(Unofficial translation)

Tax Code of the Republic of Belarus*
(Special Part)

December 29, 2009 No 71-Z

[Amended as of January 9, 2017]

Adopted by the House of Representatives on December 11, 2009

Approved by the Council of Republic on December 18, 2009

 

*When applying references to the Tax Code of the Republic of Belarus (its structural unit) in the case of making changes and/or additions in it, of its interpreting, suspending, repealing or recognizing invalid, the date of adoption of the General Part of the Tax Code of the Republic of Belarus (December 19, 2002) and the sources of the official publication of the General and the Special Parts of the Tax Code of the Republic of Belarus are to be indicated.

TABLE OF CONTENTS

SPECIAL PART

SECTION V. REPUBLICAN TAXES, DUES (DUTIES)

CHAPTER 12. VALUE ADDED TAX

Article 90. Payers of value added tax

Article 91. Specific features for recognizing as payers of individual entrepreneurs when realizing goods (works, services), property rights

Article 92. Specific features of taxation when goods (works, services), property rights in the territory of the Republic of Belarus are realized by foreign organizations

Article 921. Specific features of the value added tax computation by organizations being payers of the tax under the simplified system of taxation and individual entrepreneurs

Article 93. Taxation objects for value added tax

Article 94. Turnovers on realization of goods (works, services), property rights, exempted from value added tax

Article 95. Specific features of taxation when goods are being imported to the territory of the Republic of Belarus

Article 96. Exemption of goods from value added tax upon importation into the territory of the Republic of Belarus

Article 97. Principles of determination of the tax base for the value added tax upon realization of goods (works, services), property rights

Article 98. Determination of the tax base for the value added tax upon realization of goods (works, services), property rights

Article 99. Determination of the tax base for the value added tax collected by customs bodies

Article 100. Determination of the moment of actual realization of goods (works, services), property rights

Article 101. Arising and termination of the duty on payment of the value added tax collected by the customs bodies and the time limit for its payment

Article 102. Rates of value added tax

Article 1021. Conditions, procedure and time limits of return of the value added tax to foreign persons upon acquisition of goods through shops

Article 103. Procedure of calculation of the value added tax upon realization of goods (works, services), property rights. Sum of the value added tax subject to be paid to the budget

Article 104. Procedure of calculation of the value added tax collected by the customs bodies. Sum of the value added tax subject to be paid to the budget

Article 105. Sum of value added tax presented for payment by the payer to the buyer of goods (works, services), property rights

Article 106. Inclusion of the sums of value added tax into the costs on production and realization of goods (works, services), property rights, taken into account for the taxation, or assignment thereof on increasing the value of goods (works, services), property rights

Article 1061. Electronic invoice

Article 107. Tax deductions and the procedure for application thereof

Article 108. Tax and reporting period on value added tax. Procedure and time limits for presentation of tax declaration (calculations) and payment of value added tax

CHAPTER 13. EXCISES

Article 109. Payers of excises

Article 110. Specific features of recognizing certain organizations and individual entrepreneurs as payers upon realization (transfer) of excisable goods

Article 111. Excisable goods

Article 112. Excise rates

Article 1121. Specific features of application of excise rates on filter-tipped cigarettes and procedure under which the payers notify of maximum retail prices for filter-tipped cigarettes and compliance thereof with price groups

Article 113. Excise taxation objects

Article 114. Exemption from excises upon realization (transfer) of excisable goods

Article 115. Specific features of excises taxation upon importation of excisable goods into the territory of the Republic of Belarus

Article 116. Exemption from excises upon importation of goods into the territory of the Republic of Belarus

Article 117. Determination of excises tax base

Article 118. Determination of the moment of actual realization (transfer) of excisable goods

Article 119. Arising and termination of the duty on payment of excises collected by the customs bodies and the time limit for payment thereof

Article 120. Procedure for calculating excises upon realization (transfer) of excisable goods. Sum of excises payable to the budget. Sum of excises presented for payment by the payer to the buyer of goods

Article 121. Procedure for calculating excises collected by customs bodies. Sum of excises payable to the budget

Article 122. Inclusion of sums of excises into costs on production and realization of goods (works, services), property rights to be taken into consideration for the taxation or assignment thereof on increasing the value of excisable goods

Article 123. Tax deductions

Article 124. Tax period of excises. Time limits for submission of tax declaration (calculations) and payment of excises

CHAPTER 14. TAX ON PROFIT

Article 125. Payers of tax on profit

Article 126. Object of taxation with the tax on profit

Article 127. Profit (loss) from realization of goods (works, services), property rights

Article 128. Non-realization incomes

Article 129. Non-realization expenses.

Article 130. Expenses on production and realization of goods (works, services), property rights, taken into account for taxation

Article 131. Costs not taken into account for taxation

Article 1311. Specific feature of referring of interest on debt obligations to expenses and certain kinds of costs (expenses) to costs (expenses) taken into account for taxation

Article 132. Specific features of determining incomes of banks

Article 133. Specific features of determining costs of banks

Article 134. Specific features of determining incomes of insurance organizations

Article 135. Specific features of determining costs of insurance organizations

Article 136. Specific feature of determining gross profit when the statutory fund is being formed (the amount is being changed), when an organization is being reorganized or liquidated

Article 137. Specific features of determining gross profit of non-commercial organizations, simple partnerships, participants of a contract of trust management and certain categories of payers

Article 138. Specific features of determining gross profit from operations with securities

Article 139. Permanent representation of a foreign organization. Specific features of calculation and payment of the tax on profit by foreign organizations carrying out activity in the Republic of Belarus through permanent representation

Article 140. Profit exempt from the tax on profit

Article 141. Determination of tax base for the tax on profit

Article 1411. Transfer of losses in the future

Article 142. Rates of tax on profit

Article 143. Tax and reporting periods of the tax on profit. Procedure for computation of the tax on profit. Time limits for submission of tax declarations (calculations) and payment of the tax on profit

Article 144. Special provisions. Elimination of double taxation

CHAPTER 15. TAX ON INCOMES OF FOREIGN ORGANIZATIONS THAT ARE NOT CARRYING OUT ACTIVITIES IN THE REPUBLIC OF BELARUS THROUGH A PERMANENT REPRESENTATION

Article 145. Payers of the tax on incomes of foreign organizations that are not carrying out activities in the Republic of Belarus through a permanent representation;

Article 146. Object of taxation with the tax on incomes of foreign organizations not carrying out activity in the Republic of Belarus through a permanent representation

Article 147. Tax base for the tax on incomes

Article 148. Determination of the date of obligation on payment of the tax on incomes

Article 149. Rates of tax on profit

Article 150. Tax period for the tax on incomes. Procedure of calculation, time limits for submission of tax declarations (calculations) and payment of the tax on incomes

Article 151. Special provisions. Elimination of double taxation

CHAPTER 16. PERSONAL INCOME TAX

Article 152. Payers of personal income tax

Article 153. Object of taxation with personal income tax

Article 154. Incomes received from sources in the Republic of Belarus

Article 155. Incomes received from sources outside the Republic of Belarus

Article 156. Tax base for personal income tax

Article 157. Specific features of determining the tax base for the personal income tax when incomes are received in kind

Article 158. Article 158. Specific features of determining the tax base on incomes received in relation to conclusion of insurance contracts

Article 159. Specific features of taxation of incomes received in the form of dividends

Article 160. Specific features of determining the tax base and computation, retention and payment of the personal income tax when receiving incomes on operations with securities and financial instruments of forward transactions

Article 1601. Specific features of determining the tax base, computation, retention and payment of the personal income tax when receiving incomes on operations of trust management of monetary means

Article 1602. Specific features of determining the tax base, computation, retention and payment of the personal income tax when receiving incomes from participation in bank-managed funds

Article 161. Specific features of taxation of incomes of certain categories of citizens (subjects) of foreign states

Article 162. Tax and reporting periods for the personal income tax

Article 163. Incomes exempted from personal income tax

Article 164. Standard tax deductions

Article 165. Social tax deductions

Article 166. Property-related tax deductions

Article 167. Procedure of granting property-related tax deduction to payers which received incomes from for-compensation alienation of the property

Article 168. Professional tax deductions

Article 169. Procedure for granting professional tax deduction to individual entrepreneurs (notaries, advocates)

Article 170. [Excluded]

Article 171. Procedure for granting professional tax deduction to payers which received remuneration for intellectual activity results

Article 172. Date of actual receipt of income

Article 173. Rates of personal income tax

Article 174. Procedure for computing personal income tax

Article 175. Specific feature of computation, procedure and time limits of payment of the personal income tax by tax agents

Article 176. Specific feature of computation, procedure and time limits of payment of the personal income tax by Belarusian individual entrepreneurs (notaries, advocates)

Article 177. Specific feature of computation and payment of the personal income tax from incomes of persons not recognized to be tax residents of the Republic of Belarus

Article 178. Specific features of computation and payment of the personal income tax in relation to certain incomes

Article 179. Specific feature of computation and payment of the personal income tax in fixed sums

Article 180. Procedure and time limits for presentation of tax declaration (calculation). Payment of the personal income tax on the basis of the tax declaration (calculation)

Article 181. Specific features of payment (collection) of unpaid sums of the personal income tax (not fully paid), retention of those not retained or not fully retained, setoff (return) of those excessively paid (retained)

Article 182. Special provisions. Elimination of double taxation

CHAPTER 17. TAX ON IMMOVABLE PROPERTY

Article 183. Payers of tax on immovable property

Article 184. Specific features of recognizing certain organizations and individual entrepreneurs as payers

Article 185. Object of taxation with the tax on immovable property

Article 186. Exemption from the tax on immovable property

Article 187. Tax base for the tax on immovable property

Article 188. Rates of tax on immovable property

Article 189. Tax period for the tax on immovable property. Procedure of calculation, time limits for submission of tax declarations (calculations) and payment of the tax on immovable property

Article 190. Inclusion of sums of the tax on immovable property into costs on production and realization of goods (works, services), property rights to be taken into account for the taxation, and also in non-realization expenses

Article 191. Special provisions. Elimination of double taxation

CHAPTER 18. LAND TAX

Article 192. Payers of land tax

Article 193. Taxation objects for the land tax

Article 194. Exemption from land tax

Article 195. Tax base for land tax

Article 196. Rates of land tax for agricultural lands for agricultural purposes

Article 197. Rates of land tax for lands of settlements

Article 198. Rates of land tax for land of industry, transport, communications, energy, defense and for other purpose, located outside the boundaries of settlements, lands of gardening partnerships and country-cottage cooperatives

Article 199. Rates of land tax for forestry fund lands

Article 200. Rates of land tax for water fund lands

Article 201. Rates of land tax for lands intended for conservation, recreation, historical and cultural purposes

Article 2011. Right of local councils of deputies on increasing (decreasing) rates of land tax

Article 202. Tax period for land tax Procedure of computation and payment, time limits for submission of tax declarations (calculations) and payment of the land tax

Article 203. Inclusion of sums of land tax into costs on production and realization of goods (works, services), property rights to be taken into account for the taxation, and also in non-realization expenses

CHAPTER 19. ECOLOGICAL TAX

Article 204. Payers of ecological tax

Article 205. Taxation objects for ecological tax

Article 206. Tax base for ecological tax

Article 207. Rates of ecological tax

Article 208. Tax period for ecological tax. Procedure of computation, time limits for submission of tax declarations (calculations) and payment of ecological tax

Article 209. Inclusion of sums of ecological tax into costs on production and realization of goods (works, services), property rights to be taken into account for the taxation

CHAPTER 20. TAX FOR THE EXTRACTION (REMOVAL) OF NATURAL RESOURCES

Article 210. Payers of tax for extraction (removal) of natural resources

Article 211. Taxation objects for tax for extraction (removal) of natural resources

Article 212. Tax base for tax for extraction (removal) of natural resources

Article 213. Tax rates for extraction (removal) of natural resources;

Article 214. Tax period for the tax for extraction (removal) of natural resources. Procedure of computation, time limits for submission of tax declarations (calculations) and payment of the tax for extraction (removal) of natural resources

Article 215. Inclusion of sums of the tax for extraction (removal) of natural resources into costs on production and realization of goods (works, services), property rights to be taken into account for the taxation

CHAPTER 21. [EXCLUDED]

Article 216. [Excluded]

Article 217. [Excluded]

Article 218. [Excluded]

Article 219. [Excluded]

Article 220. [Excluded]

CHAPTER 22. DUE FOR THE PASSAGE OF AUTOMOBILE VEHICLES OF FOREIGN STATES ON PUBLIC ROADS OF THE REPUBLIC OF BELARUS

Article 221. Payers of the due for the passage of automobile vehicles of foreign states on public roads of the Republic of Belarus. Conditions for passage of automobile vehicles of foreign states on public roads of the Republic of Belarus

Article 222. Levying object and tax base for the passage due

Article 223. Benefits on passage due

Article 224. Rates of the passage due

Article 225. Procedure of computation and payment of the due for the passage, time limits for its payment

Article 226. Inclusion of sums of passage due into costs on production and realization of goods (works, services), property rights to be taken into account for the taxation

CHAPTER 23. [EXCLUDED]

Article 227. [Excluded]

Article 228. [Excluded]

Article 229. [Excluded]

Article 230. [Excluded]

CHAPTER 24. OFFSHORE DUE

Article 231. Payers of offshore due

Article 232. Levying object, tax base and rate for offshore due

Article 233. Benefits on offshore due

Article 234. Tax period for offshore due. Procedure of computation, time limits for submission of tax declarations (calculations) and payment of offshore due

Article 235. Inclusion of sums of offshore due into costs on production and realization of goods (works, services), property rights to be taken into account for the taxation

CHAPTER 25. STAMP DUTY

Article 236. Payers of stamp duty

Article 237. Levying objects for stamp duty

Article 238. Tax base for stamp duty and rates of stamp duty

Article 239. Procedure of computation and time limits for payment of stamp duty

Article 240. Inclusion of sums of offshore due into costs on production and realization of goods (works, services), property rights to be taken into account for the taxation

CHAPTER 26. CONSULAR FEE

Article 241. Payers of consular fee

Article 242. Levying objects for consular fee

Article 243. Rates of consular fees

Article 244. Time limits and procedure of payment of consular fee

Article 2441. Specific features of payment of consular fee for performance of notarial acts

Article 245. Privileges on consular fee

Article 246. Specific features of return, setoff of consular fee

Article 247. Inclusion of sums of consular fee into costs on production and realization of goods (works, services), property rights to be taken into account for the taxation

CHAPTER 27. STATE DUTY

Article 248. Payers of state duty

Article 249. Levying objects for state duty

Article 250. Rates of the state duty

Article 251. Time limits and procedure for payment of state duty

Article 252. Specific features of computation and payment of state duty when applying to courts

Article 253. Specific features of payment of state duty when applying to the court panel on cases of intellectual property of the Supreme Court of the Republic of Belarus

Article 254. [Excluded]

Article 255. Specific features of payment of state duty for performance of notarial acts

Article 256. Specific features of payment of state duty for performance of other legally meaningful actions

Article 257. Article 257. Privileges on state duty

Article 258. Additional grounds for exemption from state duty of natural persons not carrying out entrepreneurial activity

Article 259. Specific features of return or setoff of state duty

Article 260. Inclusion of sums of state duty into costs on production and realization of goods (works, services), property rights to be taken into account for the taxation. Liability for correctness of levying state duty

CHAPTER 28. PATENT DUTIES

Article 261. Payers of patent duties

Article 262. Levying objects for patent duties and rates of patent duties

Article 263. Privileges on patent duties

Article 264. Procedure of computation and time limits for payment of patent duties

Article 265. Inclusion of sums of patent duties into costs on production and realization of goods (works, services), property rights to be taken into account for the taxation.

SECTION VI. LOCAL TAXES AND DUES

CHAPTER 29. [EXCLUDED]

Article 266. [Excluded]

Article 267. [Excluded]

Article 268. [Excluded]

CHAPTER 30. TAX ON DOGS

Article 269. Payers of tax on dogs

Article 270. Object of taxation with, tax base and rates of tax on dogs

Article 271. Tax period for tax on dogs. Procedure of computation, procedure and time limits of payment of tax on dogs

Article 272. Inclusion of sums of the tax on dogs into costs on production and realization of goods (works, services), property rights to be taken into account for the taxation

CHAPTER 31. [EXCLUDED]

Article 273. [Excluded]

Article 274. [Excluded]

Article 275. [Excluded]

Article 276. [Excluded]

CHAPTER 32. RESORT DUE

Article 277. Payers of resort due

Article 278. Levying object, tax base and rate for resort due

Article 279. Tax period for resort due. Procedure of computation, procedure and time limits of payment of resort due

Article 280. Inclusion of sums of resort due into costs on production and realization of goods (works, services), property rights to be taken into account for the taxation.

CHAPTER 33. DUE FROM PURVEYORS

Article 281. Payers of due from purveyors

Article 282. Levying object, tax base and rate for due from purveyors

Article 283. Tax period for due from purveyors. Procedure of calculation, time limits for submission of tax declarations (calculations) and payment of the due from purveyors

Article 284. Inclusion of sums of due from purveyors into costs on production and realization of goods (works, services), property rights to be taken into account for the taxation

SECTION VII. SPECIAL TAXATION REGIMES

CHAPTER 34. TAX UNDER THE SIMPLIFIED SYSTEM OF TAXATION

Article 285. Payers of the tax under the simplified taxation system

Article 286. General conditions of using the simplified system

Article 287. Procedure of switching to the simplified system

Article 288. Taxation object and tax base of the tax under the simplified system

Article 289. Rates of the tax under the simplified system:

Article 290. Tax and reporting period s, procedure of computation, time limits for submission of tax declarations (calculations) and payment of the tax under simplified system

Article 291. Accounting and reporting under the simplified system

CHAPTER 35. SINGLE TAX FROM INDIVIDUAL ENTREPRENEURS AND OTHER NATURAL PERSONS

Article 292. Payers of the single tax from individual entrepreneurs and other natural persons

Article 293. General conditions of application of the single tax from individual entrepreneurs and other natural persons

Article 294. Taxation object and tax base for the single tax

Article 295. Activities for carrying out which natural persons not carrying out entrepreneurial activity pay the single tax

Article 296. Activities for carrying out which individual entrepreneurs pay the single tax

Article 2961. Tax period and reporting period for the single tax

Article 297. Privileges on the single tax

Article 298. Rates of the single tax and procedure for establishing them

Article 299. Procedure of computation and payment, time limits for submission of tax declarations (calculations) and payment of the single tax

Article 300. Specific features of setoff and return of the single tax

CHAPTER 36. SINGLE TAX FOR PRODUCERS OF AGRICULTURAL PRODUCTS

Article 301. Payers of single tax for producers of agricultural produce

Article 302. General conditions of application of the single tax

Article 303. Procedure for switching to application and termination of application of the single tax

Article 304. Taxation object and tax base for the single tax

Article 305. Rate, tax period, procedure of computation, time limits for submission of tax declarations (calculations) and payment of the single tax

CHAPTER 37. TAX ON GAMBLING BUSINESS

Article 306. Payers of tax on gambling business

Article 307. General conditions of application of tax on gambling business

Article 308. Taxation object and tax base of the tax on gambling business

Article 309. Rates, tax period, procedure of computation, time limits for submission of tax declarations (calculations) and payment of the tax on gambling business

CHAPTER 38. TAX ON INCOME FROM CARRYING OUT LOTTERY ACTIVITIES

Article 310. Payers of tax on income from carrying out lottery activities;

Article 311. General conditions of application of the tax from carrying out lottery activities

Article 312. Taxation object and tax base of the tax on incomes from carrying out lottery activity

Article 313. Rate, tax period, procedure of computation, time limits for submission of tax declarations (calculations) and payment of the tax on incomes

CHAPTER 39. TAX ON INCOME FROM CONDUCTING ELECTRONIC INTERACTIVE GAMES

Article 314. Payers of the tax on income from conducting electronic interactive games

Article 315. General conditions of application of the tax on incomes from conducting electronic interactive games

Article 316. Taxation object and tax base of the tax on incomes from conducting electronic interactive games

Article 317. Rate, tax period, procedure of computation, time limits for submission of tax declarations (calculations) and payment of the tax on incomes

CHAPTER 40. DUE FOR CARRYING OUT ARTISANAL ACTIVITIES

Article 318. Payers of the due for carrying out artisanal activities

Article 319. General conditions of application of the due for carrying out craft activity

Article 320. Object of taxation and the rate of the due for carrying out craft activity

Article 321. Tax period and time limits for payment of the due for carrying out craft activity

CHAPTER 41. DUE FOR CARRYING OUT ACTIVITY ON RENDERING SERVICES IN THE SPHERE OF AGROECOTOURISM

Article 322. Payers of the due for carrying out activity on providing services in the field of agro-ecotourism

Article 323. Kinds of activities on rendering services in the sphere of agroecotourism and paying the due for carrying out activity on rendering services in the sphere of agroecotourism

Article 324. Object of taxation and the rate of the due for carrying out the activity on rendering services in the sphere of agroecotourism

Article 325. Tax period and time limits of payment of the due for carrying out the activity on rendering services in the sphere of agroecotourism

CHAPTER 411. SINGLE TAX ON IMPUTED INCOME

Article 3251. Payers of the single tax on imputed income General conditions of application of the single tax on imputed income

Article 3252. Taxation object and tax base for the single tax

Article 3253. Rate, tax period, procedure of computation, time limits for submission of tax declarations (calculations) and payment of the single tax

SECTION VIII. TAXATION OF CERTAIN CATEGORIES OF PAYERS

CHAPTER 42. SPECIFIC FEATURES OF TAXATION IN FREE ECONOMIC ZONES

Article 326. General conditions of application of specific features of taxation in free economic zones

Article 327. Specific features of taxation in FEZ

CHAPTER 43. 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

Article 328. Taxation of peasant’s (farmer’s) households

Article 329. Taxation of colleges of advocates, advocates offices, the Belarusian notarial chamber and its organizational structures

Article 330. Taxation of state bodies and other state organizations

SECTION IX. FINAL PROVISIONS

CHAPTER 44. FINAL PROVISIONS

Article 331. Procedure for entry into force of the Special Part of this Code

SPECIAL PART

SECTION V 

REPUBLICAN TAXES, DUES (DUTIES)

CHAPTER 12

VALUE ADDED TAX

Article 90. 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 having regard to specific features established by Article 91 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 Law of the Republic of Belarus "On customs regulation in the Republic of Belarus", customs legislation of the Customs Union and/or acts of the President of the Republic of Belarus.

Article 91. Specific features for recognizing as payers of individual entrepreneurs when realizing goods (works, services), property rights

1. Individual entrepreneurs are recognized payers when realizing goods (works, services), property rights if the sum of revenue form realization of goods (works, services), property rights and incomes in the form of operations on putting of property into lease (transfer into financial lease (leasing), determined in the order established by Article 176 of this Code, for three preceding consecutive calendar months exceeded in aggregate 40 000 Euro at the official rate of the Belarusian rouble to Euro established by the National Bank of the Republic of Belarus on the last date of the final of such months without account of taxes and dues payable 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 the tax under the simplified taxation system shall be paid.

2. Individual entrepreneurs have the right to pay value added tax under the procedure provided by this Chapter irrespective of arising the circumstance indicated in clause 1 of this Article.

3. Individual entrepreneurs are recognized payers in accordance with clause 1 and 2 of this Article within twelve consecutive calendar months beginning from the month of arising of the duty on calculation and payment of the value added tax in relation to all taxation objects taxable in the general order.

Article 92. Specific features of taxation when goods (works, services), property rights in the territory of the Republic of Belarus are realized 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 calculating and remitting 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 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 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 agency, commission and other similar civil-law contracts, the duty on calculating and remitting 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.

4. The provisions of this Article apply to organizations and individual entrepreneurs put on record in the tax bodies of the Republic of Belarus that set in the economic turnover (including on the basis of contracts that establish rendering of services on concluding a contract on purchase (realization) of works (services), property rights) in the territory of the Republic of Belarus works (services), property rights, realized by foreign organizations not put on record in the tax bodies of the Republic of Belarus.

Article 921. Specific features of the value added tax computation by organizations being payers of the tax under the simplified system of taxation and individual entrepreneurs

1. Organizations – payers of the tax under the simplified system of taxation that use this special taxation regime with payment of the value added tax and conduct book-keeping in a journal for registering incomes and expenses of organizations and individual entrepreneurs using the simplified taxation system in accordance with clause 1 of Article 291 of this Code (later on in this Article – simplified taxation payers) and individual entrepreneurs determine the moment of actual realization of shipped goods (performed works, rendered services), property rights as the day falling within the reporting period of crediting monetary means from the buyer (customer) to the account of the payer, and in the event of realization of goods (works, services), property rights for cash monetary means – the day of receipt of said means to the cash register of the payer, but not later than 60 days from the day of shipment of goods (execution of works, rendering of services), transfer of property rights.

The day of receipt of monetary means under the contract of financing against monetary claim assignment (factoring) is recognized the date of payment by the factor of monetary claims without recourse. The day of receipt of monetary means under such a contract is recognized, if payment conditions stipulate the right of recourse, the date of repayment of the assigned monetary claim by the payer (debtor).

The day of receipt of monetary means concerning goods (works, services), property rights for which the claims are transferred and received, the debt is delegated, the setoff of mutual claims is performed, is recognized the date of transfer of the claim, the date of delegation of the debt, the date of setoff of the mutual claims.

The day of receipt of monetary means, when bills of exchange (promissory notes) are used in settlements, is recognized the date of receipt of the bill of exchange (promissory note).

Provisions of part two – four of this clause are also applied:

by commitents (principals) when buyers of goods (works, services), property rights terminate the obligations before commissioners (agents);

Payers calculating the value added tax under the obligations established by Article 92 of this code.

The day of receipt of monetary means on the account of the commitent (principal) from the realization of goods (works, services), property rights on the basis of contracts of agency, commission and other similar civil-law contracts is recognized the date of receipt of monetary means on the account of the commissioner (agent), and in the event if the contract stipulates that the monetary means for goods (works, services), property rights, realized by the commissioner (agent), are to be remitted on the account of the commitent (principal) – the day of receipt of means on the account of the commitent (principal).

For the purposes of determining the day of shipment of goods (execution of works, rendering of services), transfer of property rights the moment of putting (transfer) of the object into lease (financial lease (leasing)), simplified taxation payers and individual entrepreneurs shall be guided by provisions of Article 100 of this Code.

2. The determination of the moment of actual realization in relation to the turnovers on gratuitous transfer of goods (works, services), property rights, transfer of goods within the framework of the contract of loan in kind or payment in kind (as goods, works, services) for labour, on realization of goods (works, services), property rights in the territory of the Republic of Belarus by foreign organizations not put on record in the tax bodies of the Republic of Belarus, in relation to a difference arising in relation to the change of the official rate of the foreign currency established by the National Bank of the Republic of Belarus from the moment of actual realization determined in accordance with this Article till the moment established for determining the amount of the obligations under the contracts the obligations under which are expressed in Belarusian rubles or in the foreign currency, in relation to turnovers on realization of works on producing goods from give-and-take raw materials (materials) for non-residents of the Republic of Belarus, when the object of pledge is transferred by the pledgor to the pledgeholder, shall be made by simplified taxation payers and individual entrepreneurs in accordance with provisions of Article 100 of this Code.

3. When carrying out tax deductions for simplified taxation payers and individual entrepreneurs, the sums of value added tax actually paid when purchasing goods (works, services), property rights or when importing to the territory of the Republic of Belarus are to be deducted after they were reflected in the journal for registering incomes and expenses of organizations and individual entrepreneurs using the simplified taxation system (in inventory of incomes and expenses of individual entrepreneurs), unless otherwise provided by this Article.

31. When carrying out tax deductions for payers applying the simplified taxation system and individual entrepreneurs, the sums of value added tax actually paid when purchasing goods (works, services), property rights or when importing to the territory of the Republic of Belarus are to be deducted after they were reflected in the journal for registering incomes and expenses of organizations and individual entrepreneurs using the simplified taxation system (in inventory of incomes and expenses of individual entrepreneurs), unless otherwise provided by this Article, on the basis of documents specified in clause 51 of Article 107 of this Code.

When a payer applying the simplified taxation system and individual entrepreneur receives from sellers of goods (works, services), property rights electronic invoices and signs them in the established order by the electronic digital signature after the end of the reporting period for which actually paid sums of value added tax may, subject to conditions established by this Article for their deduction, be reflected in the journal for registering incomes and expenses of organizations and individual entrepreneurs using the simplified taxation system (in record-keeping of incomes and expenses of individual entrepreneurs), but prior to the date of presentation of the tax declaration (calculation) for the value added tax for the mentioned reporting period, the payer applying the simplified taxation system and individual entrepreneur are entitled to perform the deduction of the actually paid sums of the value added tax for the reporting period for which the mentioned sums of the value added tax may be reflected in the journal for registering incomes and expenses of organizations and individual entrepreneurs using the simplified taxation system (in record-keeping of incomes and expenses of individual entrepreneurs).

4. When purchasing goods (works, services), property rights in relation to which the claims are transferred and received, the debt is delegated, the setoff of mutual claims is performed, and also settlements for which are performed by third persons, the sums of value added tax allocated by the seller to the simplified taxation payer and individual entrepreneur, accordingly, on the date of assignment and receipt of the claim, the date of delegation of the debt, the date of setoff of mutual claims, the date of repayment of the debt before the seller by third persons.

5. When purchasing goods (works, services), property rights by the commissioner (agent) on the instruction of the commitent (principal), the sums of value added tax allocated by the seller are subject to deduction by the commitent (principal) being the simplified taxation payer or individual entrepreneur on the date of performing settlement with the seller.

6. When purchased goods (works, services), property rights have been paid partially, the sum of value added tax subject to deduction at the buyer being the simplified taxation payer or individual entrepreneur, paid when purchasing goods (works, services), property rights, is determined as the product of the share of value added tax in the value of the purchased (received) goods (works, services), property rights and the sum of their partial payment.

7. Provisions of clause 21, sub-clauses 22.3 and 22.4 of clause 22 of part five of clause 24 of Article 107 of this Code are applied by the simplified taxation payer or individual entrepreneur in relation to the sums of value added tax paid when purchasing goods (works, services), property rights or when importing to the territory of the Republic of Belarus.

Article 93. 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 (results of executed works, rendered 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 transfer by the lessor of the lease object to the lessee;

1.1.7. [excluded]

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 indent six of part one of sub-clause 1.1.1 of clause 1 of Article 102 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;

importation of goods into the customs territory of the Republic of Belarus and/or other circumstances with the presence of which this Code, the Law of the Republic of Belarus "On customs regulation in the Republic of Belarus", customs legislation of the Customs Union, treaties regulating the collection of indirect taxes in the Customs Union and/or acts of the President of the Republic of Belarus connect the arising of an obligation 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 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, other troops, military formations and paramilitary organizations of the Republic of Belarus, being released;

transfer of goods (performance of works, rendering of 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), 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 and also when dividing goods being in the common ownership of participants of the simple partnership (contract on joint activity);

2.5. gratuitous transfer of:

2.5.1. goods (works, services), property rights by 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 state non-budgetary funds and charged to the increase of their 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 14 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 2.32 of this clause;

2.6. [excluded]

2.7. internal turnovers of forestry organizations;

2.8. transfer to members of non-commercial organizations of goods (performance of works, rendering of services) purchased (imported) at the expense of share (membership) contributions;

2.9. turnovers on for-compensation and gratuitous transfer of goods, including fixed assets and intangible assets (performance of works, rendering of services), property rights within one legal person, with the exception of the instances established by part six of clause 21 of Article 107 of this Code;

2.10. [excluded]

2.11. [excluded]

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) its participants (members) of the value of purchased goods, and also of executed (rendered) works (services) for these participants (members) and the value of goods included in the value of the said works (services) connected with maintenance and operation of the immovable property;

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).

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, used when rendering servicing under the said contract, not covered by the remuneration of the forwarding agent;

2.12.6. [excluded]

2.12.7. to the payer producing excisable goods from give-and-take raw materials, indicated in clause 5 of Article 120 of this Code of the excises sums by the owner of excisable goods produced from give-and-take raw materials;

2.12.8. to libraries of the costs related to the production of library passes;

2.13. assignment 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 of the primary obligation under such contracts;

2.14. alienation of property under a court decision in the course of recovery of taxes, dues (duties), penalty interest, fines for committing of administrative offences and/or crimes;

2.15. transfer of the tare returnable within the time limits established by the contract or legislation, with the exception of instances of realizations of such tare;

2.16. 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;

2.17. turnovers on realization of goods (works, services), property rights to diplomatic missions and consular institutions of the Republic of Belarus;

2.18. turnovers on realization of stakes in statutory funds of organizations or parts thereof;

2.19. 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;

2.20. 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;

2.21. turnovers on transfer of property into gratuitous use under which;

2.21.1. reimbursement of expenses on maintenance of the property and/or other expenses connected with the property (including depreciation posted, land tax or lease payment for the land plot, tax on immovable property, corresponding expenses on operation, major and current repairs of the property, expenses on communal services, including heating, electricity supply);

2.21.2. duty on reimbursement of expenses specified in sub-clause 2.21.1 of this clause to the lessee is provided by the President of the Republic of Belarus. For the purposes of this sub-clause turnovers on transfer of property into gratuitous use include sums of depreciation posted, land tax or lease payment for the land plot, tax on immovable property to be reimbursed to the lessor, as well as turnovers on reimbursement to the lessor of the value of works (services) acquired by him on maintenance of the property and/or other works (services) acquired by him, connected with the property;

2.22. turnovers on realization of goods placed under the customs procedure of re-export;

2.23. turnovers on realization by religious organizations within the framework of religious activity:

2.23.1. of services on organizing and holding religious rituals, ceremonies, prayer meetings or other religious actions;

2.23.2. of religious literature and/or items intended for religious purposes (except for excisable ones);

2.24. 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;

2.25. 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 similar financial instruments of forward transactions with the exception of realization of securities pre-printed forms, preprinted forms of settlement and payment documents, and also of bank cards.

For the purposes of this Chapter turnovers on realization of securities include the realization of securities itself, 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 legislation;

2.251. turnovers from carrying out activities on performance of operations with non-deliverable off-exchange financial instruments (activity on off-exchange market Forex), initiated by natural and legal persons;

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 transfer of lease object into lease;

2.27. operations on granting for-compensation monetary loans with the exception of:

micro loans being granted by pawn shops against the pledge of movable property intended for personal, family or household use;

commercial loans;

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;

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, books for remarks and proposals and also of marks for duties and dues payable in accordance with the legislation;

2.30. turnovers on realization of an enterprise as a property complex of the debtor within the bankruptcy proceedings;

2.31. 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, and also when holding events on development of accessible labour skill of disabled persons;

2.32. 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.

3. Provisions of this Chapter determining the procedure for calculation and deduction of the value added tax under contracts of lease (financial lease (leasing)) are also applied in relation to contracts of lease of dwelling premise and gratuitous use.

Provisions of this Chapter determining the procedure for calculation and deduction of the value added tax by the commitments and/or agents are also applied for consignors and other similar persons.

Provisions of this Chapter determining the procedure for calculation and deduction of the value added tax by the commissioners and/or agents are also applied for consignees and other similar persons.

For the purposes of this Chapter goods do not include money and property rights.

Article 94. Turnovers on realization of goods (works, services), property rights, exempted from value added tax

1. From the value added tax are exempted the turnovers on realization in the territory of the Republic of Belarus of:

medicines, medical products 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 of medical products of the Republic of Belarus or in respect of such goods there is a permission for realization and/or medical use of non-registered medicines, medical products 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) according to the list of such services approved by the President of the Republic of Belarus;

1.3. veterinary measures according to the list of such measures approved by the President of the Republic of Belarus;

1.4. social services rendered by non-state non-commercial in the form of in-patient social service, by state organizations (structural divisions thereof) according to the list of such services approved by the Council of Ministers of the Republic of Belarus;

1.5. foodstuffs, by 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;

1.6. foodstuffs produced by structural divisions of education institutions, when meals are provided to the trainees in these education institutions;

1.61. foodstuffs produced by public catering entities specialized in carrying out organization of the provision of meals to trainees in education institutions through conclusion of a corresponding contract;

1.62. foodstuffs produced by canteens of health care institutions and social protection institutions;

1.63. 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;

1.71. 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 creation of museum catalogues;

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;

1.72. 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;

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;

1.73. by foreign organizations not put on record in the tax bodies of the Republic of Belarus to organizations of culture or TV and radio organizations:

advertising services;

property rights to the objects of copyright law and related rights;

1.8. services related to organization of funerals according to the list of such services and works approved by the President of the Republic of Belarus, gravestones, fences and other funeral items related to burial, and also of works on production thereof;

1.9. 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 2.23 of clause 2 of Article 93 of this Code;

1.10. [excluded]

1.11. 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;

1.12. of dwelling fund objects, unfinished dwelling construction objects and 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;

1.13. [excluded]

1.14. [excluded]

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 of the exemption from value added tax by the buyer 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), with the exception of excisable goods, broker and other intermediary services, transfer of property into lease (financial lease (leasing)), manufactured (executed, rendered) by payers wherein at least 50 percent of the average number of workers for a period are represented by disabled people with regard to the average number of workers employed part time that have the principal place of work with other employers, and also of average number of persons that executed work under civil-law contracts (including work contracts).

The payroll number of workers on average for a period is determined with the exception of workers that are on maternity leave, on leave in connection with the adoption of a child of up to three months of age or with designating them as tutors, or on leave for caring for a child until the child has reached the age of three years, in relation to adoption of orphaned children and children left without parental care, permanently residing in the territory of the Republic of Belarus of three to sixteen years of age. The payroll number of the payer – individual entrepreneur includes also the said entrepreneur. In this instance percentage ratio is determined monthly or quarterly, and the exemption from value added tax is granted subject to compliance with the established percentage of the payroll number on overage for the respective expired reporting period.

The ground for exemption of payers from value added tax shall be the certificate (copy of the certificate) issued by the Belarusian Industry and Trade Chamber or its regional divisions on assignment of goods (works, services) to goods (works, services) of own production.

The exemption from value added tax covers all payers that realize goods (works, services) manufactured (executed, rendered) by payers mentioned in part one of this sub-clause. The ground for application of the exemption from value added tax by the buyer shall be the entry "Exemption according to sub-clause 1.16 of clause 1 of Article 94 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 93 of this Code) to the State Fund , and also realization of precious stones to the National Bank of the Republic of Belarus;

1.17.2. [excluded]

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;

1.17.7. 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;

1.18. 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 of the exemption from value added tax by the buyer shall be the entry "Exemption according to sub-clause 1.20 of clause 1 of Article 94 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 on delivery to natural persons of pensions and other social payments, of services rendered to natural person on accepting the subscription to printed mass media and their delivery.

Services on delivery to natural persons of pensions and other social payments include handing out (handing in) to natural person of pensions and other social payments according to payment sheets (lists) of bodies on labour, employment and social protection, and also via sending and paying out of pension sums and social payment as money orders sent by the body that assign (pays) the pension or another social payment or through corresponding bank divisions;

1.22. [excluded]

1.23. of research and development, design and experimental, and technological and experimental works, registered in the state register 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. [excluded]

1.26. of works (services) executed (rendered) to natural persons holding personal subsidiary husbandry, according to the list of such works (services) approved by the President of the Republic of Belarus;

1.27. [excluded]

1.28. of paid services in the sphere of education:

implementation of educational programs of pre-school, general secondary, special, vocational-technical, special secondary, higher, postgraduate education;

implementation of educational program of additional education of children and youths;

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;

holding of repeat current and final fee-based performance evaluation;

conducting of laboratory works and practical training with students (trainees) and learners outside the learning group;

1.281. of services accompanying the education process:

conducting of rehearsal testing;

acceptance and drawing up of documents for participation in centralized testing;

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;

coaching (consulting services on certain academic subjects (subjects), academic disciplines (disciplines), educational spheres, themes, including assistance in preparing for centralized testing);

1.282. 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;

1.29. 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 sub-clause 1.39 of clause 1 of Article 163 of this Code, goods mean products produced by learners in the process of training and/or attitude development;

1.30. works (services) performed rendered to natural persons on carrying out administrative procedures in relation to the immovable property;

1.31. tourist services on organizing in the territory of the Republic of Belarus of sightseeing services, tourist services on organizing travel of tourists within the Republic of Belarus according to the lists of such services approved by the President of the Republic of Belarus, and of services of guides-translators or sightseeing guides rendered within the Republic of Belarus;

1.32. property rights to inventions, utility models, industrial designs, selection inventions, topologies of integrated circuits, industrial secrets (know-how);

1.33. [excluded]

1.34. of goods (works, services) and provision in the territory of the Republic of Belarus of lease object for official activity of diplomatic missions, and consular offices of foreign states, and also of goods (works, services) for personal use of diplomatic and/or administrative and technical staff of these missions (including members of their families living with them).

Exemption from value added tax of turnovers on realization of goods (works, services) and provision in the territory of the Republic of Belarus of a ease object is made quarterly via return (reimbursement) of the sums of value added tax.

For reimbursement of the value added tax paid upon acquisition of goods (works, services), receipt in temporary possession and use in the territory of the Republic of Belarus of a lease object for official activity of diplomatic missions and consular offices of foreign states, an official letter (note) of the diplomatic mission or consular office of a foreign state (certified by the stamp and the signature of the head of this mission or office or by a person substituting him) shall be submitted quarterly to the tax body at the place of putting on record of the diplomatic mission or consular office with enclosure of the following documents:

calculation of the valued added tax sum to be reimbursed from the budget to diplomatic missions and consular offices of foreign states, the form and procedure for completion of which are approved by the Ministry on Taxes and Dues of the Republic of Belarus;

contracts (copies of contracts certified by the stamp and the signature of the head of this mission or office or by a person substituting him) for acquisition of goods (works, services), providing in the territory of the Republic of Belarus of objects into lease, concluded by the diplomatic mission or consular office of a foreign state. Contracts (certified copies thereof) are submitted to the tax body if available. Certified copies of contracts remain in the tax body and their repeat submission to the tax body is not required;

primary accounting documents received from the value added tax payer being put on record in the tax body of the Republic of Belarus (copies of such primary accounting documents certified by the stamp and the signature of the head of the mission or body or by a person substituting him), in which the sum of value added tax is singled out;

payment (settlement) documents confirming the actual payment for goods (works, services), payment of rental by the diplomatic mission or consular office of a foreign state or agreement (copy of the agreement certified by the stamp and the signature of the head of the mission or body or by a person substituting him) on providing compensation instead of fulfilling the obligation.

For reimbursement of the value added tax on goods (works, services) being acquired for personal use of diplomatic and/or administrative and technical staff of diplomatic missions and consular offices of foreign states (including members of their families living with them), an official letter (note) of the diplomatic mission or consular office of a foreign state (certified by the stamp and the signature of the head of this mission or office or by a person substituting him) shall be submitted quarterly to the tax body with enclosure of the following documents:

calculation of the valued added tax sum to be reimbursed from the budget to diplomatic missions and consular offices of foreign states;

payment documents confirming the actual payment for corresponding goods (works, services), payment of rental by diplomatic and/or administrative and technical staff of diplomatic missions or consular offices of foreign states (including members of their families living with them) or an agreement (copy of the agreement certified by the stamp and the signature of the head of the mission or body or by a person substituting him) on providing compensation instead of fulfilling the obligation.

If the documents confirming the payment, provided by this sub-clause, do not contain the value added tax sum indicated as a separate entry, presented by the seller – value added tax payer (with the exception of the payer of the value added tax which applies exemption from the value added tax in accordance with the legislation), the tax body determines the value added tax sum to be reimbursed by a calculation method based on the rates of the value added tax established by sub-clause 1.4 of clause 1 of Article 102 of this Code.

The reimbursement of value added tax provided by this sub-clause is made to the accounts specified in the official letter (note) of the diplomatic mission or consular office of a foreign state (certified by the stamp and the signature of the head of this mission or office or by a person substituting him).

Within one month from the day of submission of the official letter (note) of the diplomatic mission or consular office of a foreign state (certified by the stamp and the signature of the head of this mission or office or by a person substituting him) with enclosure of documents specified in this sub-clause, the tax body carries out their inspection and effectuates the reimbursement of the value added tax or takes decision to refuse the reimbursement, which the tax body directs to the diplomatic mission or consular office of a foreign state within two days from the day of its adoption.

Turnovers on realization of goods (works, services) and provision of lease object, indicated in part one of this sub-clause, are exempted from the value added tax in the instance when the legislation of the respective foreign state establishes the similar procedure in relation to diplomatic missions and consular offices of the Republic of Belarus, diplomatic and/or administrative and technical staff of these missions and offices (including members of their families living with them) or if such a norm is provided by a treaty of the Republic of Belarus. The list of such foreign states is determined by the Ministry of Foreign Affairs of the Republic of Belarus jointly with the Ministry on Taxes and Dues of the Republic of Belarus. In doing so with a view of implementation of the principle of reciprocity, restrictions on amounts and conditions of return (reimbursement) of the value added tax may be established.

Reimbursement of the value added tax with regard to provisions of this sub-clause is performed on the basis of documents specified in indents four and five of part three of indent three of part four of this sub-clause, drawn up (issued) not earlier than the beginning of a twelve-month period preceding the beginning of the quarter for which the official letter (note) provided by this sub-clause of the diplomatic mission or consular office of the foreign state;

1.35. of goods (works, services) and provision in the territory of the Republic of Belarus of lease object for official activity of missions and bodies of international organizations and interstate formations, and also of goods (works, services) for personal use of the staff of these missions and bodies of international organizations and interstate formations, not being citizens of the Republic of Belarus.

The list of missions and bodies of international organizations and interstate formations, carrying out activity in the territory of the Republic of Belarus, is approved by the Ministry of Foreign Affairs of the Republic of Belarus jointly with the Ministry on Taxes and Dues of the Republic of Belarus.

Exemption from value added tax of turnovers on realization of goods (works, services) and provision in the territory of the Republic of Belarus of a lease object is made quarterly via reimbursement of the sums of value added tax.

For reimbursement of the value added tax paid upon acquisition of goods (works, services), receipt in temporary possession and use in the territory of the Republic of Belarus of a lease object for official activity of missions and bodies of international organizations and interstate formations, an official letter (note) of the mission and body of an international organization or interstate formation (certified by the stamp and the signature of the head of this mission or body or by a person substituting him) shall be submitted quarterly to the tax body at the place of putting on record of the mission and body of an international organization or interstate formation with enclosure of the following documents:

calculation of the value added tax sum to be reimbursed from the budget to missions and bodies of international organizations and interstate formations, the form and procedure for completion of which are approved by the Ministry on Taxes and Dues of the Republic of Belarus;

contracts (copies of contracts certified by the stamp and the signature of the head of this mission or body or by a person substituting him) for acquisition of goods (works, services), providing in the territory of the Republic of Belarus of objects into lease, concluded by the mission and body of an international organization or interstate formation. Contracts (certified copies thereof) are submitted to the tax body if available. Certified copies of contracts remain in the tax body and their repeat submission to the tax body is not required;

primary accounting documents received from the value added tax payer being put on record in the tax body of the Republic of Belarus (copies of such primary accounting documents certified by the stamp and the signature of the head of the mission or body or by a person substituting him), in which the sum of value added tax is singled out;

payment (settlement) documents confirming the actual payment for goods (works, services), payment of rental by the mission or body of the international organization and interstate formation or an agreement (copy of the agreement certified by the stamp and the signature of the head of the mission or body or by a person substituting him) on providing compensation instead of fulfilling the obligation.

For reimbursement of the value added tax on goods (works, services) being acquired for personal use of the staff of these missions and bodies of international organizations and interstate formations, not being citizens of the Republic of Belarus, an official letter (note) of the mission and body of an international organization or interstate formation (certified by the stamp and the signature of the head of this mission or body or by a person substituting him) shall be submitted quarterly to the tax body with enclosure of the following documents:

calculation of the value added tax sum to be reimbursed from the budget to missions and bodies of international organizations and interstate formations;

payment (settlement) documents confirming the actual payment for goods (works, services), payment of rental by employees of the missions or bodies of international organizations and interstate formations not being citizens of the Republic of Belarus or an agreement (copy of the agreement certified by the stamp and the signature of the head of the mission or body or by a person substituting him) on providing compensation instead of fulfilling the obligation.

