis of information on forward or futures prices on the date nearest to the date of conclusion of the corresponding forward or futures contract.

4. When using stock quotes, the range of market prices shall be determined on the basis of the prices of transactions the subject matter of which is identical (in the absence of homogeneous) goods, registered by the relevant exchange, on the basis of the information of the relevant exchange published or obtained upon request.

The range of market prices shall be determined on the date of making the transaction being analyzed (in the absence of trading on that day, as of the date nearest to the date of the transaction being analyzed). When determining the range of market prices on the basis of stock quotes, corrections shall be made concerning the differences in the commercial and/or financial terms of the transactions:

in the expenses necessary for the delivery of goods to the relevant market;

in expenses for payment of export customs duties;

in payment terms;

in the remuneration of the trade broker (commissioner or agent) for his exercising trade and intermediary functions.

If the conditions of the contract for realization of goods stipulate for the use of the quotation period, then the price for exchange and non-exchange goods the prices of which are tied to the quotations for exchange goods, shall be determined taking into account such a quotation period, the duration of which may not exceed thirty calendar days, as an average of the daily quotations for the quotation period taking into account the differential.

5. If the price of the analyzed transaction is within the range of market prices, it shall be considered that that price conforms to the market price for the taxation purposes.

If the price applied in the analyzed transaction on realization of goods is less than the minimum level of the range of market prices, the price that conforms to the minimum level of the range of market prices is to be accepted for the taxation purposes.

If the price applied in the analyzed transaction on realization of goods exceeds the maximum level of the range of market prices, the price that conforms to the maximum level of the range of market prices is to be accepted for the taxation purposes.

6. When information about only one comparable transaction is available, the price of the mentioned transaction may be recognized simultaneously as a minimum and maximum levels of the market price when commercial and/or financial conditions of the given transaction is fully comparable with the conditions of the analyzed transaction or with assistance of corrections the comparison of such conditions is ensured, and also provided that the seller (supplier) of goods (works, services), property rights in the comparable transaction does not have a dominant position at the market of those identical (in their absence homogeneous) goods (works, services), property rights.

Article 93. Method of the subsequent realization price

1. The method of the subsequent realization price consists in comparing the gross profitability in the subsequent realization of goods (works, services), property rights acquired (obtained) in the analyzed transaction (group of homogeneous transactions being analyzed) with the range of market profitability indicators for comparable transactions (in their absence organizations carrying out comparable activities).

2. If the subsequent realization of goods (works, services), property rights in comparable transactions between a person who performed the resale and a person not being the interdependent person with the former, is carried out at different prices, when determining the range of market profitability indicators as the price of the subsequent realization of goods (works, services), property rights, the weighted average price of those goods (works, services), property rights for all such transactions shall be used.

3. The method of the subsequent realization price shall be applied when one or several of the following circumstances occur:

a person who performed the resale does not own and, accordingly, has not used objects of intangible assets that may have a significant impact on the level of its gross profitability;

upon resale the goods were not subjected to operations that influenced its characteristics. Such operations include pre-sale preparation (dividing goods into lots, forming shipments, sorting, repacking, etc.), mixing goods, if the characteristics of the final product (semi-finished products) do not differ significantly from the characteristics of the goods being mixed.

4. If the gross profitability of the analyzed party to the transaction is less than the minimum level of the range of market profitability indicators specified in clause 1 of this Article, the price of the analyzed transaction shall be determined based on the actual price of the subsequent realization of goods and gross profitability that corresponds to the minimum level of this range of market profitability indicators.

If the gross profitability of the analyzed party to the transaction exceeds the maximum level of the range of market profitability indicators specified in clause 1 of this Article, the price of the analyzed transaction shall be determined based on the actual price of the subsequent realization of goods and gross profitability that corresponds to the maximum level of this range of market profitability indicators.

Article 94. Cost-based method

1. The cost-based method consists in comparing the indicators of gross profitability of the analyzed party to a transaction with a range of market profitability indicators compiled from gross profitability indicators of costs in comparable transactions (in their absence organizations carrying out comparable activities).

2. The cost-based method shall be applied upon:

performance of works (rendering of services), with the exception of cases when for performance of works (rendering services) intangible assets are used that have a significant impact on the level of profitability of costs of the performer of works (services);

rendering of services on management of monetary means, including operations on the securities market and/or the foreign exchange market;

sale of raw materials or semi-finished products to an interdependent person;

realization of goods (works, services), property rights under long-term contracts between interdependent persons;

production of goods from give-and-take raw materials.

3. If the gross profitability of costs of the analyzed party to the transaction is less than the minimum level of the range of market profitability indicators specified in clause 1 of this Article, the price of the analyzed transaction shall be determined based on the actual prime costs of the realized goods (works, services) and the gross profitability of costs that corresponds to the minimum level of such range of market profitability indicators.

If the gross profitability of costs of the analyzed party to the transaction exceeds the maximum level of the range of market profitability indicators specified in clause 1 of this Article, the price of the analyzed transaction shall be determined based on the actual prime costs of the realized goods (works, services) and the gross profitability of costs that corresponds to the maximum level of such range of market profitability indicators.

Article 95. Method of comparable profitability

1. The method of comparable profitability consists in comparing one of the profitability indicators specified in indents four to eight of clause 8 of Article 91 of this Code, formed for the analyzed party to the transaction for the transaction being analyzed, with a range of market profitability indicators compiled from gross profitability indicators in comparable transactions (in their absence - organizations carrying out comparable activities).

2. When selecting a specific profitability indicator, the type of activity carried out by the analyzed party to the transaction, its functions, used assets and accepted risks, completeness, accuracy and comparability of the data used to calculate the corresponding profitability indicator, as well as economic feasibility of such an indicator shall be taken into account.

3. If the profitability of the analyzed transaction is less than the minimum value of the range of market indicators of profitability specified in clause 1 of this Article, the minimum value of such range of market indicators of profitability shall be taken to correct the profit (income).

If the profitability of the analyzed transaction exceeds the maximum value of the range of market indicators of profitability specified in clause 1 of this Article, the maximum value of such range of market indicators of profitability shall be taken to correct the profit (income).

Article 96. Method of profit distribution

1. The method of profit distribution consists in comparing the actual distribution between the parties of the analyzed transaction of total profit (loss) received by all parties to that transaction with the distribution of profit between the parties to comparable transactions.

2. Distribution of profit (loss) between the parties to the transaction being analyzed (a group of homogeneous transactions being analyzed) shall be made on the basis of evaluating their contribution to the total profit of the analyzed transaction (groups of homogeneous transactions being analyzed).

The distribution of profit (loss) for the analyzed transaction (group of homogeneous transactions being analyzed) between its parties shall be made on the basis of an assessment of the parties' contribution to the total profit (loss) according to the following criteria:

in proportion to the contribution to the total profit of the analyzed transaction of the functions performed by the parties, the assets used, the risks taken;

in proportion to the distribution between the parties of the profit (loss) received on the invested capital (fixed assets, tangible and intangible assets) in this transaction;

in proportion to the distribution of the profit between the parties to a comparable transaction.

3. When applying the method of profit distribution  between the parties to the analyzed transaction (a group of homogeneous transactions being analyzed), the total or residual profit (loss) of all parties for the tax period shall be distributed.

If the parties to the transaction being analyzed (a group of homogeneous transactions being analyzed) whose total profit (loss) is to be distributed, keep accounting based on various requirements for the accounting, for the purposes of applying the method of profit distribution, such accounting and/or financial reports must be brought by by means of corrections in accordance with uniform requirements for the accounting.

The total profit of all parties to the transaction being analyzed (a group of homogeneous transactions being analyzed) is recognized the sum of profit from realization of goods (works, services), property rights of all parties for the tax period.

The residual profit (loss) on the analyzed transaction (a group of homogeneous transactions being analyzed) is recognized a difference between the total profit (loss) on the analyzed transaction and the sum of estimated profit (loss) of all parties to the analyzed transaction, determined for each of them based on one of the methods for determining market prices.

When the residual profit (loss) is distributed between all parties to the analyzed transaction, the total sum of profit (loss) of each party to the analyzed transaction (a group of homogeneous transactions being analyzed) shall be determined by summing up the respective estimated profit (loss) and the residual profit (loss).

4. For distribution between all parties to the analyzed transaction of the total or residual profit (loss), the following indicators shall be taken into account:

amount of costs incurred by a party to the analyzed transaction for creation of intangible assets the use of which affects the value of the actually received profit (loss) under the analyzed transaction;

characteristics of the personnel employed by the party to the transaction being analyzed (number, qualification, time spent by it, amount of labor costs) that affect the amount of actual profit (loss) received on the transaction being analyzed;

value of assets being at possession (disposal) of a party to the analyzed transaction, the use of which affects the amount of actually received profit (loss) on the analyzed transaction;

other indicators reflecting the correlation between performed functions, used assets, accepted risks and the amount of acctually received profit (loss) on the analyzed transaction.

5. If the profit received by the party to the analyzed transaction is equal to the profit calculated for that party in accordance with the method of profit distribution or exceeds it, or if the loss incurred by the mentioned party is equal to the loss calculated for that party in accordance with the method of profit distribution or less, for the taxation purposes, the actual profit or loss actually incurred shall be accepted, accordingly.

If the profit received by the payer being a party to the transaction being analyzed is less than the profit calculated for this party in accordance with the method of profit distribution, the profit calculated for it in accordance with the method of profit distribution shall be taken for the taxation purposes.

If the loss received by the payer being a party to the transaction being analyzed exceeds the loss calculated for this party in accordance with the method of profit distribution, the loss calculated for it in accordance with the method of profit distribution shall be accepted for the taxation purposes.

Correction of the payer's profit (loss) shall be made on the basis of a comparison of the profit (loss) determined in accordance with this clause with the profit actually received (loss incurred) by the payer.

Article 97. Informing the tax bodies about analyzed transactions

1. The payer is obliged to submit information about the transaction being analyzed, performed by him in the tax period, by entering data about each such transaction in the electronic invoice and sending it using the Electronic Invoice Portal, which is an information resource of the Ministry on Taxes and Dues of the Republic of Belarus. Data shall be entered in an electronic invoice regardless of the transaction price and price deviations from market prices.

2. The payer is obliged to draw up documentation confirming the economic feasibility of the price applied (hereinafter documentation) for the following analyzed transactions:

a foreign trade transaction with an interdependent person made by the payer included in the list of large payers;

a foreign trade transaction on realization or acquisition of strategic goods according to the list determined by the Council of Ministers of the Republic of Belarus.

Documentation shall be not be drawn up on the transactions:

made on the stock exchange, if the price of the transaction was established on the results of exchange trading conducted in accordance with the legislation, with the exception of transactions with interdependent persons (including transactions equated to transactions with interdependent persons) and residents of offshore zones;

in respect of which, in accordance with this Chapter, an agreement on pricing has been concluded.

3. The tax body is entitled to request documentation from the payer when conducting inspections, but not earlier than June 1 of the year following the calendar year in which the analyzed transactions were made. When conducting an inspection, with the exception of a chamber inspection, documentation shall be requested only for the period being inspected.

4. The documentation shall be submitted according to the form established by the Ministry on Taxes and Dues of the Republic of Belarus for each analyzed transaction (a group of homogeneous transactions being analyzed) and must contain the following information:

4.1. data about the payer (full name of the payer, surname, own name, patronymic (if available) of the head, contact phone number, name and code of the tax body, account number of the payer, code of the type of economic activity);

4.2. data about the analyzed transaction:

tax period for which the data about the analyzed transaction are being submitted;

title, number and date of the document in which the transaction price is determined (contract (group of contracts for homogeneous transactions), annex to the contract, specification, etc.);

type of transaction (realization or purchase of goods (works, services), property rights);

purpose of the acquisition of a good (work, service), property rights (final consumption, resale, use in production, otherwise);

number of transaction participants;

terms of payments (advanced payment (specify the amount as a percentage of the transaction price), subsequent payment (specify the period), adjournment (by-installment payment, specify the period)), other peculiarities of the payments;

4.3. information about the payer's counterparty for the transaction being analyzed (full name, surname, own name, patronymic (if available) of the head, country of registration of the counterparty or place of its permanent location, account number of the payer in the country of registration or its analog (if available));

4.4. data on the interdependence of the parties to the transaction being analyzed, including the share of direct participation, the share of indirect participation , the share of direct and indirect participation (if available);

4.5. schematic structure of the holding (group of companies), full name and location of the managing company, indication of the main activity of the holding (group of companies) which includes the payer;

4.6. description of the characteristics of the industry to which the analyzed transaction and/or the activities of the parties to the analyzed transaction relates, the state of competition in the market for goods (works, services), the share of the payer in such a market;

4.7. description of the subject matter of the analyzed transaction:

name of the good (work, service), property rights, property granted (received) in use with indication of the code of the Single Commodity Nomenclature for Foreign Economic Activity of the Eurasian Economic Union (Code of the national classifier of the Republic of Belarus OKRB 007-2012 "Classifier of products by types of economic activity") up to ten digits;

value of the good (work, service), property rights, its quantity (volume), unit of measurement, price per unit of measurement, date of shipment (completion, rendering, receipt), amount of payment for providing (receiving) property in use (without account of value added tax, excises);

qualitative characteristics of good;

data about the trade mark, country of origin and manufacturer;

data about the delivery terms in accordance with the International Rules for the Interpretation of Trade Terms (Incoterms 2010), place of loading (unloading) of goods in accordance with the shipping documents, mode of transport by which the goods were transported;

4.8. description of activities of the parties to the analyzed transaction, which includes information:

about functions (productive, intermediary, other) exercised by them in the transaction;

on the use of tangible or intangible assets (office space and/or production capacity, and/or intangible assets, and/or storage space) when making a transaction) or on the non-use of mentioned assets;

on the impact on the price of the analyzed transaction of the use of trademarks and other similar intangible assets;

about risks accepted (production, business and others);

about average payroll number of workers for the calendar year;

about other facts affecting the pricing of goods (works, services) in the analyzed transaction;

4.9. data about the sales strategy of the payer, which influenced the price of the transaction (if available), the financial position of the payer;

4.10. data about incomes and expenses on the transaction being analyzed:

revenue from the realization of goods (works, services), property rights (without account of the value-added tax, excises);

prime costs of the realized products, goods (works, services);

profit (loss) from realization of goods (works, services), property rights;

administrative expenses and expenses on realization;

price of the subsequent realization of goods (works, services), property rights by an interdependent person (if there is such a realization), profit (loss) received by him from such realization of goods (works, services), property rights, as well as the costs (expenses) incurred by him, gross profitability;

data about other factors that influenced the price (profitability) applied by the payer when performing the transaction, including the calculation of the price;

4.11. data (if available) on prices for identical (in their absence homogeneous) goods (works, services), property rights or on profitability of other organizations that have made comparable transactions, indicating sources of information and enclosure of documents containing information about prices (profitability). If the source of information is the data from the network Internet, a site shall be indicated on which such data are placed and/or a graphical image of the display (screenshot) of the internet page shall be submitted;

4.12. data about the payer's approaches for determining the price of the transaction:

the method used by the payer for determining market prices (when used) and the substantiation for his selection;

information on the prices for identical (in their absence - homogeneous) goods (works, services), property rights being realized by the payer to a person not being an interdependent person or acquired by him from such a person;

information on profitability indicators established in comparable transactions;

4.13. information on the correction of the tax base made by the taxpayer for the tax on profit and the sum of such correction (if corrected).

5. The tax body is entitled to request from the payer the economic substantiation for the price applied (hereinafter - the economic substantiation) for transactions being analyzed, except for transactions for which the taxpayer is obliged to submit documentation.

The economic substantiation shall be submitted by the payer on the basis of a notification of the tax body sent in the order established by part one of clause 8 of Article 73 of this Code, or at the request of the tax body sent in the order established by part one of clause 2 of Article 79 of this Code.

The economic justification shall be submitted in the form established by the Ministry on Taxes and Dues of the Republic of Belarus for each analyzed transaction (group of homogeneous transactions being analyzed) and must contain information provided for by sub-clauses 4.1-4.4, 4.7, 4.10 and 4.11 of clause 4 of this Article.

6. In addition to the economic substantiation or documentation, the payer is entitled to provide other information confirming that the commercial and/or financial conditions of the transaction made by them correspond to those that occurred in comparable transactions.

7. The tax body is entitled to request information from state bodies and other organizations that is necessary to determine the market price of the transaction being analyzed. Such information shall be requested and submitted in the order and within time limits specified in clause 2 of Article 79 of this Code.

Article 98. General terms of the pricing agreement

1. Payers included in the list of large payers and/or who have made analyzed transactions in the amount of more than 2 000 000 Belarusian rubles (without account of the value-added tax, excises) are entitled to apply to the Ministry on Taxes and Dues of the Republic of Belarus with an application for conclusion of a pricing agreement.

2. The pricing agreement is an agreement between the payer specified in clause 1 of this Article and the Ministry on Taxes and Dues of the Republic of Belarus on the procedure for determining prices for taxation purposes and/or applying methods for determining market prices.

3. The subject matter of the pricing agreement shall be:

types and/or lists of controlled transactions and goods (works, services), property rights in respect of which the agreement is concluded;

procedure for determining prices and/or description and order of applying pricing methods for taxation purposes;

list of sources of information used in determining the conformity of prices applied in transactions;

validity period of the agreement;

list, procedure and deadlines for submission of documents (data) confirming the fulfillment of the conditions of the pricing agreement.

4. Upon agreement of the parties, other conditions of the pricing agreement may be established, other than those specified in clause 3 of this Article.

5. A pricing agreement may be concluded for one or several homogeneous transactions for a period not exceeding three calendar years.

At the same time, the pricing agreement may be extended for a period from the 1st day of the calendar year, in which the payer applied to the Ministry on Taxes and Dues of the Republic of Belarus with an application about the conclusion of the agreement, until the day of entry into force of the mentioned agreement.

6. The payer, subject to compliance with all the conditions of the pricing agreement, is entitled to apply to the Ministry on Taxes and Dues of the Republic of Belarus with an application for extension of the validity period of such an agreement.

The pricing agreement may be extended by agreement of the parties for not more than two calendar years.

Article 99. The procedure for conclusion of a  pricing agreement

1. The payer shall attach to the application for conclusion of a pricing agreement:

a draft pricing agreement in two copies;

documents on the payers activities related to controlled transactions for which the payer proposes to conclude a pricing agreement with information on such transactions;

accounting and/or financial reports for the last financial year;

document confirming the payment of state duty for the consideration of the application for the conclusion of a pricing agreement.

The payer is entitled to enclose to the application other documents and/or information relevant for the conclusion of the pricing agreement.

When considering an application for conclusion of a pricing agreement pricing, the Ministry on Taxes and Dues of the Republic of Belarus is entitled to request from the payer documents and/or information not provided for by part one of this clause that are necessary to conclude such an agreement.

2. The Ministry on Taxes and Dues of the Republic of Belarus shall consider the application and documents submitted by the payer in accordance with clause 1 of this Article within three months from the date of their receipt. The mentioned time limit may be prolonged to six months in the event of necessity to receive information from a foreign state.

3. According to the results of consideration of the application and documents, the Ministry on Taxes and Dues of the Republic of Belarus shall conclude an agreement on pricing or adopt a decision to refuse to conclude the pricing agreement, and if necessary to finalize the draft agreement, notify the payer thereabout within three working days from the day following, respectively, the signing of the agreement, adoption of the decision to refuse to sign the agreement or to finalize it.

4. After signing of the pricing agreement by the Minister on Taxes and Dues of the Republic of Belarus (his deputy) , one original of such agreement shall be sent to the payer, and a copy thereof shall be sent to the tax body at the place of putting on record of the payer.

5. A ground for taking a decision about refusal to conclude a pricing agreement shall be the conclusion that as a result of the application of the procedure for determining prices and/or pricing methods proposed by the payer in the draft pricing agreement, the implementation of provisions of part two of clause 3 of Article 87 of this Code will not be ensured.

6. The payer shall, within three months from the date of sending him a notification about the need to finalize the draft pricing agreement, submit to the Ministry on Taxes and Dues of the Republic of Belarus two copies of the revised draft pricing agreement, as well as additional documents and/or information relevant for its conclusion (if available).

The Ministry on Taxes and Dues of the Republic of Belarus shall, within one and a half months from the day of receipt of the revised draft pricing agreement, but not more than one year from the date of receipt of the application, documents and/or information provided for in part one of clause 1 of this Article, conclude such an agreement or take the decision about refusal to conclude the pricing agreement, about which it shall inform the payer within three working days from the day following the day of signing the agreement or taking the decision about refusal to sign.

7. The decision about refusal to conclude a pricing agreement and notification about the need to finalize the draft pricing agreement may be appealed by the payer to the court.

8. Relations not regulated by this Article, which are connected with the conclusion of a pricing agreement, shall be governed by the provisions of the legislation on administrative procedures.

Article 100. Procedure for early termination of the pricing agreement

1. The pricing agreement may be terminated before expiration of its validity period by the decision of the Ministry on Taxes and Dues of the Republic of Belarus in the following cases:

the payer has violated the conditions of the pricing agreement;

inaccurate data have been detected in the documents and/or information, submitted with the application for the conclusion of the pricing agreement;

in the time limits established by the pricing agreement, documents and/or information confirming the fulfillment of the conditions of the pricing agreement have not been submitted;

documents and/or information confirming the fulfillment of the conditions of the pricing agreement have not been submitted fully and/or have been submitted with inaccurate data.

2. The pricing agreement may also be terminated early by agreement of the parties or by the court judgment.

3. A decision of the Ministry on Taxes and Dues of the Republic of Belarus on the termination of the pricing agreement shall be sent to the payer not later than within five working days from the date of its adoption. A copy of the decision shall be simultaneously sent by the Ministry on Taxes and Dues of the Republic of Belarus to the tax body at place of putting on record of the payer.

4. A decision of the Ministry on Taxes and Dues of the Republic of Belarus on the termination of the pricing agreement may be appealed by the payer to the court.

Article 101. Inspection of the fulfillment of a  pricing agreement

Inspection of the fulfillment by the payer of a pricing agreement shall be carried out by the Ministry on Taxes and Dues of the Republic of Belarus.