If the documents confirming the payment, provided by this sub-clause, do not contain the value added tax sum indicated as a separate entry, presented by the seller – value added tax payer (with the exception of the payer of the value added tax which applies exemption from the value added tax in accordance with the legislation), the tax body determines the tax sum to be reimbursed by a calculation method based on the rates of the value added tax established by sub-clause 1.4 of clause 1 of Article 102 of this Code.

The reimbursement of value added tax provided by this sub-clause is made to the accounts specified in the official letter (note) of the mission and body of an international organization or interstate formation (certified by the stamp and the signature of the head of this mission or body or by a person substituting him).

Within one month from the day of submission of the official letter (note) of the mission and body of an international organization or interstate formation (certified by the stamp and the signature of the head of this mission or body or by a person substituting him) with enclosure of documents specified in this sub-clause, the tax body carries out their inspection and effectuates the reimbursement of the value added tax or adopts a decision to refuse the reimbursement, which the tax body directs to the mission or body of the international organization or interstate formation within two days from the day of its adoption.

Reimbursement of the value added tax with regard to provisions of this sub-clause is performed on the basis of documents specified in indents four and five of part four and of indent three of part five of this sub-clause, drawn up (issued) not earlier than the beginning of a twelve-month period preceding the beginning of the quarter for which the official letter (note) provided by this sub-clause of the mission or body of the international organization or interstate formation;

1.36. [excluded]

1.37. by banks 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 of 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 this instance other banks, and also their affiliates and other separate divisions acts as customers on the same basis as others;

for opening, operating and closing of customer accounts;

for transfer (sending) and crediting monetary means, forwarding payment documents, annulment of payment instructions;

for charging 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 circulation system between the bank and customers, automated banking systems (including “Customer-bank”, “Internet bank”, “Telephone-bank”);

from making of operations complex with bank guarantees, letters of credit, cheques, payment documents 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 similar financial instruments of forward transactions;

acceptance and handing out of monetary means, payment documents in foreign currencies;

operations on paying for (buying) and selling of payment documents 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. to the open joint-stock company "Agency on management of assets" of operations on:

realization by banks and the open joint-stock company "Development Bank of the Republic of Belarus" of services on servicing credits;

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;

transfer by the open joint-stock company "Belagroprombank" into gratuitous use of property and rights to use intellectual property objects;

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;

1.39. on services on insurance (co-insurance, re-insurance).

Turnovers on realization of services on insurance (co-insurance, re-insurance) include:

insurance fees (premiums) on insurance (co-insurance, re-insurance) contracts;

return of insurance reserves formed in preceding periods;

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;

reimbursement of a share of losses on risks transferred in reinsurance, and also on risks transferred by reinsurer in further (subsequent) reinsurance;

return of paid insurance compensation and insurance coverage;

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;

interest charged by the cedent in favour of the reinsurer on the depot of premiums on the risks accepted for reinsurance;

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;

commission fee received by the insurance broker from insurance organizations for intermediary services on insurance rendered by him;

1.40. on works on construction, maintenance and repair of objects of gardening partnerships,

1.41. [excluded]

1.42. 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, garage cooperative, cooperatives carrying out the operation of parking areas;

1.43. on services to natural persons of 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, on repairing of personal use items and household wares;

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.

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:

the contract of sale concluded with the lessor – tax resident of the Republic of Belarus 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 – tax resident of the Republic of Belarus;

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 – tax resident of the Republic of Belarus, depending on the form of customs declaration of goods used by the latter (in the form of a copy certified by the personal numerical stamp of an official of the tax body of the declaration for the goods released in accordance with the 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 – tax resident of the Republic of Belarus carries out declaration of the good to customs bodies in a written form or in the form of a copy of the external presentation of declaration for goods released in accordance with the customs procedure of export with indication of the date of permission for the departure of the goods outside the Republic of Belarus, when the lessor – tax resident of the Republic of Belarus carries out declaration of the good to customs bodies in the form of electronic document). The mentioned copies of documents are certified by the stamp and signature of the head of the legal person being the lessor – tax resident of the Republic of Belarus or of a person authorized by him. The confirmation is not required when the leasing object is exported to member states of the Eurasian Economic Union.

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. The form and procedure for completion of the said register being an enclosure to the tax declaration (calculation) on the value added tax are approved by the Ministry on Taxes and Dues of the Republic of Belarus.

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 – tax resident of the Republic of Belarus.

In the case of absence of documents specified in part two of this sub-clause and upon arrival of the date of presentation of the tax declaration (calculation) on the value added tax within the time limit determined by part four of this sub-clause, the seller – tax resident of the Republic of Belarus is entitled, when there is the contract mentioned in indent two of part two of this sub-clause to the tax body, not to indicated in it the turnovers on realization of goods under the contracts of sale with the lessor – tax resident of the Republic of Belarus.

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 – tax resident of the Republic of Belarus 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 presented.

In the case of absence of documents specified in part two of this sub-clause upon the deadline for presentation to the tax body of the tax declaration (calculation) on the value added tax for the reporting period in which the time limit determined by part four of this sub-clause expires, the turnovers on realization of the goods to the lessor – tax resident of the Republic of Belarus are indicated 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 for the reporting period in which the time limit determined by part four of this sub-clause has been expired.

Upon receipt of the documents specified in part two of this sub-clause upon expiration of the time limit determined by part four of this sub-clause and after indicating the turnovers on realization of the goods to the lessor – tax resident of the Republic of Belarus in the tax declaration (calculation) for the value added tax (but not more than three years from the deadline for payment of the value added tax due to the absence of the documents specified in part two of this sub-clause in accordance with part seven of this sub-clause), the turnovers on realization of these goods with application of exemption from the value added tax established by part one of this sub-clause are indicated (along with concurrent decrease of the turnovers on these goods indicated earlier and correction of tax deductions) in the tax declaration (calculation) for the value added tax of the reporting period, the deadline for the presentation of which follows the receipt of the documents or for the reporting period in which these documents have been received;

1.45. [excluded]

1.46. by foreign organizations not put on record in the tax bodies of the Republic of Belarus 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;

1.47. [excluded]

1.48. by paying agents of the single settlement and information space, of services on acceptance of payments from natural persons for goods, works, services and of taxes, dues (duties), penalty interest, fines, and other payments to the republican and local budgets, budgets of state non-budgetary funds;

1.49. 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;

1.50. 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;

1.51. by lessors of operations on transfer of the leasing object to natural persons – lessees under contracts 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. In this regard 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 for the value added tax, specified in sub-clauses 18.1 and 18.2 of clause 18 Article 98 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;

1.52. 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 the contract of financial lease (leasing).

2. [Excluded]

3. The payer carrying out 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 regard of all turnovers on realization carried out by 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 calendar year is not allowed.

4. Provisions of this Article and clause 2 of Article 93 of this Code cover also:

4.1. turnovers on realization of goods (works, services) property rights in the territory of the Republic of Belarus by foreign organizations not put on record in the tax bodies of the Republic of Belarus;

4.2. sums increasing the tax base in accordance with clause 18 of Article 98 of this Code, received (to be received) on goods (works, services), property rights, turnovers on realization of which are exempted from taxation (with the exception of turnovers specified in part one of sub-clause 1.51 of clause 1 of this Article) or are not recognized as a taxation object .

Article 95. Specific features of taxation when goods are being imported to the territory of the Republic of Belarus

1. Upon importation of goods into the territory of the Republic of Belarus, with the exception of importation from the territory of the member states of the Eurasian Economic Union, and occurrence of other circumstances with the presence of which the customs legislation of the Customs Union, the Law of the Republic of Belarus "On customs regulation in the Republic of Belarus" and/or acts of the President of the Republic of Belarus connect the arising of the duty for payment of the value added tax, collection of the value added tax is carried out by the customs bodies in accordance with this Code, customs legislation of the Customs Union, the Law of the Republic of Belarus "On customs regulation in the Republic of Belarus" and/or acts of the President of the Republic of Belarus.

2. Upon importation of goods into the territory of the Republic of Belarus from the territory of the member states of the Eurasian Economic Union, collection of the value added tax is carried out by the tax bodies in accordance with this Code, customs legislation of the Customs Union, laws on customs regulation in the Republic of Belarus and/or acts of the President of the Republic of Belarus, treaties of the Republic of Belarus, including acts constituting the law of the Eurasian Economic Union.

When the procedure for calculation of the value added tax collected by the tax bodies upon importation of goods into the territory of the Republic of Belarus from the territory of the member states of the Eurasian Economic Union (change of the tax base, rates, procedure for application of the exemption from taxation) has been changed, the new procedure is applied in respect of the goods put on records from the moment of change of the procedure for calculation of the value added tax.

3. [Excluded]

4. Computation and payment of the value added tax collected by the tax bodies are made by the agent, commissioner, and other similar person upon:

importation of goods into the territory of the Republic of Belarus from the territory of the member states of the Eurasian Economic Union on the basis of contracts of agency, commission and other similar contracts;

transfer in the territory of the Republic of Belarus by commitent, principal or another similar person being the taxpayer of a state – member of the Eurasian Economic Union of goods imported earlier from the territory of the member states of the Eurasian Economic Union for which the value added tax has not been paid (if such goods are realized through a commissioner, agent or another similar person).

5. The tax base for the purposes of calculation and payment of the value added tax collected by the tax bodies upon importation of goods into the territory of the Republic of Belarus from the territory of the member states of the Eurasian Economic Union:

may be indicated in the tax declaration (calculation) on the value added tax of the month the deadline for presentation of which follows the date shipment of goods mentioned in clause 4 of this Article to buyers or of the month in which these goods accepted for accounting by the commissioner, agent or another similar person. This provision is applied if these goods are shipped by the commissioner, agent or another similar person to buyers in the month following the month of their acceptance for accounting;

is indicated in the tax declaration (calculation) on the value added tax of the month in which goods indicated in indent two of clause 4 of this Article are accepted for accounting by the commissioner, agent or another similar person, if these goods are acquired by the commissioner, agent or another similar person for the commitent, principal or another similar person;

may be indicated in the tax declaration (calculation) on the value added tax of the month the deadline for presentation of which follows the date of acceptance for accounting of goods actually imported into the territory of the Republic of Belarus or of the month in which the goods are accepted for accounting with regard to the conditions of the foreign trade contract. This provision is applied if such acceptance of goods for accounting predates their actual importation into the territory of the Republic of Belarus.

Article 96. 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, according to the list approved by the President of the Republic of Belarus, upon availability of the conclusion of the Ministry of Labour and Social Protection of the Republic of Belarus that goods (being) imported belong to the mentioned technical means. Such technical means 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 these technical means 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;

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 of medical products 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. [excluded]

1.7. carriers of films, cultural valuables, imported by organizations of culture.

The ground for exemption of goods from the value added tax in accordance with part one of this sub-clause 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 international 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 the 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 belonging to 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, 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. 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 varieties” about 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;

1.21. other goods under the procedure and conditions established by the President of the Republic of Belarus.

2. Goods indicated in sub-clauses 1.2, 1.3, 1.5, part one of sub-clause 1.7, sub-clauses 1.—1.10, 1.12, part one of sub-clause 1.15, part one of sub-clause 1.16, sub-clause 1.20 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 1.4, 1.13, 1.14, 1.17–1.19 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.

Article 97. Principles of determination of the tax base for the value added tax upon realization of goods (works, services), property rights

1. The tax base for the value added tax is determined depending on specific features of realization of produced or acquired goods (works, services), property rights.

2. When the tax base for the value added tax is determined on contracts stipulating the realization of goods (works, services), property rights for foreign currency, recalculation of the foreign currency in Belarusian rubles is performed at the official rate of the foreign currency established by the National Bank of the Republic of Belarus on the moment of actual realization of goods (works, services), property rights, unless otherwise established by this clause.

Upon realization of goods (works, services) shipped (performed, rendered), property rights transferred for foreign currency under contracts stipulating settlements in foreign currency on conditions of advance payments, preliminary payments, earnest money, for determining the tax base for value added tax, recalculation of the foreign currency in Belarusian rubles shall be carried out at the official exchange rate of the Belarusian ruble to the relevant foreign currency, established by the National Bank on:

December 31, 2014 – in the part of the value of goods (works, services), property rights equal to the sum of advance payments, preliminary payments, earnest money received prior to January 1, 2015;

date of receipt of the preliminary payments, 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 received from January 1, 2015;

moment of actual realization of goods (works, services), property rights – in the remaining part of the value of goods (works, services), property rights.

When leasing objects are realized for foreign currency under contracts of financial leasing stipulating the fulfillment of monetary obligations in foreign currency or in Belarusian rubles in sums equivalent to certain sums in foreign currency and upon arrival of the moment of actual realization, the tax base in the part of the contract value of the financial leasing object is determined in Belarusian rubles at the official rate of the foreign currency established by the National Bank of the Republic of Belarus on the moment of transfer of the financial leasing object and calculated on the basis of the corresponding sum of monetary obligations in foreign currency or the equivalent in foreign currency.

3. 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), 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.

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.

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.

4. The tax base for the valued added tax is 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.

5. When the tax base for the valued added tax 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:

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;

dividends and incomes equated to them;

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 a part of the organization, including a state association, association, joint-stock company, and also for formation of centralized financial funds (reserves);

means of reserve and other funds, transferred within one legal person;

Means received from the budget or from state non-budgetary funds and used according to their intended purpose, with the exception of means received from the budget or the mentioned funds as a payment for goods (works, services), property rights, realized by the payer.

6. On contracts in which the sum of obligations is expressed in Belarusian rubles equivalent to a sum in foreign currency, the tax base for the valued added tax upon realization of goods (works, services), property rights is determined at the official rate of the foreign currency established by the National Bank of the Republic of Belarus on the moment of actual realization of goods (works, services), property rights and in the instances when the date of determining of the amount of obligation predates the moment of actual realization or coincides with the moment of actual realizations – in the payable sum in Belarusian rubles. The date of determining the amount of the obligation under a contract 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 under such a contract expressed in Belarusian rubles in a sum equivalent to a sum in foreign currency.

In the instances when the moment of actual realization predated the date of determining the amount of obligation, the tax base shall be increased (the tax base shall be decreased) by the sum of difference arising between the sum payable in Belarusian rubles and the sum of tax base determined in Belarusian rubles on the moment of actual realization of goods (works, services), property rights. The indicated sum of difference increases (decreases) the tax base in the reporting period in which the payment for goods (works, services), property rights is received, and in the event of termination of the obligation on other grounds – in which the obligation is terminated (in full or in the respective part).

7. On contracts in which the sum of obligations is expressed in foreign currency as equivalent to a sum in other foreign currency, the tax base for the valued added tax upon realization of goods (works, services), property rights is determined on the moment of actual realization of goods (works, services), property rights in such foreign currency throug recalculation with application of official rates of the established by the National Bank of the Republic of Belarus on that date and in the instances when the date of determining the amount of obligation predates the moment of actual realization or coincides with the moment of actual realizations – in the payable sum in foreign currency. In that instance the tax base determined in foreign currency (another foreign currency) is recalculated into 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. The date of determining the amount of the obligation under a contract is understood the date on which, in accordance with the legislation or an agreement of the parties, the payable sum in foreign currency is determined on the obligation under such a contract expressed in foreign currency as a sum equivalent to a sum in another foreign currency.

In the instances when the moment of actual realization predated the date of determining the amount of obligation, the tax base shall be increased (the tax base shall be 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. Recalculation of the sum payable in foreign currency and increase (decrease) of the tax base by the sum of difference are performed in the reporting period in which the payment for goods (works, services), property rights is received, and in the event of termination of the obligation on other grounds – in which the obligation is terminated (in full or in the respective part).

Article 98. Determination of the tax base for the value added tax upon realization of goods (works, services), property rights

1. The tax base for the value added tax upon realization of goods (works, services), property rights is determined as the value of these goods (works, services), property rights calculated based on:

1.1. prices (tariffs) for goods (works, services), property rights inclusive of excises (for excisable goods) without the value added tax;

1.2. regulated retail prices that include 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 for the value added tax upon realization at regulated retail prices with account of the value added tax of acquired (imported) goods (with the exception of goods calculation of the value added tax on which is performed in accordance with clause 9 of Article 103 of this Code) is determined as positive difference between the realization price and the purchasing price of these goods. In doing so purchasing prices and realization prices are determined with account of the value added tax.

Provisions of part one of this clause cover also realization of acquired reusable tare, passes for sanatorium treatment and medical rehabilitation of population, labour books and/or inserts thereto.

4. The tax base for the value added tax upon realization of works on manufacturing of goods from give-and-take raw materials (materials) is determined as costs of working, processing or another transformation of the mentioned raw materials (materials) without inclusion of the value added tax.

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.

5. The tax base for the value added tax concerning intermediary activity is determined as the sum received as remunerations under contracts of agency, commission and other similar civil-law contracts.

6. The tax base for the value added tax 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 similar financial instruments of forward transactions.

7. 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. If under the conditions of the financial lease (leasing) contract, the leasing object is bought out by the lessee, the tax base is to be increased by the sum of buy-out value of the leasing object.

The tax base upon transfer of the lease object by the lessor to the lessee is determined as the sum of rentals. If under the conditions of the lease contract the lease object is bought out by the lessee, the tax base is to be increased by the sum of buy-out value of the lease object.

The tax base upon transfer of 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 the President of the Republic of Belarus);

value of expenses on maintenance of the property and/or other expenses related to the property (with the exception of expenses specified in indent two of this part), reimbursable to the lender, including corresponding expenses on operation, major and current repairs of the property, costs on communal services, including heating, electricity supply, with the exception of the value of works (services) related to the property, acquired by the lender.

8. When the tax base for the value added tax 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.

9. The tax base for the value added tax 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".

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 for value added tax is determined as the value of those services without account of subsidies being provided for reimbursement of the mentioned costs.

10. The tax base for the value added tax concerning forwarding servicing is determined as the sum received as forwarding agent remuneration under the forwarding contract. The remuneration is determined as the sum received from the customer for services rendered to him less means 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.

11. The tax base for the value added tax 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.

12. 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 agency, commission 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 is 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.

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 agency, commission 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).

13. [Excluded]

14. The tax base for the value added tax upon realization of products made of precious metals and precious stones is determined as the value of products taking into account the value of precious metals and precious stones utilized in the production.

15. 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 for the value added tax 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.

16. The tax base for the value added tax 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 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 for the value added tax upon realization by contractors of construction works (including designing works) performed with participation of sub-contractors is determined by the contractor as the value of works performed, including the value of works performed by sub-contractors.

18. The tax base for the value added tax is increased by sums actually received (due to be received):

18.1. 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;

18.2. as sanctions for violation by buyers (customers) of contract conditions;

18.3. 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 for the value added tax is 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.

19. [Excluded]

20. The tax base for the value added tax, 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 and article 97 of this Code.

The tax base for the value added tax, when services on trust management of property, which are rendered to the trustor (beneficiary) are realized, is 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.

21. Upon contract-based production of tobacco articles, the tax base for the value added tax is determined as the costs of works on production of the indicated tobacco article with account of the value of materials of the organization – producer, including excise sums calculated by the organization – producer of tobacco articles, without inclusion of the value added tax or under the procedure established by clause 4 of this Article. The procedure for determining the tax base for the value added tax chosen by the organization – producer shall be reflected in its accounting policy and is not subject to change during the current tax period.

22. The tax base for the value added tax upon transfer of goods under a loan contract in kind is 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.

23. The tax base for the value added tax on operations on granting micro loans by pawnshops to natural persons against the pledge of movable property intended for personal, family or household use is determined as the sum of incomes (interest and other incomes) related to granting of such loans.

24. The tax base for the value added tax upon construction of objects that later do not come into ownership (use) of the ordering customer (builder) shall be determined by ordering customers (builders):

24.1. 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;

24.2.when conducting construction in the interests of third parties (including interestholders):

24.2.1. 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 18.1 of clause 18 of this Article if the contract with the ordering customer does not determine inclusion of such sum in the value of services of the ordering customer (builder);

24.2.2. 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.

25. Tax base for the value added tax upon transfer of goods (works, services), property rights within one legal person, under which computation and payment of the value added tax shall be performed in accordance with part six of clause 21 of Article 107 of this Code is determined as the value of goods being transferred (works being performed, services being rendered), property rights 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 (performed works, rendered services), property rights in the reporting period in which the value of earlier transferred goods (performed works, rendered services), property rights.

Article 99. Determination of the tax base for the value added tax collected by customs bodies

1. The tax base for the value added tax collected by customs bodies upon importation of goods into the territory of the Republic of Belarus (with the exception of goods indicated in clause 3 of this article) is determined as:

of their customs value;

of payable sums of customs duties, unless otherwise established by part two of this clause;

of payable excise sums (for excisable goods), unless otherwise established by part two of this clause.

When goods are placed under customs procedures other than the customs procedure of release for internal consumption, nominally calculated sums of customs duties and excises that should have been paid upon placement of goods being imported under the customs procedure of release for internal consumption, are included in the tax base for calculation of the value added tax collected by customs bodies.

2. In the event of payment and/or recovery of sums of customs duties and excises in relation to goods place under respective customs procedures with application of tax privileges on payment of customs duties, linked with restrictions on use and disposal of these goods, the re-calculation of the tax base for the value added tax collected by customs bodies in connection with the payment (recovery) of the indicated sums of customs duties and excises is not performed, unless otherwise provided by the President of the Republic of Belarus.

3. When customs bodies collect the value added tax in relation to products of processing received as a result of processing of goods placed under the customs procedure of processing outside the customs territory, the tax base for the value added tax is determined as the costs of operations on processing of goods.

In the absence of documents confirming the costs of operations of processing of goods, the tax base for the value added tax is determined as the difference between the customs value of products of processing and the customs value of goods place under the customs procedure of processing outside the customs territory.

Article 100. 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.

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.

The day of execution of works (rendering of services) is recognized the date of transfer of executed works (rendered services) in accordance with formalized documents (acceptance delivery statements and other similar documents). When the ordering customer does not sign acceptance delivery statements and/or other similar documents for the reporting month (quarter) till the 20th day (inclusively) of the month (quarter) following the reporting one, the day of execution of works (rendering of services) is recognized the day of drawing up of acceptance delivery statements and/or other similar documents.

The day of execution of works (rendering of services) the realization of which is carried out on a permanent (continuous) basis is recognized the last day of the month of execution of such works (rendering of such services) if the documents (acceptance delivery statements and/or other similar documents) formalized till the 20th day (inclusively) of the month (quarter) following the month of execution of such works (rendering of such services) contain the indication of the month in which these works are executed (these services are rendered).

For the purposes of this article and article 107 of this Code, works (services) the realization of which is carried out on a permanent (continuous) basis are recognized works (services) being executed (rendered) on the basis of a long-term contract concluded for a period of more than three months provided that the ordering customer of works (services) can use their results in its activity within the month in which the works are executed (services are rendered).

The day of transfer of property rights is recognized the date when the right arises to receive pay in accordance with the contract.

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 is recognized 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 or 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 part two of this clause. The procedure chosen by the payer of determining the day of shipment shall be indicated in the accounting policy of the organizations (individual entrepreneur) and is not subject to be changed in the course of the current tax period.

The day of rendering of tourist services is recognized the day of conclusion of the contract of rendering tourist services by participants of tourist activity or the last day of the tour. The procedure chosen by the payer of determining the day of rendering tourist services shall be indicated in the accounting policy of the organizations (individual entrepreneur) and is not subject to be changed in the course of the current tax period.

The day of rendering of sanatorium and rehabilitation services provided by sanatorium and rehabilitation organizations (structural divisions thereof) is recognized at their option the day of transfer of the pass or the last day of validity period of the pass or the last day of the reporting period in which started the validity of the pass (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.

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.

2. [Excluded]

3. [Excluded]

4. When goods, property rights are transferred (works are executed, services are rendered) gratuitously, when goods (works, services), property rights are exchanged, when goods are transferred within the framework of a loan contract in kind or when labour is paid for in kind by goods (works, services), the moment of their actual realization is recognized accordingly the day of transfer (execution, rendering), exchange or payment.

The day of exchange is recognized the day of performing of each shipment of the good (execution of work, rendering of service), transfer of property right.

5. 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.

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 92 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.

6. [Excluded]

7. The day of execution of construction, research and development, design and experiment, technology-testing (technology) works is recognized the last day of the month of execution of works, rendering of services. When the ordering customer 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 ordering customer.

8. The moment of actual realization in relation to sums of the difference arising in connection with the changing of the official rate of the Belarusian ruble toward a foreign currency established by the National Bank of the Republic of Belarus from the moment of actual realization determined in accordance with this Article till the moment established for determining the amount of obligation under the contracts the obligations under which are expressed in Belarusian rubles or foreign currency and increasing (decreasing) the tax base for the value added tax in accordance with clauses 6 and 7 of Article 97 of this Code is recognized the day of receiving of the indicated sums of difference.

The moment of actual realization in relation to sums which increase the tax base for the value added tax in accordance with clause 18 of Article 98 of this Code is recognized the day determined by the payer (with the exception of banks) in accordance with the accounting policy of the organization as the day of reflection of these sums in the accounting or as the day of their receipt.

9. 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).

10. The day of rendering of communication services is recognized the last day of the month of rendering of communication services.

11. The moment of putting (transfer) of an object (item) into lease (financial lease (leasing)) is recognized the last day of each period established by the contract to which relates the rentals (leasing payment) under such putting (transfer), but not earlier than the day of actual transfer of the lease object (leasing item) to the lessee.

In the event if the contract did not establish a specific period to which the rental refers, the moment of putting the object into lease is recognized the last day of each month in the course of the lease period established by the contract and 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).

12. The day of rendering services on transportation of gas and oil is recognized the last day of the month of rendering services.

13. The moment of actual realization of natural and pressurized gas, electrical and thermal energy is recognized the day, falling within the reporting period , of crediting monetary means from their buyer to the account of the payer or the day determined under the procedure established by clause 1 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).

14. 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.

15. 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.

16. 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.

17. The moment of actual realization for operations on granting micro loans by pawn shops 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.

18. The day of rendering services in the sphere of education when the period of learning is more than sixty calendar days is recognized the last day of each month of rendering such services.

19. The day of rendering medical services when the period of medical observation and medical treatment of the patient in a healthcare organization is more than sixty calendar days is recognized the last day of each month of rendering such services.

20. The moment of actual realization upon transfer of property into gratuitous use is recognized the last day of each month to which fall the expenses on maintenance property and/or other expenses related to the property presented to the borrower for reimbursement.

Article 101. Arising and termination of the duty on payment of the value added tax collected by the customs bodies and the time limit for its payment

Arising and termination of the duty on payment of the value added tax collected by the customs bodies upon importation of goods into the territory of the Republic of Belarus and the time limit for its payment is determined in accordance with customs legislation of the Customs Union, the Law of the Republic of Belarus "On customs regulation in the Republic of Belarus" and/or acts of the President of the Republic of Belarus.

Article 102. Rates of value added tax

1. The rates of the value added tax are established in the following amounts:

1.1. zero (0) percent:

1.1.1. upon realization:

of goods placed under the customs procedure of export and also of those taken out (without the commitment to return importation into the territory of the Republic of Belarus) to the states – members of the Eurasian Economic Union (including goods exported under contracts of 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;

of works (services) on accompanying, loading, re-loading, and other similar works (services) directly connected with the realization of goods indicated in indent two of this sub-clause;

of transport services exported, including transit carriage, and also of works exported on manufacturing of goods from give-and-take raw materials (materials);

of works (services) on repair, modernization, re-equipping of aircraft and its engines, railroad rolling-stock units, executed for foreign organizations or natural persons;

of goods of own production to the owner of a duty-free shop for their subsequent realization in duty-free shops;

of goods in retail trade through shops (later on in this Chapter – realization of goods through a shop) to natural persons not having a permanent residence in a state – member of the Eurasian Economic Union (later on in this Chapter – 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;

bunker fuel for refueling of aircraft of foreign air companies carrying out international flights and/or international air carriage;

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;

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, with the exception of citizens of the Republic of Belarus. Provisions of this indent are applied to works (services) performed (rendered) from January 1, 2015 till January 1, 2018;

works (services) being performed (rendered) by the State Association “Belarusian Railway” to 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.

Fur purposes of indent six of part one 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 indent six of part one 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.

The rate of the value added tax in the amount of zero (0) percent on goods indicated in indent seven of part one of this sub-clause may be applied by the payers subject to observance of all following conditions:

goods are realized 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 1021 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 according to the form approved by the Ministry on Taxes and Dues of the Republic of Belarus is submitted 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 of zero (0) percent;

Upon availability of a contract on rendering services on return of the value added tax to foreign persons, concluded with organizations having the right to return the value added tax to foreign persons, the list of and the requirements for which are established by the Council of Ministers of the Republic of Belarus (later on in this Chapter – organizations having the right to return the value added tax to foreign persons).

If the payer that realized to a foreign person goods through shops, prior to submission to the tax the 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, 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 sub–clause of 1.3 of this clause without application of specific features for calculation of the value added tax established by clause 9 of article 103 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 indent seven of 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.

For the purposes of indent eight of part one 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;

1.1.2. upon increase of the tax base upon realization of goods (works, services) specified in sub-clause 1.1.1 of this clause by sums specified in part two of clause 6 and part two of clause 7 of Article 97 and clause 18 of Article 98 of this Code;

1.2. ten (10) percent:

1.2.1. upon realization of 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, apiculture, animal husbandry (with the exception of production of furs) and fish husbandry;

1.2.2. upon 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 part one of this sub-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;

1.2.3. upon increase of the tax base upon realization of goods (works, services) specified in sub-clauses 1.2.1 and 1.2.2 of this clause by sums specified in part two of clause 6 and part two of clause 7 of Article 97 and clause 18 of Article 98 of this Code;

1.3. twenty (20) percent:

1.3.1. upon realization of goods (works, services) not indicated in sub-clauses 1.1, 1.2, 1.4 and 1.5 of this clause, and also upon realization (transfer) of property rights;

1.3.2. upon importation into the territory of the Republic of Belarus of goods not indicated in sub-clause 1.2.2 of this clause;

1.3.21. upon other retirement of goods in duty-free shops, placed under the customs procedure of duty-free trade;

1.3.3. upon increase of the tax base upon realization of goods (works, services) specified in sub-clauses 1.3.1 and 1.3.21 of this clause by sums specified in part two of clause 6 and part two of clause 7 of Article 97 and clause 18 of Article 98 of this Code;

 nine point zero nine (9.09) percent (10: 110 x 100 percent) or sixteen point sixty seven (16.67) percent (20: 120 x 100 percent) – upon realization of goods at regulated retail prices with account of the value added tax, and also upon increase of the tax base upon realization of goods specified in this sub-clause by sums specified in part two of clause 6 and part two of clause 7 of Article 97 and in clause 18 of Article 98 of this Code;

1.5. twenty five (25) percent – upon realization of telecommunications services.

2. Confirmation of exportation of goods outside the territory of the Republic of Belarus with a view of their permanent location (except for exportation to states – members of the Eurasian Economic Union) shall be the fact that the payer has:

a contract concluded by the payer with a foreign organization or a foreign natural person on the basis of which goods are being realized;

a confirmation of exportation of goods outside the territory of the Republic of Belarus.

Confirmation about exportation of goods outside the territory of the Republic of Belarus is issued by customs bodies of the Republic of Belarus in the form of a copy of the declaration for the goods, certified by the personal numerical stamp of an official of the customs body, with the notices of the customs body about the release of the goods in accordance with the declared customs procedure with the notice of the customs body “Товар вывезен (Good has been exported)” and indication of the date of issue of the confirmation or in the form of 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 “Товар вывезен (Good has been exported)” and indication of the date of issue of the confirmation. Confirmation about exportation of goods outside the territory of the Republic of Belarus is presented to the tax body by a payer that does not carry out the declaring of goods to the customs bodies in the form of an electronic document. Payers that carry out the declaring of goods to the customs bodies in the form of an electronic document present to the tax body, simultaneously with the tax declaration (calculation) for the value added tax, the information about confirmation of exportation of goods outside the territory of the Republic of Belarus in the form of the register of numbers of electronic customs declarations for goods released in accordance with the customs procedure of export with indication of the date of permission for the departure of the goods outside of the territory of the Republic of Belarus. The form and procedure for completion of the register of numbers of electronic customs declarations for goods, being the enclosure for the tax declaration (calculation) for the value added tax are approved Ministry on Taxes and Dues of the Republic of Belarus.

In the presence of circumstances indicating the falsity of documents presented in accordance with this clause, the confirmation about exportation of goods is issued upon requests of the tax bodies by the customs body of the Republic of Belarus that has carried out the release of goods in accordance with the declared customs procedure.

The confirmation of exportation of goods outside the territory of the Republic of Belarus with a view of their permanent location (except for exportation to states – members of the Eurasian Economic Union), when goods are realized outside the territory of the Republic of Belarus through organizations, individual entrepreneurs, 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 exported goods (later on in this clause – intermediary) shall be the fact that the payer has:

a contract with the intermediary;

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;

a confirmation about exportation of goods outside the territory of the Republic of Belarus, issued by the customs body and presented to the tax body under the procedure established by part two of this clause. Payers that carry out the declaring of goods to the customs bodies in the form of an electronic document present to the tax body, simultaneously with the tax declaration (calculation) for the value added tax, the information about confirmation of exportation of goods outside the territory of the Republic of Belarus in the form of the register of numbers of electronic customs declarations for goods released in accordance with the customs procedure of export with indication of the date of permission for the departure of the goods outside of the territory of the Republic of Belarus.

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) upon realization of goods through mail and also upon realization of goods being moved through the system of main pipelines or power lines, the payer shall present to the tax body at the place of putting on record:

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;

a copy of the declaration for the goods with the notices of the customs body about the release of excisable goods in accordance with the customs procedure of export (to be presented in the instance when the payer carries out declaration of goods in a written form) 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 stamp of the organization and the signature of the head of the organization (person authorized by him), signature of the individual entrepreneur (to be presented in the instance when the payer carries out declaration of goods both in the written form and in the form of electronic document);

a receipt about acceptance for sending according to the established form, issued by the postal organization that has accepted the good for sending to the buyer (upon realization of goods through the mail);

acts of acceptance-delivery of goods (upon realization of goods being moved through the system of main pipelines).

For confirmation of exportation from the Republic of Belarus outside the Russian Federation of furs realized as a result of holding the public sale with a view of its permanent location (except for return importation of furs to the Republic of Belarus), the payer presents to the tax body at the place of putting on record:

the contract of commission (or any similar contract) with a taxpayer of the Russian Federation;

the consignment note confirming the exportation of furs from the territory of the Republic of Belarus to the territory of the Russian Federation to a taxpayer of the Russian Federation;

a consolidated reference note (transcription of box 2 of customs declaration for export of furs) issued by the taxpayer of the Russian Federation;

the register of accounts issued by the taxpayer of the Russian Federation for the payer of the Republic of Belarus which indicates the buyers of furs;

the customs declaration certified by the customs bodies of the Russian Federation confirming the exportation of fur material from the territory of the Russian Federation with a view of its permanent location (except for return importation of fur material to the Republic of Belarus).

Documentary confirmation of the exportation of goods (including those produced from give-and-take raw materials and materials) outside the Republic of Belarus in accordance with parts one–five of this clause is performed with regard to requirements of part two of this clause within one hundred eighty days from the date of release of the goods in accordance with the declared customs procedure. Documentary confirmation of the exportation from the Republic of Belarus outside the Russian Federation of fur material in accordance with part six of this clause is performed within one hundred eighty days from the date of holding the public sale.

When the date for presenting the tax declaration (calculation) for the value added tax falls within this period, the turnovers on realization of goods are not indicated in the tax declaration (calculation) for the value added tax.

Upon availability of the documents confirming the exportation of goods, the turnovers on realization of goods are indicated 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 or of the reporting period in which the respective documentary confirmation has been received.

In the absence of documents confirming the exportation of goods, till the presentation to the tax body of the tax declaration (calculation) for the value added tax for the reporting period in which the established time limit expired, the turnovers on realization of goods are indicated in the tax declaration (calculation) for the value added tax of the reporting period in which the established time limit expired.

Upon receipt of the documents after indicating the turnovers on realization in the tax declaration (calculation) for the value added tax (but not more than three years from the deadline for payment of the value added tax due to the absence of the documents confirming the exportation of goods in accordance with part 10 of this clause), the turnovers on realization of goods with application of the rate of the value added tax in the amount of zero (0) percent are 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 the presentation of which follows the receipt of the documents or in the tax declaration (calculation) of the reporting period in which these documents have been received.

3. Works (services) on accompanying, loading, re-loading, and other similar works (services) directly connected with the realization of goods indicated in indent two of sub-clause 1.1.1 of clause 1 of this article 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.

The ground for application of the rate of the value added tax in the amount of zero (0) percent on these works shall be the submission by the payer to the tax body at the location of putting on record of this payer of copies of the following documents:

contracts on performance (rendering) of indicated works (services) concluded both with foreign and with Belarusian organizations;

documents confirming the execution (rendering) of these works (services) with indication therein of details of the declaration for the goods released in accordance with the declared customs procedure of export, the date of permission for the departure of the goods outside the Republic of Belarus (when declaration of the good is carried out by the customs body in the form of electronic document), the date when the customs body puts the notice "Good has been exported" certified by the personal numerical stamp of an official of the customs body (when declaration of the good is carried out by the customs body in the written form), and in relation to goods being exported to the territory of the states – members of the Eurasian Economic Union – with indication of details of transport (shipping) documents about the transportation of the goods being exported to the territory of the member states of the Eurasian Economic Union.

4. Exported transportation services levied with the value added tax in the amount of zero (0) percent include forwarding services, services on movement of goods, passengers, and luggage by automobile, airborne, railway, sea transport and other modes of transport (a combination of those modes of transport), cargo-luggage by railway transport outside the Republic of Belarus, from outside its limits, and also in transit through the territory of the Republic of Belarus, including partial rendering of those services in its territory.

Exported transportation services do not include agent’s (intermediary) services on formalizing and/or realization of tickets for travel of passengers, on the basis of which exported transportation services are rendered.

Exported transportation services are levied by the value added tax in the amount of zero (0) percent when there are formalized by international transport or shipment documents or other international documents. This provision also covers services formalized on blank forms for international and interstate communications, rendered on carriage of goods by railway transport travelling to destination stations (ports) in foreign states.

The ground for application of the rate of the value added tax in the amount of zero (0) percent for rendering exported transportation services shall be the submission by the payer to the tax body at the place of putting on record of the register of international transport or shipment documents with indication of numbers of international transport or shipment documents confirming the rendering of exported transportation services. The form of the register of international transport or shipment documents and requests (instructions or other documents) and the procedure for its completion are approved by the Ministry on Taxes and Dues of the Republic of Belarus.

5. Exported works 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 of own production, rendered to foreign organizations and natural persons on production of exported goods from give-and-take raw materials (materials).

The ground for application of the rate of the value added tax in the amount of zero (0) percent upon realization of works on production of goods from give-and-take raw materials (materials) shall be the fact that the payer has the following documents:

contract concluded with a foreign organization or natural person;

documents confirming execution of these works;

confirmation about exportation of goods produced from give-and-take raw materials (materials) outside the Republic of Belarus, issued by the customs body under the procedure established by part two of clause 2 of this article (is submitted to the tax body at the place of putting on record simultaneously with the tax declaration (calculation) on the value added tax by the payer that does not carry out declaration to the customs bodies in the form of an electronic document). Payers that carry out the declaring of goods to the customs bodies in the form of an electronic document present to the tax body, simultaneously with the tax declaration (calculation) for the value added tax, the information about confirmation of exportation of goods outside the territory of the Republic of Belarus in the form of the register of numbers of electronic customs declarations for goods released in accordance with the declared customs procedure, with indication of the date of permission for the departure of the goods outside of the territory of the Republic of Belarus.

documents confirming the exportation of goods produced from give-and-take raw materials (materials) from the territory of the Republic of Belarus to the territory of the states – members of the Eurasian Economic Union;

document confirming the fact that executed works belong to works of own production, issued under the established procedure;

declaration about importation of goods and payment of indirect taxes, drawn up according to the form approved by the treaty of the Republic of Belarus, with the notice of the tax body of the state – member of the Eurasian Economic Union to the territory of which the goods are imported, about the payment of indirect taxes (exemption for the taxation or another order of fulfilling of tax obligations) (later on in this article – declaration about importation of goods) or the list of declarations about importation of goods and payment of indirect taxes. Declaration about importation of goods or the list of declarations about importation of goods and payment of indirect taxes shall be presented by the payer to the tax body at the place of putting on record simultaneously with the tax declaration (calculation) on the value added tax. The form and procedure for completion of the list of declarations about importation of goods and payment of indirect taxes being the enclosure to the tax declaration (calculation) for the value added tax are approved Ministry on Taxes and Dues of the Republic of Belarus.

In the event of exportation of goods produced from give-and-take raw materials (materials) to the member states of the Eurasian Economic Union and placement thereof in the territory of a member state of the Eurasian Economic Union under the customs procedure of free customs zone or under the customs procedure of free warehouse, the payer, instead of declaration about importation of goods (list of declarations about importation of goods and payment of indirect taxes), shall present to the tax body at place of putting on record simultaneously with the tax declaration (calculation) for the value added tax certified by a customs body of the member state of the Eurasian Economic Union a copy of the customs declaration in accordance with which goods produced from give-and-take raw materials (materials) are placed in the territory of the member state of the Eurasian Economic Union under the customs procedure of free customs zone or under the customs procedure of free warehouse.

6. The ground for application of the rate of the value added tax in the amount of zero (0) percent upon realization of works (services) on repair, modernization, re-equipping of aircraft and its engines, railroad rolling-stock units, performed (rendered) for foreign organizations or natural persons shall be submission by the tax body at the place of putting on record of copies of the following documents:

contract concluded with a foreign organization or natural person;

documents confirming the execution (rendering) of these works (services) on repair, modernization, re-equipping of aircraft and its engines, railroad rolling-stock units.

For the purposes of indent five of party one of sub-clause 1.1.1 of clause 1 of this article and this clause, railroad rolling-stock units include certain objects of railroad rolling-stock, indicated in indent fifteen of clause 3 of Article 33 of this Code.

7. The ground for application of the rate of the value added tax in the amount of zero (0) percent upon realization to taxpayers of member states of the Eurasian Economic Union or to taxpayers of states not being members of the Eurasian Economic Union of goods exported (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 leasing, loan contracts, contracts for manufacturing of goods) shall be the fact that the payer has the following documents:

contract on the basis of which the realization of goods is carried out; contract of financial leasing stipulating the transfer of ownership of goods (leasing objects) to the lessee; contract stipulating granting of the loan in kind; contract for manufacturing goods (except for production of goods from give-and-take raw materials (materials));

transport (shipping) documents confirming the movement of goods from the territory of the Republic of Belarus to the territory of another member state of the Eurasian Economic Union. Availability of the mentioned documents is not required if for some type of movement, including movement of goods without use of vehicles, formalization of those documents are not provided for by the legislation. Upon exportation to the territory of a state – member of the Eurasian Economic Union of goods for temporary storage, participation in exhibitions-fairs under contract concluded by the payer with buyers prior to the exportation of goods from the territory of the Republic of Belarus, it is required that the payer has transport (shipping) documents confirming the shipment (delivery) of goods to the buyers. When goods are being moved through the system of main pipelines or power lines, it is required that the buyer has act of acceptance-delivery of goods;

declaration about importation of goods or the list of declarations about importation of goods and payment of indirect taxes (to be presented by the payer to the tax body at the place of putting on record simultaneously with the tax declaration (calculation) on the value added tax).

The ground for application of the rate of the value added tax in the amount of zero (0) percent upon realization by organizations and/or individual entrepreneurs of the Republic of Belarus on the basis of contracts of commission, agency, and other similar civil-law contracts (later on in this part – commitent) through organizations and/or individual entrepreneurs of the Republic of Belarus (later on in this part – commissioner) of goods exported (without the commitment to return importation into the territory of the Republic of Belarus) to the states – members of the Eurasian Economic Union shall be the fact that the commitent has the following documents:

contract of commission, agency, or another similar contract;

transport (shipping) documents confirming the shipment of goods to the commissioner and copies of transport (shipping) documents confirming the shipment of goods to the buyers;

declaration about importation of goods or the list of declarations about importation of goods and payment of indirect taxes (to be presented by the commitent to the tax body at the place of putting on record simultaneously with the tax declaration (calculation) on the value added tax).

The ground for application of the rate of the value added tax in the amount of zero (0) percent upon realization by organizations and/or individual entrepreneurs of the Republic of Belarus on the basis of contracts of commission, agency, and other similar civil-law contracts (later on in this part – commitent) through foreign organizations and/or natural persons, being the taxpayers of the states – members of the Eurasian Economic Union (later on in this part – commissioner) of goods exported (without the commitment to return importation into the territory of the Republic of Belarus) to the states – members of the Eurasian Economic Union for their subsequent realization within or outside of the customs territory of the Eurasian Economic Union shall be the fact that the commitent has:

contract of commission, agency, or another similar civil-law contract;

transport (shipping) documents confirming the shipment of goods to the commissioner;

customs declaration formalize by the commissioner and certified by the customs body of the state – member of the Eurasian Economic Union, confirming the exportation of goods from the territory of the states – members of the Eurasian Economic Union for their permanent placement. The customs declaration is submitted by the commitent to the tax body at the place of putting on record simultaneously with the tax declaration (calculation) on the value added tax in the instance when the exportation of goods is carried out to the member states of the Eurasian Economic Union with a view of their subsequent realization by the commissioner outside of the customs territory of the Eurasian Economic Union, provided that the legislation of the member state of the Eurasian Economic Union the payment of the value added tax upon importation from the territory of the Republic of Belarus is not imposed on the commissioner or agent;

declaration about importation of goods or the list of declarations about importation of goods and payment of indirect taxes (to be presented by the commitent to the tax body at the place of putting on record simultaneously with the tax declaration (calculation) on the value added tax, in the instance when the legislation of the member state of the Eurasian Economic Union imposes the payment of the value added tax upon importation of goods from the territory of the Republic of Belarus on the commissioner, agent or buyer).

The ground for application of the rate of the value added tax in the amount of zero (0) percent upon realization to foreign organizations and natural persons of goods exported (without the commitment to return importation into the territory of the Republic of Belarus) to the member states of the Eurasian Economic Union and placed in the territory of the member states of the Eurasian Economic Union under the customs procedure of free customs zone or under the customs procedure of free warehouse shall be the fact that the payer has the following documents:

contract on the basis of which the realization of goods is carried out;

transport (shipping) documents confirming the movement of goods from the territory of the Republic of Belarus to the territory of a member state of the Eurasian Economic Union.

a copy certified by the customs body of the member state of the Eurasian Economic Union of the customs declaration in accordance with which goods are placed in the territory of the state – member of the Eurasian Economic Union under the customs procedure of free customs zone or under the customs procedure of free warehouse. Such customs declaration is presented by the payer to the tax body at the place of putting on record simultaneously with the tax declaration (calculation) on the value added tax.

8. Documentary confirmation of actual exportation from the territory of the Republic of Belarus to the territory of the states – members of the Eurasian Economic Union in accordance with clause 5 and 7 of this article is make within one hundred eighty calendar days from the date of shipment (transfer) of these goods (including those produced from give-and-take raw materials and materials). Indication in the tax declaration (calculation) for the value added tax turnovers on realization of goods (works) is made with regard to the mentioned time limit under the procedure determined by part eight–eleven of clause 2 of this article.

When goods are realized on the basis of contracts of commission, agency, and other similar civil-law contracts for the countdown of the time limit established by this clause, the day of shipment is deemed to be the date of shipment of goods by the commissioner, agent or another similar person to the buyer.

9. 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 sub-clause 1.1 of 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 specified in part one of this clause is performed by the successor(s) under the procedure determined by parts eight–eleven of clause 2 of this article with regard to the time limit established by the legislation for confirmation of the actual exportation of goods outside the Republic of Belarus.

10. Payers that have the right to apply the rates of the value added tax in the amount specified in sub-clause 1.1 and 1.2 of clause 1 of this Article may apply the rate of the value added tax specified in sub-clause 1.3 of clause 1 of this Article.

Payers have the right to apply the rate of the value added tax specified in sub-clause 1.3 of clause 1 of this article on operations exempted from taxation, and also on operations 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 states – members of the Eurasian Economic Union).

Payers that have the right to apply the rates of the value added tax according to sub-clause 1.1 of clause 1 of this article may, upon realization of goods specified in sub-clause 1.2 of clause 1 of this article, apply the rate of the value added tax specified in sub-clause 1.2 of clause 1 of this article, if the place of realization of such goods is recognized the territory of the Republic of Belarus.

11. The ground for application of the rate of the value added tax in the amount of zero (0) percent on goods of own production specified in indent six of part one of sub-clause 1.1.1 of clause 1 of this article shall be the fact that the payer has the following documents:

contract of sale concluded by him with the owner of a duty-free shop, included into the register of owners of duty-free shops;

consignment note confirming his shipping of goods of own production to the owner of a duty-free shop with indication of the rate of the value added tax in the amount of zero (0) percent;

copies of declaration for goods of own production placed under the customs procedure of duty-free trade or copies of the external presentation of declaration for goods of own production placed under the customs procedure of duty-free trade if such declaration have been presented to the tax body by the owner of a duty-free shop in the form of an electronic document. The mentioned copies of documents are certified by the stamp and signature of the head of the legal person being the owner of the duty-free shop or of a person authorized by him;

certificate of own production, issued under the procedure established by the legislation;

register of documents confirming the realization of goods of own production to the owners of duty-free shops according to the form approved by the Ministry on Taxes and Dues of the Republic of Belarus, which the payer presents to the tax body at the place of putting on record simultaneously with the tax declaration (calculation) on the value added tax.

12. The ground for application of the rate of the value added tax in the amount of zero (0) percent upon realization of bunker fuel specified in indent eight of part one of sub-clause 1.1.1 of clause 1 of this article shall be the fact that the payer has the following documents:

12.1. contract with a foreign air company stipulating and/or including realization of bunker fuel – when regular flights are carried out;

12.2. request of the foreign air company and/or contract (agreement) with a foreign air company – when irregular flights are carried out.

In this instance the request must state the following data:

name of the air company with indication of the foreign state in which it is registered;

supposed quantity of bunker fuel required for the resupply of the aircraft;

date of supposed landing of the aircraft.

Upon a landing of the foreign aircraft due to force-majeure circumstances, the request provided for by this sub-clause is not to be completed.

for the purposes of this clause:

the regular flight is deemed to be a flight of the aircraft made along the route in accordance with the established timetable;

the irregular flight is recognized a flight not covered by the definition of the regular flight;

12.3. demand for resupply of the foreign aircraft which must state the following data:

name of the foreign air company;

quantity of supplied bunker fuel;

date of fuelling of the foreign aircraft;

signature of the captain of the foreign air craft or a representative of the foreign air company and a collaborator of the respective service of the payer that carried out the fuelling;

12.4. documents confirming the refueling of the foreign aircraft with bunker fuel;

12.5. statement of the authorized body in the sphere of civil aviation, confirming the fact of an international flight and/or or international air carriage, carried out by the aircraft of the foreign air company, and also quantity and value of realized bunker fuel (for air companies) according to the form approved by the Ministry of Transport and Communications of the Republic of Belarus, which the payer presents, which the payer presents to the tax body at the place of its putting on record simultaneously with the tax declaration (calculation) on the value added tax.

13. The ground for application of the rate of the value added tax in the amount of zero (0) percent upon realization of services specified in indent nine of part one of sub-clause 1.1.1 of clause 1 of this article shall be the fact that the payer has the following documents:

contract (agreement) on the basis of which the realization of services is carried out;

documents confirming the rendering of services;

register of documents confirming the rendering of services on servicing aircraft carrying out international flights and/or international air carriage with indication of description of such services, which the payer presents to the tax body at the place of its putting on record simultaneously with the tax declaration (calculation) on the value added tax. The form of the mentioned register and the procedure for its completion are approved by the Ministry on Taxes and Dues of the Republic of Belarus.

14. For the purposes of indent ten of part one of sub-clause 1.1.1 of clause 1 of this Article and this sub-clause:

authorized servicing center is understood to be a legal person of the Republic of Belarus that concluded with a manufacturing plant of vehicles or its official representative a contract stipulating the right of guarantee maintenance (repair) of vehicles or a contract on servicing partnership (servicing contract);

vehicles include vehicles registered in foreign states:

of M3 category – vehicles used for carriage of passengers, having apart from the driver’s seat more than eight seats, technically permitted mass of which exceeds 5 tons;

of N2 category – vehicles intended for carriage of cargo, having technically permitted mass of above 3.5 tons, but not more than 12 tons;

of N3 category – vehicles intended for carriage of cargo, having technically permitted mass of above 12 tons;

of O3 category – trailers technically permitted mass of which is above 3.5 tons, but not more than 10 tons;

of O4 category – trailers technically permitted mass of which is above 10 tons

The ground for application of the rate of the value added tax in the amount of zero (0) percent upon realization of works (services) specified in indent ten of part one of sub-clause 1.1.1 of clause 1 of this Article shall be the fact that the payer has the following documents:

contract with a manufacturing plant of vehicles or its official representative stipulating the right of guarantee maintenance (repair) of vehicles or a contract on servicing partnership (servicing contract);

contract concluded by the payer with an insurance organization or with foreign organization or natural person, with the exception of the citizen of the Republic of Belarus, on performance of works (rendering of services) on repair, technical maintenance of a vehicle registered in a foreign state;

document under which a damaged vehicle of a foreign organization or natural person, with the exception of the citizen of the Republic of Belarus, is directed by an insurance organization to the payer for performance of renovation repair;

copy of the certificate of vehicle registration in the foreign state or another registration documents of the foreign state for the vehicle;

document confirming the fact of performance of works (rendering of services) by the payer on repairs, technical maintenance of the vehicle registered in the foreign state, referred to M3, N2, N3, О3 or О4 category

register of documents confirming performance of works (rendering of services) on repairs, technical maintenance of vehicles registered in foreign states (to be presented by the payer to the tax body at the place of putting on record simultaneously with the tax body simultaneously with the tax declaration (calculation) for the value added tax). The form and procedure for completion of the register of documents confirming performance of works (rendering of services) on repairs, technical maintenance of vehicles registered in foreign states are approved by the Ministry on Taxes and Dues of the Republic of Belarus.

15. The ground for application of the rate of the value added tax in the amount of zero (0) percent upon realization of works (services) specified in indents eleven – fourteen of part one of sub-clause 1.1.1 of clause 1 of this Article shall be the fact that the State Association "The Belarusian Railway" has the following documents:

contract (agreement) with organizations of public railway transport of foreign states;

pay-sheet drawn up with organizations of public railway transport of foreign states;

train transfer (car) list (upon settlements with organizations of public railway transport of adjoining foreign states for services on providing into use of freight cars, refrigerated cars, containers, bogies;

day book of reset cars (upon realization of works (services) on putting of passenger cars on bogies of another gauge);

locomotive driver itinerary (upon realization of works (services) on work of locomotives and locomotive crews);

register of documents confirming performance (rendering) to organizations of public railway transport of foreign states of works (services) on providing into use of freight cars, containers, bogies, refrigerated cars, on putting of passenger cars on bogies of another gauge), on work of locomotives and locomotive crews), which the State Association "The Belarusian Railway" shall submit to the tax body at place of putting on record simultaneously with the tax declaration (calculation) for the value added tax. The form of the mentioned register and the procedure for its completion are approved by the Ministry on Taxes and Dues of the Republic of Belarus.

Article 1021. Conditions, procedure and time limits of return of the value added tax to foreign persons upon acquisition of goods through shops

1. Upon acquisition of goods the value of which on a payment document (payment documents) confirming the payment for the goods (later on in this article – payment document) exceeds the sum of 80 Belarusian rubles (with account of the value added tax) within one day in the shop of the payer that concluded the contract on rendering services on return of the value added tax to foreign persons with an organization that has the right to return the value added tax to foreign persons (later on in this article – foreign persons) are entitled to receive, in the amount, time limits and under the procedure, determined by the Council of Ministers of the Republic of Belarus, the return of the sum of valued added tax in the event of exportation of these goods outside the customs territory of the Eurasian Economic Union within three months from the day of acquisition thereof.

2. Return of the value added tax is not performed concerning the goods:

exempted from the value added tax in accordance with the legislation upon importation into the territory of the Republic of Belarus;

turnovers on realization of which in the territory of the Republic of Belarus are exempted from the value added tax in accordance with the legislation;

levied with the value added tax in the amount of ten (10) percent in accordance with sub-clause 1.2 of clause 1 of article 102 of this Code;

recognized excisable in accordance with clause 1 of article 111 of this Code.

3. The value added tax is subject to return to a foreign person by the organization that has the right to return the value added tax to foreign persons, which concluded a contract on rendering services with the payer that realized the good to the foreign person through the shop, after the foreign person submits to its address the confirmation of exportation of the goods outside the customs territory of the Eurasian Economic Union.

Confirmation of exportation by the foreign person outside the customs territory of the Eurasian Economic Union of the goods realized through shops shall be a cheque in the special form “Чек на возврат НДС (Cheque for the VAT return)”, containing obligatory details provided for by this Article, notice of the customs body of a member state of the Eurasian Economic Union confirming the movement of the goods outside the customs territory of the Eurasian Economic Union along with a payment document enclosed of the shop thereto confirming the payment for the exported good, in which the rate and the sum of the value added tax are specified (later on in this Article – confirmation about the exportation of the good). The procedure of issuance of the confirmation about the exportation of the goods outside the customs territory of the Eurasian Economic Union is established by the Council of Ministers of the Republic of Belarus, unless otherwise established by treaties of the Republic of Belarus and/or acts constituting the law of the Eurasian Economic Union. Confirmation about the exportation of the good must be presented to the organization that has the right to return the value added tax to foreign persons within six months from the date of exportation of the good outside the customs territory of the Eurasian Economic Union.

The cheque for the VAT return is drawn up in two copies and must contain the following mandatory requisites in Russian and English (the first copy is to be handed to the foreign person, the second one is to be kept by the payer that realized the goods through the shop):

title of the document (“Чек на возврат НДС (Cheque for the VAT return)”), its number and the date of drawing up;

name, address of the place of location and the accounting number of the payer that realized the good the shop;

name, address of the place of location and the accounting number of the payer of the organization that has the right to return the value added tax to foreign persons;

surname, own name, patronymic (if available) of the buyer – foreign person, details of his exit travel document, indication of the state of his permanent residence;

description and quantity of the acquired good;

sum of the purchase with the value added tax and without the value added tax on the payment document of the shop;

rate of the value added tax in the amount of twenty (20) percent and the sum of the value added tax according to the payment document of the shop;

sum of the value added tax to be returned to the foreign person by the organization that has the right to return the value added tax to foreign persons;

number of the payment document of the shop confirming the realization of the good specified in the cheque for the VAT return;

signature of the person that drew up the cheque for the VAT return.

4. Confirmation about the exportation of the good is presented by the foreign person to the address of the organization that has the right to return the value added tax to foreign persons under the procedure established by this organization.

The organization that has the right to return the value added tax to foreign persons and that carried out the return of the value added tax to a foreign person presents for reimbursement of the sum of the value added tax to the payer that realized the good to the foreign person through the shop with which it concluded the contract on rendering services. Information about the payers with which the organization that has the right to return the value added tax to foreign persons concluded the contract on rendering services and also about the sums of the value added tax returned to foreign persons is presented monthly by such organization to the tax body at the place of putting on record according to the form and under the procedure established by the Council of Ministers of the Republic of Belarus.

The sum of the value added tax presented for reimbursement on which the return has been performed to the foreign person is indicated in the act on reimbursement of sums of the value added tax, which is to be drawn up by the organization that has the right to return the value added tax to foreign persons. The act on reimbursement of sums of the value added tax in two copies is sent, till the 15 day of each month, for signing to the payer that realized the good to the foreign person through the shop and indicated in the confirmation about exportation of the good. The form of act on reimbursement of sums of the value added tax and the procedure of its completion are approved by the Ministry on Taxes and Dues of the Republic of Belarus. The act on reimbursement of sums of the value added tax is accompanied by the originals of confirmation about the exportation of the goods, unless otherwise established by the Council of Ministers of the Republic of Belarus.

The act on reimbursement of sums of the value added tax signed by the parties of the contract on rendering services is the documentary confirmation of exportation of goods by the foreign person outside the customs territory of the Eurasian Economic Union for the payer that realized the good to the foreign person through the shop.

The payer that realized the good to the foreign person through the shop shall, within seven working days after the signing of the act on reimbursement of sums of the value added tax being the documentary confirmation of exportation of the good outside the customs territory of the Eurasian Economic Union (unless another time limit is established in the contract on rendering services), remit the sums of value added tax presented for reimbursement to the account of the organization that has the right to return the value added tax to foreign persons, open in a bank of the Republic of Belarus.

Article 103. Procedure of calculation of the value added tax upon realization of goods (works, services), property rights. Sum of the value added tax subject to be paid to the budget

1. When goods (works, services), property rights are realized, the value added tax is calculated on an accrual basis from the beginning of the tax period upon expiry of each tax period on all operations on realization of goods (works, services), property rights and on all changes of the tax base in the respective tax period.

2. The sum of value added tax is calculated as a product of the tax base and the tax rate.

3. The sum of value added tax calculated in accordance with clause 2 of this Article is presented by the payer, when goods (works, services), property rights are realized, for payment to the buyer of these goods (works, services), property rights under the procedure established by Article 105 of this Code.

4. The total sum of value added tax to be established according to results of the reporting period on all operations on realization of goods (works, services), property rights and on all changes of the tax base is determined via addition of the sums calculated in accordance with clause 2 of this Article.

5. The sum of value added tax subject to be paid to the budget is determined as the difference between the total sum value added tax calculated according to results of the reporting period and the sums of tax deductions.

In the instances provided for by clause 23 of article 107 of this Code and in the instances established by the President of the Republic of Belarus, deducting of the sums of value added tax is performed in total volume irrespective of the sums of value added tax calculated for realization of goods (works, services), property rights.

In other instances, deducting of the sums of value added tax is performed on an accrual basis within the limits of the sums of value added tax calculated for realization of goods (works, services), property rights.

6. If the sum of tax deductions according to the tax declaration (calculation) for the value added tax exceeds the total sum of value added tax calculated on realization of goods (works, services), property rights, the payer does not pay the value added tax, and the difference between the sum of tax deductions and the total sum of value added tax calculated on realization of goods (works, services), property rights is subject to be deducted as a matter of priority from the total sum of value added tax in the next reporting (tax) period or to be returned to the payer under the procedure established by this Code. In this instance the return of the difference between the sum of tax deductions and the total sum of value added tax calculated on realization of goods (works, services), property rights is made without charging the penalty interest.

The return of the difference between the sum of tax deductions and the total sum of value added tax calculated on realization of goods (works, services), property rights is made upon the decision of the tax body at place of putting on record of the payer with the exception of the instance provided for by part three of this clause.

The return of the difference between the sum of tax deductions and the total sum of value added tax calculated on realization of goods (works, services), property rights via its setoff towards the value added tax subject to be paid on realization of goods (works, services), property rights is carried out without taking the decision on performing the return.

The decision to refuse (in full or in part) the return 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 shall be taken by the tax body not later than within two working days from the day of submission by the payer of the application for the return and when there is the tax declaration (calculation) in the tax body, and an inspection is being conducted – not later than within two working days from the day of termination of the inspection. The tax body is entitled, on its own initiative or on the initiative of the payer, to perform, under the established procedure, an unscheduled inspection of soundness of the return (setoff) of these the difference between the sum of tax deductions and the total sum of value added tax computed on realization goods (works, services), property rights, the appointment of which shall be carried out not later than within two days from the day of submission by the payer of the application about the return. The time limit for such an inspection should not exceed fifteen working days, and for a payer with the status “Best payer of taxes, dues” or when the payer has turnovers on realization of exported petroleum products in the inspected period – five working days, from the day of submission by the payer of the application about the return.

7. The return of the difference between the sum of tax deductions and the total sum of value added tax calculated on realization of goods (works, services), property rights is performed under the following procedure:

7.1. within one month, and for a payer with the status “Best payer of taxes, dues” or when the payer has turnovers on realization of exported petroleum products in the period for which the return is performed – within ten working days, from the day when the tax body has taken the decision about the return 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, the said difference is subject to be setoff in the following priority against:

current payments on taxes, dues (duties), and other obligatory payments to the budget;

repayment of the indebtedness and penalty interest on taxes, dues (duties), and other obligatory payments to the budget;

repayment of the indebtedness on fines imposed by the tax bodies.

Tax bodies shall, not later than five working days from the day following the day of the decision about return of the difference between the sum of tax deductions and the total sum of value added tax calculated on realization of goods (works, services), property rights or five working days from the day following the day of arising of an indebtedness on taxes, dues (duties), penalty interest, other obligatory payments to the budget, including fines imposed by the tax bodies, perform the setoff specified in this sub-clause and inform the payer about it within five working days from the day of its performance.

The decision taken by the tax body on the application of the payer for the return of the difference between the sum of tax deductions and the total sum of value added tax calculated on realization of goods (works, services), property rights within the period of performing setoffs on previous decisions is accepted for execution upon the full setoff of the difference between the sum of tax deductions and the total sum of value added tax calculated on realization of goods (works, services), property rights on previous decisions or upon expiry of one month, and for a payer with the status “Best payer of taxes, dues” or when the payer has turnovers on realization of exported petroleum products in the period the return is performed – upon expiry of ten working days, from the day when the tax body has taken the previous decision;

7.2. the sum remaining after the performance of the setoff is subject to be returned to the payer from the budget not later than five working days from the day of termination of the time limit established for performing the setoff under the procedure determined by the Ministry of Finance of the Republic of Belarus and the Ministry on Taxes and Dues of the Republic of Belarus.

71. In the event when the fact of difference between the sum of tax deductions and the total sum of value added tax computed on realization of goods (works, services), property rights, groundlessly presented by the payer for return, has been established by the inspection or in relation with submission of the tax declaration (calculation) for the value added tax with amendments and/or changes introduced, the inspection takes a decision on annulment (in full or in part) of the decisions adopted in accordance with part four of clause 6 of this Article not later than within two working days from the day of establishing such a fact or from the day of termination of the inspection. The decision about the annulment shall be directed to the payer not later than within five working days from the day of its adoption.

The tax body shall, not later than within two working days following the day of issuance of the decision about annulment, carry out:

in the first place – cancellation of setoffs conducted earlier in accordance with part one of sub-clause 7.1 of clause 7 of this Article in the sequence of sums of difference between the sum of tax deductions and the total sum of value added tax calculated on realization of goods (works, services), property rights declared by the payer (another obliged person) for setoff in the declaration about return submitted in accordance with part four of clause 6 of this Article;

in the second place – cancellation of the setoff conducted in accordance with part two of sub-clause 7.1. of clause 7 of this Article for repayment of the formed indebtedness on taxes, dues (duties), penalty interest and other obligatory payments to the budget, including fines imposed by the tax bodies;

in the third place – cancellation of the return from the budget of the difference between the sum of tax deductions and the total sum of value added tax calculated on realization of goods (works, services), property rights remained after the conducting of the setoff.

The payer is obliged to pay to the budget the sum of the difference between the sum of tax deductions and the total sum of value added tax calculated on realization of goods (works, services), property rights, groundlessly presented by him for the return from the budget.

While applying modes of security for the payment of and the penalty interest charged on this the sum and also while collecting the sum of the difference between the sum of tax deductions and the total sum of value added tax calculated on realization of goods (works, services), property rights and the penalty interest, the tax bodies have the rights and bear the duties, established for applying modes of security of fulfillment of the tax obligations, payment of the penalty interest and collection of taxes, dues (duties) and the penalty interest.

In doing so the interest penalty shall be charged in the order established by this Code for each calendar day of using the monetary means in the sum of the difference between the sum of tax deductions and the total sum of value added tax calculated on realization of goods (works, services), property rights, groundlessly presented by him for the return from the budget, beginning from the day following the day of crediting of the monetary means to the account of the payer in the bank, including the day of payment (collection) thereof.

72. Forms of the decisions provided by part two of clause 6 and part one of sub-clause 7.1 of clause 7 of this Article are established by the Ministry on Taxes and Dues of the Republic of Belarus.

The application and information provided by part four of clause 6 and part two of sub-clause 7.1 of clause 7 of this Article shall be directed to the tax body or to the payer according to the established form on a paper-based carrier or according to established formats in the form of electronic document. Forms and formats of such application, information, and also the procedure for their sending to the tax body or the payer are established by the Ministry on Taxes and Dues of the Republic of Belarus.

8. Organizations and individual entrepreneurs put on record in the tax bodies of the Republic of Belarus, except for certain categories of payers specified in clause 1 of article 329 and clause 1 of clause 330 of this Code are obliged, when 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, with the exception of the instance established by part two of this clause, to calculated on established rates and to pay to the budget the sum of value added tax irrespective of the fact whether they are the payer according to their activity.

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 agency, commission and other similar civil-law contracts, 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, except for certain categories of payers specified in clause 1 of Article 329 and clause 1 of Article 330 of this Code, with the indicated foreign organizations are obliged to calculate according to established rates and to pay to the budget the sum of value added tax irrespective of the fact whether they are the payer according to their activity. This provision covers also the payers specified in clause 4 of Article 92 of this Code.

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, the sum of value added tax is calculated separately on each operation on realization of goods (works, services), property rights in accordance with clause 2 of this Article.

9. Payers carrying out retail trade and public catering may perform the calculation of the value added tax on goods based on the tax base the share of the sum of value added tax on goods available in the reporting period in the value of these goods (with account of all taxes, dues (duties) and other obligatory payments to the budget or state non-budgetary funds, collected upon realization of goods), including the goods exempted from the value added tax. The form of calculation of the value added tax based on the tax base and the share of the sum of value added tax upon realization of goods on retail prices and the procedure for its completion is approved by by the Ministry on Taxes and Dues of the Republic of Belarus.

For goods, including the imported ones, realized on free and regulated retail prices by the payers carrying out retail trade and public catering and receiving profit as a difference in prices, marks-on, charges, and calculating the value added tax in accordance with part one of this clause, the tax base shall be the value of realized goods (with account of all taxes, dues (duties) and other obligatory payments to the budget or state non-budgetary funds, collected upon realization of goods).

In the absence of separate accounting of the sums of value added tax included in the price of the good and also of separate accounting of turnovers on realization of goods taxable according to different tax rates, the calculation of the value added tax upon realization of goods at retail prices is performed according to the rate specified in sub-clause 1.3 of clause 1 of article 102 of this Code.

10. Upon change of the procedure for calculation of the value added tax (change of the composition of payers, taxation objects, tax base, moment of actual realization, rates, procedure for application of exemption from the taxation), the new procedure for calculation is applied:

in relation to shipped goods (executed works, rendered services), property rights, transferred from the moment of change of the procedure for calculation of the value added tax;

in relation to goods (works, services), property rights, 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 moment of actual realization of which occurred from the moment of change of the procedure for calculation of the value added tax;

in relation to objects of lease (leasing objects), the moment of putting (transfer) of which into lease (financial lease (leasing)) determined in accordance with clause 11 of Article 100 of this Code occurred from the moment of change of the procedure for calculation of the value added tax;

in relation to sums which increase the tax base for the value added tax in accordance with clause 18 of Article 98 of this Code, the reflection of which is performed in the accounting from the moment of changing the procedure of computation of the value added tax.

11. In the event of return of goods, property rights to the seller by the buyer (refusal of executed works, rendered services) or decreasing (increasing) of the value of goods (works, services), property rights at the sellers for the sum of turnover for realization of these goods (works, services), property rights, the turnovers on realization are to be decreased (increased) in the reporting period in which the return of the goods (refusal of executed works, rendered services), property rights (decreasing or increasing of the value of goods (works, services), property rights), and the buyers perform a respective correction of tax deductions in this reporting period. This provision is not applied in relation to goods returned to their seller for repair, unless their value changes.

In relation to goods (works, services), property rights, return of which (refusal of which) or decrease of the value of which is effected within the period of application by the buyers of the special taxation regime without payment of the value added tax and turnover on realization of which was taken by him in account while determining the tax base for value added tax in the reporting period preceding the tax period in which return of goods (refusal of works executed, services rendered), property rights or decrease of the price of goods (works, services), property rights, changes in the part of correction of turnovers on realization established by part one of this clause shall be entered into the tax declaration (calculation) for value added tax for such preceding tax period.

Provisions of part one of this clause are subject to application also by the buyer that applied the special taxation regime without payment of the value added tax in the period of return of goods (refusal of performed works, rendered services), property rights or decrease of the value of goods (works, services), property rights if sums of value added tax presented upon acquisition thereof were taken into account by him in tax deductions within the tax period preceding the tax period in which return of goods (refusal of performed works, rendered services), property rights or decrease of the value of goods (works, services), property rights were effected.

Provisions of parts two and three of this clause are to be applied by the seller (buyer) – individual entrepreneur not being the payer of value added tax upon realization of goods (works, services), property rights.

In the event of writing down and/or writing off printing runs of periodic printed mass media not realized by legal persons carrying out trade in the territory of the Republic of Belarus and communication organizations within the time limits established by the contract, which in accordance with the conditions of the contract are not subject to return and settlements for which are not effectuated, the turnovers of legal persons on which functions of editorial boards of printed mass media are imposed (sellers) on realization of the reporting period in which writing down and/or writing off printing runs of periodic printed mass media not realized at retail prices has been carried out shall be decreased by the sum of turnover on realization of these periodic printed mass media, and for legal persons carrying out trade in the territory of the Republic of Belarus and communication organizations (buyers) a corresponding correction of tax deductions shall be carried out in this reporting period.

Decrease of turnovers on realization in the instances established by parts one, two and four of this clause shall be carried out by the seller on the basis of an corrected (additional) electronic invoice presented to the buyer, signed by the buyer by the electronic digital signature, if the electronic invoice presented earlier by the seller was signed by the buyer by the electronic digital signature.

Article 104. Procedure of computation of the value added tax collected by the customs bodies. Sum of the value added tax subject to be paid to the budget

1. The sum of value added tax collected by the customs bodies upon importation of goods into the territory of the Republic of Belarus subject to be paid to the budget is determined as the product of the taxation base and the tax rate.

2. Specific features of computation of the sum of value added tax subject to be paid to the budget and collected by the customs bodies upon importation of goods into the territory of the Republic of Belarus, depending on the customs procedure, are established by the customs legislation of the Customs Union, the Law of the Republic of Belarus "On customs regulation in the Republic of Belarus" and/or acts of the President of the Republic of Belarus.

3. Declarations for goods with the notices of the customs body about the release of goods in accordance with the declared customs procedure and copies of payment documents confirming the fact of payment of the value added tax collected by the customs bodies are control documents and serve as a ground for application of tax deductions.

Article 105. Sum of value added tax presented for payment by the payer to the buyer of goods (works, services), property rights

1. When goods (works, services), property rights are realized at free selling prices (with account of excises for excisable goods) or tariffs, the payer is obliged, in addition to the price (tariff) of goods (works, services), property rights, to present for payment to the buyer of these goods (works, services), property rights the respective sum of value added tax.

This provision is not applied when the payer realizes goods at regulated retail prices, if these prices already include the value added tax.

2. The sum of value added tax presented by the payer to the buyer of goods (works, services), property rights is determined on each kind of goods (works, services), property rights.

3. [Excluded]

31. In electronic invoices and primary accounting and settlement documents the respective sum and the rate of value added tax shall be indicated as a separate entry.

4. When goods (works, services), property rights are realized at regulated retail prices (tariffs), the respective sum of value added tax is included in these prices (tariffs). In these instance the respective sum of value added tax is not indicated as a separate entry on labels of the goods and price tickets, and also on receipts and other documents handed to the buyer.

When goods are realized at regulated retail prices, the payers of value added tax that realize the goods are obliged, at the request of buyers, to indicate in the documents the rate of value added tax at which this good is levied and the sum of value added tax. Payers of value added tax that calculated the value added tax with application of specific features set by clause 9 of Article 103 of this Code are entitled to indicate the sum and the rate of the value added tax based on the calculation available at the beginning of the current month. The sum and the rate of the value added tax, indicated in the documents, are certified by the seal or stamp of the buyer and the signature of the chief accountant or a person authorized by him.

41. Upon realization of goods at retail prices, payers that realize goods and indicated in documents the rate and the sum of value added tax according to part two of clause 4 of this Article are obliged, at the request of buyers, to present an electronic invoice in which will be indicated the rate of value added tax on which that good is taxable and the sum of value added tax. Payers that calculated the value added tax with application of specific features set by clause 9 of article 103 of this Code are entitled to indicate the sum and the rate of the value added tax based on the calculation available at the beginning of the current month.

Payers of value added tax that acquire goods (works, services), property rights through accountable persons are entitled to submit a request in an optional form for presentation of an electronic invoice to their address by the sellers of those goods (works, services), property rights being payers of value added tax. Sellers are obliged to present to the address of mentioned payers (buyers) of an electronic invoice having indicated the rate at which the given goods goods (works, services), property rights are taxable and the sum of value added tax.

5. Payers entrusted with the realization of the property alienated as a result of a requisition or confiscation according to the court decision to collect taxes, dues (duties) and penalty interest, fines for committing administrative offences and/or crimes via levying the execution on the property on obligations of the owner are entitled to indicate in the documents for the buyers the sums of value added tax singled out by themselves from the realization price and are obliged to present an electronic invoice at the request of buyers. Singling out of sums of value added tax in documents and indication of the sum of value added tax in an electronic invoice shall be effected at the rate at which the realization of such property is being levied.

6. [Excluded]

61. Organizations and individual entrepreneurs exempted from the calculation and payment of the value added tax, and also organizations and individual entrepreneurs which apply special regimes of taxation without calculation and payment of the value added tax, do not calculate the value added tax upon realization (shipment) of goods (works, services), property rights, electronic invoices present (direct) having regard to provisions of clause 7 of Article 1061, and draw up (make out) primary accounting documents applied upon realization (shipment) of goods (works, services), property rights without singling out the value added tax and without presenting those sums to the buyer. In that instance they make the note or put the stamp “Without VAT”, and upon realization of goods (works, services) specified in sub-clause 1.16 and 1.20 of clause 1 of Article 94 of this Code, they make a respective entry.

7. [Excluded]

71. Singling out of sum of value added tax to the participants (members) of organization upon presentation for reimbursement, in accordance with sub-clause 2.12.1 of clause 2 of article 93 of this Code, of the value of acquired (performed , rendered) works (services) is performed when the sums of value added tax are indicated in electronic invoice and primary accounting documents to such organizations by the sellers of those works (services).

Singling out by the lessor to the lessee, and also by the lessee to the lessor, of the sums of value added tax when the value of works (services) is presented for reimbursement in accordance with sub-clause 2.12.1 of clause 2 of Article 93 of this Code is performed when those sums are indicated accordingly for the lessor, and also for the lessee, by the sellers of such works (services) in electronic invoices and primary accounting documents.

When the commissioner (agent) realizes goods (works, services), property rights on the basis of contracts of commission, agency, and other similar civil-law contracts, the sums of value added tax calculated by the commitent (principal) are singled out for the buyer in the instance when the commitment (principal) is a payer of the value added tax in the Republic of Belarus, along with the sums of value added tax computed by the commissioner (agent) in accordance with Article 92 of this Code on goods (works, services), property rights of commitents (principals) the place of realization of which is the Republic of Belarus. Singling out by the commissioner (agent) to the buyer:

of the sums of value added tax computed by the commitent (principal) is performed when the commitent (principal) indicates those sums of value added tax for commissioners (agents) in electronic invoices and primary accounting documents of the commitent (principal);

of the sums of value added tax computed by the commissioner (agent) in accordance with Article 92 of this Code on goods (works, services), property rights of commitents (principals) is made upon presentation by the commissioner (agent) of electronic invoices to buyers on the basis of an electronic invoices presented by the commissioner (agent) according to indent two of part four of clause 8 of Article 1061 of this Code.

Singling out of the sums of value added tax by the seller of the goods when the value of services is presented for reimbursement in accordance with sub-clause 2.12.3 of clause 2 of article 93 of this Code is performed when then these sums of value added tax are indicated to the seller of the goods in electronic invoices and primary accounting documents by the payers that render the said services.

Singling out by the forwarding agent to the customer under the forwarding contract of the sums of value added tax on expenses reimbursed by the customer in accordance with sub-clause 2.12.5 of clause 2 of Article 93 of this Code is performed when those sums of value added tax are indicated in electronic invoices and primary accounting documents to the forwarding agent by the sellers of such goods (works, services), property rights, relating to such expenses.

When the ordering customer (builder) conducts construction in the interests of third parties (including interestholders) and transfer upon completion of the construction to a third persons (including interestholder) costs on construction of the object actually incurred by the ordering customer (builder) within the sum of the contract with the third person (including interestholder), sums of the value added tax on goods (works, services), property rights acquired (imported) by the ordering customer (builder) for conducting construction in the interests of third parties (including interestholders) and not being investments in long term assets of the ordering customer (builder). Singling out by the ordering customer (builder) of sums of the value added tax to a third person (including interestholder) shall be effected when those sums are indicated for the ordering customer (builder) in electronic invoices and primary accounting documents by sellers of such goods (works, services), property rights, when those sums of the value added tax are paid by the ordering customer (builder) upon importation of goods to the territory of the Republic of Belarus or when the ordering customer (builder) computed and paid those sums of the value added tax to the budget upon acquisition of goods (works, services), property rights in the territory of the Republic of Belarus from foreign organizations not being put on record in the tax bodies of the Republic of Belarus.

8. [Excluded]

81. The sums of value added tax excessively presented in electronic invoices and primary accounting documents by the seller to the buyers of goods (works, services), property rights – payers in the Republic of Belarus are subject to be computed and paid to the budget by that seller, with the exception of correction of excessively presented sums of value added tax on the basis of acts of settlement checking acts signed by the seller and the buyer and corrected (additional) electronic invoices being presented, signed by the seller – payer in the Republic of Belarus by the electronic digital signature. In the event of singling out in electronic invoices and primary accounting documents of the value added tax in the sum lesser than it is established in this Chapter, the computation and payment of the value added tax shall be effected by the buyer according to the respective rate established by Article 102 of this Code for such goods (works, services), property rights.

Buyers that acquired goods (works, services), property rights for which the seller – payer in the Republic of Belarus incorrectly indicated the sum of value added tax shall accept for deduction the sum of value added tax singled out by the seller in electronic invoices and primary accounting documents, with the exception of downward correction of the indicated sums of value added tax on the basis of settlement checking acts signed by the seller and the buyer regardless of the fact of presentation of corrected (additional) electronic invoices by the seller.

Payers that incorrectly singled out the rate and the sum of value added tax in electronic invoices and primary accounting documents upon realization of goods (works, services), property rights due to the retrospective effect given to normative legal acts, and also payers that acquired those goods (works, services), property rights from them, shall compute and pay and, accordingly, accept for deduction the sum of value added tax singled out by the seller in electronic invoices and primary accounting documents upon realization of the goods (works, services), property rights, with the exception of downward correction of the rate and the sum of value added tax on part of the sellers – on the basis of acts of settlement checking acts signed by the seller and the buyer and corrected (additional) electronic invoices being presented, signed by the buyer – payer in the Republic of Belarus by the electronic digital signature and on part of buyers – on the basis of settlement checking acts signed by the seller and the buyer regardless of the fact of presentation of corrected (additional) electronic invoices by the seller.

Reduction of the computed sums of value added tax by the seller shall be effected on the basis of the settlement checking act signed by the seller and the buyer within the month of presentation of corrected additional electronic invoices by the seller and their signing by the buyer – payer in the Republic of Belarus by the electronic digital signature. Reduction of the sums of tax deductions by the buyer shall be effected within the month when the settlement checking act between the seller and the buyer was drawn up and signed.

Provisions of this clause also cover:

commissioners (agents) and other similar persons that acquire goods (works, services), property rights on the basis of contracts of commission, agency, and other similar civil-law contracts and present the sums of value added tax for reimbursement to commitents (principals) and other similar persons;

organizations and individual entrepreneurs not being payers of the value added tax;

payers for which turnovers on realization of goods (works, services), property rights are exempted from the value added tax or are not the taxation object.

Provisions of this clause are not applied upon transfer of goods (works, services), property rights within on legal person and in the instances when the value added tax calculation is not performed thereon.

9. [Excluded]

91. 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), the trustee present, in electronic and primary accounting documents applied upon realization (shipment) of those goods (works, services), property rights, for payment to the buyer the respective sum of value added tax in the order established by this Article.

Article 106. Inclusion of the sums of value added tax into the costs on production and realization of goods (works, services), property rights, taken into account for the taxation, or assignment thereof on increasing the value of goods (works, services), property rights

1. Sums of value added tax are not included into costs of the payer on production and realization of goods (works, services), property rights, taken into account for the taxation, with the exception of the instances established by clauses 2 and 3 of this Article.

2. Sums of value added tax, with the exception of the sums of value added tax presented upon acquisition or paid upon importation of fixed assets and intangible assets, are included into the costs of the payer on production included into the costs of the payer on production and realization of goods (works, services), property rights, taken into account for the taxation, in the event of using acquired (imported) goods (works, services), property rights for production and/or realization of goods (works, services), property rights, operations on realization of which are exempted from the taxation.

Provisions of this clause are also applied:

in relation to turnovers on realization of goods 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;

by peasant’s (farmer’s) households being exempted from the value added tax according to clause 1 of Article 328 of this Code in the part of activity on production of produce of crop husbandry (with the exception of ornamental plants and produce of floriculture), produce of animal husbandry (except for fur farming), fish husbandry and apiculture

Provisions of this clause are not applied in relation to turnovers on realization of:

goods (works, services), property rights by organizations (affiliates, representative offices and other separate subdivisions of legal persons of the Republic of Belarus) registered as payers outside the Republic of Belarus;

goods specified in part one of sub-clause 23.6 and/or part one of sub-clause 23.7 of clause 23 of article 107 of this Code, deducting of the sums of value added tax on which is performed in total volume.

3. In the event of using acquired (imported) goods (works, services), property rights for production and/or realization of goods (works, services), property rights, operations on realization of which are exempted from the taxation, and goods (works, services), property rights operations on realization of which are subject to the taxation, inclusion of the sums of value added tax, with the exception of the sums of value added tax presented upon acquisition or paid upon importation of fixed assets and intangible assets, into the costs of the payer on production and realization of goods (works, services), property rights, taken into account for the taxation, is performed on an accrual basis from the beginning of the year based on the share of the turnover of operations on realization of goods (works, services), property rights exempted from the taxation in the total volume of the turnover on realization of goods (works, services), property rights.

Provisions of this clause are also applied:

in relation to turnovers on realization of goods 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;

by peasant’s (farmer’s) households being exempted from the value added tax according to clause 1 of Article 328 of this Code in the part of activity on production of produce of crop husbandry (with the exception of ornamental plants and produce of floriculture), produce of animal husbandry (except for fur farming), fish husbandry and apiculture

Provisions of this clause are not applied in relation to turnovers on realization of:

goods (works, services), property rights by organizations (affiliates, representative offices and other separate subdivisions of legal persons of the Republic of Belarus) registered as payers outside the Republic of Belarus;

goods specified in part one of sub-clause 23.6 and/or part one of sub-clause 23.7 of clause 23 of article 107 of this Code, deducting of the sums of value added tax on which is performed in total volume.

4. Sums of value added tax presented upon acquiring or paid upon importation of goods (works, services), property rights into the territory of the Republic of Belarus, including fixed assets and intangible assets, may be assigned by the payers on increasing of the value of goods (works, services), property rights.

Organizations that do not carry out entrepreneurial activity in the territory of the Republic of Belarus (including foreign organizations and representative offices of foreign organizations accredited under the established procedure) assign the sums of value added tax presented upon acquiring or paid upon importation of goods (works, services), property rights into the territory of the Republic of Belarus on increasing of the value of goods (works, services), property rights.

5. Payers that realize acquired goods turnovers on realization of which are exempted from the taxation assign the sums of value added tax presented upon acquiring or paid upon importation of goods (works, services), property rights into the territory of the Republic of Belarus on increasing of the value of goods on the date of putting the goods on records.

Individual entrepreneurs not recognized as payers of the value added tax (with the exception of the value added tax collected upon importation of goods into the territory of the Republic of Belarus) assign the sums of value added tax paid by them upon importation of goods or present to them upon acquisition of goods (works, services), property rights, and also the sums of value added tax paid to the budget upon acquisition of goods (works, services), property rights in the territory of the Republic of Belarus from foreign organizations not put on record in the tax bodies of the Republic of Belarus, on increasing of the value thereof. This provision covers also individual entrepreneurs that purchase (import) goods (works, services), property rights, upon realization (shipment) of which they calculated the value added tax in accordance with clause 81 of Article 105 of this Code.

6. Individual entrepreneurs that ceased to be recognized as payers assign the sums of value added tax presented to them upon acquisition or paid upon importation of goods (works, services), property rights into the territory of the Republic of Belarus, not accepted for deduction in the reporting period in which they were recognized as payers, on increasing of the value thereof.

7. Organizations and individual entrepreneurs that apply special regimes of taxation without calculation and payment of the value added tax assign the sums of value added tax presented upon acquiring or paid upon importation of goods (works, services), property rights into the territory of the Republic of Belarus, and also the sums of value added tax paid to the budget upon acquisition of goods (works, services), property rights in the territory of the Republic of Belarus from foreign organizations not put on record in the tax bodies of the Republic of Belarus, on increasing of the value thereof. This provision covers also organizations and individual entrepreneurs that purchase (import) goods (works, services), property rights, upon realization (shipment) of which they calculated the value added tax in accordance with clause 81 of Article 105 of this Code.

Article 1061. Electronic invoice

1. Electronic invoice is an obligatory electronic document for all payers of value added tax specified in indents two – four of Article 90 of this Code (with the exception of foreign organizations not being put on record in the tax bodies of the Republic of Belarus) for which a taxation object for value added tax, including the duty on computing the value added tax in accordance with provisions of Article 92 of this Code, or the duty to present (direct) an electronic invoice in accordance with provisions of this Article, serving as a ground for effecting settlements on the value added tax between the seller and the buyer and accepting sums of value added tax for deduction.

2. The form and format of the electronic invoice, the order of its creation (including completion), presenting (directing), receipt, signing and storage are approved by the Ministry on Taxes and Dues of the Republic of Belarus.

3. Electronic document flow of electronic invoices between sellers and buyers shall be carried out with use of the Portal of electronic invoices (hereinafter in this Article – Portal) being an information resource of the Ministry on Taxes and Dues of the Republic of Belarus.

4. An electronic invoice is created by a payer directly on the Portal or uploaded as a XML file prepared by the payer and is a source of data about computed and/or deductible sums of value added tax to be submitted to the taxation bodies.

The value of goods (works, services), property rights and sums of value added tax in an electronic invoice shall be indicated in the national currency of the Republic of Belarus.

5. The payer is obliged, unless otherwise established by this Article, to present in the order established by this Article to the buyer of goods (works, services), property rights or direct to the Portal an electronic invoice in relation to each turnover on realization of goods (works, services), property rights.

Electronic invoice shall be presented (directed) not earlier than on the day of shipment of goods (performance of works, rendering of services), transfer of property rights, determined in accordance with provisions of Article 100 of this Code and not later than on the 10th day of the month following the month of the day of shipment of goods (performance of works, rendering of services), transfer of property rights, unless otherwise established by this clause.

In the event if upon the expiration of the time limit established by part two of this clause, the moment of actual realization of goods (works, services), property rights, specified in part two of this clause, has not occurred or the data or primary accounting documents formalized in the established order, confirming the occurrence of the moment of actual realization of such goods (works, services), property rights, are absent, then an electronic invoice shall be presented (directed) not later than within two working days, accordingly, from the date of occurrence of the moment of actual realization of such goods (works, services), property rights or from the date of receipt of the data or primary accounting documents formalized in the established order, confirming the occurrence of the moment of actual realization of such goods (works, services), property rights, specified in part two of this clause. In that instance such electronic invoice shall indicate as the date of performance of the operation the date of occurrence of the moment of actual realization of such goods (works, services), property rights, being determined in accordance with clauses 1 and 2 of Article 921 and Article 100 of this Code.

Upon realization of goods (works, services), property rights, specified in indent two of part four of clause 8 of this Article, an electronic invoice shall be created and directed by the payer to the Portal on the day on which falls the moment of actual realization of goods (works, services), property rights, being determined in accordance with provisions clause 5 of Article 100 of this Code.

Upon exportation of goods (including those produced from give-and-take raw and materials) taxable at the value added tax rate in the amount of zero (0) percent, direction of the electronic invoice by the payer to the Portal shall be carried out with regard to the time limits determined by parts eight – ten of clause 2 of Article 102 of this Code, but not later than on 10th day of the month following the expiration of the reporting period for which turnovers on realization are reflected in the tax declaration (calculation) for the value added tax.

Upon realization of goods not taxable with the value added tax (exempted from the value added tax), deduction of sums of the value added tax on which shall be effected in full volume in accordance with provisions of this sub-clause of sub-clauses 23.4, 23.6, 23.7 of clause 23 of Article 107 of this Code, direction of the electronic invoice by the payer shall be carried out with regard to time limits (days) determined by parts five – seven of sub-clause 1.44 of clause 1 of Article 94, part five of sub-clause 23.6, parts six – eight of sub-clause 23.7 of clause 23 Article 107 of this Code, but not later than on the 10th day of the month following the expiration of the determined time limit.

6. Upon importation of goods into the territory of the Republic of Belarus an electronic invoice shall be created and directed by the payer to the Portal in the following order:

upon importation of goods into the territory of the Republic of Belarus from the territory of the member states of the Eurasian Economic Union – on the day on which falls the day of payment (setoff) of the value added tax, but not earlier than on the day of submission to the tax body of the declaration about importation of goods and payment of indirect taxes and not later than on 20th day of the month following the month of putting the imported goods on records. Upon payment (setoff) of sums of value added tax in parts after the 20th day of the month following the month of putting the imported goods on records, an electronic invoice shall be created and directed by the payer to the Portal in the specified order on each fact of payment (setoff) of the value added tax;

upon importation of goods into the territory of the Republic of Belarus, with the exception of importation from the territory of the member states of the Eurasian Economic Union – on the day on which falls the day of payment (setoff) of the value added tax, but not earlier than on the day of submission the customs body of the declaration for the goods confirming the release of goods in accordance with the declared customs procedure and not later than on the 10th day of the month following the month of release of goods in accordance with the declared customs procedure. Upon payment (setoff) of sums of value added tax in parts after the 10th day of the month following the month of release of goods in accordance with the declared customs procedure, an electronic invoice shall be created and directed by the payer to the Portal in the specified order on each fact of payment (setoff) of the value added tax.