If the payer complied with the conditions of the pricing agreement, additional charging of the tax on profit or reduction of sum of losses in respect of those controlled transactions the prices for which (methods of their determination) were agreed in the pricing agreement, shall not be effectuated.

SECTION IV
APPEALING THE DECISIONS OF TAX BODIES.. TAX AND CUSTOMS BODIES

CHAPTER 12
ORDER AND TIME LIMITS FOR APPEALING THE DECISIONS OF TAX BODIES, ACTIONS (OMISSIONS) OF THE OFFICIALS

Article 102. Right to appeal

Every person has the right to appeal decisions of the tax bodies, including the requests (prescriptions) on the elimination of violations and actions (omission) of their officials, if such person believes that such decisions or actions (omission) violate his rights and/or legitimate interests.

Article 103. Order of appeal

1. The decisions of the tax bodies and actions (omission) of their officials may be appealed to the superior tax body or to the superior official, to whom the officials whose actions (omission) are appealed are directly subordinated, and/or to the court.

Filing of the complaint to the superior tax body or to the superior official does not exclude the right to submit the complaint to the court. Appealing the decision of the tax body, actions (omission) of its officials in court, is carried out in accordance with civil procedural and economic procedural legislation. In doing so, the complaint against the decision of the tax body, actions (omission) of its officials may be submitted to the economic court within one year from the day of its adoption (commission).

2. The norms of this Chapter do not cover the decisions of tax bodies and actions (omission) of their officials made during administrative proceedings.

Article 104. Procedure and time limits for submitting complaint to the superior tax body or to the superior official of the tax body

1. A complaint against the decision of the inspectorate of the Ministry on Taxes and Dues of the Republic of Belarus for the district, city, district in the city may be filed with the inspectorate of the Ministry on Taxes and Dues of the Republic of Belarus for the region, city of Minsk (according to the territorial location) or to the Ministry on Taxes and Dues of the Republic of Belarus within thirty calendar days from the day of its issuance.

2. A complaint against actions (omission) of an official of the inspectorate of the Ministry on Taxes and Dues of the Republic of Belarus for the district, city, district in the city may be filed with a superior official to which the official actions (omission) of which if being appealed against is directly subordinated within thirty calendar days from the day of performance of such actions (omission).

In case of disagreement with the decision issued by the superior official of the inspectorate of the Ministry on Taxes and Dues of the Republic of Belarus for the district, city, district in the city, the complaint may be filed with the inspectorate of the Ministry on Taxes and Dues of the Republic of Belarus for the region, city of Minsk (according to the territorial location) or the the Ministry on Taxes and Dues of the Republic of Belarus within thirty calendar days from the day of its issuance.

3. In case of disagreement with the decision issued by the inspectorate of the Ministry on Taxes and Dues of the Republic of Belarus for the region, city of Minsk in accordance with clause 1 or part two of clause 2 of this Article, the complaint may be filed with the Ministry on Taxed and Dues of the Republic of Belarus within thirty calendar days from the day of its issuance.

4. A complaint against the decision of the inspectorate of the Ministry on Taxes and Dues of the Republic of Belarus for the region, city of Minsk may be filed within thirty calendar days from the day of its issuance to the Ministry on Taxed and Dues of the Republic of Belarus.

5. A complaint against actions (omission) of officials of the inspectorate of the Ministry on Taxes and Dues of the Republic of Belarus for the region, city of Minsk may be filed with a superior official within thirty calendar days from the day of performance of such actions (omission).

In case of disagreement with the decision issued by the superior official of the inspectorate of the Ministry on Taxes and Dues of the Republic of Belarus for the region, city of Minsk, the complaint may be filed with the Ministry on Taxes and Dues of the Republic of Belarus within thirty calendar days from the day of its issuance.

6. A complaint against actions (omission) of officials of the Ministry on Taxes and Dues of the Republic of Belarus may be filed with the Minister on Taxes and Dues of the Republic of Belarus within thirty calendar days from the day of performance of such actions (omission).

7. Failure to comply with the term for filing a complaint shall be a ground for refusal of its consideration. In the case of missing the deadline for complaint for a good reason, this term, on the application of the person making the complaint, may be renewed by the superior tax body or superior official of the tax body that receive such a complaint, to whom the officials whose decision or actions (omission) are appealed are directly subordinated.

8. A complaint against the decision of the tax body, actions (omission) of its officials shall be submitted in a written or electronic form. Natural persons not being individual entrepreneurs may file the complaint in electronic form through the private office of the payer. The complaint shall be accompanied by documents confirming it.

9. The person who filed the complaint may, pending a decision on that complaint, revoke it on the basis of an application to be filed in the form provided for filing such a complaint.

Article 105. Consideration of complaint by the superior tax body or to the superior official of the tax body

1. The complaint shall be considered within one month from the day of its receipt.

2. Upon the results of consideration of the complaint against the decision of the tax body, the superior tax body or superior official (in the absence of the superior tax body) to whom the officials who issued the decision is subordinated directly is entitled to:

leave the decision unchanged, and the complaint without satisfaction;

reverse the decision in whole or in part;

reverse the decision and appoint an additional inspection;

make changes to the decision.

Upon the results of consideration of the complaint against actions (omission) of an official of the tax body, the superior tax body or the superior official is entitled to:

satisfy the complaint;

leave the complaint without satisfaction.

3. The decision on the complaint, within three working days from the date of its adoption, is sent to the person who filed the complaint by registered mail with a return receipt requested or is handed in to him or his representative against signature. A copy of the decision is sent to the tax body, the decision or action (omission) of the officials of which has been appealed, within the same term.

CHAPTER 13
TAX AND CUSTOMS BODIES

Article 106. Tax bodies

1. Tax bodies are the state bodies having the rights of a legal person and within their powers conduct the state policy and carry out the regulation and management in the sphere of taxation.

2. In the cases provided by legislative acts, the customs bodies and other authorized state bodies can have the powers of the tax bodies.

Tax bodies, as well as customs bodies and other state bodies having powers of tax bodies shall exercise their functions and interact through realization of the rights and fulfilling duties established by the legislation.

Article 107. Rights of tax bodies and their officials

1. Tax bodies and their officials have the right:

1.1 to receive from a payer documents needed for calculation, payment and collection of taxes and dues (duties) and other information concerning the activity and property of the payer;

1.2. in the cases established by this Code, to suspend operations on accounts, electronic purses of the payer, as well as to impose arrest on the property of the payer;

1.3. to perform measures on detecting the property of the payer, and also of his debtors.

1.4. in the cases established by this Code, to conclude a contract of pledge, contract of suretyship, accept a bank guarantee;

1.5. accept cash monetary means for the payment of taxes, dues (duties), penalty interest;

1.6. to apply to the notary for effectuating an executive inscriptions on the collection of tax, due (duty), penalty interest at the expense of the property of the payer, with the exception of the property of the payer-organization;

1.7. to send to the court claims (statements):

1.7.1. on collecting the tax or due (duty) or penalty interest at the expense of the property of the payer;

1.7.2 on liquidation of an organization, termination of activity of individual entrepreneur;

1.7.3. on recognizing the activity carried out by the payer illegal in case of violation of the established order of its fulfillment as well as on recognizing transactions (contracts) invalid;

1.7.5. on economic insolvency (bankruptcy) of the payer;

1.7.5. on bringing to subsidiary liability of owners of the property of the organization, founders (participants) or other persons, including the head of the organization, which have the right to give instructions obligatory for the organization or have another possibility to determine its actions otherwise;

1.7.6. other claims (statements) provided by the legislation;

1.8. in respect of the payers who have indebtedness on payments to the budget, to impose a temporary restriction on their removal of vehicles off the record in the order established by the Ministry on Taxes and Dues of the Republic of Belarus and the Ministry of Internal Affairs of the Republic of Belarus. Simultaneously with the introduction of a temporary restriction on the removal of vehicles off the record, the tax body shall inform the payer thereabout;

1.9. to submit recommendations (proposals) about the liquidation of organizations and termination of activities of individual entrepreneurs;

1.10. to issue the demand (prescription) for the licensee to eliminate detected violations and set the time limit for their elimination;

1.11. to present the recommendation to the licensing body about suspension of a special permit (license) for carrying out activities in the instances established by the legislative acts;

1.12. to receive from state bodies , other organizations, notaries, banks and natural persons, on a gratuitous basis, documents and/or information (including data from databases (registers), information systems by means of transmitting an information array or providing remote access) necessary for the fulfillment of the duties imposed on the tax bodies, including information constituting commercial, professional, banking and/or other secrets protected by the law, with observance of the requirements established by the legislative acts;

1.13. to receive conclusions of respective experts or specialists;

1.14. to obtain personal data of natural persons without their written consent for the formation, maintenance, updating and exclusion of data about payers (other obliged persons) contained in the State Register of Payers (Other Obliged Persons). The said data may be provided at a written request, on the basis of an agreement on providing personal data, including by means of remote access to the information systems containing such data;

1.15. when conducting an inspection:

1.15.1. to verify identity documents and/or documents confirming the powers of payers and their representatives, to demand and receive from payers documents (their copies), including in the electronic form, other information concerning their activities and property;

1.15.2. to summon the payers, their representatives to the tax bodies, as well as other persons having documents and/or information about the activity of the payers in relation to which the inspection is conducted;

1.16. when conducting an inspection, with the exception of a chamber one:

1.16.1. to verify cash monetary means in the cash register and at the persons accountable for them, securities and other assets;

1.16.2. to have access to the territory or premises of the payer, and to examine territories or premises of the payer or other objects, for determining the compliance of the actual data about the objects with the documentary data presented by the payer (at his possession).

1.16.3.  to request performance of  inventory of the property, and also to verify its results and seal cash registers, premises, places where documents and/or property of the payer are stored;

1.16.4. to seize originals of the documents of the payer or require the submission of extracts from them or copies;

1.165. to perform a personal examination of the payer and their representatives and examination of things, documents, valuables and vehicles, that they have on them.

Personal examination of the payer and his representatives and examination of things, documents, valuables and vehicles, which they have on them, is an exceptional form of control measure and shall be conducted to the extent necessary for detection of documents, monetary means, other items and tools, evidencing a violation of legislation. Prior to a personal examination of payers and their representatives and examination of things, documents, valuables and vehicles, which they have, the inspectors shall offer to the persons to be examined to produce things which they have on them voluntarily (including monetary resources), documents, valuables and to ensure access to examine vehicles.

Personal examination of payers and his representatives shall be conducted by a person of the same gender with the person to be examined and in the presence of witnesses of the same gender. Personal examinations are performed in a separate room.

As a result of a personal examination of the payer and his representatives, examination of things, documents, valuables and vehicles the act shall be drawn up in accordance with the legislation.

1.17.  in the cases and in the order established by the legislation,  to send, with or without seizing, slot machines, special computer systems, included those combined with taximeters, ticketing machines for technical examination;

1.18. to perform monitoring in the order established by the President of the Republic of Belarus;

1.19. in the cases and in the order established by the legislation, to create tax posts, ensuring stay of the officials of the tax bodies on the territory and/or in premises of the payer;

1.20. to hold controlled purchase of commodity and material valuables and controlled formalization of orders to fulfill works and render services in order to verify the observance of legislation, including the established order for accepting cash monetary means.

A controlled purchase of commodity and material valuables, controlled placement of orders to fulfill works and render services is a method of control, expressed in the artificial creation by the officials of the tax bodies of the situation on the acquisition of the commodity and material valuables, making-out of orders to fulfill works and render services without the aim to acquire (consume) them or to realize them later;

1.21. in the cases established by the legislation, to make arrest and/or seizure of things and commodity and material valuables of the payer that are the objects of violation of the tax and other legislation and also the tools and means for committing of violations of legislation;

1.22. to use technical means, including apparatus to execute audio and video recording, filming and photographing, photocopying, scanning devices for documents, identifications of hidden images to monitor for compliance with the legislation, compiling and recording evidence confirming facts of offences in the order established by the Council of Ministers of the Republic of Belarus;

1.23. to carry out activity on technical and/or cryptographic protection of the information, in the part of certification of the external presentation form of the electronic document on a paper-based carrier being presented to the tax body or by the tax body.

2. Tax bodies also have other rights determined by the legislative acts.

3. When the inspected payer does not have or present the documents of finance and tax accounting and/or other documents related to taxation, while conducting the inspection in accordance with indents two, six, nine and ten of sub-clause 2.2 of clause 2 of Article 72 of this Code, with the customs legislation, and also in accordance with the legislative act determining the uniform order for conducting control and supervision activity in the Republic, the tax and customs bodies are entitled, unless otherwise provided by the President of the Republic of Belarus, to determine, in the order established by the Council of Ministers of the Republic of Belarus or the customs legislation, the amount of sums of taxes, dues (duties) payable to the budget, on the basis of data about the movement of monetary means on the accounts at the bank and/or data about the payer received from other state bodies, legal and natural persons, or by a calculation method on the basis of the data about legal persons and individual entrepreneurs carrying out similar activities.

The sums of taxes and dues (duties) determined in the order specified in part one of this clause shall be reviewed by the tax or customs body subject to recovery by the payer of  accounting and tax records and submission of documents of finance and tax accounting and/or other documents connected with taxation, but not later than one month from the day of delivery (sending) to the payer or his representative of the act of inspection.

4. When exercising control for fulfillment of the tax obligation of the payer by other obliged person, the tax bodies shall use rights established by this Code.

5. The Ministry on Taxes and Dues of the Republic of Belarus is entitled, in accordance with this Code or other acts of tax legislation:

to adopt normative legal acts binding for the payers, tax bodies and their officials;

to approve the forms and formats of documents and/or information provided for by this Code and other acts of tax legislation, including tax declarations (calculations), as well as to establish the procedure for filling them in, submitting (sending), receiving and processing.

Article 108. Duties of tax bodies and their officials

1. Tax bodies and their officials are obliged:

1.1. to act in strict accordance with the legislation, to treat payers and their representatives correctly and attentively, not to humiliate their honor, dignity, business reputation;

1.2. to maintain records of the payers (in established casesof other obliged persons) in the State Register of Payers (other obliged persons) and other registers established by the legislation;

1.3. to carry out the control over compliance with tax legislation, accurate calculation and complete and timely payment of taxes, dues (duties) and penalty interest, as well as the accuracy of the collection, timeliness and completeness of remittance to the budget of taxes, dues (duties);

1.4. to carry out the setoff or return of the excessively paid or excessively collected sums of the taxes, dues (duties), penalty interest and interest on them;

1.5. to collect unpaid (not fully paid) sums of tax, due (duty), and penalty interest, and to secure the unfulfilled tax obligation by accruing penalty interest;

1.6. to conduct the record keeping of due and actually paid by the payer sums of taxes, dues (duties) and fines, to make up and submit the tax reports in the form and in the order established by the legislation;

1.7. monthly not later than on 15th day of the month following the reporting one, to place on the official site of the Ministry on Taxes and Dues of the Republic of Belarus in the network Internet the list of organizations and individual entrepreneurs having indebtedness on taxes, dues (duties), penalty interest as of the first day of the month following the reporting month the control over which is imposed on the tax bodies, in the order established by the Ministry on Taxes and Dues of the Republic of Belarus.

The list must contain the data about the recording number of the payer, full name of the organization, surname, own name and patronymic (if available) of the individual entrepreneur, date pf repayment of the indebtedness on taxes, dues (duties), penalty interest;

1.8. to give explanations to the payers on issues of application of tax legislation, including in agreement with the Ministry on Natural Resources and Protection of Environment of the Republic of Belarus and its territorial bodies (regional, Minsk City committees of natural resources and protection of environment) on issues concerning the determination of the tax bas of the ecological tax and the tax for extraction (removal) of natural resources;

1.9. to carry out, with the limits of competence, the administrative procedures;

1.10. to conduct inspections;

1.11. to demand from the payers the elimination of detected violations of legislation and to monitor compliance with those requirements;

1.12. to send (deliver) to the payer or his representative its decisions;

1.13. to transfer, in the order established by the legislation, materials of inspections and other materials on the facts of violations of legislation, for the commission of which a criminal liability is provided, to criminal prosecution bodies in accordance with their competence;

1.14. to abolish the decisions of inferior tax bodies, not complying with legislation.

1.15. to observe the tax secret and rules of storage of information about the payers;

1.16. to accept and register statements, notifications and other information about the violation of the tax legislation and conduct their examination in the established order.

2. Tax bodies bear also other duties established by the legislative acts.

3. When exercising control for fulfillment of the tax obligation of the payer by other obliged person, the tax bodies shall execute duties established by this Code.

4. It is not allowed to engage the tax bodies for execution of duties not imposed on them by the legislative acts.

Article 109. Obligatory state insurance of officials of the tax bodies

1. Officials of tax bodies who carry out and/or directly ensure control activities, according to the list determined by the Council of Ministers of the Republic of Belarus (hereinafter officials included in the list), are subject to obligatory state insurance at the expense of the republican budget.

2. In the event of the death of an official included in the list as a result of criminal encroachment on his life or health in connection with his official duties or as a result of his taking measures to prevent (suppress) a crime or other offence, a lump sum shall be paid to his heirs in the amount of the 10-year sum of the salary of the deceased. That insurance sum shall be paid on the specified grounds also in the event of the death of an official included in the list that occurred within one year after his termination of work in the tax body.

3. When establishing for an official included in the list, including within one year after his termination of work in the tax body, a disability that occurred as a result of a criminal encroachment on his life or health in connection with his official duties or as a result of his taking measures to prevent (suppress) a crime or other offense, confirmed by a medical certificate, he shall be paid a lump insurance sum in the amount of:

5-year sum of the salary for a disabled person of I group;

4-year sum of the salary for a disabled person of II group;

3-year sum of the salary for a disabled person of III group.

4. An official included in the list who received serious or less serious bodily harm that did not cause disability due to criminal encroachment on his life or health in connection with his official duties or as a result of his taking measures to prevent (suppress) a crime or other offense, confirmed by a medical certificate, a lump insurance sum shall be paid, respectively, in the amount of a 2-year or 0.5-year sum of the salary.

5. In the event of the death of an official included in the list, or establishing his disability resulting from injury, contusion, trauma, mutilation, illness, or serious or less serious bodily injury that did not result in disability, minor bodily injury, which took place in the course of performance of his official duties, confirmed by a medical certificate, except for the cases provided for in clauses 2-4 of this Article, a lump insurance sum shall be paid in the amount of:

250 base units to the heirs of the deceased official included in the list;

100 base units to the disabled person of I group;

75 base units to the disabled person of II group;

50 base units to the disabled person of III group;

10 base units to the official included in the list who received a serious bodily injury that did not result in disability;

7 base units to the official included in the list who received a less serious bodily injury that did not result in disability;

5 base units to the official included in the list who received a minor bodily injury.

6. The payment of the insured sum in accordance with this Article for the same insured event shall be made minus the previously received insurance sums.

7. In the event of destruction or damage to property owned by an official included in the list or his relatives, in the cases provided for in clauses 25 of this Article, the official or his relatives shall be paid insurance compensation in the amount of the damage, but not more than the actual value of the destroyed or damaged property on the day of taking decision on payment.

8. When identifying persons responsible for the death of the official included in the list, causing harm to his health, causing property damage to him or his relatives, the insurance sums paid shall be recovered from the guilty persons.

9. The order and conditions of paying insurance sums paid on obligatory state insurance of officials included in the list are determined by the Council of Ministers of the Republic of Belarus.

Article 110. Rights and duties of customs bodies

1. The customs bodies and their officials, when exercising control over the observance of the tax legislation, control over the fulfillment by other obliged person of the tax obligation of the payer, shall enjoy the rights and bear the duties provided for by this Code for tax bodies.

2. The customs bodies shall monthly place on the Single Internet Portal of Customs bodies in the network Internet in accordance with the procedure established by the State Customs Committee of the Republic of Belarus, the list of organizations and individual entrepreneurs who did not fulfill the customs bodys demand to pay taxes and dues (duties) within the time limits specified in the decision on collection of customs duties, special, anti-dumping, countervailing duties, utilization fee, interest, penalty interest or in the decision on the act of customs inspection.

The list specified in part one of this clause must contain data on the payer's recording number, full name of the organization, surname, own name, patronymic name (if available) of an individual entrepreneur, who have an unfulfilled duty to pay customs payments, special, anti-dumping, countervailing duties, utilization fee, interest, penalty interest, date of repayment of indebtedness.

Article 111. Responsibility of tax and customs bodies and their officials

1. Tax and customs bodies bear responsibility for the damages caused as the result of their illegal decisions, unlawful actions (omission), and equally for illegal decisions, unlawful actions (omission) of their officials when fulfilling their official duties.

The damages caused are compensated in the order provided by legislation.

2. For illegal decisions, unlawful actions (omission) the officials of the taxation and customs bodies bear disciplinary, administrative, criminal and (other) other liability in accordance with the legislative acts.

SPECIAL PART

SECTION V
REPUBLICAN TAXES, DUES (DUTIES)

CHAPTER  14
VALUE ADDED TAX

Article 112. Payers of value added tax

Payers of value added tax (later on, unless otherwise established, in this Chapter payers) are recognized to be:

organizations;

individual entrepreneurs with regard to specific features established by Article 113 of this Code;

trustees for turnovers on realization of goods (works, services) property rights arising in relation to the trust management of the property received into the trust management, in the interests of trustors and/or beneficiaries;

natural persons on which on which the duty to pay the value added tax collected when goods are being imported to the territory of the Republic of Belarus is imposed in accordance with this Code, the customs legislation and/or acts of the President of the Republic of Belarus.

Article 113. Specific features for recognizing as payers of individual entrepreneurs when realizing goods (works, services), property rights

1. Payers of the value added tax upon realization of goods (works, services), property rights are recognized:

1.1. individual entrepreneur applying the common taxation procedure, if the sum determined in accordance with the procedure established by Article 205 of this Code of the revenue from realization of goods (works, services), property rights and incomes in the form of operations on putting into lease (transfer into a financial lease (leasing)) of property on an accrual basis from the beginning of the year will exceed 420,000 Belarusian rubles without account of taxes and dues computed from the revenue.