7. Electronic invoice is not created by the payer upon:

realization of goods (works, services), property rights, not recognized as taxation objects for value added tax in accordance with Article 93 of this Code (with the exception of instances provided by clauses 14 and 15 of this Article) and/or normative legal acts of the President of the Republic of Belarus and not being subject to reflection in the tax declaration (calculation) for the value added tax;

on realization goods (works, services), property rights, turnovers on realization of which are exempted from the value added tax in accordance with clause 1 of Article 94 of this Code (with the exception of operations specified in sub-clauses 1.37 and 1.39 of clause 1 of Article 94 of this Code) and/or normative legal acts of the President of the Republic of Belarus;

realization by banks of operations specified in sub-clause 1.37 of clause 1 of Article 94 of this Code:

realization of operations on insurance (co-insurance, re-insurance) specified in sub-clause 1.39 of clause 1 of Article 94 of this Code:

realization in the territory of the Republic of Belarus of goods (works, services), property rights being exempted from the value added tax in accordance with the legislation by foreign organizations not put on record in the tax bodies of the Republic of Belarus;

realization of goods (works, services), property rights by the payers specified in Article 329 of this Code;

realization of goods (works, services), property rights by the payers specified in Article 330 of this Code provided that they meet the conditions established by the given Article;

importation of goods into the territory of the Republic of Belarus on the basis of contracts of commission (agency) and other similar civil-law contracts;

importation of goods into the territory of the Republic of Belarus by individual entrepreneurs not being payers of the value added tax upon realization of goods (works, services), property rights. This provision is not applied by individual entrepreneurs from the 1st day of the month in which they are recognized as payers of the value added tax upon realization of goods (works, services), property rights;

realization of goods (works, services), property rights, the tax base for value added tax on which in accordance with the legislation is recognized to be equal to zero (is equal to zero);

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Indent twelve of clause 7 of Article 1061 enters into force from January 1, 2018 in accordance with indent three of Article 8 of the Law of the Republic

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realization of services in electronic form by foreign organizations rendering services in the electronic form for natural persons;

realization of services on carriage between legal persons included in the consolidated balance sheet of main activity of the State Association "The Belarusian Railway", not being included in the tax base for value added tax in accordance with clause 9 of Article 98 of this Code.

8. Electronic invoice shall be created by the payer and directed to the Portal without the need of its presenting to the buyer of goods (works, services), property rights, unless otherwise established by provisions of clause 7 of this Article, upon:

realization of goods (works, services), property rights to buyers not being payers of the value added tax in the territory of the Republic of Belarus, with the exception of goods specified in indent five of this part;

realization of goods (works, services), property rights to foreign organizations;

realization of goods (works, services), property rights to foreign organizations turnovers on realization of which are exempted from the value added tax in accordance with Article 94 of this Code and/or normative legal acts of the President of the Republic of Belarus;

realization of goods on which the computation of the value added tax is carried out in accordance with peculiarities established by clause 9 of Article 103 of this Code to non-payers of the value added tax in the Republic of Belarus, with the exception of the instances when the buyer submitted a request for presentation of the electronic invoice and indication of the value added tax rate at which the given good is taxable and the sum of the value added tax;

realization of services in the instances when 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) is absent, and the tax base for the value added tax of the ordering customer (builder) is determined 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 third person (including the interestholder) in the construction of the object;

gratuitous transfer of goods (works, services), property rights, turnovers on transfer of which are not recognized as realization or taxation object for the value added tax, but are reflected in the tax declaration (calculation) for the value added tax, and tax deductions on which are carried out in accordance with provisions of clause 15 of Article 107 of this Code;

realization of transport services being exported, turnovers on realization of which are taxable with the value added tax at the rate in amount of zero (0) percent in accordance with indent four of part one of sub-clause 1.1.1 of clause1 and clause 4 of Article 102 of this Code.

In relation to goods (works, services), specified in indent two of part one of this clause, being realized to natural persons, the payer shall, according to results of the reporting period, create one final electronic invoice which shall be directed to the Portal not later than on the 5th day of the month following the expired reporting period.

In relation to goods specified in indent five of part one of this clause, the payer shall, according to results of the reporting period, create one final electronic invoice for the difference between the total sum of turnovers on realization of the specified goods and the sum of turnovers on realization on which the buyers submitted request for presentation of the electronic invoice, with indication of the value added tax computed on the specified difference, which shall be directed to the Portal not later than on the 5th day of the month following the expired reporting period.

Creation by the payer of an electronic invoice and direction thereof to the Portal shall be carried out also upon:

realization in the territory of the Republic of Belarus of goods (works, services), property rights by foreign organizations not put on record in the tax bodies of the Republic of Belarus, and computation of the value added tax by the payer in accordance with provisions of Article 92 of this Code;

importation of goods into the territory of the Republic of Belarus.

In relation to goods specified in indent three of part four of this clause, on which the customs control is carried out, and payment of the sum of value added tax is carried out in foreign currency, an electronic invoice shall be drawn up in Belarusian rubles based on the official rate of the Belarusian rouble to a corresponding foreign currency established by the National Bank of the Republic of Belarus on the day of release of goods in accordance with the declared customs procedure

9. Upon presentation (direction) of an electronic invoice the payer shall indicate:

on turnovers on realization of goods (works, services), property rights, taxable with the value added tax – sum of the value added tax computed and presented in accordance with provisions of Article 105 of this Code;

on turnovers on realization of goods (works, services), property rights, taxable with the value added tax in accordance with provisions of Article 92 of this Code – sum of the value added tax computed in accordance with clause 8 of Article 103 of this Code;

on turnovers on realization of goods (works, services), property rights, being exempted from the value added tax in accordance with provisions of Article 94 of this Code and/or normative legal acts of the President of the Republic of Belarus – notice "Without VAT";

on turnovers on realization of goods (works, services), property rights, not recognized as taxation objects for value added tax in accordance with this Code and/or normative legal acts of the President of the Republic of Belarus, but reflected in the established order in the tax declaration (calculation) for the value added tax – notice "Without Vat".

10. In the event of a need to introduce changes in an electronic invoice presented (directed) earlier, the payer shell perform annulment of details of the electronic invoice presented (directed) earlier through presentation (direction) of a corrected electronic invoice in which new details necessary for computation of the value added tax shall be indicated, including those equal to zero. A corrected electronic invoice shall contain reference to the number of the electronic invoice presented (directed) earlier and be signed by the electronic digital signature of the buyer in the event of presentation of the electronic invoice to the buyer.

Presentation (direction) of a corrected electronic invoice shall be carried out in the following instances:

upon arising of grounds for application of tax privileges, including application of reduced rates of the value added tax in the amount of zero (0) or ten (10) percent in relation to turnovers on realization of goods (works, services), property rights on which the value added tax was computed earlier at the rates in the amount of ten (10) or twenty (20) percent;

total return of goods by the buyer to the seller (total refusal of performed works, rendered services), property rights. In such a case the parameters of the tax base of the value added tax and computed sum of the value added tax shall be indicated with a zero value;

upon detection of incomplete data in the electronic invoice presented earlier or errors requiring the annulment of the mentioned invoice.

11. In the event of a need to correct parameters of the electronic invoice presented (directed) earlier, not requiring annulment of the parameters of the electronic invoice presented (directed) earlier, an additional electronic invoice shall be presented (directed) which must contain a reference to the number of the electronic invoice presented (directed) earlier.

Presentation (direction) of an additional electronic invoice shall be carried out in the following instances:

upon decreasing (increasing) of the value of goods (works, services), property rights, including the instances of writing-down and writing-off provided by part five of clause 11 of Article 103 of this Code;

upon partial return of goods by the buyer to the seller (partial refusal of performed works, rendered services), property rights;

upon increasing of the tax base of the value added tax by sums actually received (to be received) in accordance with provisions of clause 18 of Article 98 of this Code;

upon increasing (decreasing) of the tax base of the value added tax in accordance with provisions of part two of clause 6 and part two of clause 7 of Article 97 of this Code;

upon correction of the computed sum of the value added tax by the buyer in accordance with provisions of clause 81 of Article 105 of this Code.

When an additional electronic invoice is drawn up, a difference between the initial tax base and the tax base after the correction, and also the sum of the value added tax related to the given difference, shall be indicated.

In the event if the correction of the tax base of value added tax is carried out downwards, then the difference between the initial tax base and the tax base after the correction, and also the sum of the value added tax related to the given difference, shall be indicated with negative values.

When an additional electronic invoice is drawn up in connection with increasing of the tax base of the value added tax by sums actually received (to be received) in accordance with provisions of clause 18 of Article 98 of this Code (with the exception of instances of increasing (decreasing) of the tax base of the value added tax in accordance with provisions of part two of clause and part two of clause 7 of Article 97 of this Code), the payer shall direct the given additional electronic invoice only to the Portal without presentation thereof to the buyer of goods (works, services), property rights. In such a case a reference to the number of the electronic invoice presented (directed) earlier might not be made.

In relation to operations on which the payer creates one final electronic invoice in accordance with provisions of parts two and three of clause 8 of this Article, upon decreasing (increasing) of the value of goods (works, services), upon partial or total return of goods to the seller by the buyer (partial or total refusal of performed works, rendered services), upon increasing of the tax base of the value added tax by sums actually received (to be received), an additional electronic invoice shall not be presented. Increasing (decreasing) of the tax base of the value added tax and sums of value added tax shall be carried out in the final electronic invoice to be presented for the reporting period in which decreasing (increasing) of the value of goods (works, services), partial or total return of goods to the seller by the buyers (partial or total refusal of performed works, rendered services) are carried out.

12. Upon realization of goods (works, services), property rights on the basis of contracts of commission (agency) and other similar civil-law contracts, presentation of an electronic invoice to the buyer shall be carried out by the commissioner (agent) and another similar person on the basis of data of electronic invoices presented to the commissioner (agent) and other similar person by the commitent (principal) and other similar person, being payers of the value added tax in the territory of the Republic of Belarus. In this case the sum of value added tax on goods (works, services), property rights, reflected in the electronic invoice presented to the commissioner (agent) and other similar person by the commitent (principal) and other similar person shall be reflected in the electronic invoice being presented by the commissioner (agent) and other similar person to the buyer.

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, sums of the value added tax computed by the commissioner (agent) and other similar person in accordance with provisions of Article 92 if this Code shall be presented by the commissioner (agent) and other similar person in the electronic invoice being presented to the buyer on the basis of the electronic invoice being directed to the Portal in accordance with provisions of indent two of part four of clause 8 of this Article.

The amount of a turnover on realization of intermediary services shall be indicated in the electronic invoice being presented by the commissioner (agent) and to the commitent (principal) based on the sum of remuneration of the commissioner (agent) being payer of the value added tax in the Republic of Belarus.

13. Upon acquisition of goods (works, services), property rights on the basis of contracts of commission (agency) and other similar civil-law contracts, presentation of an electronic invoice to the commitent (agent) and other similar person shall be carried out by the commissioner (agent) and other similar person on the basis of the electronic invoice presented to the commissioner (agent) and other similar person by the seller of goods (works, services) being the payer of the value added tax in the Republic of Belarus. In this case the sum of value added tax on goods (works, services), property rights, reflected in the electronic invoice presented by the commissioner (agent) and other similar person to the commitent (principal) and other similar person shall be indicated from the electronic invoice of the seller presented to the commissioner (agent) and other similar person.

Upon importation into the territory of the Republic of Belarus of goods being acquired within the framework of fulfillment of contracts of commission (agency) and other similar civil-law contracts, sums of the value added tax paid by the commissioner (agent) and other similar person upon importation of goods shall be presented by the commissioner (agent) and other similar person in the electronic invoice being presented to the commitent (prinicipal) and other similar person.

The amount of a turnover on realization of intermediary services shall be indicated in the electronic invoice being presented by the commissioner (agent) and to the commitent (principal) based on the sum of remuneration of the commissioner (agent) being payer of the value added tax in the Republic of Belarus.

14. When buyers acquire goods (works,services), property rights which upon reimbursement of their value are not recognized as taxation object for the value added tax in accordance with provisions of sub-clause 2.12 of clause 2 of Article 93 of this Code, presentation of an electronic invoice to persons that reimburse the value of such acquired goods (works,services), property rights shall be carried out by the buyer on the basis of data of the electronic invoice presented by the buyer by the seller of goods (works,services), property rights, being the payer of the value added tax in the Republic of Belarus. In this case the sum of value added tax on goods (works, services), property rights, reflected in the electronic invoice presented according to clause 71 of Article 105 of this Code by buyer to persons that reimburse the value of acquired goods (works, services), property rights shall be indicated from the electronic invoice of the seller of goods (works, services), property rights.

15. When the ordering customer (builder) of construction in the interests of third persons (including interestholders) acquires goods (works, services), property rights and transfers upon completion of the construction to a third persons (including interestholder) actually incurred costs on construction of the object, presentation of an electronic invoice to third persons (including interestholders) shall be carried out by the ordering customer (builder) on the basis of data of the electronic invoice presented to the ordering customer (builder) by the seller of goods (works, services), property rights, being the payer of the value added tax in the Republic of Belarus. In this case the sum of value added tax on goods (works, services), property rights, reflected in the electronic invoice presented by the ordering customer (builder) to third persons (including interestholders) shall be indicated from the electronic invoice of the seller of goods (works, services), property rights.

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, sums of the value added tax computed by the ordering customer (builder) in accordance with provisions of Article 92 if this Code shall be presented by the ordering customer (builder) in the electronic invoice being presented to third persons (including interestholders) on the basis of the electronic invoice being directed to the Portal in accordance with provisions of indent two of part four of clause 8 of this Article.

Upon importation into the territory of the Republic of Belarus of goods being acquired within the framework of fulfillment of contracts of construction in the interests of third persons (including interestholders) and transfer upon completion of the construction to a third person (including interestholder) of sums of the value added tax paid by the ordering customer (builder) upon importation of goods shall be presented by the ordering customer (builder) in the electronic invoice being presented to third persons (including interestholders).

The amount of a turnover on realization of services of the ordering customer (builder) shall be indicated in the electronic invoice being presented by the ordering customer (builder) to third persons (including interestholders) based on the amount of the tax base for the value added tax of the ordering customer (builder) being the payer of the value added tax in the Republic of Belarus, determined in accordance with provisions of clause 24 of Article 98 of this Code.

16. Upon realization of forwarding services, presentation of an electronic invoice to the customer shall be carried out by the forwarding agent based on the amount of remuneration determined in accordance with provisions of clause 10 of Article 98 of this Code. Presentation of an electronic invoice to the customer in relation to expenses on engagement of carriers and other organizations and individual entrepreneurs, rendering services specified in the forwarding contract, but not included in the amount of remuneration of the forwarding agent, shall be carried out by the forwarding agent in accordance with provisions of clause 14 of this Article separately from the electronic invoice being presented by the forwarding agent to the customer in relation to his remuneration.

17. Affiliates, representations and other separate sub-divisions of legal persons of the Republic of Belarus, executing tax obligations of those legal persons in accordance with clause 3 of Article 13 of this Code, shall carry out presentation (direction) of electronic invoices in the order established by this Article for payers of the value added tax.

Upon transfer of goods (works, services), property rights by one of the separate sub-divisions, executing tax obligations of that legal person, and computation of the value added tax in accordance with part six of clause 21 of Article 107 of this Code, presentation of the electronic invoice by such separate sub-division shall be carried out in the order established by this Article for payers of the value added tax.

18. In case of realization of goods (works, services), property rights by simple partnerships (participants of the contract on joint activity) and/or trustees, fulfilling duties of payers of the value added tax, presentation of electronic invoices by such persons in relation to turnovers on realization of goods (works, services), property rights referred to activities of simple partnerships (participants of the contract on joint activity) and/or trustees shall be carried out in the order established by this Article.

19. Upon transfer of tax deductions in the order provided by clause 21 of Article 107 of this Code and/or the President of the Republic of Belarus, the transferring party shall present to the recipient of tax deductions an electronic invoice which indicates the transferred sums of the value added tax.

In this case the sum of value added tax on goods (works, services), property rights (in case of indication), indicated in the electronic invoice presented by the transferring party to the recipient, is not included in the total sum of the value added tax computed by the transferring party, but is subject to deduction in accordance with provisions of Article 107 of this Code.

The total sum of tax deductions for the transferring party is decreased by the sum of tax deductions being transferred in accordance with part one of this clause.

20. In case of impossibility to present (direct) electronic invoices in connection with inaccessibility of the Portal (including because of absence of electric power supply and/or breakdown of equipment (of a part thereof), insufficiency of resources of the Portal, inaccessibility or absence of telecommunication lines to the Portal, including insufficiency of channel width of telecommunication lines to the Portal, the payer is obliged, not later than five working days from the restoration of operability of the Portal, to present (direct) an electronic invoice in accordance with the requirements of this Article.

Article 107. Tax deductions and the procedure for application thereof

1. The total sum of value added tax determined in accordance with Article 103 of this Code is decreased by tax deductions established by this Article.

2. Tax deductions are deemed to be, unless otherwise established by clause 21 of this Article, the sums of value added tax:

2.1. presented by the buyers put on record in the tax bodies of the Republic of Belarus and being the payers to the payer upon acquisition by the latter of goods (works, services), property rights in the territory of the Republic of Belarus;

2.2. paid by the payer upon importation of goods into the territory of the Republic of Belarus;

2.3. paid to the budget upon acquisition of goods (works, services), property rights in the territory of the Republic of Belarus from foreign organizations not put on record in the tax bodies of the Republic of Belarus.

21. For individual entrepreneurs tax deductions are recognized sums of the value added tax, specified in clause 2 of this Article, with the exception of sums of the value added tax on goods (works, services), property rights, used for needs not related to carrying out entrepreneurial activity.

3. The sum of value added tax presented upon acquisition of goods (works, services), property rights in the territory of the Republic of Belarus is recognized the sum of value added tax singled out by the seller to the buyer, and also the sum of value added tax computed and paid to the budget upon acquisition of goods (works, services), property rights in the territory of the Republic of Belarus from foreign organizations not being put on record in the tax bodies of the Republic of Belarus.

The sum of value added tax paid upon importation of goods into the territory of the Republic of Belarus is deemed to be:

the sum of value added tax paid to the budget upon release of the goods in accordance with the declared customs procedure;

the sum of value added tax calculated and paid to the budget upon importation of goods from the territory of the member states of the Eurasian Economic Union.

4. The sums of value added tax paid by the payer upon importation of fixed assets and intangible assets into the territory of the Republic of Belarus or presented upon acquisition thereof are subject to be deducted in accordance with clause 6 of this Article.

Determination of sums of value added tax subject to be deducted on acquired (imported) fixed assets and intangible assets is performed based on the sums of value added tax falling on the full value thereof.

When leasing objects are acquired under contracts of financial leasing in the territory of the Republic of Belarus, the sums of value added tax in the part of contractual value of the leasing object are accepted for the payers under the procedure established for deducting of the value added tax on acquired fixed assets. Deduction of the value added tax by the lessee is performed based on the moment of receipt of the leasing object, determined in accordance with clause 11 of article 100 of this Code.

The sums of value added tax falling on the costs:

assigned on increasing of the value of fixed assets and intangible assets accepted for put on records earlier may be accepted for deduction under the procedure established for the value added tax on acquired fixed assets and intangible assets. Sums of value added tax falling on costs incurred by the payer prior to the beginning of reconstruction (modernization) of objects of fixed assets accepted earlier for putting on record and being investments in long term asses of the payer may be accepted for deductions in the order established for deduction of the value added tax on acquired fixed assets from the date of beginning of the construction;

on creation (installation, construction, fabrication) by the payer of objects of fixed assets and intangible assets may be accepted for deduction under the procedure established for deduction of the value added tax on acquired fixed assets. In that instance sums of value added tax falling on costs incurred by the payer prior to the beginning of construction of objects of fixed assets being created, accepted earlier for putting on record, and being investments in long term asses of the payer may be accepted for deductions in the order established for deduction of the value added tax on acquired fixed assets from the date of beginning of the construction;

on creation by the payer of objects of engineering, transport, social infrastructure, finished by construction, but not registered in the established order as objects of immovable property, being gratuitously transferred in the ownership of the state, are accepted for deductions in the order established for deduction of the value added tax on acquired goods (works, services), property rights.

5. [Excluded]

51. Tax deductions are performed:

upon acquisition of goods (works, services), property rights by the payer in the territory of the Republic of Belarus – on the basis of electronic invoices received in the established order from sellers of those goods (works, services), property rights subject to signing of electronic invoices by the payer in the established order by the electronic digital signature;

upon acquisition of goods (works, services), property rights in the territory of the Republic of Belarus from foreign organizations not being put on record in the tax bodies of the Republic of Belarus – on the basis of electronic invoices created by the payer in accordance with indent two of part four of clause 8 of Article 1061 of this Code;

upon importation of goods into the territory of the Republic of Belarus (with the exception of importation from the territory of the member states of the Eurasian Economic Union) – on the basis of declarations for goods released in accordance with the declared customs procedure and documents (copies thereof) confirming the fact of payment of the value added tax upon importation of goods into the territory of the Republic of Belarus and electronic invoices drawn up and directed by the payer to the Portal in accordance with clause 6 of Article 1061 of this Code;

upon importation of goods into the territory of the Republic of Belarus from the territory of the member states of the Eurasian Economic Union – on the basis of tax declarations (calculations) for the value added tax and documents confirming the fact of payment of the value added tax upon importation of goods into the territory of the Republic of Belarus from the territory of the member states of the Eurasian Economic Union and electronic invoices drawn up and directed by the payer to the Portal in accordance with clause 6 of Article 1061 of this Code;

upon acquisition of transport services on carriage of passengers and luggage – on the basis of electronic invoices received in the established order from sellers of those services, subject to signing of electronic invoices by the payer in the established order by the electronic digital signature;

upon acquisition of print mass media by subscription – on the basis of electronic invoices received in the established order from sellers, subject to signing of electronic invoices by the payer in the established order by the electronic digital signature;

upon lease (financial lease (leasing)) of objects of lease (leasing objects) – on the basis of electronic invoices received in the established order from the lessor, subject to signing of electronic invoices by the lessee in the established order by the electronic digital signature;

on goods acquired at retail prices with the use of cash equipment – on the basis of payment documents formed by the cash equipment if in such documents the rate and the sum of value added tax are indicated as details of the payment document or singled out by the payer that realizes goods at retail prices at the request of the buyer with certification by the seal (stamp) of the seller and the signature of the head or chief accountant of the organization-sellers (person authorized by him) or individual entrepreneur-seller (person authorized by him) and electronic invoices received in the established order from sellers, subject to their signing by the payer (buyer) in the established order by the electronic digital signature;

6. Acceptance for deduction of sums of value added tax presented to the payer upon acquisition construction, research and development, design and experiment, technology-testing (technology) works shall be performed having regard to provisions part five of clause 61 of this Article for the reporting period on which falls the day of signing of acts of performed works by the payer (ordering customer). When the payer (ordering customer) signs acts of performed works prior to the 10th day (inclusively) of the month following the month indicated in the formalized acts of performed works, acceptance of sums of value added tax presented to the payer upon acquisition construction, research and development, design and experiment, technology-testing (technology) works shall be performed having regard to provisions part five of clause 61 of this Article for the reporting period on which falls the last day of the month of performance of works.

61. Unless otherwise established by this Chapter, the sums of value added tax presented to the payer upon acquisition of goods (works, services), property rights irrespective of the date of performing settlements for goods (works, services), property rights being acquired or paid by the payer upon importation of goods into the territory of the Republic of Belarus after their reflection in the accounting and the purchase ledger if the conduct of the purchase ledger is carried out by the payer are subject to be deducted.

The conduct of the purchase ledger is established by the accounting policy of the organization. The form of the purchase ledger and the order of its completion are established by the Ministry on Taxes and Dues of the Republic of Belarus.

The organization is entitled, in the course of the tax period, to stipulated in the accounting policy the conduct of the purchase ledger. In this instance the conduct of the purchase ledger is carried out until the end of the respective tax period.

Acceptance for deduction of sums of value added tax presented to the payer upon acquisition of works (services) the realization of which is carried out on a permanent (continuous) basis shall be effected in the reporting period in which the conditions established by this Article for carrying out deduction of sums of value added tax have been met, in the presence, prior to the date of presentation of the tax declaration (calculation) for value added tax for that reporting period, of electronic invoices received and signed by the payer in the established order by the electronic digital signature, containing the indication of the period to which performed works (rendered services) are referred. In the absence of mentioned electronic invoices or in case of non-signing thereof by the payer prior to the date of presentation of the tax declaration (calculation) on value added tax for this reporting period, the sums of value added tax are accepted for the reporting period in which electronic invoices have been received and signed by the payer in the established order by the electronic digital signature.

Upon receipt from sellers of goods (works, services), property rights of electronic invoices and their signing by the payer in the established order by the electronic digital signature after termination of the reporting period in which the conditions established by this Article for carrying out deduction of sums of value added tax on acquired goods (works, services), property rights have been met, but prior to the date of submission of the tax declaration (calculation) for the value added tax for the mentioned reporting period, the payer is entitled to effect deduction of sums of the value added tax in relation to such goods (works, services), property rights for the reporting period in which the conditions established by this Article for carrying out deduction of sums of value added tax on acquired goods (works, services), property rights have been met.

7. Determination of sums of value added tax on fixed assets and intangible assets falling on turnovers on realization of goods (works, services) taxable with the value added tax at the rates of zero (0), ten (10) percent, nine comma zero nine (9.09) percent is made by multiplying the specific weight of such turnovers in the total sum of turnovers on realization of goods (works, services), property rights on an accrual basis from the beginning of the year by the sums of value added tax on fixed assets and intangible assets. The total sum of turnover and the percentage of the specific weight are determined in the order established by part three of clause 24 of this Article.

Determination of sums of value added tax on fixed assets and intangible assets falling on turnovers on realization of goods (works, services), property rights on which a tax credit and/or exemption from payment of the value added tax are granted is made by means of multiplying the specific weight of the sum of such turnovers in the total sum of turnovers on realization of goods (works, services), property rights on an accrual basis from the beginning of the year by the sums of value added tax on fixed assets and intangible assets. The total sum of turnover and the percentage of the specific weight are determined in the order established by part three of clause 24 of this Article.

The payer is entitled to distribute tax deductions of the previous tax period on fixed assets and intangible assets in the current tax period under the procedure determined by parts one and two of this clause, part three of clause 24 of this Article (if there are turnovers on realization of goods (works, services), property rights the deduction on which is performed differently) or to accept for the deduction in each reporting period in equal installments of one- twelfth (if the reporting period is recognized a calendar month) or one-fourth (if the reporting period is recognized a calendar quarter) (later on in this article – deduction in equal installments). The procedure chosen by the payer of deduction in equal installments shall be indicated in the accounting policy of the organizations (the decision of the individual entrepreneur) and is not subject to be changed in the course of the current tax period.

8. [Excluded]

81. Sums of value added tax subject to be deducted are determined upon acquisition of goods (works, services), property rights under contracts in which the sum of obligation is expressed:

in Belarusian rubles equivalent to a sum in foreign currency – as the sum of the value added tax in Belarusian rubles indicated in the initial and/or additional electronic invoices presented by the seller to the buyer;

in foreign currency equivalent to a sum in another foreign currency – as the sum of the value added tax in Belarusian rubles indicated in the initial and/or additional electronic invoices presented by the seller to the buyer.

In the instances when the payers are presented additional electronic invoices, a correction of tax deductions shall be effected by the difference (positive and negative) specified in the additional electronic invoice. Correction of tax deductions shall be effected in the month of receipt and signing in the established order by the seller of the additional electronic invoice.

9. [Excluded]

91. Upon acquisition in the territory of the Republic of Belarus from payers of the value added tax for foreign currency of:

goods under contracts stipulating settlements in foreign currency the sum of value added tax subject to deduction shall be determined in the sum of value added tax in Belarusian rubles, indicated in the electronic invoice presented by the seller to the buyer;

works (services), property rights under contracts stipulating settlements in foreign currency the sum of value added tax subject to deduction shall be determined in the sum of value added tax in Belarusian rubles, indicated in the electronic invoice presented by the seller to the buyer.

10. [Excluded]

101. On contracts of lease (financial lease (leasing)) stipulating the fulfillment of monetary obligations in foreign currency or in Belarusian rubles in sums equivalent to certain sums in foreign currency, sums of value added tax presented and to be deducted shall be determined in the sum of value added tax in Belarusian rubles, indicated in the electronic invoice presented by the lessor to the lessee.

11. [Excluded]

12. [Excluded]

121. Upon acquisition by the payer of goods outside the Republic of Belarus if the customs control is available, sums of value added tax subject to be deducted, when they are paid in foreign currency, are determined in the sum of value added tax in Belarusian rubles, indicated in the electronic invoice directed by the buyer in the order established by part four of clause 8 of Article 1061 of this Code.

13. [Excluded]

14. [Excluded]

141. Sums of value added tax paid to the budget upon acquisition of goods (works, services), property rights in the territory of the Republic of Belarus from foreign organizations not put on record in the tax bodies of the Republic of Belarus:

for foreign currency, are subject to be deducted based on the official rate of the foreign currency established by the National Bank of the Republic of Belarus on the day of payment (including advance payment) or another termination of obligations by the buyers (ordering customers) of those goods (works, services), property rights and indicated in the electronic invoice directed by the buyer in the order established by indent two of part four of clause 8 of Article 1061 of this Code.;

are subject to be deducted in the reporting period following the period of their calculation under the procedure established for deduction of the sums of value added tax presented upon acquisition of goods (works, services), property rights.

15. Sums of value added tax presented upon acquisition or paid upon importation of goods (works, services), property rights, falling on turnovers on gratuitous transfer of goods (works, services), property rights are subject to be deducted under the procedure established for deduction of the value added tax on goods (works, services), property rights taxable at the rate of 20 percent, irrespective of the fact whether or not this gratuitous transfer is taxable with the value added tax.

Provisions of part one of this clause are not applied in relation to the sums of value added tax paid when purchasing goods (works, services), property rights, transferred gratuitously within one legal person, and also those falling on costs on creation of objects of engineering, transport, social infrastructure, finished by construction, but not registered in the established order as objects of immovable property, being gratuitously transferred in the ownership of the state.

Provisions of part one of this clause are also not applied in the event of:

assigning the sums of value added tax presented upon acquisition of or paid upon importation of goods (works, services), property rights, transferred (performed, rendered) gratuitously to increase of their value or at the expense of resources specified in sub-clause 19.3 of clause 19 of this Article;

acquisition of goods (works, services), property rights, transferred (performed, rendered) gratuitously, under which sums of the value added tax have not been presented to the payer by the sellers of goods (works, services), property rights or have not been paid by the payer upon importation.

For the purposes of determining the sum of value added tax subject to deduction in the order established by part one of this sub-clause, the payer is entitled, in the tax period in which goods (works, services), property rights have been transferred (performed, rendered) gratuitously, to use at his option the method:

of separate accounting of tax deductions regardless of the fact of choosing the given method according to the accounting policy of the organization (decision of the individual entrepreneur), having determined the given sum as sums of the value added tax actually presented upon acquisition (paid upon importation) of goods (works, services), property rights gratuitously transferred (performed, rendered) or as tax deductions equal to 20 percent of the value of goods (works, services), property rights gratuitously transferred (performed, rendered);

of distribution of tax deductions according to specific weight, having included operations of gratuitous transfer of goods (works, services), property rights, including those not recognized as realization or taxation object for the value added tax in accordance with the legislation, in the total sum of turnover on realization in the order established by part three of clause 24 of this Article.

Upon gratuitous receipt of goods (works, services), property rights from the payers of value added tax in the Republic of Belarus, the singled-out sums of value added tax are accepted for deduction upon recording the goods (works, services), property rights as received, having regard to provisions of part five of clause 61 of this Article.

16. When bills of exchange (promissory notes) are used in settlements, sums of value added tax presented for payment by the sellers of goods (works, services), property rights are subject to be deducted by the buyers after monetary means from sale or redemption of received bills of exchange (promissory notes). Deduction of the tax by the buyer is performed when the latter has copies of settlement documents confirming the crediting of monetary means from sale or redemption of received bills of exchange (promissory notes) on the account of the seller. Upon transfer of the bill of exchange (promissory note) by the seller of goods (performance of works, rendering of services), property rights for repayment of the credit and interest for using credit, deduction of the value added tax by the buyer is not performed.

17. [Excluded]

171. Upon acquisition of goods (works, services), property rights by the commissioner (agent) on instructions of the commitent (principal), sums of value added tax singled out by the seller are subject to be deducted by the commitent (principal). Upon importation of goods into the territory of the Republic of Belarus on instructions of the commitment (principal), another similar person, sums of the value added tax paid by the commissioner (agent), another similar person are subject to be deducted by the commitent (principal), another similar person after the payment thereof to the budget. The mentioned sums of the value added tax are accepted for deduction by the commitent (principal) on the basis of electronic invoices being presented by the commissioner (agent) in the order provided by clause 12 of Article 1061 of this Code.

Upon importation of goods into the territory of the Republic of Belarus as give-and-take raw materials (materials), sums of the value added tax collected by the customs bodies and paid by the payer on instructions of a foreign organization (natural person) – ordering customer of works on production of goods from give-and-take raw materials (materials), are subject to be deducted by the payer after the payment thereof to the budget of the Republic of Belarus, provided that the mentioned sums of value added tax are not subject to be reimbursed by the ordering customer.

18. In the event of return by customs and/or tax bodies to the payer of sums of the value added tax paid earlier and reflected in the tax deductions, decreasing of the sum of tax deductions is performed in the reporting period in which the return of such sums of value added tax has been performed.

19. The following sums of value added tax are not subject to be deducted:

19.1. those included into the costs of the payer on production and realization of goods (works, services), property rights taken into account for the taxation;

19.2. those charged to the increase of the value of goods (works, services), property rights (including fixed assets and intangible assets);

19.3. those presented upon acquisition or paid upon importation of goods (works, services), property rights at the expense of means of the budget or state non-budgetary funds, received gratuitously. The mentioned sum of value added tax are referred to the expense of these sources or to the increase of the value of goods (works, services), property rights.

Provisions of this sub-clause are not applied if:

means received from the mentioned sources are included in the tax base;

acquisition (importation) of goods (works, services), property rights is performed at the expense of sums of subsidies granted from the budget in relation to the application by the payer of prices determined (regulated) by the legislation or privileges granted to certain categories of citizens in accordance with the legislation, with the exception of sums of subsidies specified in part two of clause 9 of Article 98 of this Code;

19.4. those included into the costs of the payer upon realization and/or redemption of securities specified in sub-clause 1.2 of clause 1 of article 138 of this Code;

19.5. [excluded]

19.6. [excluded]

19.7. for organizations engaged in forest husbandry, those presented upon acquisition or paid upon importation of goods (works, services), property rights at the expense of means of industrial production and transferred for conducting the forest husbandry. The mentioned sums of value added tax are referred to the expenses on the estimate for conducting forest husbandry;

19.8. those presented to the buyer upon acquisition or paid by the latter upon importation of goods the tax base of which, when being realized, is determined by the buyer as the positive difference between the realization price and the purchasing price of these goods;

19.9. those presented upon acquisition or paid upon importation of goods (works, services), property rights, not recognized as taxation objects for value added tax in accordance with sub-clauses 2.8, 2.12, 2.16, 2.21.2, 2.23, 2.32 of clause 2 of Article 93 of this Code;

19.10. [excluded]

19.11. those paid by the by the commissioner (agent) to the budget upon acquisition of goods (works, services), property rights in the territory of the Republic of Belarus from foreign organizations not put on record in the tax bodies of the Republic of Belarus, in the event of reimbursement to them of these sums of value added tax by the commitent (principal). Provisions of this sub-clause also cover organizations and individual entrepreneurs specified in clause 4 of article 92 of this Code;

19.12. those presented upon acquisition or paid upon importation of goods (works, services), property rights, related to receipt of incomes (revenue) in the part of carrying out lottery activity, activity on holding electronic interactive games, activity in the sphere of gambling business, activity on rendering services in the sphere of agroecotourism, activity on rendering by organizations being payer of the single tax on imputed income of services on technical maintenance and/or repairs of motor vehicles and components thereof, activity on performance of operations with non-deliverable off-exchange financial instruments (activity on off-exchange market Forex), initiated by natural and legal persons;

19.13. those subject to transfer by the ordering customer (builder) to third persons (including interestholders) in accordance with part seven of clause 71 of Article 105 of this Code.

When construction is conducted prior to engagement of a third person (including interestholder), sums of the value added tax accepted earlier for deduction by the ordering customer (builder) on goods (works, services), property rights, which are not investments in long term assets of the ordering customer (builder), are subject to restoration by the ordering customer (builder) on the date of conclusion of the contract with the third person (including the interestholder);

19.14. on goods (works, services), including fixed assets and intangible assets, property rights, used by individual entrepreneurs for needs not related to carrying out entrepreneurial activity;

19.15. on goods in the event of their damage or loss (with the exception of damage or loss of goods in connection with extraordinary circumstances: fire, breakdown, natural disaster, road accident). Provisions of this sub-clause are not applied in relation to fixed assets and intangible assets.

For the purposes of application of this sub-clause:

damage of goods is understood deterioration of all or some qualities (properties) of the good as a result of which the good cannot be used for purposes of realization and/or in production of products (performance of works, rendering of services);

loss of the good is understood an event as a result of which destruction or waste of the good took place. Waste of goods suffered by the payer within the limits of norms established by the legislation of the Republic of Belarus is not considered as loss.

Tax deductions of the payer are subject to decrease by sums of the value added tax accepted by him earlier for deduction on goods specified in part one of this sub-clause. When it is impossible to determine the amount of the sum of value added tax accepted earlier for deduction or establish the fact of performing operations specified in part four of this sub-clause, tax deductions of the payer are subject to decrease by tax deductions equal to 20 percent of the value of goods specified in part one of this sub-clause. Decrease of tax deductions shall be effected in the reporting period in which damage, loss of such goods occurred. The date of damage, loss of goods shall be determined as the date of drawing up a document confirming the damage, loss of goods.

Tax deductions of the payer are not subject to decrease in the event of:

assigning the sums of value added tax presented upon acquisition of or paid upon importation of goods specified in part one of this sub-clause to increase of their value or at the expense of sources specified in sub-clause 19.3 of clause 19 of this Article;

inclusion of the sums of value added tax on goods specified in part one of this sub-clause in costs of the payer on production and realization of goods (works, services), property rights, taken into account for taxation;

acquisition (creation) of goods specified in part one of this sub-clause, under which the sums of value added tax have not been presented to the payer by the sellers of goods (works, services), property rights or have not been paid by the payer upon importation.

20. Deduction of sums of value added tax is performed:

in relation to goods being placed under customs procedures of temporary importation (acceptance), by the person who carried out the importation of the good, under the procedure established for deduction of the value added tax on acquired goods (works, services);

paid upon importation of objects of lease (leasing objects) acquired by the lessor outside the Republic of Belarus, – by the lessor.

Upon acquisition of objects of lease (leasing objects) from foreign organizations and foreign citizens, sums of the value added tax paid by the lessee upon importation of objects of lease (leasing objects) are subject to deduction by the lessee after the receipt of the object of lease (leasing object).

21. Tax deductions subject to be transferred to the recipient upon transfer of goods (performance of works, rendering of services), property rights are determined under the following procedure.

Upon transfer of goods (performance of works, rendering of services), property rights within one legal person, the recipient thereof may be transferred actual sums of value added tax presented upon the acquisition thereof or paid upon the importation thereof, or actually presented (paid) sums of value added tax on goods (works, services), property rights, used in the production or creation of goods (works being performed, services being rendered), property rights, being transferred.

Upon transfer of goods (performance of works, rendering of services), property rights as a contribution of a participant of a participant of the contract of simple partnership to the common cause (with the exception of goods alienated under the conditions of the mentioned contract to another participant), expenses compensated to the participant in accordance with the contract of simple partnership by the person carrying out the conduct of common affairs and also when dividing goods being in the common ownership of participants of the simple partnership, the transfer of sums of value added tax actually presented upon acquisition or paid upon importation of these goods (works, services), property rights or actually presented (paid) sums of value added tax on goods (works, services), property rights, used in the production or creation of goods (works being performed, services being rendered), property rights, being transferred.

When it is impossible to determine actually presented (paid) sums of value added tax on operations provided by this clause or when the goods are transferred the sums of value added tax upon importation of which are not yet paid, tax deductions are transferred (and in the instance provided by part two of this clause, may be transferred) that are equal to 20 percent of the value of goods (works being performed, services being rendered), property rights, being transferred. In this instance for the transferring party the sums of value added tax presented upon acquisition (paid upon importation) of goods (works, services), property rights are decreased by the mentioned sum.

Transfer of tax deductions within one legal person performed in accordance with parts two and four of this clause must be carried out in the same reporting period in which the transfer of goods (performance of works, rendering or services), property rights within one legal person has been carried out.

If two or more separate subdivisions make part of one legal person, fulfilling the tax obligations of that legal person, then upon transfer of goods (performance of works, rendering of services), property rights by one of those subdivisions to another or the legal person or by the legal person to one of those separate subdivisions, computation and payment of the value added tax may be performed. In this instance the transfer of tax deductions to the recipient of goods (works, services), property rights is not performed. The list of goods (performed works, rendered services), property rights upon the transfer of which the calculation and payment of the value added tax is performed shall be reflected in the accounting policy of the payer. In the case specified in part two of clause 25 of Article 98 of this Code, the receiving party shall perform a corresponding correction of tax deductions in the reporting period in which the value of goods (works, services), property rights received earlier is decreased (increased) and the mentioned difference in the value of goods (works, services), property rights is received.

Upon reorganization of an organization, sums of value added tax presented upon acquisition or paid upon importation of goods (works, services), property rights and not accepted for deduction prior to the reorganization of the organization are subject to be transferred to the successor(s) of such organization in accordance with the transfer act or dividing balance sheet.

Tax deductions of legal persons included in the consolidated balance sheet of main activity of the State Association "The Belarusian Railway" are subject to transfer to the State Association "The Belarusian Railway" for inclusion in the tax declaration (calculation) for the value added tax on carriages and shall be determined in the order established by the President of the Republic of Belarus.

22. The payers have the right to single out by themselves the sums of value added tax for deduction:

22.1. [excluded]

22.2. upon acquisition of goods at regulated retail prices by the payers:

which use these goods in production and realization of goods (works, services), property rights;

Which calculate the value added tax having regard to specifics established by clause 9 of article 103 of this Code.

Singling out of the sum of value added tax for deduction by the payer himself is carried out based on the acquisition price of goods at regulated retail prices and the rate of value added tax applied upon realization thereof in the territory of the Republic of Belarus;

22.3. upon refusal of the payer of exemption from taxation of turnovers on realization of goods (works, services), property rights or upon cancellation of exemption from taxation which has been established earlier.

Singling out of the sum of value added tax for deduction is carried out from remaining goods (with the exception of fixed assets) available on the date of refusal of exemption from taxation or on the date of cancellation of the exemption from taxation which has been established earlier by way of singling out, by the payer himself, of sums of value added tax for deduction which have been presented upon acquisition or paid upon importation of those goods and charged to the increase of their value or included into costs of the payer on production and realization of goods (works, services), property rights taking into consideration for the taxation.

Individual entrepreneurs recognized as payers of the value added tax have the right to single out according to the goods inventory data, from the value of remaining goods (with the exception of fixed assets) available on the 1st day of the month from which they are recognized as payers of the value added tax, sums of the value added tax presented upon acquisition or paid upon importation of these goods reflecting these sums in the bookkeeping of incomes and expenses of the individual entrepreneur;

22.4. upon transfer from a special taxation regime without calculation and payment of value added tax to the common taxation regime or to a special taxation regime with order calculation and payment of value added tax.

Singling out of sums of the value added tax for deduction is carried out from remaining goods (with the exception of fixed assets) available on the date of transfer by means of singling out by the payer himself for deduction of sums of value added tax which have been presented upon acquisition or paid upon importation of these goods and charged to the increase of their value;

22.5.upon realization by organizations that do not carry out entrepreneurial activity in the territory of the Republic of Belarus (including foreign organizations and representative offices of foreign organizations accredited under the established procedure) of acquired (imported) goods (works, services), property rights on which sum of the value added tax has been charged to an increase of their value in accordance with part two of clause 4 of Article 106 of this Code.

Singling out of sums of the value added tax by mentioned organizations is carried out by way of calculation based on purchasing price of goods (works, services), property rights and the depreciable value fixed assets and intangible assets having regard to the value added tax and the rate of value added tax which has been applied upon acquisition (importation) thereof. Singling out of the sum of value added tax is performed if upon realization of goods (works, services), property rights, the calculation of the value added tax is carried out according to the rates established by sub-clauses 1.2 and 1.3 of clause 1 of Article 102 of this Code. Singling out of the sum of value added tax is not performed if said organizations realize goods acquired by them from sellers that determined, upon realization of these goods, the tax base as a positive difference between the realization price and the purchasing price of these goods.

23. Deduction of sums of the value added tax is performed in full:

23.1. on goods (works, services) upon realization of which the taxation with the value added tax is carried out at the rate in the amount of zero (0) percent, when the payer has (in the instances established by Article 102 of this Code, when the payer has presented to the tax body at the place of putting on record) documents provided by part three of sub-clause 1.1.1 of clause 1, by clauses 2–9 and 11-15 of Article 103 of this Code;

23.2. on goods upon realization of which the taxation with value added tax is carried out at the rates of ten (10) percent or nine point zero nine (9.09) percent;

23.3. for the payer being in the course of liquidation (termination of activities) and also in connection with termination in accordance with the legislation of entrepreneurial activity not connected with the liquidation of the entity;

23.4. on goods being exempted from the value added tax in accordance with sub-clause 1.44 of clause 1 of Article 94 of this Code;

23.5. on fixed assets and intangible assets on which at the beginning of the tax period there are sums of the value added tax not accepted for deduction in the past tax period if such sums of the value added tax in the current tax period are accepted for deduction in equal installments in accordance with part three of clause 7 of this Article;

23.6. on goods shipped to buyers – foreign organizations and/or natural persons from storage places in the territory of foreign states and/or from exhibitions-fairs held in the territory of foreign states if such goods were exported from the territory of the Republic of Belarus in accordance with the customs procedure of export, contracts are concluded by the payer with buyers – foreign organizations and/or natural persons after the exportation of goods from the territory of the Republic of Belarus.

A condition for carrying out the deduction of sums of the value added tax in full on goods specified in part one of this sub-clause is the fact that the payer has:

a contract stipulating the storage of goods in the territory of the foreign state and/or participation of goods in exhibitions-fairs held in the territory of the foreign state and concluded by the payer with a foreign organizations or foreign natural person (taxpayers of a foreign state) rendering services on storage of goods and/or organizing the participation of the payer in the exhibition-fair;

customs declaration for goods released in accordance with the customs procedure of export;

customs declaration for goods released in accordance with the customs procedure of temporary exportation (if goods exported in accordance with the customs procedure of export preliminarily were placed under the customs procedure of temporary exportation);

contract of the payer with a buyer – foreign organization or foreign natural person, on the basis of which the good of the payer shipped from the storage place in the territory of the foreign state or from the exhibition-fair held in the territory of the foreign state is realized;

documents confirming the delivery (shipment) of goods to a buyer – foreign organization and/or foreign natural person from the storage place in the territory of the foreign state or from the exhibition-fair held in the territory of the foreign state;

consignment note drawn up by the payer for the buyer – foreign organization and/or foreign natural person.

For confirming the soundness of carrying out deduction of sums of the value added tax in full on goods specified in part one of this sub-clause, the payer presents to the tax body at the place of its putting on record simultaneously with the tax declaration (calculation) on the value added tax the following documents:

special register of customs declarations for goods released in accordance with the 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, certified by the personal numerical stamp of an official of the customs body of the Republic of Belarus. It is presented by payer that does not carry out the declaring of goods in electronic form;

register of documents confirming the exportation of goods outside the Republic of Belarus and their realization from storage places in the territory of foreign states and/or from exhibitions-fairs held in the territory of a foreign state. The form and procedure for completion of the said register being an enclosure to the tax declaration (calculation) on the value added tax are approved by the Ministry on Taxes and Dues of the Republic of Belarus.

Turnovers on realization of goods specified in part one of this sub-clause for the purposes of distribution of the total sum of tax deductions according to clause 24 of this Article are subject to be indicated in the tax declaration (calculation) on the value added tax.

The day of shipment of goods specified in part one of this sub-clause is deemed to be the date of release (shipment) of goods of the payer to the buyer from storage places, from exhibitions-fairs in the territory of foreign states;

23.7. on goods shipped to buyers – foreign organizations and/or natural persons from storage places, from exhibitions-fairs the territory of the Republic of Belarus in the territory of the states – members of the Eurasian Economic Union if such goods have been exported from the territory of the Republic of Belarus (without the commitment for return importation into the territory of the Republic of Belarus), contracts concluded by the payer with buyers – foreign organizations and/or natural persons after the exportation of goods from the territory of the Republic of Belarus.

A condition for carrying out the deduction of sums of the value added tax in full on goods specified in part one of this sub-clause is the fact that the payer has:

contract stipulating the storage of goods in the territory of a member state of the Eurasian Economic Union and/or participation of goods in exhibitions-fairs held in the territory of a member state of the Eurasian Economic Union and concluded by the payer with a foreign organization or foreign natural person (taxpayers of a member state of the Eurasian Economic Union ) rendering services on storage of goods and/or organizing the participation of the payer in the exhibition-fair;

transport (shipping) documents confirming the movement of goods from the territory of the Republic of Belarus to the territory of another member state of the Eurasian Economic Union;

contract of the payer with a buyer – foreign organization and/or foreign natural person, on the basis of which the good of the payer shipped from the storage place in the territory of a member state of the Eurasian Economic Union or from the exhibition-fair held in the territory of a member state of the Eurasian Economic Union is realized;

documents confirming the release (shipment) of goods of the payer to a buyer – foreign organization and/or foreign natural person from storage places in the territory of a member state of the Eurasian Economic Union or from the exhibition-fair held in the territory of a member state of the Eurasian Economic Union;

consignment note drawn up by the payer for the buyer – foreign organization and/or natural person;

declaration about importation of goods and payment of indirect taxes, drawn up according to the form approved by the treaty of the Republic of Belarus, with the notice of the tax body of the state – member of the Eurasian Economic Union to the territory of which the goods are imported, about the payment of indirect taxes (exemption for the taxation or another order of fulfilling of tax obligations) (later on in this sub-clause – declaration about importation of goods) or the list of declarations about importation of goods and payment of indirect taxes.

For confirming the soundness of carrying out deduction of sums of the value added tax in full on goods specified in part one of this sub-clause, the payer presents to the tax body at the place of its putting on record simultaneously with the tax declaration (calculation) on the value added tax declaration about importation of goods ( list of declarations about importation of goods and payment of indirect taxes) and register of documents confirming the exportation of goods outside the Republic of Belarus and their realization from storage places, from exhibitions-fairs in the territory of the member states of the Eurasian Economic Union. The form and procedure for completion of the said register being an enclosure to the tax declaration (calculation) on the value added tax are approved by the Ministry on Taxes and Dues of the Republic of Belarus.

Documentary confirmation of the soundness of carrying out deduction of sums of the value added tax in full on goods specified in part one of this sub-clause is performed within one hundred eighty calendar days from the date of release (shipment) of goods to the buyers – foreign organization and/or foreign natural person from storage places in the territory of a member state of the Eurasian Economic Union or from the exhibition-fair held in the territory of a member state of the Eurasian Economic Union.

Turnovers on realization of goods specified in part one of this sub-clause for the purposes of distribution of the total sum of tax deductions according to clause 24 of this Article are subject to be indicated in the tax declaration (calculation) on the value added tax in the following order.

In the absence of documents conforming the soundness of carrying out deduction of sums of the value added tax in full and upon arrival of the date of presentation of the tax declaration (calculation) on the value added tax within the established time limit, turnovers on realization of goods are not indicated in the tax declaration (calculation) on the value added tax.

If there are documents confirming the soundness of carrying out deduction of sums of the value added tax in full, turnovers on realization of goods are indicated in the tax declaration (calculation) on the value added tax for the tax period, the time limit for presentation of which follows the receipt of corresponding documents or for the tax period in which corresponding documents have been presented.

In the absence of documents confirming the soundness of carrying out deduction of sums of the value added tax in full upon the deadline for presentation to the tax body of the tax declaration (calculation) on the value added tax for the reporting period in which the time limit established by part four of this sub-clause has lapsed, turnovers on realization of goods are indicated in the tax declaration (calculation) on the value added tax for the reporting period in which the time limit set by part four of this sub-clause has expired with inclusion of sums of the value added tax into costs of the payer on production and realization of goods (works, services), property rights taken into account for the taxation.

Upon receipt of documents upon expiry of the time limit set by part four of this sub-clause and after indication of turnovers on realization of goods in the tax declaration (calculation) on the value added tax, deduction of sums of the value added tax is performed in full 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 documents, or for the reporting period in which the documents are received.

24. Upon realization by the payer of goods (works, services), property rights tax deductions on which are performed differently, the distribution of the total sum of tax deductions of the payer on goods (works, services), property rights among these turnovers is performed by two methods (specific weight method or separate accounting method), unless otherwise established by this Chapter.

Application of one of two methods of distribution of tax deductions in respect of tax deductions on activities (operations) determined by the payer (specific weight method or separate accounting method) is performed at least in the course of one calendar year and approved by the accounting policy of the organization (decision of the individual entrepreneur). If the accounting policy of the organization (decision of the individual entrepreneur) contains not indication concerning applicable method of distribution of tax deductions, all tax deductions are distributed by the specific weight method. In the event when the payer conducts the purchase ledger, only sums of the valued added tax indicated in the purchase ledger participate in the distribution.

When tax deductions falling on a determined sum of turnover on realization are determined, this sum is divided by the total sum of the turnover on realization and multiplied on the sum of tax deductions falling on the total sum of turnover on realization. The percentage of the specific weight is determined accurate to four decimal places. The sum of turnover is deemed to be the sum of the tax base and the value added tax calculated on this tax base, and also the sum of increase (decrease) of the tax base. The total sum of turnover does not include operations on realization of goods (works, services), property rights by organizations (affiliates, representative offices and other separate subdivisions of legal persons of the Republic of Belarus) registered as taxpayers of a foreign state. When the specific weight accepted for distribution of tax deductions is being determined, the sum of turnover includes operations on realization of goods the place of realization of which is not recognized the territory of the Republic of Belarus (including operations on realization of goods to the population at exhibitions-fairs held in the territory of the member states of the Eurasian Economic Union, for the purposes of clause 15 of this Article operations on gratuitous transfer of goods (works, services), property rights, not recognized as realization or taxation object for the value added tax in accordance with the legislation, unless the computation of the value added tax to the budget of the Republic of Belarus is performed by the payer on such operations. When the specific weight accepted for distribution of tax deductions is being determined, the following is excluded from the sum of turnover:

tax base and sum of the value added tax on realization of goods (works, services), property rights acquired in the territory of the Republic of Belarus from foreign organizations not put on record in the tax bodies of the Republic of Belarus;

operations on realization of goods the place of realization of which is not recognized the territory of the Republic of Belarus, provided that these goods are acquired in the territory of a foreign state and upon realization thereof, the calculation of the value added tax to the budget of the Republic of Belarus has not been performed.

When tax deductions are distributed by the specific weight method, tax deductions of a past tax period do not participate in the distribution, if it is stipulated by the accounting policy of the organization (decision of the individual entrepreneur). Otherwise tax deductions of a past tax period are subject to be distributed by the specific weight method under the procedure established by this Code.

Determining tax deductions by the separate accounting method envisages that the accounting records (in the bookkeeping of incomes and expenses of the individual entrepreneur, in the journal for registering incomes and expenses of organizations and individual entrepreneurs using the simplified taxation system) and purchase ledger if the conduct thereof is carried out by the payer, contain information about sums of the value added tax presented upon acquisition or paid upon importation of goods (works, services), property rights acceptance of which for deduction, inclusion of which in costs on production and realization of goods (works, services), property rights which are taken into account for the taxation or charging of which on increase of the value of goods (works, services), property rights are performed under the same procedure.

25. Sums of the value added tax are deducted by payers in the following order of priority:

in the first place – sums of the value added tax on goods (works, services), property rights, with the exception of fixed assets and intangible assets, subject to be deducted within the limits of sums of the value added tax calculated on realization of goods (works, services), property rights;

in the second place – sums of the value added tax on fixed assets and intangible assets subject to be deducted within the limits of sums of the value added tax calculated on realization of goods (works, services), property rights. The mentioned sums of the value added tax are deducted in the sum not exceeding the difference between the sum of value added tax calculated on realization and sums of the vale added tax deductible in the first place;

in the third place – regardless of the sum of value added tax calculated on realization goods (works, services), property rights, sums of the value added tax on goods taxable with the value added tax at the rates of ten (10) percent, of nine point zero nine (9.09) percent;

in the fourth place – regardless of the sum of value added tax calculated on realization goods (works, services), property rights, sums of the value added tax on goods (works, services) taxable with the value added tax at the rates of zero (0) percent;

in the fifth place – regardless of the sum of value added tax calculated on realization goods (works, services), property rights, sums of the value added tax on goods exempted from the value added tax in accordance with sub-clause 1.44 of clause 1 of Article 94 of this Code;

in the sixth place – regardless of the sum of value added tax calculated on realization goods (works, services), property rights, sums of the value added tax of a past tax period on fixed assets and intangible assets, if such sums of the value added tax are accepted for deduction in the current tax period in equal installments in accordance with part three of clause 7 of this Article;

in the seventh place regardless of the sum of value added tax calculated on realization of goods (works, services), property rights, sums of the value added tax on goods specified in part one of sub-clause 23.6 and/or part one of sub-clause 23.7 of clause 23 of this Article, upon confirmation of the soundness of carrying out of deduction in full.

26. When the procedure of application of tax deductions has been changed, the new procedure of deductions is effective in respect of:

goods recorded as received from the moment of changing the application of tax deductions;

goods imported from the moment of changing the application of tax deductions. The date of importation is determined according to the date of release of goods in accordance with the declared customs procedure;

goods acquired in the states – members of the Eurasian Economic Union, from the moment of changing the application of tax deductions. The date of acquisition is determined according to the date of acceptance of goods for accounting;

works and services received from the moment of changing the application of tax deductions. The date of receipt of works and services is determined according to the date of signing of act of executed works and services;

property rights from the moment of changing the application of tax deductions;

of goods specified in sub-clause 19.15 of clause 19 of this Article, damaged, lost from the moment of change of the order of application of tax deductions. The date of damage, loss of mentioned goods shall be determined according to the date of drawing up a document confirming the damage, loss of goods.

27. Tax deductions are subject to be decreased by the individual entrepreneur by sums of the value added tax on goods (works, services), including fixed assets and intangible assets, property rights, used for needs not related to carrying out entrepreneurial activity, and by the individual entrepreneur being in the process of termination of activities – also on goods, .including fixed assets, remaining in the ownership as of the date of submission to the registering body of the application for termination of activities.

Decrease of tax deductions shall be effected by the individual entrepreneur:

on sums of the value added tax in the amount accepted earlier for deduction, in relation to fixed assets, intangible assets – in the amount of a sum proportionally to the remaining value without account of the revaluation;

in the reporting period in which goods (works, services), including fixed assets and intangible assets, property rights, are used for needs not related to carrying out entrepreneurial activity, and on goods, including fixed assets, remaining in the ownership as of the date of submission to the registering body of the application for termination of activities – in the reporting period following the reporting period in which a decision about termination of entrepreneurial activities is adopted.

Provisions of this clause are to applied also by the individual entrepreneur not being the payer of the value added tax in the period of using goods (works, services), including fixed assets and intangible assets, property rights, for needs not related to carrying out entrepreneurial activity, and/or in the period of termination of entrepreneurial activities, if sums of the value added tax presented upon acquisition or importation thereof were accounted by him in tax deductions in the reporting (tax) period preceding the reporting (tax) period in which the mentioned actions have been effected.

Article 108. Tax and reporting period on value added tax. Procedure and time limits for presentation of tax declaration (calculations) and payment of value added tax

1. Tax period for the value added tax is recognized a calendar year.

Reporting period on value added tax is recognized, at the option of the payer, with the exception of payers specified in part three of this clause and part one of clause 9 of this Article, a calendar month or a calendar quarter.

Reporting period on value added tax for payers realizing telecommunications services rendered to subscribers is recognized a calendar month.

2. Payers present the tax declaration (calculation) tax bodies to not later than on 20th day of the month following the expired reporting period.

3. Payment of the value added tax is performed not later than on 22nd day of the month following the expired reporting period.

4. Payers that chose the calendar quarter as a reporting period for the value added tax inform the tax bodies at the place of putting on record about the decision taken:

by means of putting a corresponding notice in the tax declaration (calculation) on value added tax, submitted not later than on 20th January of the current calendar year, upon arising of the taxation object in the course of a calendar year – not later than on 20th day of the month following the reporting period;

in a written form not later than on 20th day of the month following the month of their state registration, upon reorganization of an organization – not later than on 20th day of the month following the month of state registration of the successor (successors) of this organization or of entry into the Unified State Register of Legal Persons and Individual Entrepreneurs of the record on state registration of changes and/or additions being introduced to the statute (constituent contract, for a commercial organization which operates only on the basis of the constituent contract) of the organization in connection with the reorganization or of a record on termination of activities of an affiliated organization;

in a written form not later than on 20th day of the month following the reporting period from which the transfer on application of a special taxation regime with payment of value added tax or into the common taxation regime – for organizations and/or individual entrepreneurs which switched to application of a special taxation regime with payment of value added tax or to the common taxation regime.

The decision taken by the payer about the choice of the reporting period (calendar month or calendar quarter) is not subject to be changed in the course of the current tax period.

5. Procedure and time limits for value added tax collected by the customs bodies are established by the customs legislation of the Customs Union, the Law of the Republic of Belarus "On customs regulation in the Republic of Belarus" and/or acts of the President of the Republic of Belarus.

6. Procedure and time limits for presentation of tax declaration (calculations) on carriage and payment of value added tax by the State Association “Belarusian Railway” are established by the President of the Republic of Belarus.

7. Tax declaration (calculation) on value added tax on turnovers arising in relation to the trust management of the property in the interests of the settlor or a person designated by the latter (the beneficiary) is drawn up and presented by the trustee separately from the declaration on other activity carried out by the latter having regard to specific features established by part two of this clause and Article 63 of this Code.

When trust management is carried out under several contracts on trust management of property, the trustee draws up and presents a single tax declaration (calculation) on the value added tax.

8. A foreign organization being put on record in several tax bodies of the Republic of Belarus in relation to carrying out activity in the territory of the Republic of Belarus, recognized in accordance with Article 139 of this Code as activity through a permanent representation, shall select itself a permanent representation at the place of location of which it will, in total on all taxation objects for the value added tax related to all its permanent representations located in the territory of the Republic of Belarus, submit the tax declaration (calculation) for the value added tax to the tax body The foreign organization shall notify each tax body of the Republic of Belarus in which it is put on record about its selection. Notification shall be carried out on a paper-based carrier or according to established formats in the form of an electronic document (later on in this clause – notification) within the time limit of not later than ten working days from the date of submission to the tax body, in accordance with clause 6 of Article 66 of this Code, of the information about carrying out activity through a permanent representation.

Decision adopted by a foreign organization about the selection specified in part one of this clause is not subject to change in the course of the current tax period with the exception of the instances of:

inclusion in the State register of payers (other obliged persons) of the second and subsequent its permanent representations in the Republic of Belarus;

termination by the foreign organization of the activity in the territory of the Republic of Belarus through a permanent representation at the place of location of which submission of the tax declaration (calculation) for the value added tax has been carried out in accordance with part one of this clause.

In the instance specified in indent two of part two of this clause, a new notification shall be submitted to the tax bodies not later than five working days prior to the beginning of the next tax period for the value added tax.

In the instance specified in indent three of part two of this clause, a new notification shall be submitted to the tax bodies not later than five working days prior to the beginning of the nearest time limit established by the legislation for submission of the tax declaration (calculation) for the value added tax.

The form and format of notification are established by the Ministry on Taxes and Dues of the Republic of Belarus.

CHAPTER 13

EXCISES

Article 109. Payers of excises

Payers of excises (later on in this Chapter – payers) are deemed to be:

organizations having regard to specific features established by Article 110 of this Code;

individual entrepreneurs with regard to specific features established by Article 110 of this Code;

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 Law of the Republic of Belarus "On customs regulation in the Republic of Belarus", acts constituting the law of the Eurasian Economic Union and/or acts of the President of the Republic of Belarus.

Article 110. Specific features of recognizing certain organizations and individual entrepreneurs as payers upon realization (transfer) of excisable goods

1. [Excluded]

2. Upon realization of excisable goods imported into the territory of the Republic of Belarus under contracts of agency, commission and other similar civil-law contracts, payers are recognized to be organizations and individual entrepreneurs entrusted with the realization of excisable goods.

3. Upon importation into the territory of the Republic of Belarus of excisable goods under contracts of agency, commission and other similar civil-law contracts, payers are recognized to be organizations and individual entrepreneurs that import excisable goods.

4. Payers producing excisable goods are recognized to be organizations and individual entrepreneurs that carry out production of excisable goods from any kind or raw materials (give-and-take or own) and/or with the use of excisable goods.

Production of excisable goods also includes filling of alcohol products and beer, carried out as a part of overall process of production of these excisable goods in accordance with requirements of state standards and/or other technical legal acts that regulate the process of production of said excisable goods and are approved in the order established by the legislation and any types of goods mixtures in place of storage and realization thereof (with the exception of alcohol products being realized at retail prices which were produced by way of mixing alcohol products by organizations or individual entrepreneurs carrying out public catering) as a result of which an excisable good arises.

Payers producing excisable goods are recognized to be organizations and individual entrepreneurs that carry out contract-based production of tobacco articles.

5. Payers are recognized to be organizations and individual entrepreneurs upon realization (transfer) of liquefied hydrocarbon gas and natural fuel compressed gas for refuelling of vehicles (including own vehicles) through filling stations, and also using fuel dispensing equipment.

6. [Excluded]

Article 111. Excisable goods

1. Excisable goods are recognized to be:

1.1. alcohol;

1.2. alcohol products;

1.3. non-food alcohol-containing products in the form of solutions, emulsions, suspensions, produced with the use of ethyl alcohol from all types of raw materials, other alcohol-containing products;

1.4. beer, beer cocktail.

For the purposes of this Chapter, the beer cocktail is recognized to be a product produced by way of blending beer or special beer and other components without adding ethyl rectified alcohol from edible raw materials, containing at lease 50 percent beer in finished beer cocktail;

1.5.low-alcohol drinks of an actual alcoholic strength by volume of more than 1.2% vol and less than 7 percent vol (low-alcohol natural drinks, other low-alcohol drinks), wines of an actual alcoholic strength by volume of more than 1.2% vol and up to 7 percent vol.

For the purposes of this Chapter the following is recognized as:

low-alcohol natural beverages – low-alcohol beverages containing ethyl alcohol only of endogenous origin, made without preservative agents (with the exception of sorbic acid and its salts), sweeteners, natural and nature-identical flavoring agents, synthetic and artificial coloring substances;

other low-alcohol beverages – low-alcohol beverages with the exception of low-alcohol natural beverages;

1.6. tobacco articles;

1.7. motor spirits;

1.8. diesel fuel and diesel fuel with methyl ethers of fatty acids;

1.9. marine fuel;

1.10. liquefied hydrocarbon gas and natural fuel compressed gas, used as motor fuel;

1.11. oils for diesel and/or carburetor (injection) engines;

1.12. [excluded]

1.13. ciders;

1.14. edible alcohol-containing products in the form of solutions, emulsions, suspensions, produced with the use of ethyl alcohol.

2. The following is not recognized to be excisable goods:

2.1. alcohol-containing solutions with denaturing additives, components changing organoleptic properties of ethyl alcohol, allowed to be used in the Republic of Belarus;

2.2. alcohol-containing medicines allowed for industrial production, realization and medical use in the territory of the Republic of Belarus under the procedure established by the legislation;

2.3. alcohol-containing medicines being fabricated in pharmacies according to individual indications (prescriptions) of a physician or orders (requests) of a health organization, including homoeopathic medicines;

2.4. alcohol-containing means and substances for veterinary use, allowed for production and/or use in the territory of the Republic of Belarus under the procedure established by the legislation;

2.5. alcohol-containing cosmetics;

2.6. by-products and alcohol-containing waste, originating in accordance with the technological process in the production in the territory of the Republic of Belarus of ethyl alcohol or alcohol products;

2.7. cognac and fruit spirit, wine stock.

For the purposes of this Chapter the following is recognized as:

cognac spirit – winemaking distillate with a content of ethyl alcohol by volume of 55 to 70 percent, obtained by distilling cognac wine stock, realized (transferred), imported in containers holding 200 liters and more, to be used as raw material for fabricating alcohol products or being realized (transferred) for use as raw material for fabricating alcohol products;

fruit spirit – winemaking distillate with a content ethyl alcohol by volume of 52 to 86 percent, obtained by distilling (rectifying) fermented fruit wine material, fermented fruit juice, fermented fruit marc, yeasty and sedimentary remains, fruit raw spirit, imported in containers holding 200 litres and more, to be used as raw material for fabricating alcohol products or being realized (transferred) to be used as raw material for fabricating alcohol products;

wine stock – winemaking products being imported in automobile and rail tank cars holding 1000 decalitres and more, to be used as raw material for fabricating alcohol products or for filling (bottling) in packings for retail sale after completion of established technological operations or being realized (transferred) to be used as raw material for fabricating alcohol products or for filling (bottling) in packings for retail sale after completion of established technological operations;

2.8. disinfectants;

2.9. household chemical products;

2.10. [excluded]

2.11. tobacco used as raw material for production of tobacco articles.

3. The Ministry of Health of the Republic of Belarus, the Belarusian State Concern for Oil and Chemistry, the Belarusian State Food Concern shall, within their competence, considered, upon applications of the interested, issues of referring of certain goods to excisable goods and/or to goods not recognized as excisable and hand out respective conclusions.

Article 112. Excise rates

1. Unified excises rates both for excisable goods produced in the territory of the Republic of Belarus, and for excisable goods being imported into the territory of the Republic of Belarus and/or realized in the territory of the Republic of Belarus.

2. Excises rates may be established:

in a specific sum per a physical measure unit of excisable goods (firm (specific) rates);

in percentage points of the value of excisable goods or of the customs value of excisable goods increased by payable sums of customs duties (percentage (ad valorem) rates).

3. Excise rates on excisable goods are established according to Annex 1 to this Code.

Article 1121. Specific features of application of excise rates on filter-tipped cigarettes and procedure under which the payers notify of maximum retail prices for filter-tipped cigarettes and compliance thereof with price groups

1. Excise rates on filter-tipped cigarettes are applied on the basis of maximum retail prices for a pack, declared by the payer, on each brand (each denomination) of filter-tipped cigarettes and correspondence thereof to three price groups determined by sub-clause 9.4 of clause 9 of Annex 1 to this Code (later on – the price groups).

Maximum retail prices for a pack on each brand (each denomination) of filter-tipped cigarettes and correspondence of these prices to one of three price groups, and also the date of beginning of application thereof, are declared by the payer in a notification of maximum retail price of filter-tipped cigarettes (later on – the notification).

The form of the notification is established by the Ministry on Taxes and Dues of the Republic of Belarus.

For purposes of this Chapter the brand (denomination) of filter-tipped cigarettes means a product line position of the said cigarettes differing from other brands (denominations) by one or several following properties: individual designation (name) attributed by the manufacturer or licensee, mixture, dimensions, package.

2. For the purposes of application excise rates in relation to filter-tipped cigarettes imported into the territory of the Republic of Belarus and/or produced in the territory of the Republic of Belarus, the payer is obliged to submit the notification to the tax body at the place of putting on record not later than ten calendar days before the beginning of the calendar month starting from which the maximum retail prices indicated in the notification will be applied. Notification are submitted to the tax body according to the established form on a paper-based carrier or according to established formats in the form of an electronic document.

Maximum retail prices, declared by the payer in the notification, for a pack on each brand (each denomination) of filter-tipped cigarettes of one of three price groups are applied from the first day of the calendar month following the date of submission of the notification and are effective for not less than a calendar month.

Upon change of the maximum retail price for a pack of cigarettes and/or its conformity to one of three price groups, both for all brands (denominations) and for one or several brands (denominations) of filter-tipped cigarettes, the payer is obliged to submit a new notification under the procedure established by part one of this clause. Maximum retail prices and their conformity to one of three price groups indicated in the notification are applied from the first day of the calendar month following the date of submission of this notification, but not earlier than the expiry of the minimum time limit of effect of maximum retail prices, established by part two of this clause.

3. The tax body at the place of putting on record of the payer forwards the data about maximum retail prices for a pack on each brand (each denomination) of filter-tipped cigarettes and correspondence thereof to one of three price groups to the Ministry on Taxes and Dues of the Republic of Belarus within one working day after the payer submits the notification.

The Ministry on Taxes and Dues of the Republic of Belarus shall, not later than within three working days after receipt of the notification by the tax body at the place of putting on record of the payer:

inform the State Customs Committee of the Republic of Belarus about maximum retail prices, declared by the payer, for a pack on each brand (each denomination) of filter-tipped cigarettes imported into the territory of the Republic of Belarus and correspondence of these prices to one of three price groups, and also about the date of application of these prices;

place the information about maximum retail prices, declared by the payer, for a pack on each brand (each denomination) of filter-tipped cigarettes imported into the territory of the Republic of Belarus and correspondence of these prices to one of three price groups, and also about the date of application thereof, on the official site of the Ministry on Taxes and Dues of the Republic of Belarus in the global computer network Internet.

4. Computation and payment of excises collected by customs bodies in relation to filter-tipped cigarettes are carried out on the basis of maximum retail prices for a pack on each brand (each denomination) of filter-tipped cigarettes and correspondence of these prices to one of three price groups, declared by payers in the notifications the information about which is submitted by the Ministry on Taxes and Dues of the Republic of Belarus in accordance with indent two of part two of clause 3 of this Article.

For the purposes of computation of excises collected by customs bodies in relation to filter-tipped cigarettes are applied the excise rates depending on the maximum retail price for a pack established by the payer on this brand (this denomination) of filter-tipped cigarettes on the day of registration by the customs body (upon importation of goods from the states not being members of the Eurasian Economic Union) on the day of sending to the tax body of the notification about the arrival of goods subject to be marked by excise stamps of the Republic of Belarus (upon importation of goods from the member states of the Eurasian Economic Union) and correspondence of this price of one of the price groups.

5. In case the payer does not submit the notification under the procedure established by part one of clause 2 of this Article, the excise rates on filter-tipped cigarettes are applied according to the highest (third) price group.

In case of absence of the information of the Ministry on Taxes and Dues of the Republic of Belarus to be submitted in accordance with indent two of part two of clause 3 of this Article about maximum retail price both for all brands (denominations) of filter-tipped cigarettes and for one or several brands (denominations) of filter-tipped cigarettes, the customs body applies for such brands (denominations) of filter-tipped cigarettes the excise rates according to the highest (third) price group.

6. Organizations and individual entrepreneurs, when carrying out retail trade of filter-tipped cigarettes, realize such cigarettes at prices not exceeding those declared by payers in the notification.

Article 113. Excise taxation objects

1. Excise taxation objects are recognized:

1.1. excisable goods produced by the payers and realized (transferred) by them in the territory of the Republic of Belarus;

1.2. excisable goods imported into the territory of the Republic of Belarus and/or arising of other circumstances with the presence of which this Code, the Law of the Republic of Belarus "On customs regulation in the Republic of Belarus", acts constituting the law of the Eurasian Economic Union and/or acts of the President of the Republic of Belarus connect the arising of a duty on payment of excises;

1.3. excisable goods imported into the territory of the Republic of Belarus in the process of realization (transfer).

Excisable goods imported into the territory of the Republic of Belarus in relation to which firm (specific) excise rates are established are not recognized as excise taxation object upon realization (transfer) in the instance when upon importation of these excisable goods into the territory of the Republic of Belarus, the payment of excises has been made or exemption from excises in accordance with the legislation has been applied.

The fact of payment of excises (exemption from excises in accordance with the legislation) upon importation of goods into the territory of the Republic of Belarus is to be confirmed:

by a tax body of the Republic of Belarus – in relation to excisable goods being imported from the member states of the Eurasian Economic Union, with the exception of excisable goods subject to be marked by excise stamps of the Republic of Belarus;

by a customs body of the Republic of Belarus – in relation to excisable goods being imported into the territory of the Republic of Belarus from the states other than the member states of the Eurasian Economic Union, and also upon importation from the territory of the member states of the Eurasian Economic Union of excisable goods subject to be marked by excise stamps of the Republic of Belarus;

1.4. excisable goods specified in sub-clause 1.10 of clause 1 of Article 111 of this Code, realized (transferred) in the territory of the Republic of Belarus by the payers defined by clause 5 of Article 110 of this Code.

2. For the purposes of this Chapter, realization (transfer) of excisable goods are also recognized:

2.1. gratuitous transfer of excisable goods, exchange with involvement of excisable goods, realization (transfer) of excisable goods by the payers to own workers;

2.2. transfer of excisable goods as objects of pledge by the pledgor to the pledgeholder (creditor) upon non-fulfillment or improper fulfillment of the obligation secured by the pledge, transfer of excisable goods under an agreement on providing compensation instead of fulfilling the obligation or novation, loan contract;

2.3. transfer by the payer of excisable goods produced by him for using for own needs.

For the purposes of this Chapter, using for own needs is recognized any use by the payer of excisable goods for productive or non-productive purposes, other retirement of excisable goods, including inclusion of the value of these excisable goods into costs of the payer on production and realization of goods (works, services), property rights, taken into account for taxations, and/or into non-realization expenses for calculation of the tax on profits for organizations (personal income tax from natural persons – for individual entrepreneurs), and also at the expense of other sources, with the exception of actual loss of excisable goods in the course of storage, movement and transportation within the limits of normal wastage, approved in the established order. Actual loss of excisable goods in the course of storage, movement and transportation above the limits of normal wastage, approved under the established procedure, for the purposes of this Chapter, are recognized to be use for own needs.

In this instance normal wastage means losses (decrease of quantity of production while preserving the quality within the requirements of normative legal acts) being the result of natural change of physicochemical properties and/or impact of meteorological factors. Normal wastage does not include technological losses and losses from abnormal spoilage, losses provoked by violation of requirements of technical normative legal acts, rules of carriage of goods, imperfection of means of goods protection form losses and condition of applied technological equipment, and also losses because of damaged packing and change of the quality of production;

2.4. transfer by the payer of excisable goods produced by him for using his structural divisions for further production of non-excisable goods;

2.5. transfer by the payer of excisable goods produced by him as raw materials (materials) for processing on give-and-take conditions;

2.6. transfer by the payer of excisable goods produced by him as a contribution to the statutory fund of organizations, and also as a contribution under a contract of simple partnership (contract on joint activity);

2.7. transfer by an organization (economic company or partnership) of excisable goods produced by it to its participants (his successor or heir) upon his withdrawal (retirement) from the organization (economic company or partnership), and also transfer of excisable goods produced within the framework of a contract of simple partnership (contract on joint activity) to a participant (his successor or heir) of the said contract upon singling out of his stake from the property being in the common ownership of participants of the contract or upon division of such property;

2.8. transfer by the payer of excisable goods produced by him from give-and-take raw materials to the holder (owner) of the said raw materials or to other persons.

Give-and-take raw materials are recognized raw materials, materials, production, being transferred by possessors (owners) without payment to other organizations and individual entrepreneurs for production of excisable goods via processing (refinement), including filling. Give-and-take raw materials are not acquired and/or produced raw materials, materials, production, the value of which is accounted by the organization or individual entrepreneur in the value of works (services) on production of excisable goods from give-and-take raw materials;

2.9. shipment (transfer) by the payer of tobacco articles produced by him under contract-based production to the ordering customer and/or other persons.

Article 114. Exemption from excises upon realization (transfer) of excisable goods

1. The following is exempted from excises:

excisable goods upon realization in duty-free shops in the zone of customs control, and also duty-free shops for diplomatic missions and consular offices of foreign states, missions and bodies of international organizations and interstate formations;

1.2. [excluded]

1.3. alcohol, upon realization thereof for production of medicines to Belarusian organizations for which it is allowed to produce them;

1.4. confiscated and/or ownerless excisable goods, excisable goods rejected in favor of the state and which are subject to be converted into state ownership, industrial processing under supervisions of authorized bodies or destruction, upon realization (transfer) therof;

1.5. upon realization (transfer), excisable goods placed under the customs procedure of export, re-export, and also exported (without the commitment to return importation in the territory of the Republic of Belarus) to the member states of the Eurasian Economic Union, subject to documentary confirmation of the actual exportation of excisable goods outside the territory of the Republic of Belarus.

This sub-clause does not cover realization (transfer) of excisable goods being exported outside the Republic of Belarus on product exchange (barter) operations (except for exportation of excisable goods to the member states of the Eurasian Economic Union);

1.6. [excluded]

2. Confirmation of the actual exportation of excisable goods outside the territory of the Republic of Belarus (except for exportation to member states of the Eurasian Economic Union) shall be the fact that the payer has:

a contract of the payer concluded with a non-resident of the Republic of Belarus on the basis of which realization (transfer) of excisable goods is carried out;

a copy of the declaration for the goods certified by the personal numerical stamp of an official of the customs body, with the notices of the customs body about the release of excisable goods in accordance with the declared customs procedure with the notice of the customs body “Good has been exported” and indication of the date of issue of the confirmation or a special register of exported excisable goods, certified by the personal numerical stamp of an official of the customs body, with the notice of the customs body “Товар вывезен (Good has been exported)” and indication of the date of issue of the confirmation (are submitted to the tax body simultaneously with the tax declaration (calculation) on excises by the payers that do not carry out declaration to the customs bodies in the form of an electronic document). Payers that carry out the declaring of goods to the customs bodies in the form of an electronic document present to the tax body, simultaneously with the tax declaration (calculation) for excises, the information about confirmation of exportation of excisable goods outside the Republic of Belarus in the form of the register of numbers of electronic customs declarations for goods released in accordance with the declared customs procedure, with indication of the date of permission for the departure of the goods outside the Republic of Belarus. The form and procedure for completion of the register of numbers of electronic customs declarations for goods, being the enclosure for the tax declaration (calculation) for excises are approved by the Ministry on Taxes and Dues of the Republic of Belarus.

The confirmation of actual exportation of excise goods outside the Republic of Belarus (except for exportation of excisable goods to the member states of the Eurasian Economic Union) through organizations, individual entrepreneurs, 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 exported excisable goods (later on in this clause – intermediary) shall be the fact that the payer has:

a contract with the intermediary;

a copy of the contract of the intermediary with a foreign organization or natural person on the basis of which excisable goods are being realized;

a copy of the declaration for the goods certified by the personal numerical stamp of an official of the customs body, with the notices of the customs body about the release of excisable goods in accordance with the declared customs procedure with the notice of the customs body “Good has been exported” and indication of the date of issue of the confirmation or a special register of exported excisable goods, certified by the personal numerical stamp of an official of the customs body, with the notice of the customs body “Товар вывезен (Good has been exported)” and indication of the date of issue of the confirmation (are submitted to the tax body simultaneously with the tax declaration (calculation) on excises by the payers that do not carry out declaration to the customs bodies in the form of an electronic document). Payers that carry out the declaring of goods to the customs bodies in the form of an electronic document present to the tax body, simultaneously with the tax declaration (calculation) for excises, the information about confirmation of exportation of excisable goods outside the Republic of Belarus in the form of the register of numbers of electronic customs declarations for goods released in accordance with the declared customs procedure, with indication of the date of permission for the departure of the goods outside the Republic of Belarus.

The confirmation of actual exportation outside the Republic of Belarus (except for exportation of excisable goods to the member states of the Eurasian Economic Union) of excise goods produced from give-and-take raw materials shall be the fact that the payer has:

a contract for producing excisable products from give-and-take raw materials

a copy of the contract of the owner of give-and-take raw materials, concluded with a non-resident of the Republic of Belarus, for supply of the goods produced from these raw materials outside the Republic of Belarus;

a copy of the declaration for the goods certified by the personal numerical stamp of an official of the customs body, with the notices of the customs body about the release of excisable goods in accordance with the declared customs procedure with the notice of the customs body “Good has been exported” and indication of the date of issue of the confirmation or a special register of exported excisable goods, certified by the personal numerical stamp of an official of the customs body, with the notice of the customs body “Good has been exported)” and indication of the date of issue of the confirmation (are submitted to the tax body simultaneously with the tax declaration (calculation) on excises by the payers that do not carry out declaration to the customs bodies in the form of an electronic document). Payers that carry out the declaring of goods to the customs bodies in the form of an electronic document present to the tax body, simultaneously with the tax declaration (calculation) for excises, the information about confirmation of exportation of excisable goods outside the Republic of Belarus in the form of the register of numbers of electronic customs declarations for goods released in accordance with the declared customs procedure, with indication of the date of permission for the departure of the goods outside the Republic of Belarus.

The confirmation of actual exportation outside the Republic of Belarus (except for exportation of excisable goods to the member states of the Eurasian Economic Union) of excise goods produced from give-and-take raw materials and by the owner through an intermediary shall be the fact that the payer has:

a contract for producing excisable products from give-and-take raw materials

a copy of the contract of the owner of give-and-take raw materials with an intermediary;

a copy of the contract of the intermediary, concluded with a non-resident of the Republic of Belarus, for supply of the goods produced from raw materials outside the Republic of Belarus;

a copy of the declaration for the goods certified by the personal numerical stamp of an official of the customs body, with the notices of the customs body about the release of excisable goods in accordance with the declared customs procedure with the notice of the customs body “Good has been exported” and indication of the date of issue of the confirmation or a special register of exported excisable goods, certified by the personal numerical stamp of an official of the customs body, with the notice of the customs body “Good has been exported)” and indication of the date of issue of the confirmation (are submitted to the tax body simultaneously with the tax declaration (calculation) on excises by the payers that do not carry out declaration to the customs bodies in the form of an electronic document). Payers that carry out the declaring of goods to the customs bodies in the form of an electronic document present to the tax body, simultaneously with the tax declaration (calculation) for excises, the information about confirmation of exportation of excisable goods outside the Republic of Belarus in the form of the register of numbers of electronic customs declarations for goods released in accordance with the declared customs procedure, with indication of the date of permission for the departure of the goods outside the Republic of Belarus.

Documentary confirmation of actual exportation of excisable goods (including those produced from give-and-take raw materials) outside the Republic of Belarus (except for exportation of excisable goods to the member states of the Eurasian Economic Union) is performed within one hundred eighty days from the date of release of the goods in accordance with the declared customs procedure. When the date for presenting the tax declaration (calculation) for excises falls within this period, the turnovers on realization (turnovers) of these excisable goods are not indicated in the tax declaration (calculation) for excises.

Upon availability of the documents confirming the actual exportation of excisable goods outside the Republic of Belarus, turnovers on these excisable goods are indicated in the tax declaration (calculation) for excises of the reporting period the deadline for presentation of which follows the receipt of the respective documentary confirmation or of the reporting period in which the documents have been received.

In the absence of documents confirming the actual exportation of excisable goods outside the Republic of Belarus, till the presentation to the tax body of the tax declaration (calculation) for excises for the reporting period in which the established time limit expired, the turnovers on these excisable goods are indicated in the tax declaration (calculation) for excises of the reporting period in which the established time limit expired.

Upon receipt of the documents confirming the actual exportation of excisable goods outside the Republic of Belarus (except for exportation of excisable goods to the member states of the Eurasian Economic Union) on which calculated sums of excises are indicated in the tax declaration (calculation) after the expiry of one hundred eighty days from the date of release of the goods in accordance with the declared customs procedure, the payer submits a tax declaration (calculation) for excises with changes and/or additions introduced for the tax period in which one hundred eighty days from the date of release of the goods in accordance with the declared customs procedure have expired.

Provisions of this clause also cover payers that carry out contract-based production of tobacco articles, provided that the payers of excises have shipped tobacco articles outside the Republic of Belarus. Upon exportation outside the Republic of Belarus of tobacco articles produced under contract-based production, it is required that the payer has a copy of the contract of the ordering customer, concluded with a non-resident of the Republic of Belarus, for supply of tobacco articles produced under contract-based production outside the Republic of Belarus.

3. Turnovers on realization to foreign organizations and/or natural persons of excisable goods exported (without the commitment to return importation into the territory of the Republic of Belarus) to the member states of the Eurasian Economic Union are exempted from excises when the payer has the following documents:

a contract on the basis of which the realization of excisable goods is carried out;

transport (shipping) documents confirming the movement of goods from the territory of the Republic of Belarus to the territory of another member state of the Eurasian Economic Union, when goods are being moved through the system of main pipelines – acts of acceptance-delivery of goods;

declaration about importation of goods and payment of indirect taxes, drawn up according to the form approved by the treaty of the Republic of Belarus, with the notice of the tax body of the member state of the Eurasian Economic Union to the territory of which the goods are imported, about the payment of indirect taxes (exemption for the taxation or another order of fulfilling of tax obligations) (later on in this article – declaration about importation of goods) or the list of declarations about importation of goods and payment of indirect taxes. Declaration about importation of goods or the list of declarations about importation of goods and payment of indirect taxes shall be presented by the payer to the tax body at the place of putting on record simultaneously with the tax declaration (calculation) on excises. The form and procedure for completion of the list of declarations about importation of goods and payment of indirect taxes being the enclosure to the tax declaration (calculation) on excises are approved Ministry on Taxes and Dues of the Republic of Belarus.

Turnovers on realization by organizations and/or individual entrepreneurs of the Republic of Belarus on the basis of contracts of commission, agency, and other similar civil-law contracts (later on in this clause – the commitent) through organizations and/or individual entrepreneurs (later on in this clause – the commissioner) of excisable goods exported (without the commitment to return importation into the territory of the Republic of Belarus) to the member states of the Eurasian Economic Union shall be the fact that the commitent has the following documents:

contract of commission, agency, or another similar contract;

transport (shipping) documents confirming the shipment of excisable goods to the commissioner and copies of transport (shipping) documents confirming the shipment of goods to the buyers;

declaration about importation of goods or the list of declarations about importation of goods and payment of indirect taxes (to be presented by the payer to the tax body at the place of putting on record simultaneously with the tax declaration (calculation) on excises).

Turnovers on transfer of excisable goods produced from raw materials and exported (without the commitment to return importation into the territory of the Republic of Belarus) to the member states of the Eurasian Economic Union are exempted from excises when the payer has the following documents:

a contract for production of goods from give-and-take raw materials concluded with the resident of a member state of the Eurasian Economic Union;

a copy of the contract of the owner of give-and-take raw materials, concluded with the resident of a member state of the Eurasian Economic Union, for supply of excisable goods produced from these raw materials from the territory of the Republic of Belarus to the territory of the member states of the Eurasian Economic Union (in case the owner of raw materials is the payer of the Republic of Belarus);

transport (shipping) documents or copies of transport (shipping) documents confirming the movement of excisable goods from the territory of the Republic of Belarus to the territory of another member state of the Eurasian Economic Union; when excisable goods are being moved through the system of main pipelines – acts of acceptance-delivery of goods;

declaration about importation of goods or the list of declarations about importation of goods and payment of indirect taxes (to be presented by the payer to the tax body at the place of putting on record simultaneously with the tax declaration (calculation) on excises).

Turnovers on transfer of excisable goods produced from give-and-take raw materials and exported (without the commitment to return importation into the territory of the Republic of Belarus) to the member states of the Eurasian Economic Union are exempted from excises when the payer has the following documents:

a contract for production of goods from give-and-take raw materials concluded with the resident of a member state of the Eurasian Economic Union;

a copy of the contract of the owner of give-and-take raw materials, concluded with the commissioner;

a copy of the contract of the commissioner, concluded with the resident of a member state of the Eurasian Economic Union, for supply of excisable goods produced from these raw materials from the territory of the Republic of Belarus to the territory of the member states of the Eurasian Economic Union;

transport (shipping) documents (copies thereof) confirming the movement of excisable goods from the territory of the Republic of Belarus to the territory of another member state of the Eurasian Economic Union; when goods are being moved through the system of main pipelines – acts of acceptance-delivery of goods;

declaration about importation of goods or the list of declarations about importation of goods and payment of indirect taxes (to be presented by the payer to the tax body at the place of putting on record simultaneously with the tax declaration (calculation) on excises).

Turnovers on transfer produced under contract-based production and exported (without the commitment to return importation into the territory of the Republic of Belarus) to the member states of the Eurasian Economic Union are exempted from excises when the payer has the following documents:

a contract for contract-based production of tobacco articles, concluded with the resident of a member state of the Eurasian Economic Union;

a copy of the contract of the organization – ordering customer of tobacco articles, concluded with the resident of a member state of the Eurasian Economic Union for supply of tobacco articles produced under contract-based production from the territory of the Republic of Belarus to the territory of the member states of the Eurasian Economic Union (in case the ordering customer of tobacco articles is the payer of the Republic of Belarus);

transport (shipping) documents confirming the movement of tobacco articles from the territory of the Republic of Belarus to the territory of another member state of the Eurasian Economic Union;

declaration about importation of goods or the list of declarations about importation of goods and payment of indirect taxes (to be presented by the payer to the tax body at the place of putting on record simultaneously with the tax declaration (calculation) on excises).

Exemption from excises in relations to turnovers on transfer of excisable goods specified in parts three and five of this clause is applied provided that the payers of excises have shipped tobacco articles outside the Republic of Belarus.

Documentary confirmation of actual exportation of excisable goods from the territory of the Republic of Belarus to the territory of the member states of the Eurasian Economic Union in accordance with this clause is performed within one hundred eighty calendar days from the date of shipment (transfer) of excisable goods, including those produced from give-and-take raw materials, and also under contract-based production of tobacco articles. Indication in the tax declaration (calculation) for excises of turnovers on realization (transfer) of excisable goods is performed with regard to the mentioned time limit under the procedure determined by parts five–eight of clause 2 of this Article.

Article 115. Specific features of excises taxation upon importation of excisable goods into the territory of the Republic of Belarus

1. Upon importation of excisable goods into the territory of the Republic of Belarus, with the exception of importation from the territory of the member states of the Eurasian Economic Union, and occurrence of other circumstances with the presence of which the customs legislation of the Customs Union, the Law of the Republic of Belarus "On customs regulation in the Republic of Belarus" and/or acts of the President of the Republic of Belarus connect the arising of the duty for payment of excises, and also upon importation from the territory of the member states of the Eurasian Economic Union of excisable goods subject to be marked by excise stamps of the Republic of Belarus, the collection of excises is carried out by the customs bodies in accordance with this Code, customs legislation of the Customs Union, the Law of the Republic of Belarus "On customs regulation in the Republic of Belarus" and/or acts of the President of the Republic of Belarus.

2. Upon importation of excisable goods into the territory of the Republic of Belarus the territory of the member states of the Eurasian Economic Union with the exception of excisable goods subject to be marked by excise stamps of the Republic of Belarus, the collection of excises is carried out by the tax bodies in accordance with this Code and/or acts of the President of the Republic of Belarus, customs legislation of the Customs Union, the Law of the Republic of Belarus "On customs regulation in the Republic of Belarus".

Article 116. Exemption from excises upon importation of goods into the territory of the Republic of Belarus

The following is exempted from excises upon importation into the territory of the Republic of Belarus:

excisable goods specified in sub-clauses 1.7 – 1.9 of clause 1 of Article 111 of this Code imported from the territory of the member states of the Eurasian Economic Union, filling with which of the tank and/or other containers of a vehicle is made outside the Republic of Belarus in volumes stipulated by the manufacturer of the vehicle;

goods being moved in transit, imported from the territory of the member states of the Eurasian Economic Union;

goods subject to be turned over into the ownership of the state in accordance with the legislation;

goods imported from the territory of the members states of the Eurasian Economic Union, intended for the official use by diplomatic missions and consular offices of foreign states, by missions and bodies of international organizations and interstate formation, or for personal use of diplomatic and/or administrative and technical staff of these missions, offices and bodies, including members of their families living with them (unless they are citizens of the Republic of Belarus), diplomatic mail and consular bag;

liquefied hydrocarbon gas and natural fuel compressed gas;

other excisable goods under the procedure and conditions determined by the President of the Republic of Belarus.