The sum of revenue from the realization of goods (works, services), property rights does not include the revenue from realization of goods (works, services) when carrying out activity on which in accordance with this Code the single tax from individual entrepreneurs and other natural persons and/or the tax under the simplified taxation system shall be paid;

1.2. individual entrepreneur applying the simplified taxation system, if the sum determined in accordance with the procedure established by Article 205 of this Code of the revenue from realization of goods (works, services), property rights and incomes in the form of operations on putting into lease (transfer into a financial lease (leasing)) of property, received by him from commercial organizations (with the exception of joint-stock companies) participants, owners of the property of which are that individual entrepreneur, his spouse, parents (adoptive parents), children (including, adopted children) on an accrual basis from the beginning of the year will exceed 420,000 Belarusian rubles without account of taxes and dues computed from the revenue.

1.3. individual entrepreneur, regardless of the circumstances specified in sub-clauses 1.1 and 1.2 of this clause, if he made a decision to pay the value-added tax and filed a notification about that decision with the tax body at the place of putting on record.

2. Until the end of the tax period, individual entrepreneur  shall be recognized as a payer in respect of all taxation objects:

in the event of occurrence of the circumstances specified in sub-clauses 1.1 and 1.2 of clause 1 of this Article, beginning from the month following the month when such a circumstance occurred;

when taking a decision on the payment of value added tax - beginning from the month following the month when the notification about the decision was filed, unless otherwise provided by part two of this clause.

Individual entrepreneur the state registration of whom was carried out in the current tax period, who submitted a notification about the decision taken in the month of its state registration, shall be recognized as a payer for all taxation objects from the month when the notification was filed and until the end of the tax period.

Article 114. Execution of the payer's duty by Belarusian organizations and individual entrepreneurs upon realization of goods (works, services), property rights in the territory of the Republic of Belarus by foreign organizations

1. When goods (works, services), property rights in the territory of the Republic of Belarus are realized by foreign organizations not carrying out the activity in the territory of the Republic of Belarus through permanent representation and because of that not being put on record in the tax bodies of the Republic of Belarus (later on in this Chapter   foreign organizations not being put on record in the tax bodies of the Republic of Belarus), the duty on computing and paying the value added tax to the budget is imposed on organizations and, unless otherwise provided by Article 141 of this Code, individual entrepreneurs put on record in the tax bodies of the Republic of Belarus that purchase these goods (works, services), property rights.

Such organizations and individual entrepreneurs have rights and bear duties established by Articles 21 and 22 of this Code.

2. Foreign organizations, including general contractors, subcontractors, carrying out the construction or assembly of objects and put on record in the tax bodies of the Republic of Belarus shall compute and pay the value added tax from the beginning of such activity in the territory of the Republic of Belarus.

3. When goods (works, services), property rights in the territory of the Republic of Belarus are realized by foreign organizations not put on record in the tax bodies of the Republic of Belarus, on the basis of contracts of commission, agency and other similar civil-law contracts, the duty on computing and paying the value added tax to the budget is imposed on organizations and individual entrepreneurs put on record in the tax bodies of the Republic of Belarus that carry out entrepreneurial activity on the basis of such contracts with the foreign organizations not put on record in the tax bodies of the Republic of Belarus.

Such organizations and individual entrepreneurs have rights and bear duties established by Articles 21 and 22 of this Code.

4. The duty on computing and paying the value-added tax to the budget shall be also imposed on organizations and individual entrepreneurs being put on record in the tax bodies of the Republic of Belarus participating in settlements directly with foreign organizations not being put on record in the tax bodies of the Republic of Belarus and concluding with such foreign organizations a contract (including a contract establishing the rendering of services for concluding a contract for the acquisition (realization) of works (services), property rights), as a result of which the goods (works, services), property rights are realized in the territory of the Republic of Belarus.

Such organizations and individual entrepreneurs have rights and bear duties established by Articles 21 and 22 of this Code.

5. Turnovers on realization in the territory of the Republic of Belarus of goods (works, services), property rights by foreign organizations not being put on record in the tax bodies of the Republic of Belarus are covered by provisions of clause 2 of Article 115 and clause 1 of Article 118 of this Code.

Article 115. Taxation objects for value added tax

1. Taxation objects for value added tax are recognized:

1.1. turnovers on realization of goods (works, services) property rights in the territory of the Republic of Belarus, including turnovers:

1.1.1. turnovers on realization of goods (works, services) property rights by the payer to his workers;

1.1.2. on exchange of goods (works, services) property rights;

1.1.3. on gratuitous transfer of goods (works, services), property rights;

1.1.4. on transfer of goods (works, services), property rights under an agreement on providing compensation instead of fulfilling the obligation, and also of the object of pledge by the pledgor to the pledgeholder (creditor) in the event of non-fulfillment or improper fulfillment of  the obligation secured by the pledge;

1.1.5. on transfer by the lessor of the financial lease (leasing) contract object (later on leasing object) to the lessee;

1.1.6. on handover by the lessor of the lease object to the lessee;

1.1.7. on shipment (return) of returnable tare by the seller to the buyer (buyer to the seller).

Returnable tare is a container the value of which is not included in the realization price of the goods shipped therein and which is subject to return to the seller of goods on the terms and conditions and within the time limits established by the contract or legislation;

1.1.8. on realization of goods (works, services) property rights arising for the trustee in relation to the trust management of the property under the contract of trust management in the interests of trustor and/or beneficiary;

1.1.9. on transfer of goods within the framework of the contract of loan in kind;

1.1.10. on other retirement of goods of own production, place under the customs procedure of duty-free trade, in duty-free shops if at their purchase the value added tax rate in the amount of zero (0) percent has been allocated in consignment notes in accordance with sub-clause 1.10 of clause 1 of Article 122 of this Code;

1.1.11. on transfer of property rights to intellectual property objects;

1.1.12. on realization of the property of the debtor within the framework of executive proceedings, including the transfer of the property to the recoverer;

1.1.13. on transfer of property into gratuitous use to the lessee;

1.1.14. on transfer of all kinds of received energy, gas, water by the subscriber to sub-subscribers;

1.2. importation of goods to the territory of the Republic of Belarus and/or other circumstances with the presence of which this Code and/or acts of the President of the Republic of Belarus, the customs legislation, treaties of the Republic of Belarus constituting the law of the Eurasian Economic Union connect the arising of a duty on payment of the value added tax.

2. Taxation objects for value added tax are not recognized:

2.1. sums received by authorized bodies for legally significant actions being made when organizations and natural persons are given certain rights (state duties, patent duties, consular duty), payments to the budget or to budgets of state non-budgetary funds;

2.2. putting (transfer) into lease (financial lease (leasing)) of an enterprise as a whole as property complex being in the state ownership under which received lease payments are subject to remittance into the budget;

2.3. alienation of property being in the state ownership under which received monetary means are to be directed to the budget in arising from acts of legislation regulating the order of disposal of the state property and/or for the purposes determined by those acts of legislation or are to be distributed according to the mentioned acts of legislation, including:

in the process of privatization of property being in the ownership of the Republic of Belarus and its administrative and territorial units;

material resources of the Armed Forces of the Republic of Belarus, other troops, military formations and paramilitary organizations of the Republic of Belarus, being released;

2.4. transfer within the framework of a contract of simple partnership (contract on joint activity):

of goods (works, services), property rights as the contribution of a participant of the simple partnership (contract on joint activity) to the common cause (with the exception of goods alienated under the conditions of the mentioned contract to another participant);

of goods upon dividing goods having been in common ownership of the participants of the simple partnership (contract on joint activity);

expenses compensated to the participant in accordance with the contract of simple partnership (contract on joint activity) by the person carrying out the management of common affairs;

2.5. gratuitous transfer of:

2.5.1. goods (works, services), property rights to Belarusian organizations carrying out economic activity on producing the produce of crop husbandry, animal husbandry, fish husbandry, and apiculture, provided that the received goods (works, services), property rights is used for carrying out carrying out economic activity on producing the produce of crop husbandry, animal husbandry, fish husbandry, and apiculture;

2.5.2. property for which, when being purchased (imported), the sums of value added tax are paid at the expense of gratuitously received means from the budget or budgets of state non-budgetary funds and charged to the increase of its value or at the expense of the mentioned sources;

2.5.3. to the culture organizations of:

cultural valuables;

goods (works, services), property rights to the objects of copyright law and related rights for carrying out cultural activity.

For the purposes of this Chapter and Chapter 16 of this Code the cultural activity includes activities determined by the President of the Republic of Belarus;

2.5.4. state property, with the exception of goods specified in part one of sub-clause 2.6 of this clause;

2.5.5. goods (works, services), property rights, including payment of bills for goods (performed works, rendered services), property rights to budget organizations of healthcare, education, culture, physical culture and sport;

2.6. turnovers on realization in the territory of the Republic of Belarus (including turnovers on gratuitous transfer) by budgetary organizations acquired (gratuitously received) goods, with the exception of fixed assets and intangible assets, on prices of their acquisition (for gratuitously received goods on prices of their receipt).

Prices of acquisition (receipt) of goods specified in part one of this sub-clause are understood to be a price with the value added tax (price without the value added tax for goods turnovers on realization of which are not recognized as taxation object for the value added tax in accordance with the legislation or are exempted from the value added tax in accordance with the legislation) indicated by the seller of goods in primary accounting documents used upon shipment of goods;

2.7. internal turnovers of forestry organizations;

2.8. transfer to members:

2.8.1. of non-commercial organizations of goods (works, services) purchased (imported) at the expense of share (membership) contributions;

2.8.2. of a trade union organization that are employees being in employment relationship with the employer, of goods (works, services) acquired at the expense of deductions received by the trade union organization from the employer in accordance with the collective contract;

2.9. turnovers on for-compensation and gratuitous transfer of goods (works, services), including fixed assets and intangible assets, property rights within one legal person of the Republic of Belarus, with the exception of the instances established by part two of this clause.

If one legal person of the Republic of Belarus has at least one separate division fulfilling the tax obligations of that legal person in the territory of the Republic of Belarus, then computation and payment of the value added tax may be performed (exemption from taxation is applied):

by the separate division of the legal person of the Republic of Belarus fulfilling the tax obligations of that legal person in the territory of the Republic of Belarus upon transfer of goods (works, services), property rights within one legal person;

by the legal person of the Republic of Belarus upon upon transfer of goods (works, services), property rights within one legal person to a separate division fulfilling the tax obligations of that legal person in the territory of the Republic of Belarus.

The list of goods (works, services), property rights upon the transfer of which within one legal person of the Republic of Belarus the computation and payment of the value added tax is performed (exemption from taxation is applied) shall be reflected in the accounting policy of the payer;

2.10. turnovers on realization of goods (works, services), property rights by Belarusian organizations (affiliates of legal persons of the Republic of Belarus) registered as payers outside the Republic of Belarus, in the part of activity outside the Republic of Belarus;

2.11. exportation of goods from the territory of the Republic of Belarus to the territory of another member state of the Eurasian Economic Union in connection with the transfer thereof within one legal person;

2.12. turnovers on compensation:

2.12.1. to the partnership of owners (builders organization, garage cooperative, gardening partnership,  country cottage cooperative, cooperative operating parking lots) by its participants (members) of the value of:

goods (works, services), property rights acquired for those participants (members) and connected with maintenance and operation of immovable property;

works performed (services rendered) for those participants (members) and connected with maintenance and operation of immovable property;

goods included in the value of works (services) specified in indent three of this sub-clause;

2.12.2. to the lessor by the lessee of the value of purchased works (services) related to the lease (financial lease (leasing)), not included in the sum of rent (leasing payment), with the exception of the instances established by sub-clause 9.3 of clause 9 of Article 122 of this Code.

This provision covers the turnovers on reimbursement to the lessee by the lessor of the value of purchased works (services) related to the lease (financial lease (leasing));

2.12.3. by the buyer of goods to their seller of the value of purchased services on delivery (carriage) of goods not included in the value of these goods;

2.12.4. commissioner (agent) by the commitment (principal) of the sums of expenses on purchasing of goods (works, services), property rights, not covered by the commissioner (agent) remuneration;

2.12.5. to the forwarding agent by the customer under a forwarding contract of the sums of expenses on purchasing goods (works, services), property rights, specified in the forwarding contract used when rendering servicing under the said contract, not covered by the remuneration of the forwarding agent;

2.12.6. to libraries of the costs related to the production of library passes;

2.12.7. to the payer producing excisable goods from give-and-take raw materials, indicated in clause 5 of Article 160 of this Code of the excises sums by the owner of excisable goods produced from give-and-take raw materials;

2.13. assignment:

2.13.1. of the right of claim by the primary creditor, arising out of contracts aimed at realizations of goods (works, services), property rights, in the amount not exceeding the primary obligation under such contracts;

2.13.2. rights (claims) of the special financial institution in securitization;

2.14. alienation of property under a court resolution in the course of recovery of taxes, dues (duties), penalty interest, fines for committing of administrative offences and/or crimes;

2.15. value of meals, subscription to print mass media, works (services) purchased (paid) by the payer for his employees and/or members of their families, and also for pensioners who worked earlier for them;

2.16. turnovers on realization of goods (works, services), property rights to diplomatic missions and consular institutions of the Republic of Belarus;

2.17. turnovers on realization of stakes in statutory funds of organizations or parts thereof;

2.18. turnovers on realization in the territory of the Republic of Belarus of goods (works, services) supplied, transferred (executed, rendered) by the supplier of goods (works, services) of the project (program) of international technical assistance and/or by the recipient of international technical assistance for its implementation, and also turnovers on their further gratuitous transfer in accordance with the purposes and tasks of international technical assistance projects (programs) under the procedure and on conditions, established by the President of the Republic of Belarus;

2.19. transfer of property:

to the trustee by the trustor under the contract on trust management of property;

being returned to the trustor by the trustee upon the termination of the trust management of property;

2.20. turnovers on transfer of property into gratuitous use under which;

2.20.1.  reimbursement of expenses to the lender on maintenance of the property and/or other expenses connected with the property is not effectuated, including:

sums of posted depreciation, land tax or lease payment for the land plot, tax on immovable property;

expenses on operation, repairs of the property;

costs for communal services;

2.20.2. a duty on reimbursement to the lender of expenses specified in sub-clause 2.20.1 of this clause is provided by acts of the President of the Republic of Belarus, with the exception of the instances established by sub-clause 9.4 of clause 9 of Article 122 of this Code.

For the purposes of this sub-clause, turnovers on transfer of property into gratuitous use include the following reimbursable expenses of the lender:

sums of posted depreciation, land tax or lease payment for the land plot, tax on immovable property;

value of works (services) acquired by him on maintaining the property and/or other works (services) acquiered by him, connected with the property (including expenses on operation, repairs of the property, costs for communal services);

2.21. turnovers on realization of goods placed under the customs procedure of re-export;

2.22. turnovers on realization by religious organizations within the framework of religious activity:

2.22.1. of services on organizing and holding religious rituals, ceremonies, prayer meetings or other religious actions;

2.22.2. of religious literature and/or items intended for religious purposes (except for excisable ones);

2.23. turnovers on release of material valuables from state and/or mobilization material reserves, and also on return or shipment of material valuables to state and/or mobilization material reserves when carrying out operations on refreshment, borrowing, replacement, relocation, stockpiling, terminating the reservation of these material valuables in accordance with legislation by depositaries and suppliers;

2.24. turnovers on realization of securities (including in the course of their placement being carried out in accordance with legislation), forward and future contracts, options and other financial instruments of forward transactions with the exception of realization of financial instruments suggesting the delivery of the basic asset.

For the purposes of this Chapter, turnovers on realization of securities :

include the realization of securities themselves, commission incomes (including remunerations under contracts of commission or agency) on operations with securities, accrual of interest, depository activity, and also redemptions of securities by the issuer in the form established by the legislation;

does not include realization of securities pre-printed forms,  preprinted forms of settlement and payment documents, and also of bank cards;

2.25. turnovers from carrying out activities on performance of operations with non-deliverable off-exchange financial instruments (activity on off-exchange market Forex);

2.26. turnovers on realization in the territory of the Republic of Belarus of works (services) executed (rendered):

by bodies of internal affairs of the Republic of Belarus (their divisions);

by bodies and divisions on emergency situations of the Republic of Belarus.

Provisions of this sub-clause are applied also in relation to operations on handover of the lease object into lease;

2.27. operations on provision of repayable cash loans, including commercial loans provided by buyers of goods (works, services) in the form of an advance payment or preliminary payment.

The provisions of this sub-clause does not apply in relation to:

microloans provided by commercial organizations included by the National Bank of the Republic of Belarus in the register of microfinance organizations to natural persons under the pledge of movable property intended for personal, family or household use;

commercial loans provided by sellers of goods (work, services) in the form of adjournment or by-installments payment of goods shipped (work performed, services rendered);

2.28. turnovers on realization of:

precious metals upon conclusion with a processing organization of a contract on delivery of precious metals as scrap and waste with an obligation of the processing organization for their processing and delivery of extracted precious metals to the State Fund of precious metals and precious stones of the Republic of Belarus (later on in this Chapter State Fund);

precious metals and precious stones, and also executed works (rendered services) upon release of precious metals and precious stones from the State Fund;

2.29. issuance:

of excise marks of the Republic of Belarus, control and special marks for marking alcoholic beverages, excise marks of the Republic of Belarus and special marks from marking goods, control (identification) signs for marking goods, control signs for marking accompanying documents, instructions (study guides) on control over authenticity of the mentioned marks and signs along with an identifier of  concealed latent image;

 invoice-statements for realization of motor vehicles;

of books for remarks and proposals;

of marks for duties and dues payable in accordance with the legislation;

2.30. turnovers on realization of:

2.30.1. an enterprise as a property complex of the debtor within the bankruptcy proceedings;

2.30.2. the property of a debtor recognized in accordance with the legislation as economically insolvent (bankrupt) in the liquidation procedure, including the transfer of property to creditors;

3.31. turnovers on realization in the territory of the Republic of Belarus by state social service institutions financed from the budget of articles manufactured:

within the framework of rehabilitation and work activity and in  training in hobby circles;

when holding events on development of accessible labour skills of disabled persons;

2.32. turnovers on realization of goods (works, services), property rights the place of realization of which is not recognized the territory of the Republic of Belarus.

3. The place of realization of goods shall be determined in accordance with Article 116 of this Code.

4. Place of realization of works, services, property rights shall be determined in accordance with:

a treaty of the Republic of Belarus making part of the law of the Eurasian Economic Union, in the case of realization of works (services), property rights in the member states of the of the Eurasian Economic Union;

with Article 117 of this Code in other cases.

5. Provisions of clause 2 of this Article shall also apply to the sums specified in clause 4 of Article 120 of this Code, received (due) for goods (work, services), property rights, turnovers on realization (on transfer, on reimbursement ) of which are not recognized as taxation object according to clause 2 of this Article.

6. Provisions of this Chapter determining the procedure of taxation with the value added tax:

6.1. under contracts of lease (financial lease (leasing)) shall be also applied in relation to contracts of lease of dwelling premise and gratuitous use;

6.2. commitments and/or principals shall be also applied for consignors and other similar persons;

6.3. commitments and/or agents are also applied for consignees and other similar persons.

7. For the purposes of this Chapter:

7.1. goods do not include money and property rights;

7.2. putting into lease (transfer into a financial lease (leasing)) of property under a contract of lease (of financial lease (leasing)) stipulating return of the leasing object upon completion of the term of temporary possession and use of the leasing object stipulated by the contract of lease (financial lease (leasing)) shall be a turnover on realization of services;

7.3. handover of property in lease under a contract of lease stipulating the buy-out of the lease object shall be a turnover on realization of:

services in the part of lease payments;

goods in the part of buy-out price;

7.4. handover of property in financial lease (leasing) under a contract of (financial lease (leasing) stipulating the buy-out of the leasing object shall be a turnover on realization of:

goods in the part of the contract value of the leasing object, on which the leasing object has been handed over. The contract value of the leasing object shall include also the buy-out value;

services in the part of remuneration (income) of the lessor and investment expenses of the lessor, with the exception of investment expensed being reimbursed in the value of the leasing object.

Article 116. Place of realization of goods

1. The place of realization of goods shall be recognized to be the territory of the Republic of Belarus, if:

1.1. the goods are on the territory of the Republic of Belarus and are not shipped or transported:

to a buyer (to a recipient indicated by the buyer);

commissioner, agent or another similar person (recipient indicated by the commissioner, agent or another similar person) upon realization of goods on the basis of contracts of commission, agency or other similar contracts;

1.2. the goods at the moment of beginning shipment or transportation:

to the buyer (the recipient indicated by the buyer) are on the territory of the Republic of Belarus;

commissioner, agent or another similar person (recipient indicated by the commissioner, agent or another similar person) are in the territory of the Republic of Belarus upon realization of goods on the basis of contracts of commission, agency or other similar contracts.

2. Upon realization of goods by a payer of the Republic of Belarus to a payer of another member state of the Eurasian Economic Union when the carriage (transportation) of the goods began outside the customs territory of the Eurasian Economic Union and was completed in another member state of the Eurasian Economic Union, the place of realization of such good is recognized the territory of the Republic of Belarus if in its territory the good is placed under the customs procedure of release for internal consumption.

Article 117. Place of realization of works, services, property rights

1. The place of realization of works, services and property rights is deemed to be the territory of the Republic of Belarus, if:

1.1. works and services are directly connected with the real estate, including those being erected (except for air, sea and internal water vessels as well as space objects) being on the territory of the Republic of Belarus.

This provision shall be also applied in relation to:

putting of the immovable property into lease, (transfer into financial lease (leasing)) and hiring of the immovable property;

services of experts and agents on the evaluation of the immovable property, engineering and designer services, services of authors and engineering supervision of the construction, directly connected with the immovable property;

1.2. works and services are connected with the movable property being on the territory of the Republic of Belarus, with the exception of the lease (financial lease (leasing)) of movable property, including vehicles.

This provision is also applied with regard to air vessels, sea vessels, and vessels of inland navigation, and to space objects as well;

1.3. services are actually rendered in the territory of the Republic of Belarus in the sphere of:

culture, art, education, physical culture and sport, tourism, leisure;

training (education), with the exception of services in the sphere of training (education) where the learning is carried out in the form of distance learning;

1.4. the buyer (purchaser) of works, services and property rights carries out the activity on the territory of the Republic of Belarus and/or its place of location (place of residence) is the Republic of Belarus.