Article 117. Determination of excises tax base

1. The excises tax base, depending on excises rates established in relation to excisable good, is determined:

1.1. upon realization (transfer) of excisable goods produced (including from the give-and-take raw materials) by the payer:

as volume of realized (transferred) excisable goods in kind – on excisable goods in relation to which firm (specific) rates are established;

As the value of realized (transferred) excisable goods, determined based on selling prices without account of excises – on excisable goods in relation to which percentage (ad valorem) rates are established.

The tax base is determined separately on each kind of realized (transferred) excisable goods;

1.2. Upon importation into the territory of the Republic of Belarus of excisable goods the collection of excises on which is carried out by the customs bodies:

1.2.1. as volume of excisable goods in kind – on excisable goods in relation to which firm (specific) rates are established;

1.2.2. as customs value of excisable goods increased by payable sums of customs duties – on excisable goods in relation to which percentage (ad valorem) rates are established;

1.3. upon realization (transfer) of excisable goods imported into the territory of the Republic of Belarus:

1.3.1. as volume of excisable goods in kind – on excisable goods in relation to which firm (specific) rates are established, imported into the territory of the Republic of Belarus without payment of excises;

as the value of realized (transferred) excisable goods, calculated based on applied prices without account of excises – on excisable goods in relation to which percentage (ad valorem) rates are established;

1.4. upon realization (transfer) in the territory of the Republic of Belarus by the payers defined by clause 5 of Article 110 of this Code, of acquired (imported) of excisable goods specified in sub-clause 1.10 of clause 1 of Article 111 of this Code:

1.4.1. as the volume of excisable goods in kind – on excisable goods acquired (imported) without the payment of excises, in relation to which firm (specific) rates of excises are established;

1.4.2. as the value of excisable goods, calculated based on applied prices without account of excises – on excisable goods in relation to which percentage (ad valorem) rates of excises are established.

2. When determining the taxation base upon realization (transfer) of excisable goods in relation to which percentage (ad valorem) rates of excises are established, the value of these excisable goods, paid (payable) in foreign currency, is 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 excisable goods.

3. Upon realization (transfer) of excisable goods imported into the territory of the Republic of Belarus, in relation to which percentage (ad valorem) rates of excises are established, at prices without account of excises which are less than the customs value thereof increased by payable sum of customs duties, the taxation base is determined based on the customs value increased by payable sum of customs duties.

Upon realization (transfer) of excisable goods imported into the territory of the Republic of Belarus from the territory of the member states of the Eurasian Economic Union, in relation to which percentage (ad valorem) rates of excises are established, at prices without account of excises which are less than the acquisition price thereof, the taxation base is determined based on the acquisition price.

Article 118. Determination of the moment of actual realization (transfer) of excisable goods

1. The moment of actual realization (transfer) of excisable goods is determined as the day of shipment (transfer) (including to a structural division of the payer) of excisable goods, falling within the tax period.

The day of shipment (transfer) of excisable goods is recognized the date of release thereof from the warehouse performed under the established procedure.

The day of shipment (transfer) of excisable goods on the basis of contracts of commission, agency or other similar civil-law contracts is recognized the date of shipment of excisable goods by their owner or rightholder to the commissioner (agent) or the date of shipment of excisable goods by the commissioner (agent) to the buyer.

2. [Excluded]

3. Upon gratuitous transfer of excisable goods, transfer (realization) of excisable goods by the payers to their workers, exchange with involvement of excisable goods, transfer of excisable goods under an agreement on providing compensation instead of fulfilling the obligation or novation, loan contract, the moment of actual realization (transfer) of excisable goods is determined as the day, falling within the tax period, of such transfer or exchange, accordingly.

The day of exchange is recognized the date of performance of each shipment of excisable goods.

4. The moment of actual realization of excisable goods produced from these raw materials is determined as the day, falling within the tax period:

4.1. of shipment (transfer) of excisable goods in accordance with formalized documents on the instructions of the owner of those goods;

4.2. of shipment (transfer) of excisable goods in accordance with formalized documents in the case of fulfilment of a loan contract;

4.3. of shipment (transfer) of excisable goods in accordance with formalized documents to the person processing those goods in the case of payment with excisable goods for services on production of goods from give-and-take raw materials;

4.4. of shipment (transfer) of excisable goods in the case of change of the owner of excisable goods manufactured from excisable raw materials.

5. When using excisable goods for own needs, the moment of actual realization is determined as the date of drawing up a primary accounting document or, when there is not primary accounting document, another document evidencing the using of excisable goods for own needs, including release into production of goods (works, services) and other retirement.

6. When using excisable goods for production of non-excisable goods, the moment of actual realization is determined as the day of transfer of such excisable goods into production, falling within the tax period.

7. The moment of actual realization of tobacco articles produced under contract-based production is determined as the day of shipment (transfer) thereof to the ordering customer and/or other persons.

Article 119. Arising and termination of the duty on payment of excises collected by the customs bodies and the time limit for payment thereof

1. Arising and termination of the duty on payment of excises collected by the customs bodies upon importation of excisable goods into the territory of the Republic of Belarus and the time limit for payment thereof, with the exception of importation of excisable goods into the territory of the Republic of Belarus from the territory of the member states of the Eurasian Economic Union to be marked by excise stamps of the Republic of Belarus, is determined in accordance with the customs legislation of the Customs Union, the Law of the Republic of Belarus "On customs regulation in the Republic of Belarus" and/or acts of the President of the Republic of Belarus.

2. Upon importation into the territory of the Republic of Belarus from the territory of the member states of the Eurasian Economic Union of excisable goods subject to be marked by excise stamps of the Republic of Belarus, which are marked by excise stamps of the Republic of Belarus, the duty on payment of excises:

arises for the person that acquired excise stamps for marking goods being imported, which are subject to be marked by excise stamps of the Republic of Belarus, from the moment of importation of such goods into the territory of the Republic of Belarus;

terminates in the instances established by sub-clauses 1–4 and 7 of clause 2 of Article 80 of the Customs Code of the Customs Union of November 27, 2009;

is to be executed prior to or simultaneously with notification to the customs body that issued the excise stamps of the arrival of goods subject to be marked by excise stamps of the Republic of Belarus and of the place of location thereof for performance of the control over the observance of rules of marking, established by the legislation.

For calculation of excises, the legislative acts are applied, which regulate the issues of taxation and effective on the day of sending to the customs body of the notification of the arrival of goods subject to be marked by excise stamps of the Republic of Belarus.

In the event of failure to notify the customs body that issued the excise stamps of the arrival of goods subject to be marked by excise stamps of the Republic of Belarus, imported from the territory of the member states of the Eurasian Economic Union, use and/or disposal thereof prior to performance of the control over observance of rules of marking and other requirements established by the legislation by the customs bodies, the duty on payment of excises is to be executed on the day of using the goods or of disposing thereof, and if this day is not established – on the day of detection of facts of using or of disposing of such goods in the amounts corresponding to the sums of excises that were to be paid upon placement of such goods under the customs procedure for internal consumption, calculated on the day of using and/or disposing thereof, and if this day is not established – on the day of detection of facts of using and/or disposing of such goods.

3. Upon importation into the territory of the Republic of Belarus from the territory of the member states of the Eurasian Economic Union of excisable goods subject to be marked by excise stamps of the Republic of Belarus, without excise stamps of the Republic of Belarus, arising, termination and time limit for executions of the duty on payment of excises are determined under the procedure established by Article 81 of the Customs Code of the Customs Union of November 27, 2009.

Article 120. Procedure for calculating excises upon realization (transfer) of excisable goods. Sum of excises payable to the budget. Sum of excises presented for payment by the payer to the buyer of goods

1. Sum of excises on excisable goods is calculated as the product of the tax base and the excises rate.

2. The total sum of excises established according to results of a tax period on all operations on realization of excisable goods is determined through addition of sums calculated in accordance with clause 1 of this Article for each kind of excisable goods.

3. Sum of excises payable by the payer to the budget is determined as the difference between the total sum of excises calculated according to results of a tax period and the sum of tax deductions established by Article 123 of this Code and falling on this tax period.

4. Exemptions from excises taxation, zero rates or other rates of excises, exclusions from the list of excisable goods are applied on excisable goods shipped (transferred) from the day of establishing these exemptions, zero rates or other rates of excises, exclusions.

Upon change of the procedure for calculating excises (change of the composition of payers, taxation objects, tax base, moment of actual realization, rates, procedure for applying exemption from excises), inclusion of goods into the list of excisable goods, a new procedure for calculating is applied on excisable goods shipped (transferred) from the moment of changing the procedure for calculating excises, inclusion of goods into the list of excisable goods.

5. The payer is obliged to present for payment to the buyer of excisable goods (owner of give-and-take raw materials) a respective sum of excises. The respective sum of excises shall be indicated in primary accounting and/or settlement documents as a separate entry.

6. Upon realization (transfer) of excisable goods which, in accordance with this Chapter, are exempt from excises taxation, primary accounting and/or settlement documents are drawn up without singling out sums of excises and a notice or a stamp "Without excises” is made in these documents.

Upon realization (transfer) of excisable goods which, in accordance with part two of sub-clause 1.3 of clause 1 of Article 113 of this Code, are not recognized excises taxation objects, the payer shall indicate sums of excises paid by him upon importation of these excisable goods in primary accounting and/or settlement documents.

7. Upon realization (transfer) of excisable goods at retail prices, sums of excises is included in the prices of excisable goods. In this instance sums of excises are not indicated on labels of excisable goods and price tickets, put by the sellers, and also in receipts and other documents to be handed to the buyer.

8. Correction of a sum of excises that has been wrongly indicated (including failure to indicate a sum of excises or to make a notice or to put a stamp "Without excises”) in primary accounting documents is carried out on the basis of a settlement checking act between the seller and the buyer of excisable goods.

9. Upon transfer of excisable goods as give-and-take raw materials for production of excisable goods, the owner of give-and-take materials indicates in primary accounting and/or settlement documents sums of excises paid (reimbursed) by the owner upon acquisition (receipt, importation) of raw-and-take raw materials.

Sum of excises calculated 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 and presented separately for reimbursement to the owner of excisable goods produced from give-and-take raw materials. Sum of excises subject to be presented by the payer to the owner of excisable goods produced from give-and-take raw materials is determined as the difference between the sum of excises calculated by the payer in production of excisable goods from give-and-take raw materials and the sum of excises subject to be deducted in accordance with sub-clauses 2.1 and 2.2 of clause 2 of Article 123 of this Code, with the exception of cases when, at a later stage, such excisable goods are used by the owner for production of other excisable goods.

10. Upon transfer of excisable goods between separate divisions of organizations, which fulfill their tax obligations, for production of excisable goods, sums of excises shall be indicated in primary accounting and/or settlement documents paid upon acquisition (importation) of excisable goods being transferred. Similar procedure is also applied upon transfer of excisable goods as contribution of a participant of the contract of simple partnership to the common cause, and also upon division of excisable goods which were in the common ownership of participants of the contract of simple partnership.

11. Upon transfer by the commissioner (agent) of excisable goods acquired (imported) for commitents (principals), sums of excises paid upon acquisition (importation) of these excisable goods are indicated in primary accounting and/or settlement documents.

Upon transfer excisable goods by commitents (principals) to commissioners (agents) for realization thereof sums of excises paid upon importation of these excisable goods are indicated in primary accounting and/or settlement documents.

The commissioner (principal) indicates, upon realization of excisable goods received from the commitent (principal), sums of excises in primary accounting and/or settlement documents for the buyers in the amount not exceeding the sums of excises indicated by the commitment (principal) in accordance with part two of this clause.

12. Sum of excises excessively presented in primary accounting and/or settlement documents by the seller to buyers of excisable goods (to the owner of goods produced from give-and-take raw materials) is subject to be calculated and paid to the budget by this seller, with the exception of correction of the excessively presented sum of excises on the basis of settlement checking acts signed by the seller and the buyer (the owner of goods produced from give-and-take raw materials). In the instance of singling out of excises in primary accounting and/or settlement documents in the sum less than it is established by this Chapter, calculation and payment of excises is performed by the payer at the established rates of excises for such excisable goods.

Payers of excises that acquired excisable goods on which the buyer indicated a incorrect or excessive sum of excises accept for deduction in accordance with clause 2 of Article 123 of this Code the sum of excises singled out by the buyer in primary accounting and/or settlement documents, with the exception of correction of the mentioned sums of excises on the basis of settlement checking acts signed by the seller and the buyer.

Payers of excises which singled out incorrectly sums of excises in primary accounting and/or settlement documents in relation to providing a reverse effect to normative legal acts, and also payers of excises which acquired these excisable goods from the former, accordingly, calculate and pay to the budget, accept for deduction in accordance with clause 2 of Article 123 of this Code the sum of excises singled out by the buyer in primary accounting and/or settlement documents, with the exception of correction of the mentioned sums of excises on the basis of settlement checking acts signed by the seller and the buyer.

Correction by the seller of the calculated sum of excises, and by the buyer of sums of tax deductions, is performed in the month in which the seller incorrectly indicated or excessively presented a sum of excises, and the buyer accepted this sum of excises for deduction.

Provisions of this clause also cover:

commissioners (agents) that acquire excisable goods (works on production of excisable goods from give-and-take raw materials) on the basis of contracts of commission, agency, and other similar civil-law contracts and present the sums of excises for reimbursement to commitents (principals), and also realize excisable goods;

commitents (principals) which transferred excisable goods to commissioners (agents) for realization;

payers for which realization (transfer) of excisable goods is exempted from excises;

organizations and individual entrepreneurs not being payers of excises;

owners of give-and-take raw materials in relation to excessively presented excises in primary accounting and/or settlement documents drawn up upon transfer of the said raw materials to the payer that produces excisable goods from give-and-take raw materials;

payers that produce excisable goods from give-and-take raw materials;

separate divisions of organizations, which fulfill their tax obligations in relation to excessively indicated sums of excises in primary accounting and/or settlement documents drawn up upon transfer of excisable goods between structural divisions;

participants of the contract of simple partnership, which transfer excisable goods as contribution to the common cause, and also the participant of the contract of simple partnership, carrying out the conduct of common affairs, when dividing excisable goods being in the common ownership of participants, in relation to the sums of excises excessively indicated in primary accounting and/or settlement documents drawn up upon transfer of excisable goods as contribution to the common cause, performance of divisions of excisable goods.

Article 121. Procedure for calculating excises collected by customs bodies. Sum of excises payable to the budget

1. Sum of excises collected by the customs bodies upon importation of excisable goods into the territory of the Republic of Belarus, payable to the budget, is calculated as the product of the tax base and the rate of excises.

2. Specific features of the calculation of the sum of excises subject to be paid to the budget and collected by the customs bodies upon importation of excisable goods into the territory of the Republic of Belarus, depending on the customs procedure, are established by the customs legislation of the Customs Union, the Law of the Republic of Belarus "On customs regulation in the Republic of Belarus" and/or acts of the President of the Republic of Belarus.

3. Upon importation from the territory of the member states of the Eurasian Economic Union of excisable goods subject to be marked by excise stamps, the excises are calculated by the payer of excises himself with application of the document “Calculation of excises subject to be paid”, the form and the procedure for completion of which is determined by the State Customs Committee of the Republic of Belarus (with the exception of the instance of adoption by the customs body of a decision on recovery of excises, under which the calculation of excises subject to be paid is performed by the customs body).

Calculation of sums of excises subject to be paid is performed in Belarusian rubles.

In the instances when for calculation of excises, and also for determining the customs value of goods, it is necessary to perform recalculation of the foreign currency in Belarusian rubles, the official rate of the National Bank of the Republic of Belarus established on the day indicated in parts two and three of clause 2 of Article 119 of this Code is applied.

Article 122. Inclusion of sums of excises into costs on production and realization of goods (works, services), property rights to be taken into consideration for the taxation or assignment thereof on increasing the value of excisable goods

1. Sum of excises paid upon acquisition (importation into the territory of the Republic of Belarus) of excisable goods used in the territory of the Republic of Belarus in production and/or realization of products, goods (performance of works, rendering of services) is included into costs on production and realization of goods (works, services), property rights, taken into consideration for the taxation, or assigned on the increase of the value of said excisable goods, with the exception of sums of excises paid:

1.1. in the territory of the Republic of Belarus upon acquisition (receipt) of excisable goods (importation into the territory of the Republic of Belarus of excisable goods) used for productions of other excisable goods;

1.2. upon importation into the territory of the Republic of Belarus of excisable goods in relation to which percentage (ad valorem) rates of excises are established – in the instance of subsequent realization thereof in the territory of the Republic of Belarus.

2. For purpose of this Chapter, the sum of excises paid upon:

acquisition of excisable goods is recognized a sum of excises indicated by the seller in primary accounting and/or settlement documents in accordance with Article 120 of this Code and/or a sum of excises calculated by the payer when using excisable goods for own needs;

upon importation into the territory of the Republic of Belarus is recognized a sum of excises collected by the customs bodies upon importation into the territory of the Republic of Belarus or a sum of excises paid upon importation of excisable goods from the territory of the member states of the Eurasian Economic Union.

3. The sum of excises paid by the owner of give-and-take raw materials upon acquisition (importation into the territory of the Republic of Belarus) of excisable goods used in production of non-excisable goods is included by the owner of give-and-take raw materials into costs on production and realization of these non-excisable goods, taken into consideration for the taxation.

Sum of excises presented by the payer to the owner of give-and-take raw materials in included by the owner of give-and-take raw materials into costs on production and realization, taken into consideration for the taxation of excisable goods produced from the mentioned give-and-take raw materials (except for use (transfer) thereof by the owner of give-and-take raw materials further production of excisable goods).

4. The payer has the right to include sums of excises paid upon acquisition (importation into the territory of the Republic of Belarus) of excisable goods used in production of other excisable goods into costs on production and realization of produced excisable goods, taken into consideration for the taxation, or assign on increase of the value of the mentioned excisable goods.

5. Calculation of the sum of excises subject to be included into costs on production and realization of goods (works, services), property rights, taken into consideration for the taxation, is made by the of specific weight method or by the method of separate accounting of directions for using of excisable goods.

Under the specific weight method, inclusion of sums of excises into costs on production and realization of goods (works, services), property rights, taken into consideration for the taxation, is made proportionally to the value of excisable goods used into production of goods (when percentage (ad valorem) rate of excises is established) or to the volume of excisable goods (firm (specific) rate of excises is established), used in production of goods.

Under the method of separate accounting of directions for using of excisable goods, the sum of excises actually paid upon acquisition (importation into the territory of the Republic of Belarus) of excisable goods used in production of goods is included into costs on production and realization of goods (works, services), property rights, taken into consideration for the taxation.

The method of calculation of sums of excises applied in the course of a calendar year is approved by the accounting policy of the organization, decision of the individual entrepreneur. When the accounting policy of the organization (decision of the individual entrepreneur) does not contain indication concerning the applicable method of calculation of sums of excises, inclusion of sums of excises into costs on production and realization of goods (works, services), property rights, taken into consideration for the taxation, is performed by the specific weight method.

Article 123. Tax deductions

1. The total sum of excises determined in accordance with clause 2 of Article 120 of this Code id decreased by tax deductions established by this Article.

2. Tax deductions are recognized to be the sums of excises:

2.1. presented (paid) in the territory of the Republic of Belarus upon acquisition (receipt) of excisable goods (importation into the territory of the Republic of Belarus) of excisable goods) used in production of other excisable goods, including those paid (reimbursed) by the owner of give-and-take raw materials;

2.2. paid by the payer that produces excisable goods from give-and-take raw materials, upon acquisition (importation into the territory of the Republic of Belarus) of excisable goods used by the latter in production of excisable goods from give-and-take raw materials;

2.3. paid upon importation into the territory of the Republic of Belarus of excisable goods in relation to which percentage (ad valorem) rates of excises are established, upon subsequent realization of such excisable goods in the territory of the Republic of Belarus. Deduction of the mentioned sums of excises is performed within the sums of excises calculated upon realization of these excisable goods in the territory of the Republic of Belarus.

Upon realization of several kinds of excisable goods in relation to which percentage (ad valorem) rates of excises are established, the sums of excises subject to be deducted are determined separately on each kind of realized excisable good.

3. Sums of excises on excisable goods used in production of other excisable goods are determined proportionally to:

value of excisable goods used as raw materials (without excises), included into costs on production and realization of excisable goods, taken into consideration for the taxation, and the value (without excises) of the total volume of excisable goods used as raw materials, available in this period;

volume of excisable goods used as raw materials, for which firm (specific) rates of excises are established, the value of which included into costs on production and realization of excisable goods, taken into consideration for the taxation, in the reporting month and the total volume of excisable goods used as raw materials, for which firm (specific) rates of excises are established, accepted in production.

A negative difference between sums of excises paid upon acquisition (importation into the territory of the Republic of Belarus) of excisable goods used in production of other excisable goods and sums of excises on realized produced excisable goods is not subject to be set off against the forthcoming payments to the budget or to be returned from the budget and is included into non-realization expenses;

volume of shipped (transferred) excisable goods produced from give-and-take raw materials and the total volume of excisable goods produced from give-and-take raw materials transferred by their owner for production of excisable goods. The ground for carrying out the deduction for the payer is the fact that the latter has primary accounting and/or settlement documents specified in part one of clause 9 of Article 120 of this Code, with indication by the owner of give-and-take raw materials of respective sums of excises.

4. Sums of excises paid upon acquisition (importation into the territory of the Republic of Belarus) of excisable goods used in production of excisable goods exported outside the territory of the Republic of Belarus are subject to be deducted (returned) for the persons being the payers of excises. In this instance it is the sums of excises paid on excisable goods used as raw materials, the value of which is actually assigned (written off) in the reporting period to the prime costs of exported excisable goods are subject to be deducted.

Sums of excises paid (reimbursed) upon acquisition (receipt, importation into the territory of the Republic of Belarus), including on the basis of contracts of agency, commission or other similar civil-law contracts, of excisable goods used as raw materials in production of other excisable goods exported outside the Republic of Belarus are subject to be deducted (returned) for the persons being the payers of excises which produce excisable goods from give-and-take raw materials. In this instance, sums of excises presented by possessors (owners) of excisable goods in accordance with clause 9 of Article 120 of this Code, which are actually used as raw materials in production of other excisable goods exported outside the Republic of Belarus with a view of their subsequent transfer (setoff) to possessors (owners) of the said raw materials for reimbursement of their expenses on payment (reimbursement) of sums of excises upon acquisition (receipt, importation into the territory of the Republic of Belarus) of excisable goods.

In the event of non-recoverable loss of excisable goods intended to be used in production of other excisable goods, in the process of production, storage, movement thereof and/or subsequent technological processing, sums of excises on such excisable goods are not subject to be sett off (returned).

Sums of excises subject to be deducted (returned) are indicated by the payer in tax declaration (calculation) on excises as a separate entry and are set off against forthcoming payments or are returned by the tax bodies, upon a written application of the payer, from the budget on the basis of submitted tax declarations (calculations) on excises.

5. Sums of excises paid upon acquisition (importation into the territory of the Republic of Belarus) of excisable goods when they are:

5.1. included into costs on production and realization of goods (works, services), property rights taken into consideration for the taxation or assigned on increasing the value of acquired (imported) excisable goods;

5.2. paid on excisable goods transferred by the payer to its separate divisions that fulfill its tax obligations, for production of excisable goods;

5.3. paid on excisable goods transferred by a participant of the contract of simple partnership as a contribution to the common cause, and also paid by the participant of the contract of simple partnership, carrying out the conduct of common affairs, also when dividing excisable goods being in the common ownership of participants of the simple partnership;

5.4. not indicated in primary accounting and/or settlement documents in accordance with Article 120 of this Code.

6. When the procedure of application of tax deductions has been changed, a new procedure of deductions is effective in respect of excisable goods:

recorded as received from the day of changing the application of tax deductions;

imported from the day of changing the application of tax deductions. The date of importation is determined according to the date of release of excisable goods in accordance with the declared customs procedure;

acquired in the member states of the Eurasian Economic Union, from the day of changing the application of tax deductions. The date of acquisition is determined according to the date of acceptance of excisable goods for accounting.

Article 124. Tax period of excises. Time limits for submission of tax declaration (calculations) and payment of excises

1. The tax period for excises is recognized a calendar month.

2. Payers submit monthly the tax declaration (calculation) to the tax bodies not later than on 20th day of the month following the expired tax period.

3. The payment of excises is performed not later than on the 22th day of the month following the expired tax period.

4. 4. Procedure and time limits for payment of excises collected by the customs bodies upon importation of excisable goods into the territory of the Republic of Belarus, with the exception of importation from the territory of the member states of the Eurasian Economic Union of excisable goods subject to be marked by excise stamps of the Republic of Belarus are determined by the customs legislation of the Customs Union, the Law of the Republic of Belarus "On customs regulation in the Republic of Belarus" and/or acts of the President of the Republic of Belarus.

5. Upon importation into the territory of the Republic of Belarus from the territory of the member states of the Eurasian Economic Union of excisable goods subject to be marked by excise stamps of the Republic of Belarus, excises are paid into accounts on accounting means of the republican budget open in accordance with the legislation for the customs bodies authorized by the State Customs Committee of the Republic of Republic for realization of excise stamps within the time limits established by indent four of part one of clause 2 of Article 119 of this Code.

Calculation of excises subject to be paid, and also documents confirming the fact of payment of excises are submitted to the customs body simultaneously with notification of the customs body of the arrival of goods subject to be marked by excise stamps of the Republic of Belarus.

CHAPTER 14

TAX ON PROFIT

Article 125. Payers of tax on profit

As payers of the tax on profit (later on in this Chapter – payers) are recognized organizations.

Article 126. Object of taxation with the tax on profit

1. As taxation object for the tax on profit are recognized gross profit and also dividends and incomes equated to them, recognized as such in accordance with clause 1 of Article 35 of this Code (later on in this Chapter – dividends), posted by Belarusian organizations.

2. For the purposes of this Chapter, the gross profit is recognized to be:

for Belarusian organizations, the sum of profit from realization of goods (works, services), property rights and non-realization incomes, decrease by the sum of non-realization incomes;

for foreign organizations carrying out activity in the Republic of Belarus through a permanent representation, the sum of profit of a foreign organization obtained through a permanent representation in the territory of the Republic of Belarus from realization of goods (works, services), property rights and non-realization incomes, decreased by the sum of non-realization incomes;

21. When the gross profit is determined by affiliates, representative offices and other separate subdivisions of legal persons of the Republic of Belarus fulfilling the tax obligations of the legal person, it shall be taken into account the sum of profit from realization of goods (works, services), property rights and non-realization incomes decreased by the sum of non-realization expenses, from activities of mentioned affiliates, representative offices and other separate subdivisions of legal persons of the Republic of Belarus.

3. Gross profit of a Belarusian organization is calculated with account of the profit (loss) from realization of goods (works, services), property rights and non-realization incomes, decreased by the sum of non-realization incomes, from activity outside the Republic of Belarus, including from the activity concerning which it is registered as the payer of taxes of a foreign state.

4. Payers that use, in accordance with this Code, special regimes of taxation do not account incomes and expenses, relating to such regimes, while determining gross profit.

Upon transfer from a special taxation regime to the common taxation regime for determining the gross profit are taken into account costs on production and realization of goods (works, services), property rights incurred within the period of application of the special taxation regime but related to the revenue received in the period of application of the common taxation regime.

41. The following does not constitute a taxation object for the tax on profit:

41.1. incomes obtained by issuers from placement of shares;

41.2. profit from 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;

41.3. profit from realization of an enterprise as a property complex of the debtor within the bankruptcy proceedings;

41.4. profit state social service institutions from realization of articles manufactured within the framework of rehabilitation and work activity and in training in hobby circles, and also when holding events on development of accessible labour skills of disabled persons;

41.5. profit from granting into use of dwelling premises of the state housing fund, intended for commercial use.

42. Losses from realization of goods (works, services), property rights, the profit from realization of which, in accordance with this Article and other legislation acts, is not a taxation object for the tax on profit are not taken into account for taxation.

5. A taxation object for the tax on profit is not constituted by dividends posted:

to public associations "Belarusian Society of Disabled Persons", "Belarusian Society of the Deaf" and "Belarusian partnership of the vision-impaired disabled" by unitary enterprises the owners of property of which are these associations;

to venture organizations, to the Belarusian innovation fund (later on in this Chapter – Belinfund) by innovation organizations.

The tax benefit provided by indent three of part one of this clause is applied by venture organizations, Belinfund in the instance if the portion of revenue of an innovation organization from realization of high-technology goods (works, services), referred to this category in accordance with the legislation, property rights to intellectual property objects constitutes not less than 50 percent in the total volume of revenue of such innovation organization. For the purposes of confirming the tax benefit, the innovation organization submits to the tax body at the place of its putting on record about referring goods (works, services) to the high-technology ones, issued by the State Committee on Science and Technology of the Republic of Belarus, not later than the time limit established for presentation of the tax declaration (calculation) on tax on profit according to the results of the expired calendar year.

For the purposes of this Chapter, the innovation organization means an organization that carries out innovation activity and/or producing high-technology goods (works, services).

Article 127. Profit (loss) from realization of goods (works, services), property rights

1. Profit (loss) from realization of goods (works, services), property rights (with the exception of fixed assets and intangible assets) is determined as a positive (negative) difference between revenue from their realization decreased by the sums of taxes and dues payable from the revenue and costs on production and realization of goods (works, services), property rights taken into consideration for taxation. Revenue from realization of goods (works, services), property rights, costs on production and realization of goods (works, services), property rights shall be determined, unless otherwise established by this Code, based on the prices of transactions correctable in the instances established by Article 301 of this Code.

2. Profit (loss) from realization of fixed assets and intangible assets is determined as a positive (negative) difference between revenue from realization of fixed assets determined having regard to provisions of Article 301 of this Code, of intangible assets decreased by the sums of taxes and dues payable from the revenue and the depreciable value fixed assets, intangible assets, and also costs on realization of fixed assets, intangible assets, determined with regard to provisions  of Article 301 of this Code.

3. For the purposes of this Chapter, provisions established for realization of goods (works, services), property rights are applied in relation to realization of other assets, unless otherwise established by this Chapter.

4. Revenue from realization of goods (works, services), property rights is reflected on the date of its recognition in the accounting irrespective of the date of making settlements on them with observance of the principle (method) of accrual under the procedure established by the legislation and/or set out in accordance with it in the accounting policy of the organization (for banks – under the procedure established by the National Bank of the Republic of Belarus), having regard to norms of parts two and three of this clause.

The date of reflection of the revenue from realization of goods is determined in accordance with the accounting policy of the organization, but may not the later than:

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 delivery (transportation);

in other instances, the earliest from the following dates: the date of transfer to the buyer (recipient) or the date of transfer to the organization (individual entrepreneur) carrying out the carriage (forwarding) of goods, the payment for services of which the buyer makes.

The date of transfer of property rights is recognized the date of conclusion of a respective contract, unless otherwise established by the contract, but may not be later than the date of receipt of the payment for property rights (another termination of obligations on payment for property rights, including as a result of an setoff, assignment of the right of claim, receipt of means from third persons).

The date of reflection of the revenue from realization of goods (performance of works, rendering of services), transfer of property rights by the commitent (principal) upon their realization under the mentioned contracts is recognized the date of shipment of goods (performance of works, rendering of services), transfer of property rights by the commissioner (agent) to the buyer.

The date of reflection of the revenue from realization of goods, transfer of property rights by the trustor upon their realization by the trustee is recognized the date of shipment, transfer of property rights by the trustor to the buyer.

Banks reflect incomes from realization of goods (works, services), property rights in the reporting period in which they took place irrespective of the actual receipt of monetary means, other property (works, services) and/or property rights according to the principle of accrual, applied under the procedure established by the National Bank of the Republic of Belarus.

5. Upon gratuitous transfer of goods (works, services), property rights (with the exception of fixed assets and intangible assets), revenue from the realization thereof is reflected in the amount of not less than the sum of costs on their production or acquisition (performance, rendering), sums of the value added tax computed on gratuitous transfer and costs on gratuitous transfer, and upon gratuitous transfer of fixed assets and intangible assets – not less than their depreciable value, the sums of value added tax computed on gratuitous transfer and costs on gratuitous transfer. Revenue from realization, costs on production or acquisition (performance, rendering), costs on gratuitous transfer are reflected in the reporting period in which goods are actually transferred (works – performed, services – rendered), property rights – transferred.

For taxation of the profit, revenue and costs related to gratuitous transfer of goods (works, services), property rights, not recognized as realization in accordance with sub-clauses 2.1–2.3, 2.5–2.8 of clause 2 of Article 31 of this Code.

6. Profit (loss) from realization by a participant of a stake (part of the stake) in the statutory fund (stock (part of the stock)) of an organization is determined as a positive (negative) difference between the revenue from its realization and the sum of contribution of this participant to the statutory fund of the organization or expenses actually incurred (paid) by the participant for acquisition of the stake in the statutory fund (stock) of the organization, computed in the event of alienation of a part of the stake (part of the stock) based on the specific weight of the part of the stake (part of the stock) being alienated in the stake of the statutory fund (stock) of this participant. In this instance the sum of contribution or expenses on acquiring of a stake in the statutory fund (stock) of the organization are subject to be multiplied by the ration of official rates established by the National Bank of the Republic of Belarus toward the US dollar as of the date the date of recognition of revenue and as of the date of actual making the contribution or of actual making (paying) expenses on acquiring of the stake in the statutory fund (stock) of the organization.

For taxation of the profit from realization of a stake (part of the stake) in the statutory fund (stock (part of the stock)) of an organization, sums specified in sub-clause 3.4 of clause 3 of Article 128 of this Code are also taken into account as expenses.

7. In the event of return by the buyer (ordering customer) to the seller (contractor) of goods (refusal of performed works, rendered services, property rights) or decreasing (increasing) of the value of goods (works, services), property rights at the seller (contractor), revenue and corresponding costs on production and realization of goods (works, services), property rights, to be taken into account for taxation, are subject to correction in the in the reporting period in which the return of the goods (refusal of performed works, rendered services, property rights) took place or decreasing or increasing of the value is made, and the buyer (ordering customer) performs a respective correction of costs on production and realization of goods (works, services), property rights, to be taken into account for taxation.

Provisions of part one of this clause are also not applied:

upon return of goods (refusal of performed works, rendered services, property rights) or decreasing (increasing) of the value of goods (works, services), property rights, the profit from realization of which is exempted, in accordance with the tax legislation, from taxation with the tax on profit (from payment of the tax on profit) or is taxable with the tax on profit at a reduced rate;

by payers for which the realization of goods (works, services), property rights in relation to which the return (refusal) or decreasing of the value is carried out, was not taken into account for purposes of computation of the tax on profit in connection with application of a special taxation regime.

In relation to goods (works, services), property rights, the return of which (refusal of which) or decreasing of the value of which was effected in the period when the organization applied a special taxation regime and the revenue from realization of which was taken into account for computing the tax base for the tax on profit in the calendar year preceding the year in which the return (refusal) or decreasing of the value was effected, changes shall be introduced in the tax declaration (calculation) for the tax on profit for the last reporting period of such preceding calendar year.

In relation to goods (works, services), property rights, the return of which (refusal of which) or decreasing of the value of which was effected in the period when the organization applied the single tax for producers of agricultural produce and the revenue from realization of which was taken into account for computing the tax base for the tax on profit in the calendar year in which the return (refusal) or decreasing of the value was effected, changes shall be introduced in the tax declaration (calculation) for the tax on profit for the reporting period in which the revenue from realization of which was taken into account for computing the tax base for the tax on profit.

8. Profit (loss) from realization of the enterprise as a property complex (with the exception of realization of the enterprise as a property complex by the owner of the property of a unitary enterprise (institution)) is determined as a positive (negative) difference between revenue from its realization decreased by the sums of taxes and dues payable from the revenue and the difference between assets and liabilities being defined according to the transfer act and also expenses connected with realization of the enterprise as a property complex.

Profit (loss) from realization of the enterprise as a property complex by the owner of the property of a unitary enterprise (institution)) is determined as a positive (negative) difference between revenue from its realization decreased by the sums of taxes and dues payable from the revenue, sum of his contribution to the statutory fund of the unitary enterprise or sum of expenses actually made by him for acquisition of the enterprise as a property complex, and also sum of monetary means and/or the value of other property transferred earlier to the unitary enterprise (institution) into economic management or operative administration, and the expenses connected with realization of the enterprise as a property complex. In that instance the amount of revenue from realization of the enterprise as a property complex and the sum of contribution to the statutory fund of the unitary enterprise or expenses actually made by him for acquisition of the enterprise as a property complex, and also sum of monetary means and/or the value of other property transferred earlier to the unitary enterprise (institution) into economic management or operative administration, are subject to be recalculated into US dollars at the official rate established by the National Bank of the Republic of Belarus, respectively on the date of recognition of revenue and on the date of actual introduction of the contribution to the statutory fund or carrying out expenses for acquisition of the enterprise as a property complex, and also on the date of transfer of monetary means and/or other property to the unitary enterprise (institution) into economic management or operative administration.

9. For the purposes of this Chapter, operations of issuers with bonds of own issue are recognized as operations on attracting or return of loans.

Article 128. Non-realization incomes

1. For the purposes of this Code, non-realization incomes are recognized incomes obtained by the payers while carrying out their activity and not connected directly with production and realization of goods (works, services), property rights.

2. Non-realization incomes are determined on the basis of documents of accounting and tax records with regard of provisions of Article 301 of this Code.

The date of reflection of non-realization incomes is determined by the payer as of the date of recognition of the incomes in the accounting, and in relation to incomes on which the date of their reflection is indicated in clause 3 of this Article – as of the date indicated in clause 3 of this Article.

3. Non-realization incomes include:

3.1. dividends from sources outside the Republic of Belarus;

3.2. incomes of the participant (shareholder) of an organization in money or in kind upon liquidation of the organization, upon withdrawal (expulsion) of the participant (shareholder) from the organization in the amount exceeding the sum of his contribution to the statutory fund or expenses actually made (paid) by the participant (shareholder) on acquiring of the stake in the statutory fund (stocks, shares) of the organization. In this instance the amount of incomes of the participant (shareholder) and the sum of his contribution or expenses on acquiring of a stake in the statutory fund (stocks, shares) of the organization are subject to be recalculated into US dollars at the official rate set by the National Bank of the Republic of Belarus, respectively, on the date of recognition of the incomes in the accounting and on the date of actual making the contribution, or of actual making (paying) expenses on acquiring of a stake in the statutory fund (stocks, shares) of the organization.

When determining the income of the participant (shareholder) of an organization in money or in kind upon liquidation of the organization, upon withdrawal (expulsion) of the participant (shareholder) from the organization, sums specified in sub-clause 3.4 of this clause are also taken into account as expenses with recalculation in US dollars, provided by part one of this sub-clause;

3.3. [excluded]

3.4. incomes of the participant (shareholder) of an organization in the form of the value of the stake in the statutory fund (value of the stock, nominal value of shares) of that organization, and also in the form of an increase of the nominal value of shares made at the expense of the own capital of the organization, in the instance of changing the percentage of participation in the statutory fund at least of one of the participants (shareholders) for more than by 0.01 percent. Such incomes shall be reflected on the date of adoption of the decision about distribution (redistribution) of stakes in the statutory fund (stocks, shares), increase of the nominal value of shares;

3.5. incomes in the form of interest for granting into use of monetary means of the organization, and also of interest for using by the bank of monetary means being on the bank account;

3.6. sums of penalty fees (fines, penalty interest), sums due to be received as a result of application of other measures of liability, including as a result of reimbursement of losses for breaching of contract obligations;

3.7. inpayments for reimbursement of a damage in kind, losses (including lost profit), with the exception of incomes specified in sub-clause 3.6 of this clause. Such incomes are reflected on the date of their receipt irrespective of the mode of reimbursement of a damage in kind, losses (including payment of an indebtedness toward third persons, setoff of counterclaims, and other methods);

3.8. value of gratuitously received goods (works, services), property rights, other assets, sums of monetary means gratuitously received. In that instance, gratuitously received goods (works, services), property rights, other assets, sums of monetary means gratuitously received include also received goods (works, services), property rights, other assets in the event of exemption from the duty of paying for them, received monetary means in the event of exemption from the duty of returning them, with the exception of the instances established by sub-clause 3.103 of this clause. Such incomes are reflected on the date of their receipt (date of exemption from the duty of paying for goods (works, services), property rights, other assets; date of exemption from the duty of returning monetary means);

3.9. sums for a discharge of accounts receivable after the expiry of limitation period, and also sums for a discharge of accounts receivable being (considered) uncollectible. Accounts receivable being (considered) uncollectible are recognized accounts receivable of liquidated legal persons and individual entrepreneurs that terminated the activity, and also indebtedness of deceased natural persons and natural persons declared deceased, not being individual entrepreneurs. Such incomes shall be reflected as of the date of their receipt irrespective of the way of their discharge (setoff of counterclaims, discharge of the obligation to a third person etc.);

3.10. sums of accounts payable on which the limitations periods are expired and, if it is provided by the legislation, sums of accounts payable on which acquisitive prescription periods have expired;

3.101. sums of accounts payable upon liquidation of the legal person. Such incomes shall be reflected in the reporting period on which falls the earliest date from the following dates: the date of submission of the tax declaration (calculation) in accordance with part two of clause 21 of Article of this Code or the last day of the time limit established by the indicated part, and upon liquidation of a legal person according to a decision of the registering body in the order established by the President of the Republic of Belarus – the day on which falls the date of drawing up the act of inspection in the course of which circumstances being a ground for liquidation of a legal person according to the decision of the registering body have been detected;

3.102. sums of accounts payable upon liquidation, termination of activities and/or death of the creditor. Such incomes shall be reflected as of the date of exclusion of the creditor from the Unified State Register of Legal Persons and Individual Entrepreneurs (foreign organizations and individual entrepreneur – from the trade register or another similar system of record and identification of legal persons and individual entrepreneurs of the country of their establishment) and/or of the death of the natural person not being individual entrepreneur of declaration of the natural person not being individual entrepreneur as deceased;

3.103. sums of a decrease of accounts payable (increase of accounts receivable) upon conclusion of the amicable agreement or agreement on conciliation. Such incomes shall be reflected in the reporting period in which the amicable agreement or agreement on conciliation enters into force;

3.11. value of the property accepted for accounting which resulted in excess upon results of the inventory. Such incomes are reflected on the date of accepting the property in accounting of the organization;

3.12. payment for participation in trading (tender). Such incomes shall be reflected as of the date of their receipt;

3.13. positive difference arising between the value of the property received (transferred) into loan and the value of the property transferred (received) upon discharging this loan. Such incomes are reflected on the date of accepting (writing off) the property in accounting of the organization;

3.14. sums of the value added tax included earlier in non-realization expenses in connection with absence of the documents that substantiate:

3.14.1. application of the rate of the value added tax in the amount of zero (0) percent upon expiry of one hundred eighty calendar days from the date of:

shipment of goods (including those produced from give-and-take raw materials and materials) to the states – members of the Eurasian Economic Union in the event of subsequent arrival of such documents. Such incomes are reflected on the date of arrival of documents that substantiate application of the rate of the value added tax in the amount of zero (0) percent;

formalizing of the declaration for the goods with the notices of the customs body about the release of the goods in accordance with the declared customs procedure (for payers that carry out the declaring of goods to the customs bodies in the form of an electronic document – from the date of entry into the information system of customs bodies of the data about the release of goods in accordance with the declared customs procedure) in the event of subsequent arrival of such documents. Such incomes are reflected on the date of arrival of documents that substantiate application of the rate of the value added tax in the amount of zero (0) percent;

holding the public trading on realization of fur material being exported from the Republic of Belarus outside the Russian Federation, in the event of subsequent arrival of such documents. Such incomes are reflected on the date of arrival of documents that substantiate application of the rate of the value added tax in the amount of zero (0) percent;

3.14.2. exemption from the value added tax upon the expiry of one hundred eighty calendar days from the date of shipment to the lessor of goods indicated in sub-clause 1.44 of clause 1 of Article 94 of this Code, in the event of subsequent arrival of such documents. Such incomes are reflected on the date of arrival of documents that substantiate exemption from the value added tax;

3.141. sums of excises included earlier in non-realization expenses in connection with absence of the documents that substantiate the application of exemption from excises upon the expiry of one hundred eighty calendar days from the date of:

shipment of excisable goods to the states – members of the Eurasian Economic Union, in the event of subsequent arrival of such documents. Such incomes are reflected on the date of arrival of documents that substantiate the application of exemption from excises;

formalizing of the declaration for excisable goods with the notices of the customs body about the release of excisable goods in accordance with the declared customs procedure (for payers that carry out the declaring of excisable goods to the customs bodies in the form of an electronic document – from the date of entry into the information system of customs bodies of the data about the release of excisable goods in accordance with the declared customs procedure) in the event of subsequent arrival of these documents. Such incomes are reflected on the date of arrival of documents that substantiate the application of exemption from excises;

3.15. incomes from operation on putting of property into lease (transfer into financial lease (leasing)), other for-compensation or gratuitous use of the property.

Incomes from operation on putting of property into lease (financial lease (leasing)), other for-compensation or gratuitous use of the property are determined as a sum of rent (leasing payments) which include the sum of remuneration of the lessor, payment for the use of the property to the lender and expenses of the lessor to be reimbursed in accordance with the legislation, and also as a sum of expenses of the lessor (borrower under a contract of sub-rent) which are not included in the rent (leasing payments), payment for the use of the property, accordingly, but are to be reimbursed in accordance with conditions of the contract, with the exception of sums of reimbursement specified in sub-clause 4.19 of clause 4 of this Article;

3.16. value of goods (works, services), property rights, sums of monetary means used not in accordance with the intended purpose which are received within the framework of foreign gratuitous assistance, international technical assistance, special purpose financing (with the exception of budgetary means). Such incomes are reflected on the date of use, being not in accordance with the intended purpose, of goods (works, services), property rights or monetary means or on the date of breaching of conditions under which respective goods (works, services), property rights or monetary means had been granted;

3.17. exchange rate differences arising upon recalculation of the value of assets and liabilities expressed in foreign currency, determined in the order established by the legislation, with the exception of those arising for recipients of foreign gratuitous assistance when recalculating in Belarusian rubles the value of assets and liabilities connected with receipt and use of foreign gratuitous assistance expressed in foreign currency, when using the foreign gratuitous assistance according the intended use;

3.18. positive differences arising when accounts receivable or accounts payable are discharged, including in connection with receipt of payment in the sum exceeding the sum of earnings and/or non-realization incomes, determined in accordance with clause 5 of Article 31 of this Code. Such incomes are reflected on the date of discharge of accounts receivable or accounts payable;

3.19. incomes in the form of decrease and annulment of deductions to the reserves expenses on formation of which had been recognized in preceding reporting periods in non-realization expenses or in costs on production and realization of goods (works, services), property rights taken into consideration for taxation;

3.191. incomes of an organization under a contract on trust management of property in which it is indicated as a beneficiary; Such incomes shall be reflected as of the date of their receipt;

3.192. means received gratuitously within the framework of special purpose financing from the republican or local budget or state non-budgetary funds, from the budget of the Union State within the reporting periods following the periods in which expenses covered by such means had been taken in consideration for taxation. Such incomes shall be reflected as of the date of their receipt including setoff of counterclaims, discharge of the obligation to a third person etc.;

3.193. incomes of the buyer (ordering customer) in the sum of premiums, bonuses, granted by the seller (executor, contractor) concerning the price (value) indicated in the contract, after the buyer (ordering customer) had met the conditions (including volume of purchases or orders) determined in the contract as mandatory for receipt of such premiums, bonuses. Such incomes shall be reflected as of the date of their receipt including setoff of counterclaims, discharge of the obligation to a third person etc.;

3.194. incomes from the sale of foreign currency in the sum of a positive difference that arose due to the deviation of the rate of sale of the foreign currency from the official rate established by the National Bank of the Republic of Belarus on the date of sale;

3.195. incomes from exchange of one kind of foreign currency for another kind of foreign currency (conversion of foreign currency) as a positive difference between the sum received as a product of the official rate of purchased foreign currency, established by the National Bank of the Republic of Belarus on the date of conversion, and its quantity and a sum received as a product of the official rate of realized foreign currency, established by the National Bank of the Republic of Belarus on the date of conversion and its quantity;

3.196. sums of the investment deduction (a part thereof) computed from initial value of fixed assets (parts thereof) used in entrepreneurial activity (value of investment in reconstruction) included into costs on production and realization of goods (works, services), property rights, taken into account for taxation in accordance with parts three – five of sub-clause 2.6 of clause 2 of Article 130 of this Code, in the instances of alienation, transfer into lease (financial lease (leasing)), trust management, gratuitous use, using such fixed assets (parts thereof) in the activity on which the payer does not pay the tax on profit in connection with application of special taxation regimes, as well as compensation (in full or in part) of expenses on acquisition (creation) of fixed assets or value of investments in reconstruction at the expense of means received gratuitously within the framework of special purpose financing from the republic or local budgets or budgets of state non-budgetary funds, from the budget of the Union State, earlier than upon expiration of three years from the moment of their acceptance in accounting (increase of the initial value of fixed assets by the value of investments in reconstruction). Such incomes shall be reflected, accordingly, as of the date of alienation, transfer into lease (financial lease (leasing)), trust management, gratuitous use, receipt of the compensation, and as of the date preceding the date of beginning of the use in the activity on which the payer does not pay the tax on profit in connection with application of special taxation regimes.