In the event if, the buyer of works, services, property rights for the intellectual property objects is a foreign organization and the consumer is its representative office, permanent representation or affiliate that carry out the activity in the territory of the Republic of Belarus and/or its place of location is the Republic of Belarus, then the place of realization of works, services, property rights for the intellectual property objects:

shall be recognized to be the territory of the Republic of Belarus, unless otherwise established by part three of this part;

is not recognized the territory of the Republic of Belarus in relation to works, services, property rights for the intellectual property objects (with the exception of lease (financial lease (leasing)) of movable property not being a vehicle, the expenses on acquisition of which are reflected in the report of an auditing organization (auditor) of the foreign state specified in clause 10 of Article 180 of this Code.

Provisions of this sub-clause shall be applied in relation to the following works, services, property rights:

property rights for the intellectual property objects, with the exception of rendering services in electronic form;

audit, consultation, marketing, legal, accounting, engineering services;

advertising services, with the exception of rendering services in electronic form;

services on providing information;

services on processing information, with the exception of rendering services in electronic form;

designer services (including services on development of the design layout);

services in the sphere of training (education) where the learning is carried out in the form of distance learning;

science and research, design and experimental, and experimental and technological (technological) works;

services on recruiting and hiring of personnel in the event if the personnel works at the place of activity of the buyer;

lease (financial lease (leasing)) of movable property with the exception of vehicles;

services (works) on development, modification, testing and providing technical support of software;

hosing services (placement of information resources on the server and providing access to those resources, including services of web hosting (including complex services on placement and management of web sites), with the exception of rendering services in electronic form;

services on creation of databases, providing access to databases, with the exception of rendering services in electronic form;

services with the assistance of which the information about potential buyers (consumers) is searched and/or provided to the ordering customer, with the exception of rendering services in electronic form;

services by a person that engage in his name for the principal participant of the contract or in the name of the principal participant of the contract another person for performance of works (rendering of services) provided by this sub-clause;

services in electronic form;

1.5. buyer (purchaser) of services in electronic form is a natural person (including an individual entrepreneur) who meets the criteria specified in clause 2 of Article 141 of this Code (hereinafter natural person (including an individual entrepreneur) who purchases services in electronic form in the Republic of Belarus);

1.6. activity of an organization or individual entrepreneur is carried out on the territory of the Republic of Belarus and/or the place of their location (place of residence) is the Republic of Belarus and they execute works and render services, realize (transfer) property rights (with the exception of property rights to intellectual property objects) not provided by the sub clauses 1.1 - 1.5 of this clause.

This provision shall be also applied in relation to:

services on carriage of freight, passengers and their luggage;

 lease (financial lease (leasing)) of means of transport, including renting (freight) of means of transport with crew.

2. If within the framework of a single contract, several types of works performed, services rendered and realization of some works, services are of an auxiliary nature in relation to the realization of other works, services, the place of realization of auxiliary works, services shall be recognized the place of realization of main works, services.

3. For the purposes of this Article:

vehicles aircraft and sea vessels, internal water vessels, mixed river-sea vessels, railroad or tramway rolling-stock units, buses, automobiles, including trailers and semitrailers, cargo containers, used for carriage of persons or freight, mine dump trucks;

railroad rolling-stock units are separate objects of railroad rolling-stock units: locomotives, freight and passenger railroad cars equipped or not with motors, from which electric trains are formed; diesel-trains, motor-rail cars, railbuses, diesel and electric trains, electric motor-rail cars, intended for carriage for freight, persons and/or luggage, post.

4. Services in electronic form include:

4.1. granting rights to use software (including computer games), databases, their updates and additional functionality via the network Internet, including by providing remote access to them, as well as electronic books (publications) and other electronic publications, information, educational materials, graphic images, musical works with or without text, audiovisual works through the network Internet, including by providing remote access to them to review and/or listen via the network Internet;

4.2. advertising services in the network Internet, including using programs for electronic computers and databases operating in the network Internet, as well as providing space and time for advertising in the network Internet;

4.3. services on placing offers for acquisition (realization) of goods (works, services), property rights in the network Internet;

4.4. services performed automatically via the network Internet when data is entered by the buyer of services, automated data retrieval services, their selection and sorting at queries, providing the specified data to users through information and telecommunication networks (including stock exchange reports in real time, real-time automated translation);

4.5. services on searching and/or providing to the ordering customer of information about potential buyers;

4.6. services on providing via the network Internet of technical, organizational, informational and other possibilities carried out by using information technologies and systems for establishing contacts and concluding transactions between sellers and buyers (including the provision of a trading platform operating in the network Internet in real time mode, where potential buyers offer their price through an automated procedure and the parties are notified of the sale by sending automatically created message);

4.7. providing and/or maintaining a presence in the network Internet for personal purposes or for the purposes of carrying out the entrepreneurial activity, supporting electronic resources of users (sites and/or pages of sites in the network Internet), providing access to them for other users of the network Internet, enabling users to modification thereof, provision of services on information systems administration;

4.8. storing and processing information, provided that the person who submitted this information has access to it through the network Internet;

4.9. providing real-time computing power for placing information in the information system;

4.10. provision of domain names, provision of hosting services;

4.11. providing access to search engines in the network Internet;

4.12. maintaining statistics in the network Internet;

4.13. services on organizing and/or holding via the network Internet of gambling games.

5. Services in electronic form do not include:

5.1. realization of goods (works, services), if, when ordered through the network Internet, delivery of goods (performance of works, rendering of services) is carried out without using the network Internet;

5.2. realization (transfer of rights to use) of programs for electronic computers (including computer games), databases contained on tangible media;

5.3. provision of consultation services through electronic mail;

5.4. rendering of services on providing access to the network Internet.

Article 118. Exemption from value added tax of turnovers on realization of goods (works, services), property rights

1. From the value added tax are exempted the turnovers on realization in the territory of the Republic of Belarus of:

1.1. medicines, articles intended for medical purposes, according to the list approved by the President of the Republic of Belarus, subject to one of the following conditions:

in respect of registered medicines, articles intended for medical use - inclusion of information about them, respectively, in the State Register of Medicines of the Republic of Belarus or the State Register of Articles Intended for Medical Use and Medical Equipment of the Republic of Belarus;

in respect of unregistered medicines products, and articles intended for medical use - presence of a permit for realization and/or medical use of unregistered medicines, articles intended for medical use, issued by the Ministry of Health of the Republic of Belarus in the order established by the legislation;

1.2. medical services (with the exception of cosmetology services of non medicinal nature). For the purposes of this sub-clause, medical services include:

1.2.1. diagnostic services:

laboratory diagnostics - general clinical (non-invasive) and biochemical research methods, microbiological, hematological, genetic, immunological, cytological, clinical and morphological (histological), parasitological, HIV diagnostics;

radiation diagnostics - X-ray, radionuclide, computed tomography, magnetic resonance imaging, ultrasound, thermal imaging, pathological, anatomical, functional, endoscopic diagnostics;

1.2.2. specialized medical services in the field of:

obstetrics, allergology and immunology, anesthesiology, vaccination, venereology, gastroenterology, hematology, genetics, gynecology, dermatology, dietology, infectious diseases, cardiology, combustiology, physical therapy, radiotherapy, massage, narcology, neurology, nephrology, orthopedics, ophthalmology, proctology and occupational pathology;

oncology, including mammology and oncohematology;

otorhinolaryngology, including audiology;

pediatrics, including neonatology;

prosthetics (mammary gland, eye, ear, joints, limbs and limb fragments);

psychiatry, psychotherapy, pulmonology, radiology, rehabilitology, resuscitation and rheumatology;

dentistry (therapeutic, surgical, orthodontic, orthopedic, dental);

therapy, toxicology, traumatology, organ and (or) tissue transplantation, physiotherapy and phthisiology;

urology, including andrology;

surgery, including angiosurgery, pediatric, cardiac surgery, X-ray endovascular, thoracic, maxillofacial, endoscopic, neurosurgery, surgical ophthalmology, including microsurgery, plastic surgery, performed for medical reasons (surgical interventions in post-traumatic deformities, birth defects, gigantomastia);

extracorporeal treatment methods, including dialysis, hemosorption, plasma exchange;

endocrinology;

1.2.3. non-traditional medical services:

apitherapy, hirudotherapy, homeopathy, iridodiagnostics, reflexotherapy, manual therapy, phytotherapy;

treatment and diagnosis by other means of natural origin;

1.2.4. medical and social care services for the sick;

1.2.5. primary care services;

1.2.6. ambulance services;

1.2.7. services for the procurement of organs and/or tissues - collection of organs and/or tissues, organization of blood donation, procurement, processing, storage of blood, its components and preparations from donor blood;

1.3. veterinary activities. For the purposes of this sub-clause, veterinary activities include:

1.3.1. prevention, diagnosis and treatment of animal diseases;

1.3.2. issuance of veterinary documents;

1.3.3. conducting special laboratory studies to assess the safety of veterinary and sanitary food raw materials and food products, feed and feed additives, the quality of veterinary drugs;

1.3.4. veterinary and sanitary examination of products of animal origin, as well as in cases established by legislative acts, products of plant origin when they are realized on the markets;

1.4. social according to the list of such services approved by the Council of Ministers of the Republic of Belarus, being render by:

non-governmental non-commercial organizations in the form of stationary social services;

state organizations (structural divisions thereof);

1.5. foodstuffs produced by:

1.5.1. education institutions, other organizations and individual entrepreneurs that in accordance with legislation are granted the right to carry out educational activity, for trainees receiving pre-school education, special education at the pre-school education level, when meals are provided to the trainees;

1.5.2. structural divisions of education institutions, when meals are provided to the trainees in these education institutions;

1.5.3. public catering entities specialized in  carrying out organization of the provision of meals to trainees in education institutions through conclusion of a corresponding contract;

1.5.4. canteens of health care institutions and social protection institutions;

1.6. services on training children in specialized educational and sporting institutions;

1.7. services in the sphere of culture according to the list of such services approved by the President of the Republic of Belarus;

1.8. by organizations of culture, and also by the National State TV and Radio Company of the Republic of Belarus, closed joint-stock companies The Second National TV Channel, Stolichnoye Televidenie(later on in this Article TV and radio organizations):

programs (booklets) about cultural events and shows, catalogues (booklets), post cards, containing information about museums (exhibitions);

property rights to the objects of copyright law and related rights;

works on production of films via implementation of the creative concept of their authors on the cinematography technological basis (later on film production works);

works on replication of films and sound tracks;

auxiliary works executed on the cinematography technological basis in the course of film production;

works on restoration of films;

works on making copies of museum items and of documents from  museum collections;

works on compiling bibliographic lists and references;

works on compiling catalogues of books, printed mass media, manuscripts, archive documents, art collections;

works on making copies of documents from  library collections;

1.9. by organizations and individual entrepreneurs put on record in the tax bodies of the Republic of Belarus to organizations of culture or TV and radio organizations:

of cultural valuable according to the list of such valuables approved by the Ministry of Culture of the Republic of Belarus (later on cultural valuables);

of works on production of films and TV and radio programs;

works on producing computer graphics;

of works on fabricating of decorations, furniture and stage-property, properties, costumes, footwear, headwear, make-up and wig-making articles, arms, pyrotechnics, used for holding cultural events and shows, production of films or TV and radio programs;

of property rights to the objects of copyright law and related rights.

The ground for exemption from value added tax of turnovers on realization of cultural valuables in accordance with indent two of part one of this sub-clause shall be an opinion of the Ministry of Culture of the Republic of Belarus on assignment of the goods to cultural valuables;

1.10. by foreign organizations not being put on record in the tax bodies of the Republic of Belarus:

to organizations of culture, TV and radio broadcasting organizations:

of advertising services;

of property rights to the objects of copyright law and related rights;

1.10.2. of works (services) connected participation of Belarusian organizations and/or Belarusian individual entrepreneurs in international conferences, forums, symposiums, congresses, in exhibitions or fairs, held in foreign states;

1.10.3. to republican bodies of state administration of services payable thereby at the expense of budgetary means;

1.11. goods (works, services) by the association of public associations Belarusian Confederation of Creative Unions, creative unions of the Republic of Belarus and their funds according to the list of such organizations approved by the President of the Republic of Belarus;

1.12. of services related to organizing of funerals. For the purposes of this sub-clause, services related to organizing of funerals include:

1.12.1. provision (rental) of ritual and funeral products, devices for the conduct of the funeral, equipment for the care of the sites for burial;

1.12.2. delivery of ritual and funeral products, gravestones and related loading and unloading operations;

1.12.3. organizing and conducting funerals, including filing announcements, obituary, drafting mourning speeches, alerting relatives;

1.12.4. services of a hairdresser, cosmetologist, embalmer (corpsman) in preparing the body (remains) of the deceased  for cremation or burial;

1.12.5. provision of a cold room for storing the body (remains) of the deceased;

1.12.6. putting in lease of premises and its design for conducting the funeral;

1.12.7. removal of the coffin with the body (remains) of the deceased, urns with ashes, escorting them to the place of burial;

1.12.8. funeral music;

1.12.9. providing vehicles for transportation and transportation of the body (remains) of the deceased, urns with ashes, accompanying persons (relatives) to the place of the funeral;

1.12.10. services for the reburial of the body (remains) of the deceased, urns with ashes;

1.12.11. services for the burial and added burial of the body (remains) of the deceased, urns with ashes into the ground in a cemetery, crypt or urns with ashes in the columbarium, including digging and backfilling of the grave, including preparatory work for digging the grave in winter time (warming, warming the surface of the land plot, working (cutting, loosening) of the frozen ground by the mechanized method);

1.12.12. crematorium services::

cremation of the body (remains) of the deceased;

placing ashes in the urn;

keeping the urn with ashes in columbarium;

storing urns (capsules) with ashes;

preparing the urn with ashes for departure outside the Republic of Belarus;

1.12.13. improvement of the provided site for burial, decoration of the grave, crypt, place in the columbarium;

1.12.14. drawing (carving, engraving) inscriptions, emblems, drawings, bas-reliefs, making graphic portraits on tombstones, installing medallions, tablets, attaching cast elements to tombstones;

1.12.15. landscaping of the burial site;

1.12.16. maintenance, repair and restoration of burial mounds and structures, crypts, columbariums, including those destroyed (damaged) as a result of natural and man-made emergencies, acts of vandalism;

1.12.17. installation, dismantling of gravestones;

1.12.18. cleaning the territory of the burial place, fixed adjacent territory and removal of waste from those territories;

1.13. of tombstones, fences and other ritual objects related to the burial, as well as work on their production;

1.14. of religious literature and/or items intended for religious purposes (except for excisable ones), with the exception of turnovers on realization of those indicated in sub-clause 2.22 of clause 2 of Article 115 of this Code;

1.15. of articles of traditional artistic handicraft of a recognized artistic value, according to the list of such articles approved by the President of the Republic of Belarus.

The ground for exemption of payers from value added tax shall be the opinion about assignment of products to articles of traditional artistic handicraft to be issued by the expert commission on assignment of products of traditional artistic handicraft organizations to articles of traditional artistic handicraft.

The exemption from value added tax covers also all payers that realize purchased articles  mentioned in part one of this sub-clause. The ground for application by the buyer of the exemption from value added tax shall be a copy of the opinion about assignment of products to articles of traditional artistic handicraft, received from the seller;

1.16. of goods (works, services) by the payers using the labour of disabled persons, if the average number of disabled person for a period is not less than 50 percent of the average number of workers for the same period.

For the purposes of this sub-clause:

goods (works, services) do not include acquired goods, excisable goods, broker and other intermediary services, transfer of property into lease (financial lease (leasing));

the average number of workers (disabled persons) in the period from the beginning of the year to the reporting period inclusively is determined via summing up the average number of workers (disabled persons) for all months expired in the period from the beginning of the year to the reporting period inclusively and dividing the sum obtained by the number of the expired months for which the average number of workers is determined;

the average number of workers (disabled persons) for each month is to be determined as the average listed number, computed under the procedure established by the National Statistical Committee of the Republic of Belarus, of workers per month (with the exception of workers on maternity leaves, on leaves connected with adoption of children at the age of up to three months or designating them as tutors, on leaves for caring children till the age of three years, in connection with adoption of orphaned children and children left without parental care permanently residing in the territory of the Republic of Belarus at the age of three to sixteen years); the average number of persons working part-time which have the principal place of work with other employers; the average number of persons fulfilling job on civil-law contracts (including those concluded with legal persons if the subject of the contract is services on hiring workers);

calculation of the number of workers shall be made for the organization as a whole, including affiliates.

The exemption from value added tax covers all payers that realize goods acquired from the payers mentioned in part one of this sub-clause. The ground for application by the buyer of the exemption from value added tax shall be the entry "Exemption according to sub-clause 1.16 of clause 1 of Article 118 of the Tax Code of the Republic of Belarus" made by the seller in the primary accounting documents used when the goods are shipped;

1.17. of precious metals and precious stones, and also of executed works (rendered services) in the event of:

1.17.1. delivery (supply) of precious metals and precious stones, including as scrap and waste containing associated components (with the exception of precious metals specified in indent two of sub-clause 2.28 of clause 2 of Article 115 of this Code) to the State Fund , and also when realizing precious stones to the National Bank of the Republic of Belarus;

1.17.2. realization by domestic diamond-processing organizations of diamonds of own production not fixed in jewelry, upon availability of the quality certificate for each diamond issued in accordance with the legislation;

1.17.3. processing of scrap and waste accepted into the processing fund of the State Fund for consecutive supply of obtained precious metals to the State Fund;

1.17.4. organizing of the buying-up of precious metals and precious stones from natural persons for state needs;

1.17.5. realization by organizations to banks, between banks, by banks to organizations of natural persons of bullions and small bars of precious metals, bullion (investment) coins of precious metals;

1.17.6. realization by organizations to banks, between banks, by banks to organizations and natural persons of diamonds having quality certificate for diamonds issued by the National Bank of the Republic of Belarus;

1.18. goods by duty-free shops:

1.18.1. within a customs control zone;

1.18.2. under the customs control for foreign diplomatic missions, missions of the international organizations equated thereto in status, and consular institutions;

1.19. of passes for sanatorium treatment and medical rehabilitation of population by organizations, their separate divisions carrying out sanatorium treatment and medical rehabilitation of population according to the list of such organizations approved by the Council of Ministers of the Republic of Belarus;

1.20. of goods (works, services) fabricated (executed, rendered) by correctional institutions of the criminal-executive system and by medical and labour prevention facilities.

The exemption from value added tax covers all payers that realize goods manufactured by payers mentioned in part one of this sub-clause. The ground for application by the buyer of the exemption from value added tax shall be the entry "Exemption according to sub-clause 1.20 of clause 1 of Article 118 of the Tax Code of the Republic of Belarus" made by the seller in the primary accounting documents used when the goods are shipped;

1.21. of services rendered to natural persons:

1.21.1. on delivery of pensions and other social benefits.

Services on delivery to natural persons of pensions and other social benefits include the handing-out (delivery) to natural persons of pensions and other social benefits:

according to payrolls (lists) of bodies on labor, employment and social protection;

by sending and paying pension sums and other social payments by money transfers, which are sent by the body that appoints (pays) the pension and other social payments, or through the appropriate divisions of banks;

1.21.2. on receiving subscriptions to print media and their delivery.

The provisions of this sub-clause do not apply when providing the services specified in part one of this sub-clause to individual entrepreneurs;

1.22. of mail communication services on sending parcels and/or postal payments accepted from natural persons by postal service operators for delivery (handing in) to the addressee;

The provisions of this sub-clause do not apply when providing the services specified in part one of this sub-clause to individual entrepreneurs;

1.23. of research and development, design and experimental, and technological and experimental works, registered in the state register of science and research, design and experimental, and experimental and technological works under the procedure determined by the President of the Republic of Belarus;

1.24. of solid fuel to natural persons for communal and household consumption and to fuel supplying organizations for selling to natural persons.

For the purposes of this sub-clause solid fuel is understood to be fuel briquets on the basis of peat, sod peat, coal with the exception of charcoal, firewood, used by natural persons for communal and household consumption;

1.25. of housing and communal or operational services rendered to natural persons, according to the list of such services approved by the President of the Republic of Belarus;

1.26. of works (services) performed (rendered) to natural persons carrying out the conduct of personal subsidiary husbandry. For the purposes of this sub-clause, works (services) being performed (rendered) to natural persons carrying out the conduct of personal subsidiary husbandry are understood:

1.26.1. works on cultivating crops:

plowing, subsurface cultivation, cultivation, disking, harrowing of the soil;

soil application of mineral, organic fertilizers, peat, pesticides, lime materials;

sowing, planting, inter-row processing of crops;

1.26.2. mechanized harvesting and harvest finishing work:

mowing, selection of rolls and threshing, cleaning by direct combining, grinding of grain and leguminous crops, corn;

mowing grasses and other crops, turning, wrapping, creating enlarged rolls of hay, straw, picking and cropping a pile, storing hay, straw;

mowing, harvesting, loading potatoes, root crops, sugar beets, vegetables and other crops;

transportation of agricultural products from fields to storage sites;

1.26.3. other works (services):

milk separation;

slaughtering cattle;

artificial insemination of animals;

cattle grazing;

harvesting, sawing, chopping and storing firewood;

motor transportation services for the delivery of stove fuel;

 animal-drawn vehicle services;

repairs of household outbuiliding;

1.27. of services accompanying the education process.

For the purposes of this sub-clause, services accompanying the education process include:

1.27.1. holding rehearsal testing;

1.27.2. acceptance and drawing up of documents for participation in centralized testing;

1.27.3. conducting of preliminary examination of a qualifying scientific work (dissertation) and considering of the qualifying scientific work (dissertation) by the council on defense of dissertations;

1.27.4. coaching (consulting services on certain academic subjects (subjects), academic disciplines (disciplines), educational spheres, themes, including assistance in preparing for centralized testing);

1.28. of paid services in the sphere of education:

For the purposes of this clause, paid services the education sphere include:

1.28.1. implementation of educational programs of pre-school, general secondary, special, vocational-technical,  special secondary, higher, postgraduate education;

1.28.2. implementation of educational program of additional education of children and youths;

1.28.3. implementation of educational programs of additional education of adults (with the exception of educational program of training courses (lycea, thematic seminars, case studies, trainings, and others types of training courses), education program of improving personal capabilities and abilities, being implemented by other organizations and individual entrepreneurs that are granted, in accordance with legislation, the right to carry out educational activity;

1.28.4. holding of repeat current and final fee-based performance evaluation;

1.28.5. conducting of laboratory works and practical training with students (trainees) and learners outside the learning group;

1.29. of services rendered by the Higher Attestation Commission of the Republic of Belarus at the expense of means of the republican budget and connected with attestation of scientists of higher qualification, conferral of academic titles, nostrification (equiparation) of documents on awarding of academic grades and conferral of academic titles, issued in foreign states, re-attestation of persons having academic grades and academic titles of foreign states, deprivation (restitution) of academic grades and academic titles;

1.30. services on training for clinical residents;

1.31. of goods (works, services) manufactured (executed, rendered) by learners and stipulated by curriculum documents, plan of educative work of the education establishment, educative programs, when education establishments carry out activities according to the list approved by the Council of Ministers of the Republic of Belarus;

For the purposes of this sub-clause and clause 50 of of Article 208 of this Code, goods mean products produced by learners in the process of training and/or attitude development;

1.32. of services of guide-interpreters, guides, being rendered within the Republic of Belarus, as well as the following tourist services on organizing:

1.32.1. excursion servicing in the Republic of Belarus:

services for the preparation, organization and conduct of excursions;

services provided as part of the tour, on the organization and provision of catering for excursionist;

services provided as part of the tour, on the organization of transportation for excursionist by whereas transportation means;

1.32.2. travel of tourists within the Republic of Belarus:

services of travel agents and tour operators on the organization of complex tourist servicing;

services of travel agents and tour operators provided as part of the tour, on the organization of accommodation, catering for tourists;

services provided as part of the tour, on the organization of transportation for tourists by whereas transportation means;

services provided as part of the tour, on the organization of sports, educational, recreational, sightseeing, cultural and entertainment events in accordance with the program of tourist travel;

services provided as part of the tour, tourist information;

services provided as part of the tour, on booking and/or selling places in vehicles, restaurants, places of temporary residence, car rental;

services provided as part of the tour, on drawing up travel documents for tourist travel routes in foreign countries (visa support services, document delivery services to consular offices, travel insurance services);

services provided as part of the tour, on the organization of meetings of tourists at the airport, including booking a VIP-hall, the services of an accompanying person;

services provided as part of the tour, on the organization of hunting and fishing;

1.33. of dwelling fund objects, unfinished dwelling construction objects;

1.34. of works on construction and repair of dwelling fund objects, garages, and parking areas, according to the list of such services approved by the President of the Republic of Belarus;

1.35. of  works on construction, maintenance and repair of objects for common use of gardening partnerships.

For the purposes of this sub-clause:

1.35.1. works on construction, maintenance and repair of objects for common use of gardening partnerships include:

design and exploration work carried out under contractor (subcontractor) contract;

allotment of land plots for construction, preparation of the construction site;

state expert examination of design and estimate documentation;

construction, other special installation and commissioning works carried out at the objects of gardening partnerships under contractor (subcontractor) contracts, including during running repairs;

landscaping and gardening, carried out within the boundaries of land plots of common use of gardening partnerships;

provision of construction machines and mechanisms for construction, other special installation and commissioning works;

exercising functions of authors supervision, engineering supervision, ordering customer, developer;

1.35.2. objects of common use of gardening partnerships are understood to be roads, overhead and cable power lines, transformer substations, water mains, water towers, temporary waste storage sites, common gates and fences, and other objects necessary for conducting collective gardening, located on land plots of common use of gardening partnerships;

1.36. garages, car parking spaces and parking areas (shares in the ownership to a parking area) newly built in the territory of the Republic of Belarus by a builder, ordering customer, garage cooperative, cooperatives carrying out the operation of parking areas;

1.37. by banks of the Republic of Belarus, non-bank credit and financial organizations of the Republic of Belarus of operations on:

1.37.1. on granting credits (loans), guarantees or other means of securing the fulfillment of obligations on credits, including management (servicing) of credits and guarantees on credits.

Turnovers on granting credits (loans) include:

operations on granting, transfer to another bank, management (servicing), repayment of credits (loans), including operations on making up of suretyships, pledges, and other methods of securing the fulfillment of obligations on credits (loans);

financing against monetary claim assignment (factoring);

acceptance of a bill of exchange (promissory note), negotiations of a bill of exchange (promissory note) with deferment of payment;

overdraft on accounts of the customer, including accounts of banks;

placement of monetary means in banks in the form of deposit, consignation of monetary means in the fund of compulsory reserves being place in the National Bank of the Republic of Belarus, balance on the correspondent account, other accounts of the bank;

all kinds of remuneration received from the said operations (interest including default interest, commission fee, payment, discount, penalty fee (fines, penalty interest) etc).

Operations on granting guarantees on credits include issuance by banks of suretyships, bank guarantees connected with assumption of commitments before creditors of a bank customer. The exemption from value added tax covers all sums of settlements on these operations including the sums of received remuneration;

1.37.2. on conducting of current (settlement) accounts, deposit or other accounts, and also of operations directly related to the money transfers and debt obligations.

The said turnovers include sums:

from settlement and/or cashier servicing of customers in the form of commission fees, and also expenses of banks on performance of operations, reimbursed by customers. In that instance, other banks, and also their affiliates, act as customers on the same basis as others;

for opening, operating and closing of accounts;

for transfer (sending) and crediting monetary means, forwarding payment instructions, recall (annulment), modification, suspension of the execution of payment instructions;

for penalty interest on documents not paid in time;

for searching of sums not delivered to destination;

for transmittance, including via electronic communications, of statements, references, duplicates on accounts;

from installation and/or maintenance of electronic document management systems between the bank and customers, remote banking systems;

from making of operations complex with bank guarantees, letters of credit, cheques, payment instructions in foreign currency, collection of payments;

from carrying out depositary activity;

from carrying out operations with bank payment cards, with the exception of reimbursement of the value of blank bank payment cards;

from carrying out operations with electronic money, with the exception of reimbursement o the value of electronic purses in the instances when blank payment cards with magnetic stripe and/or microprocessor are used as electronic purses, other similar program and technical devices belonging to material information carriers;

1.37.3. on circulation of Belarusian rubles or foreign currency, unless such operations are carried out for numismatic purposes or related to the realization of foreign currency to the National Bank of the Republic of Belarus or to a bank of another state by the organization that produced the currency and are the subject matter of services on storage, transportation or collection of Belarusian rubles and foreign currency. The said turnovers include:

operations on exchange of foreign currency for Belarusian rubles and exchange of Belarusian rubles for foreign currency (purchase-sale of foreign currency), including forward transactions;

operations on exchange of one foreign currency for another foreign currency (conversion of foreign currency), including forward transactions;

transactions with forward and futures contracts, options and other financial instruments of forward transactions;

acceptance and handing out of monetary means, payment instructions in foreign currencies;

operations on paying for (buying) and selling of payment instructions in foreign currency;

selling of cash monetary means to banks;

changing (exchanging) of foreign currency;

acceptance of cash foreign currency for collection;

re-counting of cash monetary means in Belarusian rubles and/or foreign currency.

The exemption from value added tax covers sums of payment for services, commission fees and other bank incomes on operations indicated in this sub-clause, and also exchange rate differences on the said operations;

1.37.4. on exercising rights of claim on credit contracts on the basis of cession contracts (assignment of claim);

1.37.5. realization to the open joint-stock company "Development Bank of the Republic of Belarus" of operations on management of credits (servicing credits), and also on transfer of assets to the open joint-stock company "Development Bank of the Republic of Belarus", including sums of remuneration received by the open joint-stock company "Development Bank of the Republic of Belarus" from mentioned operations.

For the purposes of this sub-clause, assets are understood to be credits extended by banks on the basis of acts of the President of the Republic of Belarus or the Council of Ministers of the Republic of Belarus and being acquired by the open joint-stock company "Development Bank of the Republic of Belarus" from banks in accordance with the lists of such credits and the order determined by the President of the Republic of Belarus and the Council of Ministers of the Republic of Belarus;

1.38. by the open joint-stock company "Belarusian Currency and Funds Exchange" (hereinafter in this sub-clause the exchange) of operations on:

opening and maintaining accounts of participants in trading and/or clearing (including trading accounts of participants in trading), the opening of which is directly related to settlements on exchange trading and operations carried out by the Exchange;

conducting settlements in non-cash form through correspondent and other accounts opened by the Exchange at the National Bank of the Republic of Belarus, banks of the Republic of Belarus and non-resident banks, including conducting currency exchange operations, including at own trading directly related to clearing and settlements.

Such operations include:

carrying out clearing activities (conducting clearing) that includes determining the obligations to be fulfilled under the executed exchange transactions, including as a result of netting, preparing documents (information) that are grounds for termination and/or fulfillment of such obligations, collecting, reconciling, updating information on transactions, preparation of settlement documents on them to ensure settlements for the transfer of securities and monetary means;

maintaining accounts of participants of trading and/or clearing;

conducting operations (transfer (dispatch), crediting of monetary means according to the results of clearing and/or on the basis of orders of participants in trading and/or clearing and settlements);

sending settlement documents;

recall (annulment), modification, suspension of execution of payment instructions;

charging penalty interest on documents not paid in time;

searching of sums not delivered to destination;

transmittance, including via electronic communications, of statements (duplicates thereof), references on accounts;

performance of a set of operations with documents in Belarusian rubles and foreign currency;

accounting of means that will be used to provide security for the fulfillment of obligations on transactions being made on exchange trading;

accounting of contributions from participants in trading and/or clearing, as well as the use and placement of means of guarantee funds on its own behalf on accounts, including accounts on deposits with the National Bank of the Republic of Belarus, banks of the Republic of Belarus and non-resident banks in state securities of the Republic of Belarus, securities of the National Bank of the Republic of Belarus, bonds of banks in the order determined in agreement with the National Bank of the Republic of Belarus;

organizing (carrying out) exchange trading in financial assets, including currency valuables and emissive securities, with the exception of shares of closed joint-stock companies, including conducting the listing;

registration of information on transactions made on an unorganized market.

Exemption from the value added tax applies to all sums of incomes received from the mentioned operations (commission, fees and other similar types of incomes), as well as exchange differences on those operations;

1.39. to the open joint-stock company "Agency on management of assets" of operations on:

1.39.1. realization by banks and the open joint-stock company "Development Bank of the Republic of Belarus" of services on servicing credits;

1.39.2. transfer by banks and the open joint-stock company "Development Bank of the Republic of Belarus" of assets according to the list to be approved by the Council of Ministers of the Republic of Belarus and the National Bank of the Republic of Belarus;

1.39.3. transfer by the open joint-stock company "Belagroprombank" into gratuitous use of property and rights to use intellectual property objects;

1.39.4. gratuitous transfer by banks and the open joint-stock company "Development Bank of the Republic of Belarus" of property, including property rights, under contracts of granting gratuitous (sponsor) assistance;

1.40. of services on insurance (co-insurance, re-insurance).

For the purposes of this sub-clause, turnovers on realization of services on insurance (co-insurance, re-insurance) include:

1.40.1. insurance fees (premiums) on insurance (co-insurance, re-insurance) contracts;

1.40.2. return of insurance reserves formed in preceding periods;

1.40.3. commission fees on co-insurance, re-insurance contracts and fees from profit paid by re-insurers to re-insured for the opportunity to participate in the re-insurance contract and for cautious case administration;

1.40.4. reimbursement of a share of losses on risks transferred in reinsurance, and also on risks transferred by reinsurer in further (subsequent) reinsurance;

1.40.5. return of paid insurance compensation and insurance coverage;

1.40.6. exercising of the right of claim of the insurer on contracts of property insurance and insurance of civil liability to the person responsible for losses reimbursed as a result of insurance, in the instances provided by legislation;

1.40.7. interest charged by the cedent in favour of the reinsurer on the depot of premiums on the risks accepted for reinsurance;

1.40.8. commission fee paid by the insurer to the insurer that reimbursed the damage to the injured person on the contract of compulsory insurance of civil liability of owners of means of transport;

1.40.9. commission fee received by the insurance broker from insurance organizations for intermediary services on insurance rendered by him;

1.41. of works (services) in the field of space activity. For the purposes of this clause, works (services) in the field of space activity include:

works (services) performed (rendered) using technology located directly in outer space, including those controlled from the surface and/or from the atmosphere of the Earth;

works (services) on the study of outer space, observation of objects and phenomena in outer space, including from the surface and/or from the atmosphere of the Earth;

preparatory and/or auxiliary (related) ground works (services), technologically conditioned (necessary) and inseparably connected with the performance of works (rendering of services) on exploring outer space and/or performance of works (rendering of services) using the equipment located directly in outer space;

works (services) on the operation of ground-based controls of the Belarusian spacecraft for remote sensing of the Earth with a resolution of 1 meter and ground-based reception facilities from that spacecraft.

The ground for exemption from the value added tax of turnovers on realization of works (services) in accordance with part one of this sub-clause shall be a conclusion of the National Academy of Sciences of Belarus, confirming that the works performed (services rendered) relate to the works (services) specified in part one of this sub-clause;

1.42. works (services) performed rendered to natural persons on carrying out administrative procedures in relation to the immovable property;

1.43. on services to natural persons in the field of photography, hair salons, bathhouses and washing-houses, on  wet washing and dry washing, on clock and watches repair, on making and repairing of clothes and footwear, on repair and technical maintenance of household appliances, personal use items;

1.44. of goods of own production by the seller tax resident of the Republic of Belarus according to a contract of sale with a lessor tax resident of the Republic of Belarus that purchases these goods into ownership for their subsequent transfer under a contract of international leasing outside the Republic of Belarus with the right to buy out (hereinafter in this sub-clause - the lessor).

A condition of application of exemption established by part one of this sub-clause is the fact that the seller tax resident of the Republic of Belarus has the following documents:

contract of sale concluded with the lessor in which must be indicated that the goods is acquired for its transfer under the contract of international leasing outside the Republic of Belarus with the right to buy out;

a document stating that the goods belongs to products of own production, issued under the established procedure;

shipping documents confirming the fact of shipment of the good by the seller to the lessor;

a copy of the contract of international leasing stipulating the buy out of the leasing object and its exportation outside the Republic of Belarus;

(shipping) documents (copies thereof) with a notice of the lessee not being the tax resident of the Republic of Belarus about receipt of the leasing object, confirming the exportation of the leasing object outside the Republic of Belarus (required to be available when the leasing object is being exported to member states of the Eurasian Economic Union;

a confirmation of the exportation of the leasing object outside the territory of the Republic of Belarus received from the lessor (hereinafter for the purposes of this sub-clause confirmation of the exportation).

Confirmation of exportation shall be required when the leasing object is exported to states that are not members of the Eurasian Economic Union, in the following form, depending on the form of customs declaring of goods used by the lessor:

in the form of a copy certified by the personal numerical stamp of an official of the customs body of the declaration for the goods with notices of the customs body on release of goods in accordance with the declared customs procedure of export with the notice of the customs body Товар вывезен (Good has been exported)and the date of putting of such a notice, when the lessor carries out declaration of the goods to customs bodies in a written form;

in the form of a copy of the external presentation of the declaration for goods released in accordance with the customs procedure of export with indication of the date of permission for departure of goods outside the customs territory of the Republic of Belarus - when the lessor declares goods to customs bodies in the form of an electronic document.

Confrimation of the exportation shall be verified by a signature of the head of the legal person being the lessor or by a person authorized by the former.

For confirming the soundness of application of the exemption from the value added tax provided by part one of this sub-clause, the seller tax resident of the Republic of Belarus sell present to the tax body shall present to the tax body at the place of its putting on record simultaneously with the tax declaration (calculation) on the value added tax the register of documents confirming the realization of goods of own production and exportation thereof outside the Republic of Belarus under a contract of international leasing outside the Republic of Belarus with the right to buy out according to the established form.

Documentary confirmation of the soundness of application of the exemption from the value added tax provided by part one of this sub-clause is to be performed within one hundred eighty calendar days from the date of shipment of the good of own production to the lessor (hereinafter in this sub-clause established time limit).

In the presence of a contract of sale with the lessor, the reflection of turnovers on realization of goods to the lessor (hereinafter in this sub-clause turnovers on realization of goods) shall be made by the seller - tax resident of the Republic of Belarus as applied to the established time limit in the following order.

In the absence of the documents specified in part two of this sub-clause, prior to the submission of the tax declaration (calculation) on the value-added tax of the reporting period in which the established time limit has not expired, turnovers on realization of goods need not be reflected therein.

When there are documents specified in part two of this sub-clause, turnovers on realization of goods under the contracts of sale with the lessor with application of exemption from the value added tax established by part one of this sub-clause are indicated in the tax declaration (calculation) on the value added tax for the reporting period the time limit for presentation of which follows the receipt of corresponding documents or for the reporting period in which corresponding documents have been received.

In the absence of documents specified in part two of this sub-clause prior to the the deadline for presentation of the tax declaration (calculation) on the value added tax of the reporting period in which the established time limit expires, the turnovers on realization of the goods shall be reflected without application of exemption from the value added tax established by part one of this sub-clause in the tax declaration (calculation) on the value added tax of the reporting period in which the established time limit has been expired.

Upon receipt of documents specified in part two of this sub-clause after the expiration of the established time limit and after reflection of turnovers on realization of goods in the tax declaration (calculation) on the value added tax, the turnovers on realization of those goods with application of the exemption from the value added tax established by part one of this sub-clause shall be reflected (along with concurrent decrease of the turnovers on these goods reflected earlier and correction of tax deductions) in the tax declaration (calculation) on the value added tax for the reporting period the deadline for the presentation of which follows the receipt of the respective documents or of the reporting period in which those documents have been received.

Provisions of part eleven of this sub-clause shall not be applied after expiration of more than three years from the date on which the deadline for the payment of the value-added tax occurred because of the lack of documents specified in part two of this sub-clause, in accordance with part ten of this sub-clause;

1.45. property rights to inventions, utility models, industrial designs, selection inventions, topologies of integrated circuits, industrial secrets (know-how);

1.4.6. by paying agents of the single settlement and information space of services on acceptance from natural persons of:

payments for goods, works, services, other payments arising from civil-law relations, donations to charity accounts;

taxes, dues (duties), penalty interest, fines, and other payments to the republican and local budgets, budgets of state non-budgetary funds;

1.47. by lessor of operations on transfer of apartments in apartment houses or multi-unit residential houses, of single-unit residential houses as a leasing object to lessees under contracts of financial lease (leasing) stipulating return of the leasing object upon completion of the term of temporary possession and use of the leasing object stipulated by that contract;

1.48. property rights to results of scientific and scientific and technical activity the data about which are contained in the state register of rights to results of scientific and scientific and technical activity, and also material objects related to these rights if the realization of property rights to results of scientific and scientific and technical activity is accompanied simultaneously by the transfer of such objects.

The ground for exemption from value added tax of turnovers on realization of property rights to results of scientific and scientific and technical activity, and also turnovers on realization of material objects related to these rights, in accordance with part one of this sub-clause shall be the observance of the following requirements:

data about the number and date of registration of rights to results of scientific and scientific and technical activity, description of these results contained in the state register of rights to results of scientific and scientific and technical activity, are indicated in contract stipulating the transfer of property rights to results of scientific and scientific and technical activity by their holder to another person or granting of the right to use results of scientific and scientific and technical activity by the right holder to another person;

a separate accounting is being conducted concerning turnovers on realization of property rights to results of scientific and scientific and technical activity  and material objects related to these rights, and also distribution of tax deductions related to the said turnovers on realization, by the method of separate accounting;

1.49. by lessors of operations on transfer of the leasing object to natural persons lessees under contracts of financial lease (leasing) stipulating the buy-out of the leasing object. The mentioned turnovers include sums of leasing payments in the part of remuneration (income) of the lessor and investment expenses of the lessor, with the exception of investment expensed being reimbursed in the value of the leasing object.

A condition of application of the exemption from the value added tax established by part one of this sub-clause shall be the fact that the lessor has the following documents:

contract of financial lease (leasing) stipulating the buy-out of the leasing object concluded with a natural persons lessee.

For the purposes of this sub-clause natural persons are understood to be citizens of the Republic of Belarus and also foreign citizens and stateless persons residing permanently in the Republic of Belarus;

act on acceptance-delivery of the leasing object;

copy of the passport of the citizen of the Republic of Belarus or another document containing reference to the citizenship of the Republic of Belarus for citizens of the Republic of Belarus; copy of the residence permit in the Republic of Belarus for foreign citizens and stateless persons.

In the event of premature rescission on a request of one of the parties of the contract of financial lease (leasing) that was completed with the buy-out of the leasing object, correction of the turnover on realization by the lessor of operations on transfer of the leasing object on which the lessor applied exemption from the value added tax in accordance with part one of this sub-clause is not performed.

For sums of increase of the tax base specified in sub-clauses 4.1 and 4.2 of clause 4 Article 120 of this Code, the exemption from the value added tax established by part one of this sub-clause:

is not extended if turnovers on transfer of the leasing object in the part of leasing payments reimbursing the value of the leasing object are not subject to exemption from the value added tax;

is extended if turnovers on transfer of the leasing object in the part of leasing payments reimbursing the value of the leasing object are subject to exemption from the value added tax in accordance with the legislation;

1.50. by commercial organizations included by the National Bank of the Republic of Belarus in the register of microfinance organizations of operations on regular granting of loans to natural persons against the pledge of movable property intended for personal, family or household use;

1.51. of works (services) related to the representation of the interests of the Republic of Belarus within the framework of pre-trial settlement of disputes, in international arbitration and foreign judicial bodies on disputes between foreign investors and the Republic of Belarus;

1.52. of works (services) related to the issue, placement, circulation, redemption of state long-term bonds of the Republic of Belarus, which are state debt obligations that form external state debt, taking into account the rights to such bonds;

1.53. until December 31, 2019, of works on technical inventory (verification of the characteristics) of unregistered capital constructions (buildings, structures), isolated premises, parking spaces, belonging to legal persons, and land management works in relation to land plots on which such objects are located.

For the purposes of this sub-clause, capital constructions (buildings, structures), isolated premises, parking places are understood to be the corresponding immovable property objects that were used until May 8, 2003.

2. The sums of increase of the tax base specified in clause 4 of Article 120 of this Code shall be exempt from value added tax if they are received (due) on goods (work, services), property rights, turnovers on realization of which are exempt from taxation according to clause 1 of this Article (with the exception of turnovers specified in part one of sub-clause 1.49 of clause 1 of this Article).