A part of the investment deduction falling on the part of initial value of an object of fixed assets (value of investments in reconstruction) shall be determined proportionally to the specific weight of that part of the initial value of the object of fixed assets (value of investments in reconstruction) in its total initial value (value of investments in reconstruction);

3.197. monetary means received by republican unitary enterprises carrying out distribution of gaseous fuel through pipelines and its sale or production, transfer and distribution of electric energy from republican unitary enterprises carrying out the similar activity when distributing means in the order established by the Council of Ministers of the Republic of Belarus within one owner under the conditions of establishing uniforms prices for natural gas or tariffs for electric energy in the Republic of Belarus, differentiated according to groups of consumers. Such incomes shall be reflected as of the date of their receipt;

3.198. incomes of an organization under the contract of trust management of monetary means and/or contract of trust management of securities, in which it is indicated as the settlor. Such incomes shall be determined as a sum of profit received under a such contract in the sum computed by the trustee on the basis of accounting data of operations of trust management in the order established by the legislation and shall be reflected as of the date of their receipt;

3.199. incomes of an organization under the contract of trust management of bank-managed fund, in which it is indicated as the settlor. Such incomes shall be determined as a positive difference between the value of the share of the settlor in the property of the fund as of the date of the buyout (premature buyout) of the participatory certificate (part thereof) by the trustee of the bank management fund and the value of that share of the settlor as of the date of transfer of monetary means and/or securities to the fund and be reflected as of the date of the buyout (premature buyout) of the participatory certificate (part thereof) by the trustee of the bank management fund;

3.1910. incomes from the sale to banks of bullions and small bars of precious metals, bullion (investment) coins of precious metals in the sum of a positive difference between the selling price and the acquisition price;

3.1911. difference between the sum received (to be received) by the issuer upon placement of housing bonds and the sum paid (to be paid) upon redemption by the issues of housing bonds (including premature buyout). Such incomes are reflected on the date of redemption (premature buyout) housing bonds;

3.1912. sum of an increase in the value of goods being performed in the established order in retail trade and public catering to the prices for newly received goods;

3.1913. sums of the value added tax computed in the order established by the legislation of the Republic of Belarus, falling on expenses specified in sub-clause 3.25 of clause 3 of Article 129 of this Code. Such incomes are reflected in the reporting period for which those sums are reflected in the tax declaration (calculation) for the value added tax;

3.1914. sum of the rent to be paid to the natural person – lessor, including individual entrepreneur, being uncleared indebtedness upon expiration of 12 months from the moment of its arising. Such incomes are reflected in the reporting period on which falls the day following the day on which 12 months from the moment of arising indebtedness on the rent expire;

3.1915. incomes of organizations from geriatric homes and homes for disabled persons, dwelling fund objects, education, healthcare, culture and sport institutions, being on their balance sheet, with the exception of incomes specified in sub-clause 3.15 of this clause. This provision is not applied in relation to incomes received when using the mentioned objects exclusively in entrepreneurial activity;

3.20. Other incomes of the payer when carrying out his activity and not connected directly with production and realization of goods (works, services), property rights. Such incomes shall be reflected not later than the date of their receipt.

4. Non-realization incomes do not include:

4.1. gratuitous means received within the framework of special purpose financing from the budget or state non-budgetary funds, non-budgetary centralized investment funds formed by the republican bodies of state administration in accordance with the legislation, from the budget of the Union State and used according to their intended purpose, with the exception of means indicated in sub-clause 3.192 of clause 3 of this Article. In this instance expenses of organizations covered by these means are not taken into account when determining the taxable profit;

4.2. for budgetary organization, social and religious organizations (associations), republican state-public associations, other non-commercial organizations, created in accordance with the legislation:

4.2.1. admission fees, share and membership contributions in the amounts provided for by the statutes (constituent contracts);

4.2.2. monetary means received from participants (members) as a forthcoming financing and/or as reimbursement of expenses on acquisition and/or performance (rendering) of works (services) for these participants (with account of the value of goods included into the value of the said works (services), connected with maintenance and operation of immovable property);

4.2.3. the value of gratuitously received goods (performed works, rendered services), property rights, other assets, sums of monetary means gratuitously received, provided that these goods (works, services), property rights, monetary means have been used according to their intended purpose, and in case when the intended purpose has not been determined by the transferring party – to fulfill tasks determined by the statutes and/or constituent documents of budgetary organization, social and religious organizations (associations), republican state-public associations, other non-commercial organizations, created in accordance with the legislation;

4.2.4. incomes in the form of interest from safekeeping of monetary means indicated in sub-clauses 4.2.1 – 4.2.3 of this clause on current (settlement) or other bank accounts;

4.3. [excluded]

4.4. means received by the payers within share participation in the building of housing, maintenance of non-production objects and used according to the intended purpose;

4.5. for state associations being non-commercial organizations, created according to the decision of the President of the Republic of Belarus, the Council of Ministers of the Republic of Belarus, and also on their instructions (permission) by republican bodies of state administration or according to the decision of bodies of local government and self- government – sum of means being remitted for their maintenance from the profit (income) remaining after taxation by state and other legal persons and individual entrepreneurs, making part of these state associations, unless otherwise established by the President of the Republic of Belarus;

4.6. sums of means being remitted by unitary enterprises from the profit remaining after the taxation for financing the apparatus of management of consumer societies and unions thereof;

4.7. means received by the development funds of free economic zones;

4.8. dividends received by the payers from Belarusian organizations;

4.9. goods (works, services), property rights, monetary means, gratuitously received:

4.9.1. by a successor(s) of an organizations upon its reorganization;

4.9.2. by the Republic of Belarus or to its administrative and territorial units, including when represented by state bodies, and specially authorized legal and natural persons;

4.9.3. republican and communal unitary enterprises upon gratuitous transfer of the property being in the ownership of the Republic of Belarus or its administrative and territorial unit, according to the decisions of the owner or a body authorized by the owner;

4.9.4. upon gratuitous transfer within one owner according to the decision of the owner or the decision of a body authorized by the owner;

4.9.5. by organizations carrying out activity on producing the produce of crop husbandry, animal husbandry, fish husbandry, and apiculture, provided that they are used for carrying out economic activity on producing the produce of crop husbandry, animal husbandry, fish husbandry, and apiculture;

4.9.6. as foreign gratuitous assistance or international technical assistance, under the procedure and conditions established by the President of the Republic of Belarus;

4.10. [excluded]

4.11. the value of non-used state property that was in republican and communal ownership, gratuitously received by organizations into the ownership in accordance with the legislation;

4.12. within the validity period of a contract on trust management of property, the property of the trustor transferred to the trustee;

4.13. property belonging to the trustor on the right of ownership, being returned by the trustee upon termination of trust management, and also incomes received by the trustor under a contract on trust management of property on which the taxation has been performed by the trustor in accordance with this Code;

4.14. for venture organizations, Belinfund, sums received from innovation organizations in the form of interest for granting of monetary means for financing of venture projects. This provision is applied by venture organizations, Belinfund in the instance if the portion of revenue of an innovation organization from realization of high-technology goods (works, services), referred to this category in accordance with the legislation, property rights to intellectual property objects constitutes not less than 50 percent in the total volume of revenue of such innovation organization. When the mentioned condition is not met, the tax on profit is to be paid to the budget along with payment of the penalty interest in the amount established by the legislation for the period of groundless application of the benefit till the day of payment of the tax;

4.15. for operating organizations, sums of expenses made in the course of creation of engineering, transport, social infrastructure objects and their redevelopment, accepted into state ownership, upon gratuitous transfer of these objects by investors (ordering customer, builder) under the procedure established by the President of the Republic of Belarus;

4.16. value of gratuitously received goods (works, services), property rights, sums of gratuitously received monetary means for construction and/or reconstruction of objects intended to be used for physical culture or sport provided that they are used accoding to the intended purpose;

4.17. value of gratuitously received 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 value of gratuitously received material objects related to these results if the gratuitous receipt of property rights to results of scientific and scientific and technical activity is accompanied simultaneously by the transfer of such objects.

The ground for application of the exemption shall be the indication in the contracts stipulating the transfer of property rights to results of scientific and scientific and technical activity by their holder to another person or the granting by the right holder to another person of the right to use results of scientific and scientific and technical activity of the data about the number and the date of registration of the rights to results of scientific and scientific and technical activity, description of said rights contained in the state register of rights to results of scientific and scientific and technical activity;

4.18. sum of an increase in the value of fixed assets, income-bearing investments in material assets, equipment to be installed, made in accordance with the legislation, and the sum of writeback of depreciation of fixed assets, long-term assets intended for realization, and investment immovable property;

4.19. sums of expenses to be reimbursed to the lender upon transfer of the property into gratuitous use, related to the transfer in such use and arising in connection with acquisition of communal and/or other works (services) on maintenance and/or operation of that property, and also of expenses the duty on reimbursement of which is provided by acts of the President of the Republic of Belarus (with the exception of sums of expenses which refer to (works, services) performed (rendered) by the lender by own forces). In this instance expenses of organizations covered by these means are not taken into account when determining the taxable profit;

4.20. means remitted to the organization and/or its creditors from persons bearing subsidiary liability on obligations of that organization under the procedure of bringing those persons to subsidiary liability in accordance with the legislation.

Article 129. Non-realization expenses.

1. For the purposes of this Code, non-realization expenses are recognized expenses, losses, damages, made by the payer for carrying out its activities and not connected directly with production and realization of goods (works, services), property rights.

2. Non-realization expenses are determined on the basis of documents of accounting (if necessary by way of making calculating corrections to the data of the accounting within the framework of conducting the tax accounting) having regard to provisions of Article 301 of this Code.

The date of reflection of non-realization expenses is determined by the payer as of the date of recognition of the expenses in the accounting, and in relation to expenses on which the date of their reflection is indicated in clause 3 of this Article – as of the date indicated in clause 3 of this Article.

3. Non-realization expenses include:

3.1. sums of penalty fees (fines, penalty interest), sums due to be paid as a result of application of other measures of liability, including as a result of reimbursement of losses for breaching of contract obligations (with the exceptions of obligations stipulated by infringement contracts concluded with the Republic of Belarus);

3.2. expenses connected with consideration of cases in courts (court expenses);

3.3. expenses on holding meetings of participants (shareholders) of an organization, in particular expenses connected with lease of premises, preparation and sending of documents necessary for holding meetings, other expenses directly connected with holding such meetings;

3.4. sums of taxes, dues and other mandatory deductions, withheld and/or paid to the budget of non-budgetary funds of foreign states in accordance with the legislation of these states (with the exception of taxes and dues in relation to which elimination of double taxation is provided in accordance with the legislation and/or treaties of the Republic of Belarus), and also with the exception of taxes and dues included by the Belarusian organization in the revenue (income) according to the legislation of the foreign state when if fulfilled obligations of the payer of the foreign state in relation to connection with carrying out entrepreneurial activity in the territory of the foreign state), upon availability of a statement verified by a tax body (other competent authority of the state the functions of which include levying of taxes) or other documents confirming the payment (withholding) of taxes, dues and other mandatory deductions in the foreign state. Such sums of taxes, dues and other mandatory payments are reflected on the date of payment (remittance) thereof in the foreign state;

3.5. sums of the value added tax not accepted for deduction upon writing off accounts receivable into non-realization incomes for the payers which till January 1, 2013 determined the revenue from realization of goods (works, services), property rights according to the received payments for shipped goods (performed works, rendered services), property rights. Such expenses are reflected on the date of inclusion of sums of accounts receivable into non-realization-incomes.

3.6. sums of the value added tax calculated in the absence of documents that substantiate:

3.6.1. application of the rate of the value added tax in the amount of zero (0) percent upon expiry of one hundred eighty calendar days from the date of:

shipment of goods (including those produced from give-and-take raw materials and materials) to the states – members of the Eurasian Economic Union. Such expenses are reflected on the one hundred eighty-first day from the indicated date;

formalizing of the declaration for the goods with the notices of the customs body about the release of the goods in accordance with the declared customs procedure (for payers that carry out the declaring of goods to the customs bodies in the form of an electronic document – from the date of entry into the information system of customs bodies of the data about the release of goods in accordance with the declared customs procedure) in the event of subsequent arrival of such documents. Such expenses are reflected on the one hundred eighty-first day from the indicated date;

holding the public trading on realization of fur material being exported from the Republic of Belarus outside the Russian Federation. Such expenses are reflected on the one hundred eighty-first day from the indicated date;

3.14.2. exemption from the value added tax upon the expiry of one hundred eighty calendar days from the date of shipment to the lessor of goods indicated in sub-clause 1.44 of clause 1 of Article 94 of this Code, in the event of subsequent arrival of such documents. Such expenses are reflected on the one hundred eighty-first day from the indicated date;

3.61. sums of excises calculated in the absence of documents that substantiate the application of exemption from excises upon the expiry of one hundred eighty calendar days from the date of:

shipment of excisable goods to the states – members of the Eurasian Economic Union. Such expenses are reflected on the one hundred eighty-first day from the indicated date;

formalizing of the declaration for excisable goods with the notices of the customs body about the release of excisable goods in accordance with the declared customs procedure (for payers that carry out the declaring of excisable goods to the customs bodies in the form of an electronic document – from the date of entry into the information system of customs bodies of the data about the release of excisable goods in accordance with the declared customs procedure) in the event of subsequent arrival of these documents. Such expenses are reflected on the one hundred eighty-first day from the indicated date;

3.7. expenses on maintenance of industrial capacities and objects being in preservation status performed in accordance with the legislation;

3.8. expenses on maintenance of mobilization capacities and civil defence objects, and also expenses on conducting measures of civil defence;

3.9. expenses on annulled production orders, and also on production objects than did not produce products;

3.10. non-reimbursable losses from suspension of production, idleness due to inner and exterior grounds, if guilty persons are not established or court refused to levy on them. Such expenses are reflected on the date of drawing up documents confirming that guilty persons have not been established or court has refused to levy on them;

3.11. [excluded]

3.12. damages from operations with tare;

3.7. expenses on reimbursement of a damage in kind, losses (including lost profit), with the exception of expenses specified in sub-clause 3.1 of this clause. Such expenses are reflected on the date of drawing up documents confirming that guilty persons have not been established or court has refused to levy on them;

3.14. non-reimbursable sums of losses (damages) from shortage of property and/or decay thereof, occurred in excess of limits of normal wastage, established by the legislation, if guilty persons were not established or the court refused to levy the given sums on them, with the exception of cases when the court refused the levying on grounds dependent on the organization. Such expenses are reflected on the date of drawing up documents of law enforcement bodies and/or courts, confirming that guilty persons have not been established or the court has refused to levy on them;

3.15. expenses, non reimbursable by other persons, on participation in trading (tenders) in the form of a competitive bidding or auction, which have not resulted in conclusion of a contract, and also in the instances when trading (tenders) has been recognized as having not taken place or invalid. Such expenses are reflected on the date of conducting trading (tenders), upon results of which contracts have not been concluded, and also on the date of recognizing trading as not having taken place or invalid.

3.16. expenses on liquidation, writing off of fixed assets, intangible assets being retired from operation (including sums of depreciation not calculated in full in accordance with established period of effective use, expenses on disassembly, dismantling, removal of disassembled or dismantled property), and also expenses on liquidation and/or writing off of the property made under the procedure established by the legislation, including objects of unfinished construction, property the assembly of which is not finished;

3.17. non-reimbursable losses and damages in connection with extraordinary circumstances (fire, breakdown, natural disaster, road accident when guilty persons have not been established or court has refused to levy on them) including expenses connected with prevention or liquidation of consequences of such extraordinary circumstances;

3.15. incomes from operation on putting of property into lease (transfer into financial lease (leasing)), other for-compensation or gratuitous use of the property. Such expenses are reflected on the date of reflection of respective incomes from putting of property into lease (transfer into financial lease (leasing)), other for-compensation or gratuitous use, taken into account under the procedure determined by sub-clause 3.15 of clause 3 of Article 128 of this Code. Composition of expenses on putting of property into lease (transfer into financial lease (leasing)), other for-compensation or gratuitous use is determined with regard to provisions of Articles 130 and 131 of this Code;

3.19. negative difference arising between the value of the property transferred (received) into loan and the value of the property received (transferred) upon discharging this loan. Such expenses are reflected on the date of accepting (writing off) in accounting of the organization;

3.20. [excluded]

3.21. [excluded]

3.22. damages from writing off of accounts receivable on which there expired:

limitation period;

prescriptive limit for presenting execution documents for execution in the event of return of the execution document to the recoverer, on which the recovery has not been performed or performed only in part in connection with the fact that the debtor has not means on accounts in banks or another property.

Such expenses are reflected on the date following the day of expiry of the limitation period, and also on the date of drawing up of documents about impossibility to recover the indebtedness in accordance with the legislation;

3.23. damages from the writing off accounts receivable being (considered) uncollectible. Such expenses shall be reflected as of the date of exclusion of the debtor from the Unified State Register of Legal Persons and Individual Entrepreneurs (foreign organizations and individual entrepreneur – from the trade register or another similar system of record and identification of legal persons and individual entrepreneurs of the country of their establishment) and/or of the death of the natural person not being individual entrepreneur of declaration of the natural person not being individual entrepreneur as deceased;

3.231. sums of accounts receivable upon liquidation of the legal person. Such expenses shall be reflected in the reporting period on which falls the earlies date from the following dates: the date of submission of the tax declaration (calculation) in accordance with part two of clause 21 of Article of this Code or the last day of the time limit established by the indicated part, and upon liquidation of a legal person according to a decision of the registering body in the order established by the President of the Republic of Belarus – on which falls the date of drawing up the act of inspection in the course of which circumstances being a ground for liquidation of a legal person according to the decision of the registering body have been detected;

3.232. sums of a decrease of accounts receivable (increase of accounts payable) upon conclusion of the amicable agreement or agreement on conciliation. Such expenses shall be reflected in the reporting period in which the amicable agreement or agreement on conciliation enters into force;

3.4. exchange rate differences arising upon recalculation of the value of assets and liabilities expressed in foreign currency, determined in the order established by the legislation, with the exception of those specified in sub-clause 1.22 of clause 1 of Article 131 of this Code and arising for recipients of foreign gratuitous assistance when recalculating in Belarusian rubles the value of assets and liabilities connected with receipt and use of foreign gratuitous assistance expressed in foreign currency, when using the foreign gratuitous assistance according the intended use;

3.25. negative differences arising when accounts receivable or accounts payable are discharged, including in connection with receipt of payment in the sum less than the sum of revenue (non-realization incomes) determined in accordance with clause 5 of Article 31 of this Code. Such expenses are reflected on the date of discharge of accounts receivable or accounts payable;

3.26. expenses of organizations on maintenance and operations of geriatric homes and homes for disabled persons, dwelling fund objects, education, healthcare, culture and sport institutions, being on their balance sheet, with the exception of expenses specified in sub-clause 3.18 of this clause. In this instance expenses are accounted under the procedure established by this Chapter. This provision is also applied in relation to expenses for these purposes under share participation of organizations in maintenance and operation of the said objects and is not applied when they are used exclusively for entrepreneurial activity;

3.261. sums of premiums, bonuses, granted when the buyer (ordering customer) meets the conditions (including volume of purchases or orders) determined in the contract as mandatory for granting of such premiums, bonuses. Such expenses shall be reflected as of the date of their remittance, including setoff of counterclaims, discharge of the obligation to a third person etc.;

3.262. losses from the sale of foreign currency in the sum of a negative difference that arose due to the deviation of the rate of sale of the foreign currency from the official rate established by the National Bank of the Republic of Belarus on the date of sale;

3.263. loss from exchange of one kind of foreign currency for another kind of foreign currency (conversion of foreign currency) as a negative difference between the sum received as a product of the official rate of purchased foreign currency, established by the National Bank of the Republic of Belarus on the date of conversion, and its quantity and a sum received as a product of the official rate of realized foreign currency, established by the National Bank of the Republic of Belarus on the date of conversion and its quantity;

3.264. value of works (services) executed (rendered) according to results of control placement of orders for execution of works (rendering of services);

3.195. monetary means remitted by republican unitary enterprises carrying out distribution of gaseous fuel through pipelines and its sale or production, transfer and distribution of electric energy to republican unitary enterprises carrying out the similar activity when distributing means in the order established by the Council of Ministers of the Republic of Belarus within one owner under the conditions of establishing uniforms prices for natural gas or tariffs for electric energy in the Republic of Belarus, differentiated according to groups of consumers. Such expenses shall be reflected as of the date of performance;

3.266. compulsory insurance fees to the state non-budgetary fund of social protection of the population of the Republic of Belarus and for compulsory insurance against accidents in the workplace and occupational diseases, computed in the order established by the legislation, with the exception of those listed in sub-clause 2.10 of clause 2 of Article 130 of this Code or being included in the initial value of depreciable assets;

3.267. deduction to reserves for covering potential losses on micro loans, to be covered by reserves in accordance with the legislation;

3.268. expenses of an organization under the contract of trust management of monetary means and/or contract of trust management of securities, in which it is indicated as the settlor. Such expenses shall be determined as a sum of loss received under a such contract in the sum computed by the trustee on the basis of accounting data of operations of trust management in the order established by the legislation. Such expenses shall be reflected on the date of return of monetary means and/or securities from trust management. For the purposes of this Chapter, such expenses shall be taken into account also by settlors using special taxation regimes;

3.269. sums of remuneration of the trustee under the contract of trust management of monetary means and/or contract of trust management of securities in the instance when the given remuneration is not retained by the trustee from the means of the settlor being in trust management, but is pay the settlor himself. For the purposes of this Chapter, such expenses shall be taken into account also by settlors using special taxation regimes;

3.2610. expenses of an organization under the contract of trust management of bank-managed fund, in which it is indicated as the settlor. Such expenses shall be determined as a negative difference between the value of the share of the settlor in the property of the fund as of the date of the buyout (premature buyout) of the participatory certificate (part thereof) by the trustee of the bank management fund and the value of that share of the settlor as of the date of transfer of monetary means and/or securities to the fund. Such expenses shall be reflected on the date of the buyout (premature buyout) of the participatory certificate (part thereof) by the trustee of the bank management fund. For the purposes of this Chapter, such expenses shall be taken into account also by settlors using special taxation regimes;

3.2611. sum of monetary means retained in favour of the bank-managed fund upon premature buying out of the participatory certificate (its part) by the trustee of the bank-managed fund. Such expenses shall be reflected on the date of the premature buyout of the participatory certificate (part thereof) by the trustee of the bank management fund. For the purposes of this Chapter, such expenses shall be taken into account also by settlors using special taxation regimes;

3.2612. costs incurred by the ordering customer, builder upon creation (financing, reimbursing the creation, including on a construction design for reconstruction) of objects of engineering, transport, social infrastructure, and their redevelopment, finished by construction, gratuitously transferred in the ownership of the state in accordance with Edict of the President of the Republic of Belarus of February 7, 2006 No. 72 "On measures on state regulation of relations upon placement and organization of construction of dwelling houses, objects of engineering, transport, social infrastructure";

3.2613. sums of the value added tax computed in the order established by the legislation from incomes specified in Article 128 of this Code. Such expenses are reflected in the reporting period for which those sums are reflected in the tax declaration (calculation) for the value added tax;

3.2614. sums of a decrease in the value of goods being performed in the established order in retail trade and public catering to the prices for newly received goods, and also sums of the reduction of prices for goods nearing the expiration date and/or shelf life expiration, having little demand among the population, made at the expense of a decrease of the purchase cost (in the instances when the amount of trade increase is insufficient);

3.2615. losses from the sale to banks of bullions and small bars of precious metals, bullion (investment) coins of precious metals in the sum of a negative difference between the selling price and the acquisition price. This provision is applied also by payers of the tax under the simplified system, of the single tax for producers of agricultural produce, when determining the similarity the tax base for the tax on profit;

3.2616. sum of the lease payment actually paid (set off through conducting an setoff of mutual claims) in the favour of the natural person – lessor, including an individual entrepreneur, and referred earlier to non-realization incomes in accordance with sub-clause 3.194 of clause 3 of Article 128 of this Code. Such expenses are reflected in the reporting period on which the day of payment of monetary means in favour of the natural person – lessor falls, and in the instance when the indebtedness before such natural person is discharged through an setoff of mutual claims – the date of the setoff of mutual claims;

3.2617. sums of shortages, damages and/or wastage of the property, and also of incurred losses, reimbursement on which is taken into account in non-realization incomes in accordance with sub-clauses 3.6 and 3.7 of clause 3 of Article 128 of this Code, within the limits of the sum of such reimbursement. Such expenses are reflected as of the date of receipt of the reimbursement of specified expenses (losses), but not earlier than its actual carrying out;

3.2618. difference between the sum received (to be received) by the issuer upon placement of housing bonds and the sum paid (to be paid) upon redemption by the issues of housing bonds (including premature buyout). Such expenses are reflected on the date of redemption (premature buyout) of housing bonds;

3.27. other expenses, losses, damages of the payer when carrying out his activity and not connected directly with production and realization of goods (works, services), property rights. Such expenses shall be reflected not earlier than the date of their actual performance (arising).

Article 130. Expenses on production and realization of goods (works, services), property rights, taken into account for taxation

1. Costs on production and realization of goods (works, services), property rights taken into consideration for taxation (later on in this Chapter – costs on production and realization of goods (works, services)) represent cost estimate of natural resources, raw materials, materials, fuel, energy, fixed assets, intangible assets, labour resources, used in the process of production and realization of goods (works, services), property rights, and other expenses on production and realization thereof being reflected in the accounting.

When the gross profit is determined by affiliates, representative offices and other separate subdivisions of legal persons of the Republic of Belarus fulfilling the tax obligations of the legal person, it shall be taken into account the costs on production and realization of goods (works, services) on activities of mentioned affiliates, representative offices and other separate subdivisions of legal persons of the Republic of Belarus.

2. Costs on production and realization of goods (works, services) are recognized economically reasonable costs being determined on the basis of documents of accounting (if necessary by way of making calculating corrections to the data of the accounting within the framework of conducting the tax accounting), unless otherwise established by this Code, and also of corrections determined with regard to provisions of Article 301 of this Code. Such costs are reflected in the reporting period to which they are referred (accrual principle) irrespective of the time (time limit) of payment (advanced or subsequent) having regard to the following specific features:

2.1. [excluded]

2.2. [excluded]

2.3. when determining the profit from realization of produced goods (works, services), and also of acquired goods, costs falling on actually realized goods (works, services), calculated on the basis of accounting data, are accepted, if such distribution is provided by the legislation on accounting and reporting;

2.4. costs that refer to a reporting period, confirmed by primary accounting documents which arrived upon the expiry of that period, are reflected in the reporting period to which they are referred;

2.5. some kinds of costs may be reflected by means of creating, in the order established by the legislation, of reserves for forthcoming expenses;

2.6. depreciation deductions on fixed assets and intangible assets, used in entrepreneurial activity and being operated are reflected. Fixed assets being in shutdown (including in connection with conducting a repair) for a duration of up to three months, reserve are equated to fixed assets being in operation.

The payer has the right to apply the investment deduction in the order established by parts three – eight of this sub-clause.

For the purposes of this Chapter, the investment deduction is recognized to be a sum computed from the initial value of fixed assets used in entrepreneurial activity, and also from the value formed in the accounting of investments in fixed assets used in entrepreneurial activity in connection with their reconstruction, modernization, restoration (later on in this clause – value of investments in reconstruction) within the following limits:

for buildings, structures and transfer devices, used in entrepreneurial activity, and the value of investment in their reconstruction – not more than ten percent of the initial value (value of investments in reconstruction);

on machinery and equipment, used in entrepreneurial activity, and the value of investment in their reconstruction, on vehicles (with the exception of cars, except for those operated as service cars being referred to special-purpose ones, and also used for taxi services) and the value of investment in their reconstruction – not more than twenty percent of the initial value (value of investments in reconstruction).

A sum of the investment deduction is included into costs on production and realization of goods (works, services) in the month from which (in which):

in accordance with the legislation, posting of the depreciation used in entrepreneurial activity, specified in part three of this clause, has begun;

the value of investments in reconstruction has increased the initial (reassessed) value of fixed assets used in entrepreneurial activity.

Concerning one and the same object of fixed assets used in entrepreneurial activity, the investment deduction may be applied the payer repeatedly only in relation to the value of investments in reconstruction that has been not accepted for calculation of the investment deduction.

The value of property received upon liquidation (partial liquidation) of a fixed asset from the initial value of which and/or the value of investments in reconstruction of which the investment deduction or prior to January 1, 2014 a part of the initial value of the fixed asset (a part thereof) has been computed and included into costs on production and realization of goods (works, services) may not be accounted for by the payer in the initial value and/or the value of investments in reconstruction of other objects of fixed assets used in entrepreneurial activity for the purposes of computing the investment deduction.

For the purposes of determining the investment deduction on fixed assets used in entrepreneurial activity:

buildings include fixed assets (parts thereof) determined as buildings according to the legislation regulating normative time limits of fixed assets service, with the exception of buildings of dwelling objects (except for residences), buildings of cultural and entertaining (night) clubs, buildings used for carrying out activity in the sphere of gambling business, buildings of hotels and other buildings for short term living (except for those referred to roadside service objects), buildings intended and used for public catering (except for canteens at organizations and institutions), dismountable and movable buildings;

transfer devices include fixed assets (parts thereof) determined as transfer devices according to the legislation regulating normative time limits of fixed assets service;

structures include fixed assets (parts thereof) determined as structures according to the legislation regulating normative time limits of fixed assets service, with the exception of sporting structures, structures of resting places and zoos, structures for parking automobiles;

machinery and equipment, vehicles include fixed assets determined as machinery and equipment, vehicles according to the legislation regulating normative time limits of fixed assets service, with the exception of fixed assets intended and/or used for carrying out activity in the sphere of gambling business;

value of investments in reconstruction include the value of works on reconstruction (modernization, restoration) of buildings, structures, transfer devices, machinery and equipment, vehicles (including the value of materials used for their performance), other works, which has increased in the accounting the initial value of fixed assets used in entrepreneurial activity.

Provisions of this sub-clause are not to be applied:

to the initial value of fixed assets accepted by the payer for accounting as object under contracts of lease (financial lease (leasing)), trust management, gratuitous use, as a contribution to the statutory fund (simple partnership), received gratuitously or the initial vale of which is formed (in full or in part) at the expense of gratuitously accepted costs made while creating objects, acquired at the expense of means received gratuitously within the framework of special purpose financing from the republic or local budgets or budgets of state non-budgetary funds, from the budget of the Union State or used (in full or in part) or intended for being used (in full or in part) in activity on which the organization does not pay the tax on profit in connection with application of special taxation regimes;

to the value of investments in reconstruction on fixed assets accepted by the payer as object under contracts of trust management or used (in full or in part) or intended for being used (in full or in part) in activity on which the organization does not pay the tax on profit in connection with application of special taxation regimes, and also carried out at the expense of means received gratuitously within the framework of special purpose financing from the republic or local budgets or budgets of state non-budgetary funds, from the budget of the Union State;

2.7. costs on scientific-research, research-and-development and technological-experimental works are reflected in costs on production and realization of goods (works, services) in the event when the performance thereof did not result in the creation of depreciable property.

Costs on scientific-research, research-and-development and technological-experimental works registered in the state register of scientific-research, research-and-development and technological-experimental works in the order determined by the President of the Republic of Belarus may, when the condition established by part one of this sub-clause is met, be reflected in costs on production and realization of goods (works, services) with application of a multiplying factor of up to 1.5 inclusively;

2.8. interest for using credits, loans (with the exception of interest on credits, loans which are referred to the value of investment assets in accordance with the legislation) recognized in the accounting as expenses are accepted as costs on production and realization of goods (works, services), unless otherwise established by Articles 131 and 1311 of this Code;

2.9. [excluded]

compulsory insurance fees to the state non-budgetary fund of social protection of the population of the Republic of Belarus and for compulsory insurance against accidents in the workplace and occupational diseases are reflected, computed in the order established by the legislation, on payments taken into account in costs on production and realization of goods (works, services), payments to workers and also other persons under civil-law contracts the subject matter of which are performance of works (rendering of services);

2.11. when a legal persons of the Republic of Belarus takes decision on transfer of costs linked to the management of the organization to affiliates, representative offices and other separate divisions fulfilling the tax obligations of such a legal person, for the latter as costs on production and realization of goods (works, services) are accepted the expenses distributed among all affiliates, representative offices and other separate divisions fulfilling the tax obligations of the legal person of the Republic of Belarus, irrespective of results of their financial and economic activity proportionally to the criterion determined by the accounting policy of the legal person;

2.12. expenses related to sale (purchase) of foreign currency in the sum of the difference between the rate of purchase and the official rate of the Belarusian ruble to the relevant foreign currency established by the National Bank of the Republic of Belarus at the moment of purchase, for making settlements for raw materials, materials, goods (works, services), business trips abroad, taxes, dues and other obligatory payments to the budget or non-budgetary funds of foreign states in accordance with the legislation of those states, creation (acquisition) of investment assets, payment for other expenses being included in costs on production and realization of goods (works, services), on loans, credits used for acquisition thereof and payment therefor and also for paying salary, and payment of interest on such loans, credits.

3. Expenses may not be recognized as economically reasonable costs upon availability of at least one of the following criteria:

3.1. goods (intangible assets) actually did not arrive, works were not performed, services were not rendered, property rights were not transferred;

3.2. works were performed, services rendered by an individual entrepreneur being simultaneously a person having labour relationships with the payer, and such services, works are referred to labour duties of such a person;

3.3. works were performed, services rendered to the payer (with the exception by a joint-stock company) by an organization (with the exception of joint-stock companies) being a founder (participant) of the payer or in relation to which the payer is a founder (participant), if such works, services are referred to duties of a worker having labour relationships with the payer.

Article 131. Costs not taken into account for taxation

1. The following costs are not taken into account for taxation:

1.1. costs on performing by the organization or payment for works (services) not connected with production and realization of goods (works, services), including works on redevelopment of settlements;

1.2. costs on execution of works on construction, equipment, and also on maintenance (including costs on all kinds of repairs) of objects being on the balance sheet of the organization which do not participate in entrepreneurial activity, except for objects indicated in sub-clause 3.26 of clause 3 of Article 129 of this Code;

1.3. outpayments, in money or in kind, to natural persons working for organizations under labour contracts, not provided for by the legislation or above amount provided for by the legislation, including:

bonuses paid at the expense of special-purpose means and special-purpose receipts;

remuneration according to results of work for the year, outpayments having the nature of remuneration according to results of work for the year;

material aid (including gratuitous material aid to workers for construction or acquisition of a one-apartment house or apartment, and also for repayment of credits, loans granted for these purposes);

loans, including interest-free ones;

increments and extra payment to pensions;

outpayments made to workers being trained in the amount exceeding the size of stipend established in accordance with the legislation;

lump-sum allowances to person going in retirement;

compensation payments in connection with an increase of prices, made above the sizes of indexation provided by the legislation;

compensation of alimentation costs in public catering objects, provision of free alimentation (except for special alimentation for some kinds of natural persons in the instances provided by the legislation);

payment of expenses on hiring dwelling (with the exception of actual expenses on hiring dwelling premises for natural persons sent by Belarusian commercial organizations for work in structural divisions of those organizations located outside the Republic of Belarus, on the basis of confirming documents, but not more than maximum norms of reimbursement of expenses on hiring dwelling premises upon business trips abroad established by legislation, unless otherwise established by the Labour Code of the Republic of Belarus), booking documents for treatment or recreation, excursions and travels, training in hobby groups, clubs, attendance of cultural and sporting events, subscription to periodicals, goods (works, services) for personal consumption and other similar outpayments and costs;

1.4. [excluded]

1.5. [excluded]

1.6. costs on business trips made above the limits established under the procedure determined by the Labour Code of the Republic of Belarus;

1.7. costs on payments for fuel and energy resources incurred above the limits established in accordance with the legislation;

1.71. expenses on meals, organization of leisure time, rest, including while conducting advertising actions, conferences, seminars, talks, studying and other similar events.

Provisions of part one of this sub-clause are not applied in the instances when such expenses:

are referred to representative expenses;

are connected with providing meals to certain categories of natural persons in the instances specified by the legislation;

are included in the cost of events specified in part one of this sub-clause and paid by their participants;

1.72. payment of additional leaves for irregular working hours, for long-term length of service for one organization, incentive leaves, with the exception of additional incentive leaves, the duty of granting which is established by acts of the President of the Republic of Belarus.

Provisions of this sub-clause also extend to payment in accordance with the legislation of monetary compensation for non-used days of the mentioned additional leaves;

1.73. one-time outpayment (material aid, allowance) for medical rehabilitation, with the exception of that established by legislation acts, resolutions of the Council of Ministers of the Republic of Belarus;

1.74. remuneration to members of the board of directors (supervisory board);

1.8. [excluded]

sums of shortages, losses and/or decay of assets, occurred in excess of limits of normal wastage, approved in the order established by the legislation, when the court refused the levying of such sums on grounds dependent on the organization;

1.10. sums of dividends calculated by the organization and incomes equated to them;

1.11. penalty interest, fines, and other sanctions being remitted to the budget or state non-budgetary funds;

1.12. contributions to statutory funds of organizations;

1.13. costs on acquisition and/or creation of depreciable property;

1.14. sums of depreciation deductions on fixed assets and intangible assets, not used in entrepreneurial activity, and also on fixed assets not being operated;

1.15. value of the property or property rights, transferred as earnest or pledge;

1.16. sums of voluntary membership fees (including admission fees) to social organizations, sums of voluntary contributions of participants of unions, associations, organizations (amalgamations) for maintenance of the said unions, associations, organizations (amalgamations);

1.17. contributions, dues and other mandatory payments, made by non-commercial organizations, with the exception of:

instances when the making of such contributions, dues and other mandatory payments is provided by the legislation (including that of foreign states) and constitutes a condition for carrying out activity by the organizations which made these contributions, dues and other mandatory payments;

membership fees (including admission fees) paid by Belarusian organizations carrying out international carriage to a non-commercial organization the membership in which constitutes a conditions for carrying out such carriage;

membership fees (including admission fees) paid merchant shipping entities of the Republic of Belarus in connection with the membership in amalgamations (associations, unions) of shipowners, sea carriers.

For the purposes of this Chapter and Chapter 15 of this Code, merchant shipping entities of the Republic of Belarus mean legal persons and individual entrepreneurs located in the Republic of Belarus, created in accordance with the legislation of the Republic of Belarus, which carry out merchant shipping;

1.18. fees paid to international organizations, with the exception of instances when the payment of such fees is provided by the legislation and/or constitutes a condition for carrying out activity by the organizations which paid these fees or a condition of the international organization’s granting services necessary for carrying out activity by the organizations which paid the fees, and also membership fees paid by residents of the Republic of Belarus which carry out international carriage of products (goods) by sea transport, when being admitted into international associations of mutual insurance of liability;

1.19. costs made at the expense of means of reserves for forthcoming expenses, created by the payer under the established procedure;

1.20. interest on overdue loans and credits;

1.21. [excluded]

1.22. costs on acquisition of travel passes for public transport for workers the job of which involves travelling, if these workers are granted special transport for the period of discharging their duties;

1.221. costs connected with sending workers for retraining, professional training with retention by them of the average salary for the period of receiving training in the instances provided by part two of Article 223 of the Labour Code of the Republic of Belarus;

1.222. sum of a decrease in the value of fixed assets, income-bearing investments in material assets, equipment to be installed, made in accordance with the legislation, and the sum of depreciation of fixed assets, long-term assets intended for realization, and investment immovable property;

1.223. expenses related to purchase of foreign currency, in the sum of the difference between the rate of purchase and the official rate established by the National Bank of the Republic of Belarus at the moment of purchase, with the exception of expenses listed in sub-clause 2.12 of clause 2 of Article 130 of this Code;

1.224. sum of rate differences determined in the order established by the legislation, which arises upon recalculation in Belarusian rubles at the official rate of Belarusian ruble to the respective foreign currency established by the National Bank of the Republic of Belarus, value of obligations expressed in foreign currency, which arose in connection with carrying out costs not being taken into account according to this Article when computing the tax base for the tax on profit;

1.23. costs on publishing the financial reports and other information, unless the legislation imposes on the organization the duty to publish these reports and information;

1.24. costs connected with submission of forms and data of state statistical observance, unless the legislation imposes on the organization the duty to publish these reports and information;

1.25. insurance fees on types of voluntary insurance, with the exception of insurance fees according to the list of types of voluntary insurance and the procedure, determined by the President of the Republic of Belarus, and insurance fees provided by the legislation (including that of foreign states) and being a condition for carrying out activity by the organizations which paid such fees;

1.26. other costs not connected with production and realization of goods (works, services), property rights, which are not taken into account for taxation in accordance with the legislation.

2. Decisions about inclusion into costs on production and realization of goods (works, services) of costs specified in clause 1 of this Article are taken by the President of the Republic of Belarus.

3. Costs listed in this Article and other costs which are not taken into account for taxation in accordance with the legislation may not be included into non-realization expenses.

Article 1311. Specific feature of referring of interest on debt obligations to expenses and certain kinds of costs (expenses) to costs (expenses) taken into account for taxation

1. If in the tax period one Belarusian organization has indebtedness specified in sub-clause 11.5 of clause of this Article 11:

before a founder (participant) being a foreign organization or natural person not being tax resident of the Republic of Belarus that possesses, directly or indirectly, more than 20 percent of shares (stakes, stocks in the statutory fund) of that Belarusian organization (hereinafter in this Article – foreign founder (participant)) as of the last day of the respective tax period;

before another Belarusian or foreign organization or natural person, recognized in accordance with Article 20 of this Code as interdependent person of that foreign founder (participant);

before other person before which directly that interdependent person and/or that foreign founder (participant) act as sureties, guarantors or otherwise commit to ensure the repayment of the indebtedness specified in sub-clause 11.5 of clause 11 of this Article of the Belarussian organization (hereinafter in this Article – controllable indebtedness before foreign founder (participant), and the amount of controllable indebtedness before foreign founder (participant) in the tax period more than three times and more exceeds (and for a Belarusian organization producing excisable goods in the tax period – exceeds), as of the end of the tax period, the difference between the amount of assets of the Belarusian organization and the amount of its obligations (hereinafter in this Article – own capital) –

then upon computing the tax base for the tax period for the tax on profit of the first Belarusian organization, certain kinds of costs (expenses) referred to the tax period, covered by the effect of Articles 129 and 130 of this Code, connected with the controllable indebtedness before foreign founder (participant) shall be taken into account in the amount not exceeding the maximum sums of each of some kinds of costs (expenses) being determined in accordance with clause 12 of this Article.

If the amount of own capital is negative or equal to zero, the payer is not entitled to take into account of certain kinds of costs when computing the tax base for the tax on profit.

11. For the purposes of this Article:

11.1. kinds of excisable goods include excisable goods subject to be marked by excise stamps of the Republic of Belarus, beer, beer cocktail, low-alcohol drinks of an actual alcoholic strength by volume of more than 1.2% vol and less than 7 percent vol (low-alcohol natural drinks, other low-alcohol drinks), wines of an actual alcoholic strength by volume of more than 1.2% vol and up to 7 percent vol.;

11.2. certain kinds of costs (expenses) on controllable indebtedness before foreign founder (participant), falling under the effect of Articles 129 and 130 of this Code, which are due (were due) to persons the indebtedness before which in accordance with clause 1 of this Article makes the controllable indebtedness before foreign founder (participant) include:

interest for using loaned means (in this Article – sum of interest);

sums of penalty fees (fines, penalty interest), sums due to be paid as a result of application of other measures of liability, including as a result of reimbursement of losses for breaching of contract obligations (in this Article – sum of expenses on fines and penalty fees);

value of engineering services, marketing services, consultation services, services on providing information, managerial services, intermediary services, services on finding and recruitment of personnel, employment of personnel, providing personnel for carrying out activity in the Republic of Belarus, remuneration for transfer (granting) of property rights in relation to objects, industrial property objects (with the exception of cases when they are referred to intangible assets), depreciation deductions on intangible assets in the part of property rights in relation to industrial property objects (in this Article – other expenses);

11.3. when determining the amount of own capital, the sum of assets and amount of obligations of the Belarusian organization shall be determined on the basis of accounting data as of the last day of the respective tax period and as of the date of drawing up the liquidation balance sheet (act of inspection in the course of which circumstances being a ground for liquidation of a legal person according to the decision of the registering body have been detected – upon liquidation of a legal person according to a decision of the registering body under the procedure established by the President of the Republic of Belarus). In doing so, sums of debt obligations in the form of indebtedness on taxes, dues (duties), compulsory insurance fees to the state non-budgetary fund of social protection of the population of the Republic of Belarus, as well as sums on which on which adjournment and/or by-installment payment of taxes, dues (duties) have been granted, interest for using , sums of tax credit, sums of budget loans and budget interest-free loans, granted to a Belarusian organization in accordance with the legislation;

11.4. capitalization ratio shall be determined on the basis of accounting data as of the last day of the respective tax period and as of the date of drawing up the liquidation balance sheet (act of inspection in the course of which circumstances being a ground for liquidation of a legal person according to the decision of the registering body have been detected – upon liquidation of a legal person according to a decision of the registering body under the procedure established by the President of the Republic of Belarus).

11.5. controllable indebtedness before foreign founder (participant) shall include the aggregate of the following conditions in the tax period:

on loaned means;

on engineering services, marketing services, consultation services, services on providing information, managerial services, intermediary services, services on finding and recruitment of personnel, employment of personnel, providing personnel for carrying out activity in the Republic of Belarus, remuneration for transfer (granting) of property rights in relation to industrial property objects;

on sums of penalty fees (fines, penalty interest), sums due to be paid as a result of application of other measures of liability, including as a result of reimbursement of losses for breaching of contract obligations.

For the purposes of part one of this sub-clause, indebtedness available in the tax period is understood to be a sum of cost parameters of each economic operation as a result of which indebtedness arises or increases in the current tax period, and also a sum of indebtedness not repaid on the beginning of the current tax period;

11.6. controllable indebtedness before a Belarusian founder (participant) shall include the aggregate of sums of indebtedness in the tax period on engineering services, marketing services, consultation services, services on providing information, managerial services, intermediary services, services on finding and recruitment of personnel, employment of personnel, providing personnel for carrying out activity in the Republic of Belarus, remuneration for transfer (granting) of property rights in relation to industrial property objects.