3. The payer in respect of turnovers on realization of goods (works, services), property rights to the industrial property objects, property rights to the objects of copyright law and related rights, provided by clause 1 of this Article, is entitled to refuse the exemption from the taxation of such turnovers by submitting a respective application to the tax body.

Such refusal is possible only in respect of all turnovers on realization of the payer provided by one or several sub-clauses of clause 1 of this Article.

The refusal of exemption for a period of less than one tax period is not allowed.

Article 119. Exemption of goods from value added tax upon importation into the territory of the Republic of Belarus

1. The following goods are exempted from value added tax upon importation into the territory of the Republic of Belarus:

1.1. vehicles imported from the territory of the  member states of the Eurasian Economic Union, with which international carriage of goods, passengers, and luggage is carried out, and also items of material logistics and equipment, fuel, foodstuffs and other property, necessary for operation of vehicles in transit, in intermediate stop points or acquired abroad in connection with liquidation of a damage (breakdown) of these vehicles;

1.2. goods subject to turning over into the ownership of the state in accordance with the legislation;

1.3. Belarusian rubles, foreign currency, in particular banknotes and coins, being a legal tender, and also securities, excise stamps, customs control stamps, stamps for duties and dues, paid in accordance with the legislation;

1.4. technical means that cannot be used otherwise than for prevention of disablement and or for rehabilitation of disabled persons, upon availability of the conclusion of the Ministry of Labour and Social Protection of the Republic of Belarus that the specified technical means include the following goods (being) imported:

1.4.1. audiotechnical products:

light and vibration sound signaling devices;

vibro-tactile devices;

hearing aids simulators;

media production (video films with subtitles);

hearing aid devices to compensate for hearing loss;

electric sound-amplifying kits, sound-amplifying equipment individual and collective use specially designed for training the deaf and hearing impaired;

visible speech devices and other indicators of speech sounds for the deaf;

technical means used by the deaf in everyday life (telephone sets for the cloth-eared and deaf (apparatus with amplifiers, with a "running line", "teleautographs", alarm clocks for the deaf);

1.4.2. typhlo-technical means:

technical means specifically designed to guide the blind in space;

instruments, slate, electronic and mechanical typewriters and paper specially designed for writing in braille boldface;

literature being published in braille bold as well as in large print;

technical means used by blind people in everyday life (optical, special devices for reading the talking book);

electro-optical technical means for the correction of low vision;

software, technical means specifically designed to facilitate the work of the blind on personal electronic data processing machines;

1.4.3. toys and games specifically designed for the blind;

1.4.4. technical means for the rehabilitation of the deaf and blind;

1.4.5. special household appliances used by disabled persons to dress clothes, footwear, open doors, use keys and others, as well as for self-service in the kitchen (for cleaning and cutting food);

1.4.6. specialized devices for setting up workplaces for disabled persons;

1.4.7. special training and sports equipment for disabled persons;

1.4.8. elevators for various purposes to serve disabled persons;

1.5. medicines, medical products, prosthetic and orthopaedic articles and medical equipment, and also raw materials, materials for their fabrication, components for their production, semi-finished products for them, according to the list approved by the President of the Republic of Belarus, if they are included in the State Register of medicines of the Republic of Belarus or in the State register register of articles intended for medical use and medical equipment of the Republic of Belarus or in respect of those goods there is a conclusion of the Ministry of Health of the Republic of Belarus that the goods (being) imported belong to medicines, medical products, prosthetic and orthopaedic articles and medical equipment, and also raw materials, materials for their fabrication, components for their production, semi-finished products for them;

1.6. seeds imported for scientific purposes and state strain testing.

The ground for exemption from the value added tax of seeds specified in part one of this sub-clause shall be a statement of the state institution State inspectorate on testing and protecting plant varietiesabout intended use of seeds being imported for state strain testing or an opinion of the National Academy of Sciences of Belarus about intended use of seeds being imported for scientific purposes;

1.7. carriers of films, cultural valuables, imported by organizations of culture.

The ground for exemption of goods specified in part one of this sub-clause from the value added tax shall be the conclusion of the Ministry of Culture of the Republic of Belarus on assignment of imported goods to carriers of films or cultural valuables;

1.8. all types of printed editions being received by state libraries and museums under international book exchange, and also cinema- and video works imported by state cinema- and video organizations for the purpose of carrying out internation non-commercial exchanges;

1.9. precious metals, precious stones and articles therefrom (parts of articles) (except for jewelry), and also concentrates and other industrial products, scrap and waste containing precious and nonferrous metals imported for replenishment of the State Fund, when a corresponding confirmation of the Ministry of Finance of the Republic of Belarus or the National Bank of the Republic of Belarus (for precious stones in the form of bullions imported for replenishment of the gold reserve of the State Fund) is available;

1.10. bullions and small bars of precious metals imported by banks;

1.11. goods imported from the territory of the member states of the Eurasian Economic Union and intended for the official use by diplomatic missions and consular offices of foreign states or for personal use of diplomatic and/or administrative and technical staff of those missions and offices, including members of their families living with them (unless they are citizens of the Republic of Belarus), by missions and bodies of international organizations and interstate formations, and also diplomatic mail and consular bag;

1.12. goods (being) received as foreign gratuitous assistance, under the procedure and conditions established by the President of the Republic of Belarus;

1.13. goods (being) received as international technical assistance and/or acquired at the expense of means of international technical assistance, intended for the purposes determined by the project (program) of international technical assistance, under the procedure and conditions established by the President of the Republic of Belarus;

1.14. equipment, appliances, materials and components, intended for performance of research and development, technological and experimental works, being imported by residents of the Republic of Belarus into the territory of the Republic of Belarus under the procedure and conditions established by the President of the Republic of Belarus;

1.15. goods being imported by organizations producing laser-optical machinery, used by such organizations as components of laser-optical machinery and not produced in the territory of the Republic of Belarus, and also equipment and work tools used by them for producing laser-optical machinery.

The ground for exemption from the value added tax of goods, machinery, and work tools, indicated in part one of this sub-clause shall be a statement that they are necessary for producing laser-optical machinery, issued by the State Committee on Science and Technology of the Republic of Belarus under the procedure and according to the form determined by the Council of Ministers of the Republic of Belarus;

1.16. installations, components and/or spare parts thereto on using renewable energy sources.

The ground for exemption from the value added tax of goods indicated in part one of this sub-clause shall be a statement on assignment of imported goods to installations, components and/or spare parts thereto for using renewable energy sources, issued by the Department on Energy Efficiency of the State Committee on Standardization of the Republic of Belarus under the procedure and according to the form determined by the Council of Ministers of the Republic of Belarus;

1.17. technological equipment and spare parts thereto, intended for implementation of investment projects financed at the expense of external state loans (credits) under the procedure established by the President of the Republic of Belarus;

1.18. technological equipment, components and/or spare parts thereto, imported by residents of the Park of High Technologies under the procedure and conditions established by the President of the Republic of Belarus;

1.19. technological equipment (components and/or spare parts thereto) for its use in the territory of the Republic of Belarus when implementing investment projects within the framework of concluded investment contracts between an investor and the Republic of Belarus under the procedure and conditions established by the President of the Republic of Belarus;

1.20. other goods under the procedure and conditions established by the President of the Republic of Belarus.

2. Goods specified in sub-clauses 1.2, 1.3, 1.5, part one of sub-clause 1.6, part of sub-clause 1.7, sub-clauses 1.81.10, 1.12, part one of sub-clause 1.15, and part one of sub-clause 1.16 of clause 1 of this Article, placed under the customs procedure of release for internal consumption with application of privileges on the value added tax must, are deemed to be release without restrictions for using and disposing of these goods.

Restrictions for using and disposing of goods indicated in sub-clauses 1.13, 1.14, 1.171.19 of clause 1 of this Article are effective till the use and consumption of the goods for the purposes corresponding to the conditions for granting privileges, but not more than five years from the day of release of goods in accordance with the customs procedure of release for internal consumption, which is confirmed by submission to the customs body of the report of the payer under the procedure and according to the forms established by the State Customs Committee of the Republic of Belarus.

Goods specified in sub-clause 1.4. of clause 1 of this Article imported with application of privileges on the value added tax must be used in the territory of the Republic of Belarus for prevention of disablement and or for rehabilitation of disabled persons. When those goods are used inappropriately or exported outside the territory of the Republic of Belarus without being used for the mentioned purpose, the value added tax shall be paid (collected) in accordance with the legislation.

Article 120. Tax base for the value added tax

1. The tax base upon realization of goods (works, services), property rights shall be determined as the value of those goods (works, services), property rights computed based on prices (tariffs) for goods (works, services), property rights inclusive of excises (for excisable goods) without including therein the value added tax.

2. Provisions of clause 1 of this Article cover turnovers on realization:

2.1. acquired goods (works, services), property rights;

2.2. produced goods (works, services), property rights;

2.3. of goods (works, services), property rights by their owner or rightholder on the basis of contracts of commission, agency, and other similar civil-law contracts.

3. The tax base shall be determined:

based on all receipts of the payer received by him in monetary form, in kind and in other forms from realization of goods (works, services), property rights;

depending on specific features of realization of produced or acquired goods (works, services), property rights.

4. The tax base shall be increased by sums actually received (due to be received):

4.1. for realized goods (works, services), property rights above the price of their realization or otherwise connected with payment for realized goods (works, services), property rights;

4.2. as sanctions for violation by buyers (customers) of contract conditions;

4.3. as an additional advantage for goods (works, services), property rights, realized by the commissioner on conditions that are more favourable than those indicated by the commitent.

The tax base shall be increased for the commissioner in the part of additional advantage due to the commissioner, for the commitent in the part of additional advantage due to the commitent;

4.4. as interest (payment) for using a commercial loan provided by sellers of goods (work, services) in the form of adjournment or by-installments payment of goods shipped (work performed, services rendered).

5. When the tax base is determined, means not connected with settlements on payment for goods (works, services), property rights, received by the payer, are not taken in consideration, including:

5.1. means remitted by the head organization to separate divisions that make a part of it and also by these separate divisions to each other, from centralized financial funds (reserves) as a secondary  redistribution of profit;

5.2. dividends and incomes equated to them;

5.3. means remitted to an organization, including state association, association, and also to the executive body of the open joint-stock company by organizations (affiliated and subordinated companies), separate structural divisions at the expense of profit remaining in their disposal:

provided that they are spent according to an approved estimate for carrying out centralized functions on management of all organizations (affiliated and subordinated companies), separate structural divisions that make part of the organization, including a state association, association, joint-stock company;

for formation of centralized financial funds (reserves);

5.4. means of reserve and other funds, transferred within one legal person;

5.5. means received from the budget or from budgets of state non-budgetary funds and used according to their intended purpose, with the exception of means received from the budget or for budgets of the mentioned funds as a payment for goods (works, services), property rights, realized by the payer.

6. Upon realization for foreign currency of:

6.1. goods (works, services), property rights under contracts stipulating settlements in foreign currency to determine the tax base (with the exception of the tax base in the part of contractual value of the leasing object under contracts of financial lease (leasing) stipulating the buy-out of the leasing object), recalculation of the foreign currency in Belarusian rubles shall be effectuated at the official exchange rate of the Belarusian ruble to the relevant foreign currency established by the National Bank on the moment of the actual realization of goods (works, services), property rights;

6.2. goods (works, services), property rights under contracts stipulating settlements in foreign currency on conditions of advance payments, preliminary payments, earnest money to determine the tax base (with the exception of the tax base in the part of contractual value of the leasing object under contracts of financial lease (leasing) stipulating the buy out of the leasing object), recalculation of the foreign currency in Belarusian rubles shall be effectuated at the official exchange rate of the Belarusian ruble to the relevant foreign currency established by the National Bank on:

the date of receipt of the preliminary payments, advance payment, earnest money in the part of the value of goods (works, services), property rights equal to the sum of advance payments, preliminary payments, earnest money;

the moment of actual realization of goods (works, services), property rights in the remaining part of the value of goods (works, services), property rights.

7. On contracts in which the sum of obligations is expressed in Belarusian rubles equivalent to a sum in foreign currency at the official rate of the Belarusian ruble to the foreign currency established by the National Bank of the Republic of Belarus on the date of  payment, the tax base upon realization of goods (works, services), property rights (with the exception of the tax base in the part of contractual value of the leasing object under contracts of financial lease (leasing) stipulating the buy out of the leasing object):

shall be determined at the official rate established by the National Bank of the Republic of Belarus on the moment of actual realization of goods (works, services), property rights in the instance with the moment of actual realization preceded the date of determining the amount of obligation under the contract;

shall be determined  in the payable sum in Belarusian rubles in the instance when the date of determining of the amount of obligation under the contract precedes the moment of actual realization or coincides therewith;

shall not be increased (decreased) by a sum of defferences received from the January 1, 2018 and arising in connection with the change of the official rate of the Belarusian ruble to the foreign currency established by the National Bank of the Republic of Belarus from the moment of actual realization till the moment of determining the amount of the obligation under the contract in the instance when the moment of actual realization preceded the date of determining the amount of the obligation under the contract.

For the purposes of this clause:

the date of determining the amount of the obligation under the contract is understood the date specified in indent one of part one of this clause, and in the instance of termination of the obligation on other grounds - the date of termination of the obligation (fully or in a corresponding part);

in the event of receipt of payment in Belarusian rubles by parts (termination of obligations in a corresponding part), the sum in foreign currency shall be accepted in the amount based on the equivalent of the which the payment if made (obligation is terminated) in a corresponding part according to the contract;

8. On contracts in which the sum of obligations is expressed in Belarusian rubles equivalent to a sum in foreign currency at the exchange rate of the foreign currency determined by the legislation or an agreement of the parties or on the date of determining the amount of the obligation, different from the rate or the date established in part one of clause 7 of this Article, the tax base upon realization of goods (works, services), property rights (with the exception of the tax base in the part of contractual value of the leasing object under contracts of financial lease (leasing) stipulating the buy out of the leasing object) shall be determined:

in Belarusian rubles at the official rate established by the National Bank of the Republic of Belarus on the moment of actual realization of goods (works, services), property rights in the instance when the moment of actual realization preceded the date of determining the amount of obligation;

in the payable sum in Belarusian rubles in the instance when the date of determining of the amount of obligation precedes the moment of actual realization or coincides therewith. 

In the instance when the moment of actual realization preceded the date of determining the amount of obligation, the tax base determined in accordance with indent two of part one of this clause:

shall be increased (decreased) by the sum of difference arising between the payable sum in Belarusian rubles and sums of the tax base determined in accordance with indent two of part one of this clause, and differences specified in indent three of this part;

shall not be increased (decreased) by a sum of differences received from the January 1, 2018 and arising in connection with the change of the official rate of the Belarusian ruble to the foreign currency established by the National Bank of the Republic of Belarus from the moment of actual realization till the moment of determining the amount of the obligation.

Increase (decrease) of the tax base by the sum of difference arising according to indent two of part two of this clause shall be performed on the date of receiving payment for goods (works, services), property rights, and in the event of termination of the obligation on other grounds on the date of termination of the obligation (in full or in the respective part).

Decrease of the tax base by the sum of the difference arising according to indent two of part two of this clause shall be performed on the basis of  an additional electronic invoice presented to the buyer, signed by the buyer with the electronic digital signature, if the electronic invoice presented earlier by the seller was signed by the buyer with the electronic digital signature.

If the additional electronic invoice is signed by the buyer with the electronic digital signature not later than the date on which the seller submitted the tax declaration (calculation) on the value added tax for the reporting period, on which falls the date specified in part three of this clause, then the tax base shall be decreased for the mentioned reporting period .

If the additional electronic invoice is signed by the buyer with the electronic digital signature after the seller submitted the tax declaration (calculation) on the value added tax for the reporting period, on which falls the date specified in part three of this clause, then the tax base shall be decreased in the tax declaration (calculation) for the value added tax:

for the reporting period the deadline for submission of which follows the buyer's signing of the additional electronic invoice;

of for the reporting period in which the buyer signed the additional electronic invoice.

With regard to the difference arising according to indent two of part two of this clause in the tax period preceding the tax period in which the additional electronic invoice was signed by the buyer, the seller has the right to make changes in the part of decrease of the tax base in the tax declaration (calculation) for the value added tax  for such preceding tax period.

For the purposes of this clause:

the date of determining the amount of the obligation is understood the date on which, in accordance with the legislation or an agreement of the parties, the payable sum in Belarusian rubles is determined on the obligation expressed in Belarusian rubles in a sum equivalent to a sum in foreign currency;

in the event of receipt of payment in Belarusian rubles by parts (termination of obligations in a corresponding part), the sum in foreign currency shall be accepted in the amount based on the equivalent of the which the payment if made (obligation is terminated) in a corresponding part according to the contract;

9. On contracts in which the sum of obligations is expressed in foreign currency as equivalent to a sum in another foreign currency, the tax base upon realization of goods (works, services), property rights (with the exception of the tax base in the part of contractual value of the leasing object under contracts of financial lease (leasing) stipulating the buy out of the leasing object) shall be determined in Belarusian rubles through recalculation:

of the sum in the other foreign currency at the official rate established by the National Bank of the Republic of Belarus on the moment of actual realization of goods (works, services), property rights in the instance when the moment of actual realization preceded the date of determining the amount of obligation;

of the payable sum in foreign currency at the official rate established by the National Bank of the Republic of Belarus on the moment of actual realization of goods (works, services), property rights in the instance when the date of determining the amount of obligation precedes or coincides with the moment of actual realization.  

In the instance when the moment of actual realization predated the date of determining the amount of obligation, the tax base shall be increased (decreased) by the sum of difference arising between the sum calculated in Belarusian rubles computed through recalculation of the sum payable in foreign currency at the official rate of the National Bank of the Republic of Belarus and the sum of tax base in Belarusian rubles determined on the moment of actual realizations of goods (works, services), property rights.

The official rate of the National Bank of the Republic of Belarus for recalculation of the payable sum in foreign currency shall be accepted and increase (decrease) of the tax base by the sum of the difference shall be effectuated as of the date of receipt of payment for goods (works, services), property rights, and in the case of termination of the obligation on other grounds as of the date of termination of obligations (in full or in a corresponding part).

Decrease of the tax base by the seller shall be carried out on the basis of  an additional electronic invoice presented to the buyer, signed by the buyer with the electronic digital signature, if the electronic invoice presented earlier by the seller was signed by the buyer with the electronic digital signature.

If the additional electronic invoice is signed by the buyer with the electronic digital signature not later than the date on which the seller submitted the tax declaration (calculation) on the value added tax for the reporting period, on which falls the date specified in part three of this clause, then the tax base shall be decreased for the mentioned reporting period .

If the additional electronic invoice is signed by the buyer with the electronic digital signature after the seller submitted the tax declaration (calculation) on the value added tax for the reporting period, on which falls the date specified in part three of this clause, then the tax base shall be decreased in the tax declaration (calculation) for the value added tax:

for the reporting period the deadline for submission of which follows the buyer's signing of the additional electronic invoice;

of for the reporting period in which the buyer signed the additional electronic invoice.

With regard to the difference arising according to part two of this clause in the tax period preceding the tax period in which the additional electronic invoice was signed by the buyer, the seller has the right to make changes in the part of decrease of the tax base in the tax declaration (calculation) for the value added tax  for such preceding tax period.

For the purposes of this clause:

the date of determining the amount of the obligation is understood the date on which, in accordance with the legislation or an agreement of the parties, the payable sum in foreign currency shall be determined on the obligation under the contract expressed in foreign currency as a sum equivalent to a sum in another foreign currency;

in the event of receipt of payment in foreign currency by parts (termination of obligations in a corresponding part), the sum in another foreign currency shall be accepted in the amount based on the equivalent of the which the payment if made (obligation is terminated) in a corresponding part according to the contract;

10. The tax base upon transfer by the lessor of the financial lease (leasing) object to the lessee is determined as the sum of leasing payments.

Upon buy out of the leasing object by the lessee, the tax base shall be increased by the sum of the buy-out value of the leasing object.

Under contracts of financial lease (leasing) stipulating the buy-out of the leasing object, in which the amount of obligations is expressed in foreign currency (in Belarusian rubles equivalent to a sum in foreign currency or in foreign currency equivalent to a sum in another foreign currency):

to determine the tax base in terms of the contract value of the leasing object , the recalculation of foreign currency (another foreign currency) in Belarusian rubles shall be made upon occurrence of  the moment of actual realization at the official exchange rate of the Belarusian ruble to the corresponding foreign currency (another foreign currency) established by the National Bank of the Republic of Belarus as of the date of actual transfer of the leasing object to the lessee;

The tax base in terms of the remuneration (income) of the lessor and the investment expenses of the lessor, with the exception of investment expenses reimbursed in the value of the leasing object, shall be determined in the order established by clauses 69 of this Article.

Upon taxation by the payer of turnovers on reimbursement in accordance with sub-clause 9.3 of clause 9 of Article 122 of this Code, the tax base:

of the lessor shall include the value of works (services) related to the financial lease (leasing) acquired by the lessor, not included in the sum of the leasing payment, to be reimbursed by the lessee;

of the lessee shall include the value of works (services) related to the financial lease (leasing), acquired by the lessee, to be reimbursed by the lessor.

11. The tax base upon transfer of the lease object by the lessor to the lessee is determined as the sum of rentals.

Upon buy-out of the lease object by the lessee, the tax base shall include the sum of the buy-out price of the lease object.

Upon taxation by the payer of turnovers on reimbursement in accordance with sub-clause 9.3 of clause 9 of Article 122 of this Code, the tax base:

of the lessor shall include the value of works (services) related to the lease, acquired by the lessor, not included in the sum of the lease payment, to be reimbursed by the lessee;

of the lessee shall include the value of works (services) related to the lease, acquired by the lessee, to be reimbursed by the lessor.

12. The tax base upon providing of the property by the lender to the borrower into gratuitous use is determined as:

sums of posted depreciation, land tax or lease payment for the land plot, tax on immovable property, reimbursable to the lender (unless the duty on their reimbursement to the lender is provided by acts of the President of the Republic of Belarus);

value of expenses on maintenance of the property and/or other expenses related to the property, reimbursable to the lender (including expenses on operation, repairs of the property, costs on communal services), with the exception of the value of works (services) related to the property, acquired by the lender, and expenses specified in indent two of this part.

Upon taxation by the payer of turnovers on reimbursement in accordance with sub-clause 9.3 of clause 9 of Article 122 of this Code, the tax base of the lender shall include the value reimbursable by the borrower:

of works (services) on maintaining the property, acquired by the lender;

other works (services) related to the property, acquired by the lender, including expenses on operation, repairs of the property, costs on communal services.

13. When fixed assets and intangible assets, certain items included in current assets and property accounted as part of non-circulating assets are realized at the price that is less than the depreciable value, when goods or property rights acquired from other persons are realized at prices less than the purchasing price, the tax base is determined based on their purchasing price.

When goods (works, services) of own production, property rights are realized at prices that are less than their primary costs, the tax base is determined based on the realization price of such goods (works, services), property rights.

14. When goods (works, services), property rights, manufactured (executed, rendered) by the payer are transferred gratuitously, the tax base is determined based on the prime cost of such goods (works, services), property rights. When acquired goods are transferred gratuitously, the tax base is determined based on their purchasing price.

When fixed assets and intangible assets, certain items included in current assets and property accounted as part of non-circulating assets, are transferred gratuitously, the tax base is determined based on their depreciable value.

Residual value and purchasing price are accepted on the date of gratuitous transfer with regard to re-evaluation (write-downs) carried out in accordance with the legislation.

15. Upon other retirement of goods in duty-free shops, placed under the customs procedure of duty-free trade, the tax base is determined based on their purchasing price without regard to the valued added tax.

16. The tax base upon transfer of property rights is determined having regard to the following:

16.1. upon assignment by the primary creditor of the right of claim, arising out of contracts aimed at realizations of goods (works, services), property rights, the tax base is determined as the sum of excess of the obligation amount under such contracts;

16.2. upon assignment of the right of claim by the new creditor that received the monetary claim arising out of a contract aimed at realization of goods (works, services), property rights, the tax base is determined as the sum of excess of the profit received by the new creditor upon the subsequent assignment of the right of claim or upon termination of the respective obligation over the expenses on acquiring of the indicated claim;

16.3. upon transfer of property rights by payers, including participants of shared construction, to immovable property objects, stakes in the ownership to immovable property objects, garages and spaces in parking areas, the tax base is determined as the positive difference between the value at which the property rights (stakes in the ownership) are being transferred taking into account the value added tax and expenses for acquiring of the said rights (stakes in the ownership) taking into account the value added tax;

16.4. upon acquiring a monetary claim from third persons, the tax base is determined as the sum of excess of the profit received from the debtor and/or upon its subsequent assignment over the expenses for acquiring of this claim;

16.5. upon transfer of property rights connected with the right to conclude a contract, the tax base is determined as the value of such right without inclusion of the value added tax.

17. The tax base upon realization of goods (works, services), property rights on forward transactions stipulating supply of goods or property rights, execution of works, rendering of services upon expiry of a time limit established by the contract at the price indicated directly in this contract is determined based on the price of goods (works, services), property rights indicated directly in the contract, increased by the value of respective forward and futures contracts, options and other financial instruments of forward transactions.

18. The tax base upon realization of an enterprise as a whole property complex is determined separately for each type of property of this enterprise.

In the event when the value at which the enterprise as a whole property complex is realized below (above) the book value of realized property, in order to determine the tax base for the value added tax for each type of property, a correction coefficient is used which is calculated as ratio of the realization value of the enterprise to the book value of property included in the composition of this enterprise.

19. The tax base upon realization of the property of the debtor within the framework of executive proceedings, including the transfer of the property to the recoverer, shall be determined by the debtor:

upon realization of the property of the debtor to the buyer - as the sum of monetary means from the realization of the debtors property to be credited to the account of the enforcement body;

when leaving the property of the debtor for the recoverer as the value of the debtor's property determined in accordance with the Law of the Republic of Belarus of October 24, 2016 "On execution proceedings", according to which it shall be left for the recoverer.

20. The tax base upon realization at fixed retail prices that include the value added tax:

acquired (imported) goods shall be determined as  a positive difference between the realization price and the acquisition price of those goods. In doing so acquisition prices and realization prices shall be determined with account of the value added tax;

of manufactured goods shall be determined as the value of those goods, computed based on fixed retail prices, including the value added tax.

Provisions of indent two of part one of this clause are not applied upon realization of acquired (imported) goods the computation of the value added tax on which is effectuated in accordance with clause 5 of Article 128 of this Code.

Provisions of part one of this clause shall also apply upon realization of goods at fixed retail prices the without value added tax if the turnovers on realization of such goods are exempted from the value added tax in accordance with the legislation.

21. For goods realized on free and regulated retail (fixed) prices by the payers carrying out retail trade and public catering and receiving income on those goods as a difference in prices, marks-on, charges, and computing the value added tax in accordance with clause 5 of Article 128 of this Code, the tax base shall be the value of realized goods (with account of all taxes, dues (duties) and other payments to the budget or budgets of the state non-budgetary funds, collected upon realization of goods).

22. The tax base upon realization of purchased vouchers for sanatorium-resort treatment and rehabilitation of the population, forms of labour books and/or inserts for them shall be determined as a positive difference between the realization price and the acquisition price of those vouchers, forms. In doing so purchasing prices and realization prices are determined with account of the value added tax.

23. The tax base upon shipment (return) of tare that is recognized as returnable tare according  to sub-clause 1.1.7 of clause 1 of Article 115 of this Code, shall be determined:

by the seller of the goods as the value of such tare upon its shipment to the buyer of the goods;

by the buyer of the goods as the value of such tare upon its return to the seller of the goods.

24. The tax base upon transfer of goods under a loan contract in kind shall be determined as the value of goods being transferred stipulated by the contract, in the absence of the value in the contract as the value indicated in goods accompanying documents, and in the absence of the value in the contract and goods accompanying documents as the value of goods reflected in accounting.

25. The tax base on operations on granting micro loans by commercial organizations included in the register of micro financial organizations to natural persons against the pledge of movable property intended for personal, family or household use shall be determined as the sum of incomes (interest and other incomes) related to granting of such loans.

26. The tax base upon realization of works on manufacturing of goods from give-and-take raw materials (materials) shall be determined as costs of working, processing or another transformation of the mentioned raw materials (materials) without inclusion of the value added tax.

Sum of excises computed (subject to computation) by the payer that produces excisable goods from give-and-take raw materials is not included in the price (tariff) of works on production of excisable goods from give-and-take raw materials

When there are turnovers on realization of works on manufacturing from give-and-take raw materials (materials) realized by their owner to different states (including the Republic of Belarus), the tax base for application of respective tax rates of the value added tax is determined proportionally to the amount (quantity) of shipped goods.

27. The tax base upon the contract-based  manufacturing of tobacco products shall be determined at the option of the manufacturing organization in one of the following orders:

as the costs of works on production of the indicated tobacco articles with account of the value of materials of the manufacturing organization, including excise sums computed by the manufacturing organization of tobacco articles, without inclusion of the value added tax;

in order established by clause 26 of this Article.

The procedure for determining the tax base  chosen by the organization producer shall be reflected in its accounting policy and is not subject to change during the current tax period.

28. The tax base upon realization of products made of precious metals and precious stones shall be determined as the value of products taking into account the value of precious metals and precious stones utilized in the production.

29. The tax base upon intermediary activity shall be determined as the sum received (to be received) as remunerations under contracts of commission, agency, and other similar civil-law contracts.

30. The tax base concerning forwarding servicing shall be determined as the sum received as forwarding agent remuneration under the forwarding contract.

The remuneration shall be determined as the sum received (to be received) from the customer for services rendered to him less means, reimbursable by the customer, remitted (to be remitted) to carriers and other organizations and individual entrepreneurs rendering services indicated in the forwarding contract.

Provisions of this clause cover also the instances when in accordance with the forwarding contract, the forwarding agent's duties are fulfilled by the carrier.

31. The tax base, upon realization of services on trust management of property, rendered to the trustor (beneficiary), shall be determined by the trustee as the sum of remuneration received (due to be received) by the latter under the contract of trust management of property.

The tax base, when goods (works, services), property rights are realized in the course of trust management of property under a contract on trust management of property in the interests of the trustor or a person indicated by him (beneficiary), is determined by the trustee having regard to specific features established by this Article.

32. The tax base, upon realization by general contractors of construction and designing works performed with participation of sub-contractors shall be determined as the value of works according to the contract concluded between the ordering customer and the general contractor.

33. The tax base upon construction of objects that later do not come into ownership (use) of the ordering customer (builder) shall be determined:

33.1. when conducting construction at the expense of means of the republican and/or local budgets as the value of services of the ordering customer (builder) determined based on the volume of means provided for maintenance of the ordering customer (builder) by the design and estimate documentation for construction of the object with account of the value added tax;

33.2.when conducting construction in the interests of third parties (including interestholders):

33.2.1. in the order established by the President of the Republic of Belarus as the value of services of the ordering customer (builder) determined based on the volume of means provided for maintenance of the ordering customer (builder) by the design and estimate documentation for construction of the object with account of the value added tax and calculated proportionally to the share of the interestholder in the construction of the object and the sum of profit of the ordering customer (builder) stipulated by the contract with the interestholder.

In that instance the sum of advantage of the ordering customer (builder) formed as a result of decrease of the actual value of the shared construction object (price of the contract):

is included in the tax base for value added tax as the value of services of the ordering customer (builder), if the contract with the interestholder determines the inclusion of such sum in the value of services of the ordering customer (builder);

increases the tax base for value added tax in accordance with sub-clause 4.1 of clause 4 of this Article if the contract with the interestholder does not determine inclusion of such sum in the value of services of the ordering customer (builder);

33.2.2. in other instances as remuneration determined as a difference between the sum of means with account of the value added tax to be received under the contract with a third person (including the interestholder) and the sum of actually incurred costs with account of the value added tax on construction of the object falling on the share of the third person (including the interestholder), but not less than the value of services of the ordering customer (builder) determined based on the volume of means provided for maintenance of the ordering customer (builder) by the design and estimate documentation for construction of the object with account of the value added tax and calculated proportionally to the share of the interestholder in the construction of the object;

33.2.3. with the use of goods (works, services) produced (executed, rendered) by the ordering customers (builder's) own resources as the value of such goods (works, services) included in the construction cost.

34. When the tax base for services of international communications is determined, the sums received by communication organizations from realization of the mentioned services to foreign communications operators, designated postal service operators, companies or recognized operating organizations are not taken into account.

35. The tax base concerning carriage carried out by the State Association "The Belarusian Railway" is determined without account of settlements between legal persons included in the consolidated balance sheet of main activity of the State Association "The Belarusian Railway".

36. Upon realization of services on carriage of passengers by all kinds of transport in regular traffic at tariffs regulated by the legislation, concerning which reimbursement of a part of costs on rendering of such services (including granting privileges on travel to certain categories of citizens in accordance with the legislation) is made at the expense of subsidies, the tax base is determined as the value of those services without account of subsidies being provided for reimbursement of the mentioned costs.

37. When printed mass media are realized by subscription by legal persons on which functions of editorial boards of printed mass media are imposed, the tax base is determined as the subscription value of the size of circulation of these printed mass media less the sums remaining in the accounts:

of communication organizations as payment for communication services rendered by them according to established tariffs when printed mass media are being realized by subscription, for services on making subscription and handing out of printed mass media through the trading network of these organizations;

of organizations engaged in the process of realizations of printed mass media by subscription as payment for their expenses.

38. Tax base upon transfer of goods (works, services), property rights within one legal person, under which computation and payment of the value added tax (exemption from the taxation is applied) shall be performed in accordance with part two of sub-clause 2.9 of clause 2 of Article 115 of this Code shall be determined as the value of goods (works, services), property rights being transferred specified in the primary accounting documents without inclusion therein of the value added tax.

In the event of decrease (increase) of the value of goods (works, services), property rights, specified in part one of this clause, upon expiration of the reporting period in which the goods (works, services), property rights have been transferred (performed, rendered) within one legal person, the tax base shall be decreased (increased) by the sum of a difference arising between the changed and the previous value of the transferred goods (works, services), property rights in the reporting period in which the value of earlier transferred goods (works, services), property rights has been decreased (increased).

Decrease of the tax base by shall be carried out on the basis of  an additional electronic invoice presented to the receiving party, signed by the receiving party with the electronic digital signature, if the electronic invoice presented earlier by the transmitting party was signed by the receiving party  with the electronic digital signature.

Reflection in the tax declaration (calculation) for the value-added tax of the sum of the decrease of the tax base in relation to the date of signing by the receiving party with an electronic digital signature of an additional (corrected) electronic invoice presented by the transmitting party , shall be effectuated in the order similar to the order established by clause 4 of Article 129 of this Code.

39. When goods (works, services), property rights are realized in the territory of the Republic of Belarus by foreign organizations not put on record in the tax bodies of the Republic of Belarus, including on the basis of contracts of commission, agency, and other similar civil-law contracts, with organizations and individual entrepreneurs put on record in the tax bodies of the Republic of Belarus, the tax base is determined as the value of these goods (works, services), property rights.

The tax base shall be determined separately when performing each operation on realization of goods (works, services), property rights in the territory of the Republic of Belarus having regard to provisions of this chapter and shall be increased by the sums specified in clause 4 of Article 120 of this Code.

The tax base is determined by organizations and individual entrepreneurs put on record in the tax bodies of the Republic of Belarus and acquiring in the territory of the Republic of Belarus goods (works, services), property rights from foreign organizations not put on record in the tax bodies of the Republic of Belarus, and when goods (works, services), property rights are realized in the territory of the Republic of Belarus by foreign organizations not put on record in the tax bodies of the Republic of Belarus on the basis of contracts of commission, agency, and other similar civil-law contracts by organizations and individual entrepreneurs put on record in the tax bodies of the Republic of Belarus that carry out entrepreneurial activity on the basis of such contracts concluded with the indicated foreign organizations.

When goods (works, services), property rights are realized in the territory of the Republic of Belarus by foreign organizations not put on record in the tax bodies of the Republic of Belarus, the tax base is recognized to equal to zero, if upon importation of these goods into the territory of the Republic of Belarus the value added tax has been paid, with the exception of the value added tax paid upon placement of goods under the customs procedure of temporary importation (acceptance).

Article 121. Determination of the moment of actual realization of goods (works, services), property rights

1. The moment of actual realization of goods (works, services), property rights is determined as the day, falling within the reporting period, of shipment of goods (execution of works, rendering of services), transfer of property rights, irrespective of the day of performing settlements on them, unless otherwise established by this Chapter.

2. The day of shipment of goods is recognized:

the date of their release to the buyer (recipient or organization (individual entrepreneur) carrying out the carriage (forwarding) of goods, or communication organization), unless the seller carries out delivery (transportation) of goods or bears costs on their delivery (transportation);

the date determined in accordance with the accounting policy of the organization (decision of the individual entrepreneur), but not later than the date of beginning of their transportation in other instances.

3. Upon realization of goods at retail prices in retail trade and/or public catering using cash equipment, carried out during a shift starting on one calendar day and ending on another calendar day, the date of shipment of goods realized on the other calendar day shall be the opening date of that shift, reflected in the daily (shift) report (Z-report), being formed by such cash equipment.

4. The day of shipment of tare that is recognized as returnable tare according  to sub-clause 1.1.7 of clause 1 of Article 115 of this Code, shall be recognized:

by the seller of the good the date of its shipment to the buyer of the good to be determined according to clause 2 of this Article;

by the buyer of the good the date of its return to the seller of the good to be determined according to clause 2 of this Article;

5. When goods are transferred within the framework of a loan contract in kind, the moment of their actual realization is recognized:

by the lender the date of their shipment to the borrower to be determined according to clause 2 of this Article;

by the borrower the date of their return to the lender to be determined according to clause 2 of this Article.

6. The day of performance of works (rendering of services), unless otherwise established by this Article, is recognized the date of transfer of performed works (rendered services) in accordance with:

formalized primary accounting documents (acceptance delivery statements or other similar documents);

other documents if in accordance with legislation the primary accounting documents are not formalized.

When providing a service, the results of which the customer can use as it is performed during the validity period of the contract concluded by the contractor and the customer in written form, the day of service rendering is recognized:

the last calendar day of each month of the rendering of the service and the last day of the rendering of the service if the validity period of the contract exceeds one month;

the last calendar day of each month of the rendering of the service and/or the day of termination of the rendering of the service unless the validity period of the contract exceeds one month.

When performing work (rendering service), the result of which cannot be used by the customer until the completion of the work (service), the day of performance of the work (rendering of the service) shall be recognized:

the day of completion of the work (provision of the service) indicated in the primary accounting document, if the indication of this date in the primary accounting document is stipulated by the contract concluded by the contractor (performer) and the customer in a written form;

the day of acceptance of the work (service) indicated in the primary accounting document, if the indication of this date in the primary accounting document is stipulated by the contract concluded by the contractor (performer) and the customer in a written form;

the date of drawing up the primary accounting document in the instances not specified in indents two and three of this part.

7. The day of execution of construction, research and development, design and experiment, technology-testing (technology) works shall be recognized the last day of the month of execution of works. When the receiveing party does not sign statements of work completion, services rendering for the reporting month till the 10th day (inclusively) of the month following the reporting one, the day of execution of construction, research and development, design and experiment, technology-testing (technology) works is recognized  the day of signing statements of work completion by the receiving party.

The day of construction works, the cost of which in accordance with the legislation is expressed in foreign currency, performed in the month of acceptance of the construction object in operation, shall be recognized the day of signing of the act by the receiving party, if this day precedes the day of approval of the act of acceptance of the construction object in operation.

8. The day of transfer of property rights at the option of the payer shall be recognized:

the last calendar day of each month to which the transfer of the property right relates, and if the transfer of property rights is completed before the end of the month - the last day of such transfer;

or the day of transfer of the property right, formalized by the primary accounting document.

9. When a leasing object is being transferred into financial lease (leasing), the day of transferring shall be recognized:

in terms of the payment made by the lessee prior to the commencement of the term of temporary possession and use of the leasing object, the day of the actual transfer of the leasing object to the lessee. This provision applies if the entire sum of the mentioned payment is recognized in accordance with the contract of financial lease (leasing) as the first lease payment;

in terms of lease payments, the last day of each month to which the lease payment relates on such transfer, but not earlier than the date of the actual transfer of the leasing object to the lessee;

in terms of redemption value, if the contract of financial lease (leasing) stipulates the redemption of the leasing object, - the date of repayment of the redemption value, established by the contract of financial leasing (leasing).

10. When a lease object is being transferred into lease, the day of transfer shall be recognized the last day of the month to which the rent for such a lease relates, but not earlier than the date of the actual transfer of the lease object to the lessee.

In the event if the specific period to which the rent relates exceeds one calendar month and/or the contract does not establish a specific period to which the rent relates, the moment of putting the object into lease shall be recognized:

the last day of each month in the course of the lease period established by the contract;

the day of completion of the lease period falling on the last month of the lease period established by the contract (if the lease period does not end on the last day of the last month of the lease period).

11. Upon transfer of property into gratuitous use, the day of transfer shall be recognized the last day of each month to which relate the expenses on maintenance property and/or other expenses connected with the property presented to the borrower for reimbursement.

12. The day of shipment of goods (execution of works, rendering of services), transfer of property rights by their owner or rightholder on the basis of contracts of commission, agency, and other similar civil-law contracts shall be recognized at the option of the payer one the following dates:

the date of shipment of goods (execution of works, rendering of services), transfer of property rights by their owner or rightholder to the commissioner, agent or other similar person;

the date of shipment of goods (execution of works, rendering of services), transfer of property rights by the commissioner, agent or other similar person to the buyer or customer, having regard to provisions of clause two of this Article.

The procedure chosen by the payer of determining the day of shipment, (execution of works, rendering of services), transfer of property rights shall be indicated in the accounting policy of the organizations (decision of the individual entrepreneur) and is not subject to be changed in the course of the current tax period.

13. The day of rendering of tourist services shall be recognized the last day of the tour.

14. The day of rendering of sanatorium and rehabilitation services provided by sanatorium and rehabilitation organizations (structural divisions thereof) shall be recognized at their option one of the following days:

 the last day of validity period of the pass;

the last day of the reporting period in which the validity of the pass started (in the part of days of its validity falling on that reporting period) and the last day of the validity period of the pass (in the part of days of validity of the pass falling on the reporting period in which its validity ends).

The procedure chosen by the organization for determining the day of rendering such services  shall be indicated in the accounting policy of the organizations and is not subject to be changed in the course of the current tax period.

15. The day of rendering of services when passengers, luggage (cargo-luggage), post are carried by public transport is recognized the day of formalizing travel (transit) documents to passengers, owner of luggage (cargo-luggage), post or the day of beginning of carriage of passengers, luggage (cargo-luggage), post.

The day of rendering services on carriage of cargo by railway transport shall be recognized:

the date of delivery of the goods to the consignee upon carriage in inter-country communication and transportation from outside the Republic of Belarus;

the date of transfer of cargo to railway transport organizations of general use of foreign countries upon carriage outside the Republic of Belarus or in transit through its territory.

16. The day of rendering services upon carriage of cargo by motor road transport on one request of the customer, under one contract, order-instruction or another similar document (on one order to the forwarding agent - if the carrier also performs the functions of the forwarding agent) with delivery of  the cargo in:

16.1. one place of unloading, shall be recognized the date of receipt of the cargo by the consignee or other person authorized to receive the cargo;

16.2. several places of unloading, shall be recognized the date of receipt of the cargo by the consignee or other person authorized to receive the cargo in the last (final) place of unloading.

17. The day of rendering of communication services is recognized the last day of the month of rendering of communication services.

18. The day of rendering services on transportation of gas and oil is recognized the last day of the month of rendering services.

19. The day of rendering services in the sphere of education, when the period of learning is more than thirty calendar days, shall be recognized the last day of each month of rendering such services, and if the rendering of services terminates prior to the end of the month the last day of rendering services.

20. The day of rendering medical services, when the period of medical observation and providing medical assistance to the patient in the health care organization is more than thirty calendar days, shall be recognized the last day of each month of rendering such services, and if the rendering of services terminates prior to the end of the month the last day of rendering services.

21. In case of gratuitous transfer of goods (works, services), property rights, the moment of their actual realization shall be recognized, accordingly:

the date of shipment of goods to be determined according to clause 2 of this Article;

the date of performance of works (rendering of services), transfer of property rights, to be determined in accordance with this Article.

Upon exchange of goods (works, services), property rights, the moment of their actual realization shall be recognized the day of exchange. The day of exchange shall be recognized the day of performing of each shipment of the good (execution of work, rendering of service), transfer of property right, to be determined in accordance with this Article.

Upon in-kind remuneration of labor with goods (work, services), the moment of their actual realization shall be the day of payment.

22. The moment of the actual realization of natural and compressed gas, electric and thermal energy shall be recognized, at the payers option, one of the following dates:

falling within the reporting period, of crediting monetary means from their buyer to the account of the payer;

the day to be determined under the procedure established, accordingly, by clauses 2 and 6 of this Article.

The procedure chosen by the payer of determining the moment of actual realization shall be indicated in the accounting policy of the organizations and is not subject to be changed in the course of the current tax period.

Provisions of this clause cover also sums received as sanctions for breach of contract conditions by buyers (ordering consumers).

23. The moment of actual realization or works upon contract-based production of tobacco articles is recognized the day of shipment (transfer) of tobacco articles to the ordering consumer and/or other persons, to be determined according to clause 2 of this Article.

24. The moment of actual realization of works on manufacturing from give-and-take raw materials (materials) for non-residents of the Republic of Belarus is recognized the day of shipment (transfer) of goods manufactured from give-and-take raw materials (materials), to be determined according to clause 2 of this Article.

25. The moment of actual realization when the object of pledge is transferred by the pledgor to the pledgeholder is recognized the day of transfer of the object of pledge to the pledgeholder (creditor) upon non-fulfillment or improper fulfillment of the obligation secured by the pledge, to be determined according to clause 2 of this Article.

26. The moment of actual realization upon other retirement of goods in duty-free shops, placed under the customs procedure of duty-free trade, is recognized the day of drawing up a collation statement or another document confirming their other retirement.

27. The moment of actual realization for operations on granting micro loans by commercial organizations included in the register of micro financial organizations to natural persons against the pledge of movable property intended for personal, family or household use is recognized the day of issuance of the pledge ticket and in the event of extending loan period the date of extension of the loan period indicated in the pledge ticket.

28. The moment of actual realization in relation to sums:

28.1. of the difference arising in accordance with indent two of part two of clause 8 and part two of clause 9 of Article 120 of this Code shall be recognized as the day of its receipt;

28.2. increasing the tax base in accordance with clause 4 of Article 120 of this Code, shall be recognized, at the payer's option (with the exception of banks), one of the following days:

the day of their receipt;

the day of reflection of those sums in the accounting.

The procedure chosen by the payer (with the exception of banks) of determining the moment of actual realization shall be indicated in the accounting policy of the organizations and is not subject to be changed in the course of the current tax period.

29. The moment of actual realization of goods (works, services), property rights in territory of the Republic of Belarus by foreign organizations not put on record in the tax bodies of the Republic of Belarus is recognized, with the exception of the instance established by part two of this clause, the day of payment, including the advance payment, or the day of another termination of obligation by buyers (ordering consumers) of these goods (works, services), property rights. This provision also applies in relation to the sums of increase in the tax base, determined in accordance with clause 39 of Article 120 of this Code.

The moment of actual realization of goods (works, services), property rights in territory of the Republic of Belarus by foreign organizations not put on record in the tax bodies of the Republic of Belarus on the basis of contracts of commission, agency or other similar civil-law contracts with organizations and individual entrepreneurs put on record in the tax bodies of the Republic of Belarus is recognized the day of shipment of goods (execution of works, rendering of services), transfer of property rights to buyers (ordering consumers) of these goods (works, services), property rights, irrespective of the date of performing settlements on them. This provision is also applied by payers indicated in clause 4 of Article 114 of this Code.

For the purposes of this clause, the deduction of taxes sums by the buyer (ordering consumer) recognized a tax agent in the Republic of Belarus does not constitute the termination of obligations before a foreign organization not put on record in the tax bodies of the Republic of Belarus.

Article 122. Rates of value added tax

1. The rate of the  value added tax in the amount of zero (0) percent is established upon:

1.1.  realization of goods placed under the customs procedure of export, subject to documentary confirmation of the actual exportation of goods outside the territory of the Republic of Belarus in the order established by Article 123 of this Code;

1.2. realization of goods taken out (without the commitment to return importation into the territory of the Republic of Belarus) to the member states of the Eurasian Economic Union (including goods exported under contracts of international leasing, loan contracts, contract, contract for manufacturing of goods), subject to documentary confirmation of the actual exportation of goods outside the territory of the Republic of Belarus in the order established by Article 124 of this Code;

1.3.  realization of works being exported on production of goods from give-and-take raw materials (materials), subject to documentary confirmation of the actual exportation of goods outside the territory of the Republic of Belarus in the order established by Article 125 of this Code.

Works being exported on production of goods from give-and-take raw materials (materials), levied with the value added tax in the amount of zero (0) percent, include works on production of goods from from give-and-take raw materials (materials) performed by the payer by own forces (in full or in part) for a foreign organization and natural person;

1.4. realization of works (services) on accompanying, loading, re-loading, and other similar works (services) directly connected with the realization of goods indicated in sub-clauses 1.1 and 1.2 of this clause.

Works (services) specified in part one of this sub-clause include works (services):

on accompanying goods, including services on protection;

on loading, unloading, re-loading (except for pipeline transport) of goods;

on storage of goods;

of customs representatives;

1.5. realization of exportable of transport services, including transit carriage;

1.6. realization of works (services) on repair, modernization, re-equipping of aircraft and its engines, railroad rolling-stock units, executed for foreign organizations or natural persons;

1.7. realization of works (services) being performed (rendered) by the State Association Belarusian Railwayto organizations of public railway transport of foreign states on:

providing in use of freight cars, containers,  bogies, refrigerated cars;

putting of passenger cars on wheel sets of another gauge;

work of locomotives and locomotive crews;

1.8. realization of services rendered directly at airports of the Republic of Belarus and in the airspace of the Republic of Belarus on servicing, including air navigation services, of aircraft carrying out carrying out international flights and/or international air carriage according to the list of such services approved by the Council of Ministers of the Republic of Belarus;

1.9. realization of bunker fuel for refueling of aircraft of foreign air companies carrying out international flights and/or international air carriage.

For the purposes of this sub-clause:

bunker fuel is recognized the fuel used for refueling of aircraft;

foreign air company is recognized the air company of a foreign state, including a member state of the Eurasian Economic Union;

1.10 realization of goods of own production to the owner of a duty-free shop for their subsequent realization in duty-free shops;

Fur purposes of this sub-clause, goods of own production are deemed to be goods the date of shipment of which falls within the period of validity of the certificate of own production, issued to the payers under the procedure established by the legislation and stating that the goods belong to products of own production.

Provisions of this sub-clause do not cover the realization of goods to the owner of a duty-free shop under contracts of commission, agency, and other similar civil-law contracts;

1.11. realization of goods in retail trade through shops to natural persons not having a permanent residence in a member state of the Eurasian Economic Union (later on in this sub-clause and Article 144 of this Code foreign persons), in the event of exportation of goods by foreign persons outside the customs territory of the Eurasian Economic Union within three months from the day of acquisition of goods.

The confirmation of permanent resident of a foreign person outside the territory of states members of the Eurasian Economic Union is a valid passport or another document substituting it, intended for exit abroad and issued by a respective body of the state of nationality or of habitual residence of the foreign person or by an international organizations (later on exit travel document).

Foreign persons having nationality of two and more states are considered in the Republic of Belarus to be nationals of the state on the exit travel documents of which they have entered the Republic of Belarus.

The rate of the value added tax in the amount of zero (0) percent on goods specified in part one of this sub-clause may be applied by the payers subject to observance of all following conditions:

goods are realized in retail trade to foreign persons through shops;

upon availability of documentary confirmation of the exportation of goods by foreign persons outside the customs territory of the Eurasian Economic Union, obtained in accordance with part four of clause 4 of article 144 of this  Code within 12 months from the day of realization of the good to the foreign person. The register of documentary confirmations of exportation of goods outside the customs territory of the Eurasian Economic Union shall be submitted according to the established form simultaneously with the tax declaration (calculation) on the value added tax, in which indicated the turnover on realization of goods to foreign persons at the rate in the amount of zero (0) percent;

upon availability of a contract on rendering services on refund of the value added tax to foreign persons, concluded with organizations having the right to return the value added tax to foreign persons.

For the purposes of this sub-clause and Article 144 of this Code, an organization having the right to refund value-added tax to foreign persons is an organization included in the list of such organizations, determined by the Council of Ministers of the Republic of Belarus, and meeting the requirements established by the Council of Ministers of the Republic of Belarus.

If the payer that realized in retail trade to a foreign person goods through shops, prior to submission of the tax declaration (calculation) on the value added tax for the reporting period in which the good has been realized does not possess documentary confirmation of exportation of goods by the foreign person outside the customs territory of the Eurasian Economic Union, then the turnover on realization of such good is not subject to be indicated in the tax declaration (calculation) on the value added tax with application of the rate of the value added tax, established by clause of 3 of this Article without application of specific features for calculation of the value added tax established by clause 5 of article 128 of this Code.

When the payer receives documentary confirmation of exportation of goods by the foreign person outside the customs territory of the Eurasian Economic Union after having indicated the turnover on realization of such good in the tax declaration (calculation) on the value added tax, the turnover on realization of the good indicated in part one of this sub-clause with application of the rate of the value added tax in the amount of zero (0) percent is indicated (along with concurrent decrease of the turnovers on these goods) in the tax declaration (calculation) for the value added tax of the reporting period the deadline for presentation of which follows the receipt of the respective documentary confirmation of exportation by the foreign person of the good outside the customs territory of the Eurasian Economic Union or of the reporting period in which it was obtained.

1.12. realization of works (services) on repairs, technical maintenance of vehicles registered in foreign states, being performed in the territory of the Republic of Belarus by authorized servicing centers for foreign organizations or natural persons, with the exception of citizens of the Republic of Belarus.

Provisions of this sub-clause are applied to works (services) performed (rendered) from January 1, 2015 till January 1, 2021;

1.13. increase of the tax base upon realization of goods (works, services) specified in sub-clause 1.1 1.12 of this clause by sums specified in clause 4, indent two of part two of clause 8 and part two of clause 9 of Article 120 of this Code.

2. The rate of the  value added tax in the amount of ten (10) percent is established upon:

2.1. realization of goods produced in the territory of the Republic of Belarus, as well as upon importation and/or realization in the territory of the Republic of Belarus of goods produced in the territory of the member states of the Eurasian Economic Union:

produce of crop husbandry (with the exception of floriculture, growing of ornamental plants);

wild-growing berries, nuts, and other fruits, mushrooms, other wild-growing produce;

produce of apiculture;

produce of animal husbandry (with the exception of furs);

produce of fish husbandry;

2.2. importation of goods into the territory of the Republic of Belarus and/or realization of foodstuffs and goods for children, according to the list approved by the President of the Republic of Belarus.

For confirmation of assignment of goods to food products in respect of which the rate of the value added tax established by indent one of this clause may be applied, the Ministry of Agriculture and Food of the Republic of Belarus considers, upon applications of interested persons, questions of assignment of certain goods to food products included in the list approved by the President of the Republic of Belarus and issues a respective statement;

2.3. increase of the tax base upon realization of goods specified in sub-clause 2.1 2.2 of this clause by sums specified in clause 4, indent two of part two of clause 8 and part two of clause 9 of Article 120 of this Code.

3. The rate of the  value added tax in the amount of twenty (20) percent is established upon:

3.1. realization of goods (works, services) not indicated in clauses 1, 2, and 4 of this clause, and also upon realization (transfer) of property rights;

3.2. importation into the territory of the Republic of Belarus of goods not indicated in sub-clause 2.2 of clause 2 of this Article;

3.3. other retirement of goods placed under the customs procedure of duty-free trade in duty-free shops ;

3.4. increase of the tax base upon realization of goods (works, services), property rights, specified in sub-clauses 3.1 and 3.3. of this clause by sums specified in clause 4, indent two of part two of clause 8 and part two of clause 9 of Article 120 of this Code;

3.5. realization of services in electronic form.

4. The rate of the  value added tax in the amount of twenty-five (25) percent is established upon:

realization of telecommunication services;

increase of the tax base upon realization of telecommunications services by sums specified in clause 4, indent two of part two of clause 8 and part two of clause 9 of Article 120 of this Code;

5. For confirming the soundness of application of the rate of the value added tax in the amount of zero (0) percent in relation to operations on realization of goods (works, services) indicated in clause 1 of this article, which have been carried out by a reorganized organization and for which, at the moment of reorganization, the rate of the value added tax in the amount of zero (0) percent was not applied, the successor shall present to the tax body at the place of putting on record documents confirming the soundness of application of the rate of the value added tax in the amount of zero (0) percent for such operations.

Indication in the tax declaration (calculation) for the value added tax turnovers on realization of goods (exportable works on production of goods from give-and-take raw materials) specified in part one of this clause shall be performed by the successor(s) under the procedure determined by sub-clauses 5.15.4 of clause 5 of Article 123 of this Code with regard to the time limit established by the legislation for confirmation of the actual exportation of goods outside the Republic of Belarus.

6. Turnovers on realization of goods, the place of realization of which is recognized the territory of the Republic of Belarus, in respect of which sub-clauses 1.1 and 1.2 of clause 1 of this Article establish the application of the rate of the value-added tax in the amount of zero (0) percent, in the event of failure to confirm their actual exportation outside the territory of the Republic of Belarus:

shall be taxable with the value added tax at the rate established by clause 3 of this Article, unless otherwise determined in this clause;

shall be taxable with the value added tax at the rate established by clause 2 of this Article, in relation to goods specified in clause 2 of this Article;

are exempt from the value added tax in the order established in Article 118 of this Code, in relation to goods specified in Article 118 of this Code.

Indication in the tax declaration (calculation) for the value added tax of turnovers on realization of goods shall be performed under the procedure determined by sub-clauses 5.15.4 of clause 5 of Article 123 of this Code with regard to the time limit established by the legislation for confirmation of the actual exportation of goods outside the territory of the Republic of Belarus.

7. For turnovers on realization of goods (works, services), the place of realization of which is recognized the territory of the Republic of Belarus and concerning which, in accordance with Articles 123126 of this Code, there are grounds for applying the value-added tax rate in the amount of zero (0) percent, payers may apply:

the rate of the value added tax established by clause 3 of this Article;

the rate of the value added tax established by clause 2 of this Article, in relation to goods specified in clause 2 of this Article;

exemption from the value added tax in the order established in Article 118 of this Code, in relation to goods specified in Article 118 of this Code.

8. On turnovers on realization of goods specified in clause 2 of this Article, payers may apply the rate of the value-added tax established by clause 3 of this Article.

9. Payers are entitled to apply the rate of the value added tax specified in sub-clause 1.3 of clause 1 of this Article on:

9.1. on turnovers on realization of goods (works, services), property rights exempted from the taxation in accordance with the legislation;

9.2. turnovers on realization of goods (works, services), property rights, the place of realization of which is not recognized the territory of the Republic of Belarus (including the operations on realization of goods to the population at exhibitions-fairs held in the territory the member states of the Eurasian Economic Union);

9.3. turnovers, not being recognized as taxation objects in accordance with sub-clause 2.12.2 of clause 2 of Article 115 of this Code, on reimbursement:

to the lessor by the lessee of the value of purchased works (services) related to the lease (financial lease (leasing)), not included in the sum of rent (leasing payment);

to the lessee by the lessor of the value of purchased works (services) related to the lease (financial lease (leasing)).

Selection of the mentioned procedure shall be indicated in the accounting policy of the organizations (decision of the individual entrepreneur) and is not subject to be changed in the course of the current tax period.

Provisions of this sub-clause, the payers are entitled to apply also in relation to contracts of lease of dwelling premises;

9.4. turnovers, not being recognized as taxation objects in accordance with sub-clause 2.20.2 of clause 2 of Article 115 of this Code, on transfer of property into gratuitous use.

Turnovers specified in part one of this sub-clause include expenses of the lender, subject to be reimbursed to him, the form of:

value of works (services) on maintaining the property, acquired by the lender;

other works (services) related to the property, acquired by the lender, including expenses on operation, repairs of the property, costs on communal services.

Selection of the mentioned procedure shall be indicated in the accounting policy of the organizations (decision of the individual entrepreneur) and is not subject to be changed in the course of the current tax period.

 Taxpayers are also entitled to apply the provisions of this sub-clause with respect to contracts of gratuitous use, under which the obligation of reimbursement to the lender of expenses specified in part two of this sub-clause is not provided for by acts of the President of the Republic of Belarus.

Article 123. Order of documentary confirmation of the exportation outside the Republic of Belarus of goods placed under the customs procedure of export

1. Upon realization of goods placed under the customs procedure of export, subject, the documentary confirmation of actual exportation of goods outside the territory of the Republic of Belarus with a view of their permanent location (except for exportation to member states of the Eurasian Economic Union) shall be the fact that the payer has:

1.1. a contract concluded by the payer with a foreign organization or a foreign natural person on the basis of which goods are being realized;

1.2. confirmation about the exportation of goods outside the territory of the Republic of Belarus in the event that the payer declares goods to the customs bodies in a written form.

Confirmation about importation of goods outside the territory of the Republic of Belarus shall be issued by the tax bodies in that instance and shall be presented by the payer to the tax body at the place of putting on record simultaneously with the tax declaration (calculation) for the value added tax in the form of:

a copy certified by the personal numerical stamp of an official of the customs body of the declaration for the goods with notices of the customs body on release of goods in accordance with the declared customs procedure of export with the notice of the customs body Товар вывезен (Good has been exported)and the date of issuance of the confirmation;

or a special register of exported goods, certified by the personal numerical stamp of an official of the customs body, with the notice of the customs body Good has been exportedand indication of the date of issuance of the confirmation;

1.3. information on the confirmation of the exportation of goods outside the territory of the Republic of Belarus in the event that the payer declares goods to the customs bodies in the form of electronic document.

Information on confirmation of the exportation of goods outside the territory of the Republic of Belarus in that instance shall be submitted by the payer to the tax body at the place of putting on record simultaneously with the tax declaration (calculation) for the value added tax in the form of a register of electronic customs declarations for goods released in accordance with the customs procedure of export, in the established form with indication of:

numbers of electronic customs declarations;

code of the customs procedure;

date of permission for the departure of the goods outside the Eurasian Economic Union;

sum of the turnover on realization of goods.

The mentioned register shall be filled in in the established order.

2. In the presence of circumstances indicating the falsity of documents presented in accordance with this Article, the confirmation about exportation of goods is issued upon requests of the tax bodies by the customs body that has carried out the release of goods in accordance with the declared customs procedure.

3. Upon realization of goods placed under the customs procedure of export through a intermediary, the documentary confirmation of actual exportation of goods outside the territory of the Republic of Belarus with a view of their permanent location (except for exportation to member states of the Eurasian Economic Union) shall be the fact that the payer has:

3.1. a contract with the intermediary.

For the purposes of this clause, the intermediary is understood to be an organization, individual entrepreneur, which render services on conclusion of contracts or which concluded, on behalf or under instructions of the payer, a contract with a foreign organization or natural person, including those that perform customs declaring of goods being imported;

3.2. a copy of the contract concluded by the intermediary with a foreign organization or a foreign natural person on the basis of which goods are being realized;

3.3. confirmation about the exportation of goods outside the territory of the Republic of Belarus in the event of declaring goods to the customs bodies in a written form.

The confirmation about exportation of goods outside the territory of the Republic of Belarus in that instance shall be issued by the customs body and presented to the tax body by the payer in the order established by sub-clause 1.2 of clause 1 of this Article.

3.4. information on the confirmation of the exportation of goods outside the territory of the Republic of Belarus in the event of declaring goods to the customs bodies in the form of electronic document.

Information on the confirmation of the exportation of goods outside the territory of the Republic of Belarus in that instance shall be submitted by the payer to the tax body in the order established by sub-clause 1.3 of clause 1 of this Article.

4. Upon realization of goods through mail and also upon realization of goods being moved through the system of main pipelines or power lines, for confirmation of exportation of goods outside the territory of the Republic of Belarus with a view of their permanent location (except for exportation to member states of the Customs Union) the payer shall submit to the tax body at the place of putting on record simultaneously with the tax declaration (calculation) for the value added tax:

4.1. a copy of the contract concluded by the payer with a foreign organization or a foreign natural person on the basis of which goods are being realized;

4.2. in the event that the payer declares goods to the customs bodies in a written form:

a copy of the declaration for the goods with a notice of the customs body about the release of the goods in accordance with the customs procedure of export;

or a special register of exported goods with indication of the number of the declaration for goods and the date of release of the good in accordance with the customs procedure of export, certified by the signature of the head of the organization (person authorized by him), signature of the individual entrepreneur;

4.3.  in the event that the payer declares goods to the customs bodies in the form of electronic document a special register of exported goods with indication of the number of the declaration for goods and the date of release of the good in accordance with the customs procedure of export, certified by the signature of the head of the organization (person authorized by him), signature of the individual entrepreneur;

4.4. a receipt issued by the postal organization about acceptance for sending of the postal item being registered, containing the good for sending to the buyer upon realization of the goods through the mail;

4.5. a copy of acts of acceptance-delivery of goods upon realization of goods being moved through the system of main pipelines through power lines.

5. Documentary confirmation of the exportation of goods outside the Republic of Belarus in accordance with clause 1, 3 and 4 of this Article shall be performed within one hundred eighty days from the date of release of the goods in accordance with the declared customs procedure. In that instance, indication in the tax declaration (calculation) for the value added tax of turnovers on realization of goods (works) shall be made with regard to the mentioned time limit in the following order:

5.1. in the absence of documents confirming the exportation of goods, till the submission of the tax declaration (calculation) for the value added tax for the reporting period in which the established time limit is not expired, the turnovers on realization of goods are not indicated in the tax declaration (calculation) for the value added tax;

5.2. upon availability of the documents confirming