For the purposes of part one of this sub-clause, indebtedness available in the tax period is understood to be a sum of cost parameters of each economic operation as a result of which indebtedness arises or increases in the current tax period, and also a sum of indebtedness not repaid on the beginning of the current tax period;

11.7. indebtedness on loaned means in the tax period means indebtedness on credits, loans (with the exception of commercial loans) without account of the sum of indebtedness on interest on credits, loans;

11.8. terms "engineering services", "marketing services", "consultation services", "services on providing information" are used in the meanings determined by clause 3 of Article 33 of this Code, the term of "intermediary services" is used in the meaning determined by sub-clause 1.12.4 of clause 1 of Article 146 of this Code;

11.9. managerial services include 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;

11.10. as an organization producing excisable goods in the tax period shall be considered an organization producing one of several kinds of goods specified in sub-clause 11.1 concerning which it gets an instance of actual realization (transfer) for the purposes of computation and payment of sums of excises to the budget in the respective tax period.

12. The payer is obliged to compute as of the last day of the tax period and as of the date of drawing up the liquidation balance sheet the capitalization ratio and maximum sums on each of certain kinds of costs (expenses) related to controllable indebtedness before a foreign founder (participant), falling under the effect of Articles 129 and 130 of this Code.

Maximum sum of interest, maximum sum of expenses on fines and penalty fees, and also maximum amount of sums of other costs shall be computed by dividing, accordingly, sum of interest, sum of expenses on fines and penalty fees, sum of each kind of other costs, determined on an accrual basis from the beginning of the tax period, by the capitalization ratio (K) that shall be determined according to the formulae:

К = (Зк / Кс) – for Belarusian organizations producing kinds of excisable goods in the tax period, К = (Зк / Кс) / 3 – for other Belarusian organizations, where:

Зк – controllable indebtedness before foreign founder (participant) in the tax period;

Кс – own capital corresponding to the participation stake (direct or indirect) of the foreign founder (participant) in the statutory fund of the Belarusian organization as of the last day of the tax period.

When determining the capitalization ration, an affiliate, representative office and other separate sub-division of the Belarusian organization, fulfilling its tax obligations, shall accept the participation stake (direct or indirect) of the foreign founder (participant) in the statutory fund of that Belarusian organization.

Costs (expenses) in the tax period include sums of interest, expenses on fines and penalty fees, other costs on controllable indebtedness before a foreign founder (participant) in the tax period, calculated in accordance with this clause, but not more than those actually posted by the Belarusian organization.

13. Upon computation for the tax period of the tax base for the tax on profit, the Belarusian organization having in the tax period indebtedness specified in sub-clause 11.6 of clause 11 of this Article:

before a founder (participant) being a Belarusian organization or natural person being tax resident of the Republic of Belarus that possesses, directly or indirectly, more than 20 percent of shares (stakes, stocks in the statutory fund) of that Belarusian organization (hereinafter in this Article – Belarusian founder (participant)) as of the last day of the respective tax period;

before another Belarusian or foreign organization or natural person, recognized in accordance with Article 20 of this Code as interdependent person of that Belarusian founder (participant);

before another person toward whom that interdependent person and/or that Belarusian founder (participant) directly acts as shureties, guarantors or otherwise commit to ensure the repayment of indebtedness specified in sub-clause 11.6 of clause 11 of this Article (hereinafter in this Article – controllable indebtedness before Belarusian founder (participant), the amount of which as of the end of the tax period exceeds the own capital, –

 shall take into account costs (expenses) related to controllable indebtedness before Belarusian founder (participant) falling under the effect of Articles 129 and 130 of this Code in the amount not exceeding maximum values if each of the sums of other costs the list of which is established by indent four of sub-clause 11.2 of clause 11 of this Article, being determined in accordance with part two of this clause.

Maximum amount of sums of other costs shall be computed by the payer as of the last day of the tax period and as of the date of drawing up the liquidation balance sheet by dividing the sum of each kind of other costs on indebtedness before a foreign founder (participant) by the capitalization ratio (K) that shall be determined according to the formula:

Кб = (Зкб / Ксб), where:

Зкб – controllable indebtedness before Belarusian founder (participant) in the tax period;

Ксб – own capital of the Belarusian organization corresponding to the participation stake (direct or indirect) of the Belarusian founder (participant) in the statutory fund of the Belarusian organization as of the last day of the tax period.

When determining the capitalization ration, an affiliate, representative office and other separate sub-division of the Belarusian organization, fulfilling its tax obligations, shall accept the participation stake (direct or indirect) of the Belarusian founder (participant) in the statutory fund of that Belarusian organization.

Costs in the tax period include sums of other costs on indebtedness before a foreign founder (participant) in the tax period, calculated in accordance with this clause, but not more than those actually posted by the Belarusian organization.

2. Rules established by this Article are not applied by the banks, insurance organizations or organizations (lessors) for which the sum of rent (leasing payments) received within the tax period on the last day of the tax period exceeds 50 percent of total revenue of the organization from realization of goods (works, services), property rights and incomes from operation on putting of property into lease (transfer into financial lease (leasing)).

Article 132. Specific features of determining incomes of banks

1. When incomes of banks are determined, incomes from operations between affiliates which fulfill, under the established procedure, tax obligations of these banks are to taken into account.

2. Incomes of banks from realization of goods (works, services), property rights include the following incomes:

2.1. interest from placement by a bank in the own name and at the own costs of monetary means, precious metals and precious stones, including from extending credits and loans, overdraft on accounts of organizations and natural persons, including accounts of banks;

2.2. from monetary means deposited in the fund of mandatory reserves of the National Bank of the Republic of Belarus;

2.3. sums of monetary means received for compensation of losses from granting preferential credits according to a decision of the President of the Republic of Belarus or the Council of Ministers of the Republic of Belarus;

2.4. remunerations (payment) for:

2.4.1. opening, operating and closing of bank accounts of organizations and natural persons, including correspondent banks, carrying out, on their instructions, settlements with other organizations and natural persons, including commission fee and reimbursement of expenses of a bank for bank remittances of monetary means, collection, documentary credit operations and other operations;

2.4.2. opening and operating bullion accounts;

2.4.3. issuance into circulation and execution of a complex of operations with payment instruments and other special means intended for performance of bank operations, including reimbursement of the value of bank payment cards;

2.4.4. installation (and/or maintenance) of electronic document circulation systems between a bank and customers, automated banking systems (including “Customer-bank”, “Internet bank”, “Telephone-bank”);

2.4.5. presentation of statements and other documents on accounts and for searching of sums not delivered to destination;

2.5. from settlement and/or cash services to natural and legal persons, including incomes from recount, sorting and packing of cash monetary means being sold to other banks;

2.6. from conducting currency exchange operations, including commission fees (remunerations) on operations on purchase, sale, conversion of foreign currency, including on the account and on behalf of customers, on changing (exchanging), acceptance for collection of cash foreign currency, from operation with foreign currency valuables.

For determining incomes from purchase, sale, conversion of foreign currency a positive difference between incomes and expenses, received in the accounting period as a difference of the value of foreign currency at the rate of purchase, sale, conversion and the value of foreign currency at the official rate established by the National Bank of the Republic of Belarus on the date of calculation.

The accounting period (day or month) is established in the accounting policy of the bank.

2.7. from operation of purchase-sale of precious metals and precious stones as a difference between the price of sale and their balance-sheet value, from reimbursement of expenses connected with supply of precious metals and precious stones in a natural form, and also from operations of purchase-sale of precious metals and precious stones on the account and on behalf of customers;

2.8. from operations with forward and futures contracts, options and other similar financial instruments of forward transactions;

2.9. from operations with bank guarantees, commitments, suretyships for third persons stipulating the fulfillment in a monetary form;

2.10. from operations on trust management of property, including monetary means, precious metals and precious stones;

2.11. as a positive difference between a sum of means received upon termination or realization (subsequent assignment) of a right of claim (including one acquired earlier) and the balance sheet value of this right;

2.12. from carrying out depositary activity;

2.13. from rendering services under a contract of bank safekeeping, services on providing into use under a contract of lease of special premises or strongboxes located therein for safekeeping of documents and valuables (including monetary means, securities, precious metals and precious stones);

2.14. as payment for collection, carriage of cash monetary means, payment instructions, precious metals and precious stones, and other valuables;

2.15. as payment received by a bank from exporters and importers for performance of functions of a foreign currency control agent;

2.16. from operations of purchase-sale of commemorative and bullion (investment) coins being legal means of payment of the Republic of Belarus and considered as collectibles, in the form of a difference between the price of their realization and the price of acquisition;

2.17. from carrying out operations of financing against monetary claim assignment (factoring), acceptance;

2.18. as compensation, received by a bank, of expenses incurred on payment of services of outside organizations on control over conformity of quality of precious metals in bullions and coins to requirements of technical normative legal acts;

2.181. as a compensation, received by a bank, of expenses incurred from granting credits, which are not reflected in the rate of interest and/or payment for using the credit;

2.19. from assessment of financial instruments on a depreciated value;

2.20. other incomes connected with activities carried out by banks.

3. Non-realization incomes of banks, in addition to incomes indicated in clause 3 of Article 128 of this Code also include the following incomes:

3.1. as a positive revaluation of precious metals;

3.2. exchange rate differences occurred upon rounding-up as a result of revaluation of available monetary means in foreign currency, assets and liabilities receivable or payable, expressed in fixed monetary sums in foreign currency (monetary items), on the date of drawing up the balance sheet;

3.3. exchange rate differences occurred between the official rate set by the National Bank of the Republic of Belarus, respectively, on the date of making corrections on accounts of incomes or expenses concerning operations in foreign currency performed earlier and on the date of initial reflection of these operations;

3.4. positive differences occurred upon revaluation of securities acquired by a bank with a view of their subsequent sale with a short time period (till one year) and obtaining income (expense) as a result of short-term fluctuations of their prices;

3.5. sums received for repayment of indebtedness, damages from writing off of which were accounted in non-realization expenses or were written off at the expense of created reserves deductions for creation of which were accounted for earlier in non-realization expenses. Such incomes shall be reflected as of the date of their receipt irrespective of the way of their discharge (setoff of counterclaims, discharge of the obligation to a third person and other methods);

3.6. as sums of decrease or annulment of deductions to special reserves created under the procedure established by normative legal acts of the National Bank of the Republic of Belarus. Such reserves include:

3.6.1. special reserve to cover possible losses on assets susceptible for credit risk;

3.6.2. special reserve for devaluation of securities;

3.6.3. special reserve for covering potential losses on operations not reflected in the balance sheet.

Article 133. Specific features of determining costs of banks

1. When gross profit of banks is determined, incomes from operations between affiliates which fulfill, under the established procedure, tax obligations of these banks are to taken into account.

2. Costs of banks on production and realization of goods (works, services), property rights include:

2.1. interest on:

2.1.1. bank deposit, other attracted monetary means of customers (including correspondent banks), including interest on balances of monetary means on customer accounts;

2.1.2. credit resources received from other banks, international financial organizations, including interbank credit, credit received by way of refinancing (except for interest on overdue credits), and also on overdraft;

2.1.3. credits the time limit for repayment of which is adjourned by the President of the Republic of Belarus or by decisions of the Council of Ministers of the Republic of Belarus adopted in accordance with the legislative acts;

2.1.4. loans and bank deposits in precious metals and/or precious stones;

2.1.5. other debt obligations of a bank;

2.2. commission fees for services rendered to a bank and correspondent relations, including expenses on operations with customers, payment to other banks (including foreign ones) for settlement and/or cash services, collection of monetary means, bills of exchange (promissory notes), payment instructions, payment for management and reservation of credit, payment for preparation of credit, other commission fees connected with attraction and using foreign credits, other similar expenses;

2.3. expenses connected with carrying out currency exchange operations, including commission expenses on operation in foreign currency market, damages from purchase (sale), conversion of foreign currency.

For determining damages from purchase (sale), conversion of foreign currency, a negative difference between incomes and expenses, received in the accounting period as a difference of the value of foreign currency at the rate of purchase, sale, conversion and the value of foreign currency at the official rate established by the National Bank of the Republic of Belarus on the date of calculation.

The accounting period (day or month) is established in the accounting policy of the bank.

2.4. operations with forward and futures contracts, options and other similar financial instruments of forward transactions (commission fee paid to the organizer of the trading, variable margin, option premium, other similar expenses);

2.5. damages from operations of purchase-sale of precious metals and precious stones as a difference between the price of sale and the balance-sheet value;

2.6. expenses on storage, transportation, control over conformity of quality of precious metals in bullions and coins to requirements of technical normative legal acts, on affinage of precious metals, other expenses connected with performance of operations with bullions of precious metals and coins containing precious metals;

2.7. expenses on transfer of pensions and benefits, and also on transfer of monetary means without opening of accounts for organizations and natural persons;

2.8. expenses connected with a bank's performance of functions of a foreign currency control agent;

2.9. expenses on operating system of electronic payments and electronic money, including expenses on fabrication and issuance into circulation of bank payment cards, creation of electronic digital signature;

2.10. expenses on collection of cash monetary means, payment instructions, precious metals and precious stones, and other valuables (including expenses connected with their recount, sorting and packing) and also on carriage, sending and/or delivery of valuables belonging to a bank or its customers;

2.11. expenses on payment for services of the automated system of interbank settlements, international payment systems;

2.12. expenses on payment for services of international telecommunication systems for information transfer and/or making payments;

2.13. expenses on carrying out operations of financing against monetary claim assignment (factoring);

2.14. expenses on guarantees, shuretyships, acceptances and avals, granted to a bank by other organizations;

2.15. expenses on trust management of property, including monetary means, precious metals and precious stones;

2.16. expenses of a noncapital nature, connected with ensuring safety and protection of bank information;

2.17. expenses on installation of local networks for linking payment terminals, ATMs, computer and other equipment for fulfillment of bank operations both in premises being in the ownership of a bank, and in premises not belonging to the bank;

2.18. expenses on acquisition of protection means, arms and ammunitions, uniforms, including accoutrements, for employees of collection services and employees duties of which include carriage of monetary means, payment instructions, precious metals and precious stones, and other valuables;

2.19. expenses on payment for services of rating agencies for assigning international credit rating to banks which service credit lines extended on the basis of agreements with international and foreign financial and crediting organizations;

2.20. expenses on holding drawings on lottery deposits of natural persons;

2.21. depreciation deductions on fixed assets used in the entrepreneurial activity and being in reserve;

2.22. sums of account and calendar contributions to the Agency on guaranteed reimbursement of bank contributions (deposits) of natural persons under the procedure and in amounts established by the legislation;

2.23. expenses from assessment of financial instruments on a depreciated value.

3. Non-realization expenses of banks, in addition to those indicated in clause 3 of Article 129 of this Code also include the following expenses:

3.1. sums of deductions to special reserves created under the procedure established by normative legal acts of the National Bank of the Republic of Belarus. Such reserves include:

3.1.1. special reserve to cover possible losses on assets susceptible for credit risk;

3.1.2. special reserve for devaluation of securities;

3.1.3. special reserve for covering potential losses on operations not reflected in the balance sheet.

3.2. [excluded]

3.3. negative differences occurred upon revaluation of precious metals;

3.4. exchange rate differences occurred upon rounding-up as a result of revaluation of available monetary means in foreign currency, assets and liabilities receivable or payable, expressed in fixed monetary sums in foreign currency (monetary items), on the date of drawing up the balance sheet;

3.5. exchange rate differences occurred between the official rate set by the National Bank of the Republic of Belarus, respectively, on the date of making corrections on accounts of incomes or expenses concerning operations in foreign currency performed earlier and on the date of initial reflection of these operations;

3.6. negative differences occurred upon revaluation of securities acquired by a bank with a view of their subsequent sale with a short time period (till one year) and obtaining income (expense) as a result of short-term fluctuations of their prices;

3.7. value of accepted non-payable and counterfeit banknotes, coins, bank payment cards.

Article 134. Specific features of determining incomes of insurance organizations

1. Incomes of insurance organizations from realization of goods (works, services), property rights include:

1.1. insurance fees (insurance premiums) under insurance (co-insurance, re-insurance) contracts, decreased by sums of return of insurance fees (insurance premiums) under insurance (co-insurance, re-insurance) contracts in the cases provided by the legislation and/or conditions of such contracts. In this instance insurance fees (insurance premiums) under co-insurance contracts are included into incomes of the insurer (co-insurer) only in the amount of his share of insurance premium established in the co-insurance contract;

1.2. sums of downward changes of insurance reserves (with account of changes of a share of reinsurers in insurance reserves);

1.3. commission fees on re-insurance contracts and fees from profit paid by re-insurers to the re-insured as bonus for an opportunity to participate in the re-insurance contract and for cautious case administration;

1.4. remuneration to co-insurers under co-insurance contracts;

1.5. sums of reimbursement by reinsurers of a share of insurance payments on risks transferred into re-insurance, and also on risks transferred by reinsurers into further (subsequent) reinsurance;

1.6. sums of interest on depot of premiums on risks accepted into reinsurance;

1.7. incomes from realization of a right of the insured (beneficiary) to claim persons liable for damages reimbursed as a result of insurance, assigned to the insurer in accordance with the legislation. Such incomes are reflected on the date of their receipt irrespective of the mode of repayment (including payment of an indebtedness toward third persons, setoff of counterclaims, and other methods);

1.8. sums of sanctions for non-fulfilment (undue fulfilment) of conditions of insurance contracts, paid by a debtor voluntarily or according to a court decision;

1.9. remunerations received by an insurer for activity on insurance risk and damage assessment; on examination and assessment of movable and immovable property connected with insurance thereof and issuance of reports on the condition thereof; on organization of rendering engineering, medical, and financial services to another insurer or insured (or an insured person, victim, as well as another person claiming the receipt of an insurance payment) with a view of fulfilling insurance contracts concluded by those persons; on rendering services to another insurance organization for ascertaining reasons and nature of damages upon the occurrence of an insured accident;

1.10. incomes from placement of insurance reserves and other means.

2. Insurance reserves, the balance of funds of precautionary (preventive) measures, being transferred by one insurance organization to another simultaneously with a transfer of obligation under voluntary insurance contracts are not taken into account when incomes of an insurance organization that accepts such obligation are being determined.

Article 135. Specific features of determining costs of insurance organizations

2. Costs of insurance organizations on production and realization of goods (works, services), property rights include:

sums of upward changes of insurance reserves (with account of changes of a share of reinsurers in insurance reserves);

outpayments of insurance coverage and insurance indemnity under insurance, co-insurance, re-insurance contracts, decreased by sums of return of paid insurance indemnity and insurance coverage under insurance, co-insurance, re-insurance contracts. In this instance outpayments of insurance coverage and insurance indemnity under co-insurance contracts are included into costs of an insurer (co-insurer) only in the amount of its share established by the co-insurance contract;

sums of insurance fees (insurance premiums) on risks transferred into reinsurance, decreased by sums of return of insurance fees (insurance premiums) under reinsurance contracts in the event of their premature termination;

commission fees under reinsurance contracts and fees from profit paid by reinsurers to the re-insured as bonus for an opportunity to participate in the re-insurance contract and for cautious case administration, and also reimbursement to the reinsurer of costs related to rendering services under reinsurance contracts;

sums of interest on depot of premiums on risks transferred into reinsurance;

remunerations to co-insurers under co-insurance contracts and reimbursement to the co-insurer of costs related to rendering services under co-insurance contracts;

sums of deductions to funds of precautionary (preventive) measures and guarantee funds, including guarantee funds of the Belarusian Transport Insurance Bureau, under the procedure and in amounts established by the legislation;

sums of reimbursement of a share of insurance payment on risks accepted in reinsurance;

expenses connected with placement of insurance reserves;

other expenses on case administration, including:

payment to insurance agents and insurance brokers of remunerations for rendered services in the amount established by the Ministry of Finance of the Republic of Belarus;

remuneration to insurance agents of expenses on travel related to business trip by a public transport, with the exception of taxi, by special routes and by departmental transport;

payment of services of organizations for their fulfilling of written instructions of workers concerning the remittance of insurance fees from the salary due to them by way of cashless settlements;

payment of services of competent bodies and organizations on issuance of documents necessary for payment of insurance coverage and insurance indemnity, and also services of organizations and individual entrepreneurs engaged for determining the actual value (insured value) of property, for assessment of insurance risk when concluding an insurance contract, amount of damages from the insured accident and settlement of the issues of insurance payments as experts, surveyors, average commissioners;

payment for collection, carriage of cash monetary means, payment instructions, precious metals and precious stones and other valuables;

expenses on fabrication of pre-printed forms of insurance policies (statements, certificates).

Article 136. Specific feature of determining gross profit when the statutory fund is being formed (the amount is being changed), when an organization is being reorganized or liquidated

1. Monetary means or property received by an organization from participants (shareholders) as a contribution to its statutory fund in the amounts provided by the statute (constituent contract for a commercial organization which operates only on the basis of the constituent contract) are not taken into account when gross profit of this organization is determined.

2. A positive difference between the assessed value of the property being transferred by the payer as a non-monetary contribution to the statutory fund of an organization and the balance-sheet value (the residual value – for fixed assets, intangible assets, income-bearing investments in material assets) of that property shall be taken into account when gross profit of the payer that transfers that property is determined.

A negative difference between the assessed value of the property being transferred by the payer as a non-monetary contribution to the statutory fund of an organization and the balance-sheet value (the residual value – for fixed assets, intangible assets, income-bearing investments in material assets) of that property shall not be taken into account when gross profit of the payer that transfers that property is determined.

3. If the sum of monetary means or costs on production or acquisition (performance, rendering) of goods (works, services), property rights of residual value of fixed assets, intangible assets, income-bearing investments in material assets, being transferred in exchange for own shares (stakes, stocks) being bought out by the organization, exceeds the nominal value of the mentioned shares (size of stakes, stocks), such difference shall not be taken into account when determining gross profit of the organization that transfers monetary means, property in exchange for own shares (stakes, stocks) being bought.

4. Losses of participants (shareholders) of liquidated or reorganized organizations occurred in connection with such liquidation or reorganization shall not be taken into account when determining gross profit of those participants (shareholders).

5. Losses of legal persons of the Republic of Belarus (affiliates, representative offices and other separate divisions) affiliated as a result of a reorganization (liquidated as a result of change of the structure of legal persons), and also reorganized in the form of merging, splitting-up, splitting-off, incurred by them while carrying out activities prior to this reorganization (liquidation) are not taken into account when determining gross profit of the payer to which these legal persons have been affiliated (by which these affiliates, representative offices and other separate divisions have been liquidated), and also gross profit of the payers which were newly established as a result of reorganization.

Article 137. Specific features of determining gross profit of non-commercial organizations, simple partnerships, participants of a contract of trust management and certain categories of payers

1. Gross profit of budgetary organizations is determined as sum of profit from realization goods (works, services), property rights, received from carrying out income-bearing activity, and non-realization incomes decreased by the sum of non-realization expenses.

When determining gross profit of budgetary organizations, costs related to income-bearing activity shall be taken into account.

Gross profit of social and religious organizations (associations), republican state-public associations, other non-commercial organizations is determined as sum of profit from realization goods (works, services), property rights, received from carrying out entrepreneurial activity, and non-realization incomes decreased by the sum of non-realization expenses.

When determining gross profit of social and religious organizations (associations), republican state-public associations, other non-commercial organizations, costs related to entrepreneurial activity of those organizations (associations) shall be taken into account.

Organizations (associations) mentioned in parts one and three of this clause shall conduct separate accounting of revenue from realization of goods (works, services), property rights and also of costs related to income-bearing activity and entrepreneurial activity accordingly.

2. When determining gross profit of a simple partnership, contributions of participants of the simple partnership to this partnership are not taken into account.

Exemption from taxation with the tax on profit is not applied for taxation of the profit of a simple partnership.

3. When determining gross profit of participants of a simple partnership, incomes received by these participants upon return of their contributions to this partnership, and also upon distribution of profit of a simple partnership remaining after taxation, are not taken into account.

Damages of a simple partnership are not taken into account when determining gross profit of their participants.

31. A positive difference between the assessed value of the property being transferred by a participant of a simple partnership as a non-monetary contribution to this partnership and the residual value of this property shall be taken into account when gross profit of the participant that transfers this property is determined.

A negative difference between the assessed value of the property being transferred by a participant of a simple partnership as a non-monetary contribution to this partnership and the residual value of this property is not taken into account when gross profit of the participant that transfers this property is determined.

4. A participant of a simple partnership recognized the payer in relation to the profit of this partnership conducts separate accounting of the revenue from realization of goods (works, services), property rights and non-realization incomes, and also of costs related to activities of this partnership. Sums of revenue from realization of the goods (works, services), property rights and incomes from non-realization operations, and also of costs related to activities of this partnership, are not taken into account for this participant when determining gross profit on which he is recognized an independent payer.

5. Gross profit (excess of incomes over expenses) is determined in the form of an excess of incomes actually received in the course of a tax period over expenses actually incurred in the course of a tax period:

by education institutions being budgetary organizations;

by the Department of Protection of the Ministry of Internal Affairs of the Republic of Belarus and its subdivisions, and also by organizations under its jurisdiction – in the part of rendering protection services (works) to organizations not being budgetary organizations.

Accounting of expenses by the payers specified in indent two of part one of this clause is carried out in accordance with expenditure side of the estimates of profit and loss of non-budgetary means of budgetary organizations, drawn up and approved under the procedure established by the legislation.

Accounting of expenses by the payers specified in indent three of part one of this clause is carried out according to the list of expenses of bodies of internal affairs in accordance with the budget classification of the Republic of Belarus with the estimate of expenses, including deductions for maintenance of the apparatus of the Department of Protection of the Ministry of Internal Affairs of the Republic of Belarus and its regional (Minsk city) directorates.

6. Determining of gross profit in connection with execution of a contract of trust management of property is made by the trustor according to provision established by this Chapter having regard to the following specific features:

revenue and non-realization incomes, occurred in relation to execution by the trustee of a contract of trust management of property constitute revenue and non-realization incomes of the trustor, including when there is a beneficiary;

costs (expenses) related to execution of a contract of trust management of property, including calculated value added tax, property depreciation and also remuneration of the trustee, are recognized costs (expenses) of the trustor;

the trustee determines monthly revenue, non-realization income, costs (expenses) occurred in relation to execution by the trustee of a contract of trust management of property and presents to the trustor the data about them with copies of documents (contracts, primary accounting documents and other documents) certified by the trustee for their accounting by the trustor when determining gross profit. In this instance determining of the revenue and non-realization incomes and costs (expenses) by the trustee is made based on the accounting policy of the trustor. The trustee is entitled not to apply norms of this indent in the event when incomes (profit) of the trustors are not recognized a taxation object for the tax on profit according to the effective legislation.

Specific features of determining gross profit established by this clause do not cover contracts of trust management of monetary means, contracts of trust management of securities and contract of trust management of bank-managed funds.

7. The trustee under the contract of trust management of monetary means and/or contract of trust management of securities shall determine non-realization incomes and non-realization expenses of the trustor, generated in connection with his fulfilment of the contract of trust management of monetary means and/or contract of trust management of securities, participating in formation of the gross profit of the trustor, as of the date of ending of the contract of trust management of monetary means and/or contract of trust management of securities, and presents the data about them to the trustor for their accounting by the trustor when determining gross profit.

8. The trustee of bank-managed fund shall determine non-realization incomes and non-realization expenses of the trustor, generated in connection with his fulfilment of the contract of trust management of bank-managed fund, participating in formation of the gross profit of the trustor, as of the date of the buyout (premature buyout) of the participatory certificate (part thereof), and presents the data about them to the trustor for their accounting by the trustor when determining gross profit.

9. Upon transfer by the trustee of securities acquired under a contract of trust management to the trustor (beneficiary), this trustee is obliged to issue a written confirmation about the transfer of such securities to the trustor (beneficiary) with indication of the date of retirement of securities, number thereof and balance-sheet value determined on the date of retirement. Such written confirmation constitutes the document confirming expenses actually made and confirmed by documents, incurred by the trustor (beneficiary) for acquisition of such securities.

Article 138. Specific features of determining gross profit from operations with securities

1. When determining gross profit from operations with securities (with the exception of bonds of own issuance):

1.1. incomes of the payer upon realization of securities, and also upon redemption thereof are taken (accepted) into account based on the price of realization of securities and a sum of accumulated interest (coupon) yield received by the payer. In this instance incomes of the payer do not include sums of the interest (coupon) income which were accounted for taxation earlier. Accumulated interest (coupon) income, for the purposes of this Code, means a part of interest (coupon) income the payment of which if stipulated in the decision about issuance (additional issuance) of issuing securities, calculated proportionally to the number of days passed from the date of beginning of placement of those securities specified in the decision about the issuance of issuing securities (date of actual acquisition of the security) or date of payment of a preceding interest (coupon) income till the date of concluding the transaction (date of transfer of the security);

1.2. costs of the payer upon realization of securities, and also upon redemption thereof, are determined based on the expenses for acquisition and realization of securities, payment for services of stock exchange, depository, other professional participants of securities market, and other direct expenses, directly related to operations with securities, including sums of value added tax, falling on them.

2. When determining gross profit are not taken into account:

2.1. incomes from operations with securities specified in part six of sub-clause 2.2 of this clause and determined in the form of a difference:

between the redemption price (payment) and the acquisition price of such securities, decreased by the sum of expenses on these operations – upon redemption (payment) of securities by the issuer thereof in the form established by the legislation at the end of circulation period of the securities;

Between the realization price of securities, but not higher than their current value on the day of sale, and the acquisition price of such securities, decreased by the sum of expenses on these operations – upon purchase and sale of securities by the payers;

2.2. incomes from performance of REPO transactions with securities indicated in part six of this sub-clause, upon realization of these securities not more than their current value on the day of sale. For the purposes of this Code a REPO operation means a transaction on sale (purchase) of securities (first leg of REPO) with mandatory subsequent back purchase (sale) of securities of the same issue and in the same number (second leg of REPO) in a period determined by the contract, at the priced established by this contract when concluding the first leg of such a transaction.

As a current value of discount securities at their sale it is taken:

at an auction – weighted average price of sale of these securities, formed in the course of the auction increased by the interest of income established upon issuance of the securities;

by the issuer not at the auction – the price indicated in the contract of sale increased by the interest of income established upon issuance of the securities.

The nominal valued of securities increased by a sum of accumulated interest (coupon) yield being determined in accordance with sub-clause 1.1 of clause 1 of this Article shall be taken as a current value of interest securities.

Discount securities include securities place at the value less than the nominal one (with discount) and redeemed at the nominal value.

Interest-bearing securities include securities placed at the nominal value and redeemed at the nominal value with payment of the due interest.

Securities the incomes from operation with which are not taken into account in accordance with this clause include:

state securities issued by the Ministry of Finance of the Republic of Belarus on behalf of the Republic of Belarus, with the exception of state securities issuance and placement of which were carried out on external financial markets, unless otherwise established by the legislative acts;

bonds issued by the National Bank of the Republic of Belarus and bills of exchange (promissory notes) drawn by the National Bank of the Republic of Belarus – when carrying out monetary and credit regulation, including for the purposes of formation of gold and foreign currency reserves of the Republic of Belarus;

bonds issued under the established procedure by banks carrying out acceptance into deposits of means of natural persons in Belarusian rubles, secured by commitments on return of the principal and payment of the interest on credits granted by them for construction, reconstruction or acquisition of dwelling premises against the pledge of immovable property;

bonds which are issued from April 1, 2008 till January 1, 2015 by legal persons, recognized in accordance with Article 14 of this Code by tax residents of the Republic of Belarus;

bonds of local executive and administrative bodies;

bonds of the open joint-stock company "Development Bank of the Republic of Belarus";

2.3. interest (coupon) interest on securities listed in part six of sub-clause 2.2 of this clause, received (to be received) from the issuer within the circulation period of securities till the deadline of their redemption.

3. When determining gross profit on REPO operations:

the organization acting as the seller on the first leg of REPO takes into account (accepts) profit (damage) in the form of a positive (negative) difference between the realization price of securities on the first leg of REPO and acquisition price (buyout) of securities on the second leg of REPO with account of expenses on purchase and realization of securities taken into account for taxation;

the organization acting as the buyer on the first leg of REPO takes into account (accepts) profit (damage) in the form of a positive (negative) difference between the realization price of securities on the second leg of REPO and acquisition price of securities on the first leg of REPO with account of expenses on purchase and realization of securities taken into account for taxation.

Realization price and acquisition price of securities are decreased by sums of interest (coupon) income paid by the issuer of securities in the period between the dates of execution of the first and the second legs of REPO, in the event when such payments, according to the contract, influence the calculation of securities prices on the REPO transaction.

Article 139. Permanent representation of foreign organization. Specific features of calculation and payment of the tax on profit by foreign organizations carrying out activity in the Republic of Belarus through permanent representation

1. Permanent representation of a foreign organization, located in the territory of the Republic of Belarus, is recognized:

1.1. a permanent place of activity through which the foreign organization carries out entrepreneurial and other activity in the territory of the Republic of Belarus, including one connected with:

execution o works and/or rendering of services on construction stipulated by a contract (contracts), and also on installation, mounting, assembly, adjustment, servicing and operation of equipment (other property), computer programs;

with sale of goods from warehouses located in the territory of the Republic of Belarus;

execution of works and/or rendering of services in the territory of the Republic of Belarus, carrying out other activity not prohibited by the legislation, with the exception of that provided by indents two–five of part one of clause 5 of this Article;

1.2. an organization or a natural person, carrying out activity in the name of a foreign organization and/or in its interests and/or having and using powers of the foreign organization to conclude contracts or to agree their conditions.

A foreign organization is not considered as having permanent representation if, while organizing and carrying out activity in the name of the foreign organization and/or in its interests, an organization or a natural person act within the framework of their usual activity.

Usual activity means an activity which is carried out independently and is not affected by instructions or control on the part of a foreign organization and when it is being carried out entrepreneurial risk for its results remains with the organization or natural person, and not with the foreign organization which they represent.

2. If a foreign organization carries out entrepreneurial or another activity, using several permanent places of activity located in the territory of the Republic of Belarus in each of which certain functions are being fulfilled, directed at obtaining a common result, recognition of availability of a permanent representation is made by the tax bodies with regard to activities of all permanent places of activity of the foreign organization, located in the territory of the Republic of Belarus.

3. If a foreign organization executes works and/or renders services in the territory of the Republic of Belarus, the place of executing works, rendering services by the foreign organization is recognized as permanent representation provided that the said activity is carried out in the course of ninety days, continually or in the aggregate, in any twelve-month period that begins or ends in the respective tax period.

4. A construction site, mounting or assembly object are recognized a permanent representation of a foreign organization, if such a site or object exists in the territory of the Republic of Belarus in the course of a period exceeding one hundred eighty days in any twelve-month period beginning or ending in a respective tax period.

As construction site, mounting or assembly object of a foreign organization in the territory of the Republic of Belarus are considered a place of construction of new objects of immovable property, reconstruction (modernization), expansion, technical re-equipment and/or repair of existing objects of immovable property (with the exception of aircraft and sea vessels, internal water vessels and space objects), and also a place of construction and/or mounting, repair, reconstruction (modernization), expansion and/or technical re-equipment of structures, machinery and equipment, the functioning of which requires rigid fixing on a foundation or with constructive elements of capital constructions (building, structures).

In the event of carrying out design of the object by other foreign organizations outside the Republic of Belarus, the period of execution of such works is not included in the period of existence of the construction site.

When determining the period of existence of a construction site, mounting or assembly object, the time spent by the contractor on other construction sites and/or objects which are not connected with the construction sites and/or object is not taken into account.

The beginning of existence of a construction site is deemed to be the most earlier from the following dates:

the date of signing of an act about transfer of the site to the contractor (act of admission of a sub-contractor personnel for fulfilling a part of the total volume of works);

the date of actual beginning of works.

The termination of existence of a construction site is the date of signing by the ordering customer (builder) of the act of acceptance of the object or of a complex of works stipulated by the contract. The termination of works of a sub-contractor is deemed to be the date of signing of the act of acceptance of works by the contractor. In the instance when the act of acceptance has not been drawn up or works were actually finished prior to of after signing of such an act, the construction site is deemed to cease to exist (works of a sub-contractor are deemed to be finished) on the date of actual end of preparatory, construction or assembly works being part of the volume of works of a respective person on this construction site.

5. As a permanent representation of a foreign organization in the Republic of Belarus is not recognized a place used by it exclusively for one or several of the following objectives:

storage, demonstration or supply of goods for own consumption. Supply is deemed to be delivery and shipment of goods without realization thereof in the territory of the Republic of Belarus through a permanent representation;

purchase of goods for a foreign organization;

collection or dissemination of information for a foreign organization;

carrying out other kinds of activities, if in doing so activity as a whole has a preparatory and ancillary nature.

Kinds of activity indicated in part one of this clause do not lead to a creation of a permanent representation of a foreign organization in the territory of the Republic of Belarus, even though the are carried out through a permanent place of activity of a foreign organization, provided that these kinds of activity, separately or in the aggregate, have a preparatory or ancillary nature.

Kinds of activity of a foreign organization in the territory of the Republic of Belarus are considered as preparatory or ancillary if they have a preparatory or ancillary nature in relation to the activity of the foreign organization for carrying out of which the foreign organization received the revenue.

6. Importation by a foreign organization in the Republic of Belarus or exportation from the Republic of Belarus of goods (works, services), property rights, another movement of goods or other assets in the absence of features of permanent representation, determined by clause 1 of this Article does not lead to a creation of a permanent representation by this foreign organization in the territory of the Republic of Belarus.

7. In the event if one of the sources of gross profit of a foreign organization is profit from its activity in the territory of the Republic of Belarus through a permanent representation and this profit can not be determined based on the revenue confirmed by documents minus expenses confirmed by documents, gross profit subject to taxation in the territory of the Republic of Belarus is calculated as the product of gross profit of the foreign organization and a ration which allows to determine the specific weight of the profit subject to taxation in the Republic of Belarus. The ratio is determined as specific weight of one of the parameters of financial and economic activity of the permanent representation of the foreign organization in the territory of the Republic of Belarus agreed by the foreign organization with the tax body in the total volume of the similar factor of the foreign organization (work time expenditures, sums of expenses incurred or revenue received, products shipped, works executed, services rendered or another parameter agreed with the tax body).

It is not allowed to change the accepted ratio of calculating gross profit within a tax period.

8. If gross profit of a foreign organization subject to taxation in the territory of the Republic of Belarus cannot be calculated in accordance with part one of clause 7 of this Article (date about gross profit of the foreign organization and/or data necessary for calculation of the ratio are not available), it is determined on the basis of the data about the payers (other obliged persons) which are engaged in similar kinds of activity in the territory of the Republic of Belarus, under the procedure established by the Council of Ministers of the Republic of Belarus or the body authorized by it.

81. When determining gross profit of a foreign organization in accordance with clauses 7 and 8 of this Article, transfer of damages, established by the legislation of a foreign state the resident of which the foreign organization is does not decrease the gross profit of the foreign organization carrying out activity in the Republic of Belarus through a permanent representation subject to taxation in the Republic of Belarus.

9. Costs on production and realization of goods (works, services), property rights, non-realization expenses of a foreign organization carrying out activity in the Republic of Belarus through a permanent representation in addition to costs (non-realization expenses) incurred in the Republic of Belarus include also costs (non-realization expenses) incurred outside the Republic of Belarus that in accordance with the legislation of a foreign state are taken into account therein for the purposes of taxation of profit and directly related to carrying out of activity by the foreign organization in the Republic of Belarus through permanent representation , including management and general and administrative costs, with the exception of costs (non-realization expenses) not taken into account for taxation of profit in accordance with legislation of the Republic of Belarus (hereinafter in this clause – foreign costs).

Foreign costs must be confirmed by a respective report of an auditing organization (auditor) of the foreign state the resident of which the foreign organization is, which is presented to the tax body not later than the deadline for presenting the tax declaration (calculation) on the tax on profit for the tax period to which they are referred. Data about foreign costs in the report of an auditing organization (auditor) must include also the data about sums of foreign costs in foreign currency and Belarusian rubles, incurred by the foreign organization for the purposes of carrying out activity in the territory of the Republic of Belarus through a permanent representation, broken down by types of foreign costs, and also about dates of their acceptance for accounting by the financial organization for the taxation purposes in accordance with the legislation of the foreign state. Recalculation of foreign currency in Belarusian rubles shall be performed at the official rate of Belarusian rouble to the relevant foreign currency, established by the National Bank of the Republic of Belarus on the date of their acceptance for accounting for taxation purposes in the foreign state. If the legislation of the foreign state does not provide for conducting tax accounting for the purposes of taxation of profit (which should be indiciated in the report of auditing organization (auditor) of the foreign state with reference to acts of legislation of the foreign state), recognition of profit received by the foreign organization from carrying out activity through a permanent representation located in the Republic of Belarus as taxation object, then recalculation of foreign costs in Belarusian rubles shall be performed at the official rate of Belarusian rouble to the relevant foreign currency, established by the National Bank of the Republic of Belarus on the date of their acceptance for accounting in the foreign state.

If foreign costs are a part of the total sum of costs incurred by a foreign organization outside the Republic of Belarus (costs are incurred not only for a permanent representation in the Republic of Belarus), the report of an auditing organization (auditor) of the foreign state must indicate in which amount (part, percentage) such costs are referred to carrying out activity in the territory of the Republic of Belarus through the permanent representation and on which parameter such an amount (part, percentage) is being determined.

10. When incomes from which the tax on incomes was retained and remitted to the budget in accordance with Chapter 15 of this Code are included in gross profit of a foreign organization carrying out activity in the Republic of Belarus through a permanent representation, the sum of the tax on profit payable to the budget is decrease by the sum of the tax on incomes retained and remitted. In the event if the sum of the tax on incomes retained and remitted in a tax period exceeds the sums of the tax on profit for this period, the sum of excess of the paid tax on incomes is subject to be setoff against forthcoming payment of the foreign organization carrying out activity in the Republic of Belarus through a permanent representation or to be returned to it in accordance with Article 60 of this Code. The document confirming the remittance to the budget of the tax on incomes is a statement about the payment of the tax on incomes issued by the tax body at the place of putting on record of the tax agent according to the form approved by the Ministry on Taxes and Dues of the Republic of Belarus.

Article 140. Profit exempt from the tax on profit

1. The following is exempted from taxation with the tax on profit:

1.1. [excluded]

1.2. profit of organizations (in the amount of not more than 10 percent of gross profit) transferred to organizations registered in the territory of the Republic of Belarus for construction and/or reconstruction of objects intended to be used for physical culture or sport, budgetary organizations of healthcare, education, social security, culture, physical culture and sport, religious organizations, social service institutions and also to public associations "Belarusian Society of Disabled Persons", "Belarusian Society of the Deaf" and "Belarusian partnership of the vision-impaired disabled persons", “Republican Association of Wheelchair Users”, “Belarusian Association of Aid to Disabled Children and Young Disabled Persons”, Belarusian children’s fund, Belarusian children’s hospice, Belarusian Public Association of Veterans, Belarusian Public Association of Persons with Stomas, the Chance International Children’s Charity Foundation, the International non-government organization “Ponimanie”, the Belarusian Republican Public Association of Invalids "Rehabilitation", the International Public Association "SOS Children's Villages", to unitary enterprises the owners of property of which are these associations, or used for payment of bills for goods (performed works, rendered services), property rights, purchased and transferred to the mentioned organizations;

1.3. profit of organization from realization of prosthetic and orthopaedic articles (including dentures), means of rehabilitation and servicing of disabled persons, manufactured by them;

1.4. gross profit of organizations of the criminal-executive system and medical-and-labour prevention facilities;

1.5. gross profit (except for profit received from merchant and intermediary activity) of organizations which use the labour of disabled persons, if the average number of disabled person in these organizations for a period from the beginning of the year till the reporting period inclusively makes not less than 50 percent of the average number of workers for this period.

For the purposes of this sub-clause:

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);

the calculation of the number of workers is to be made in whole for the organization including affiliates, representations and its other separate divisions;

merchant activity – activity based on relations for sale of acquired goods;

1.6. [excluded]

1.7. profit of organizations received from realization of infant food products manufactured by them;

1.8. [excluded]

1.9. profit received by insurance organizations as a result of making investments through investing means of insurance reserves (mathematical reserves and reserves for additional payments) and their placement under contracts of voluntary insurance related to life insurance, directed for increasing balances on personal accounts of insured persons;

1.10. [excluded]

1.11. [excluded]

1.12. [excluded]

1.13. profit from realization of produced cars and car components of own production – in the course of three years from the first day of the month following the month of entry into force of the agreement on conditions of production of cars, concluded under the established procedure with the Ministry of Industry of the Republic of Belarus. Such exemption from the tax on profit is applied in the presence, on the last day of the tax period, of a respective certificate of own production, issued under the established procedure, and is terminated from the day when the validity of the mentioned agreement terminates.

1.131. [excluded]

1.132. profit of organizations received from realization of goods of own production, which are innovative according to the list determined by the Council of Ministers of the Republic of Belarus (later on in this clause – the list of innovative goods).

For the purposes of application of part one of this sub-clause, goods of own production, which are innovative according to the list of innovative goods, are goods which meet simultaneously the following conditions:

goods are produced within the period of validity of the certificate of own production, issued under the established procedure, the date of realization of which falls on the period in the course of which such goods are contained in the list of innovative goods. A copy of the certificate of own production, issued under the established procedure, is presented by the organization to the tax body at the place of putting on record of the organization;

goods are created using intellectual activity results capable to receive legal protection, which did not participate in production of a good with a different description included earlier in the list of innovative goods;

from the first day of the month in which the revenue from the first realization of the good was accepted in accounting and till the first day of the month in which the set of application documents for inclusion of the good in the list of innovative documents was submitted in the established order to the State Committee on Science and Technology of the Republic of Belarus not more than two years passed;

goods are created with the use of intellectual activity results capable to receive legal protection for which patents (certificates) were granted from the date of granting of which (with the exception of the patent for invention) not more than three years have passed.

For the purposes of application of this sub-clause, the good shall be determined by description of the products according to the certificate of own production.

Organizations shall conduct separate accounting of volumes of goods of own production, produced within the period of validity of the certificate of own production;

1.133. profit of organizations received from realization of goods of own production which are high-technology goods in accordance with the list determined by the Council of Ministers of the Republic of Belarus upon consent of the President of the Republic of Belarus (later on in this Chapter – the list of high-technology goods) in the event if the share of revenue received from realization of such goods constitutes more than 50 percent of the total sum of revenue received from realization of goods (works, services), property rights, including incomes from putting the property into lease (financial lease (leasing)).

For the purposes of application of part one of this sub-clause and clause 7 of Article 142 of this Code:

goods of own production that are high-technology ones in accordance with the list of high-technology goods include goods produced within the period of validity of the certificate of own production, issued under the established procedure, the date of realization of which falls on the period in the course of which such goods are contained in the list of high-technology goods. A copy of the certificate of own production, issued under the established procedure, is presented by the organization to the tax body at the place of putting on record of the organization;

organizations conduct separate accounting of volumes of goods of own production, produced within the period of validity of the certificate of own production;

1.134. profit of organizations of culture, received from carrying out of cultural activity.

A condition of application of exemption established by part one of this sub-clause is the fact that organizations of culture, with the exception of state organizations of culture to which support is given in accordance with the Edict of the President of the Republic of Belarus of September 3, 2010 No. 457 “On support of some organizations of culture and introduction of changes into the Edict of the President of the Republic of Belarus of December 28, 1999 No. 770”, direct monetary means being released in accordance with part one of this sub-clause for purchase and repair of fixed assets, purchase of property rights to the objects of copyright law and related rights, necessary for carrying out cultural activity;

1.135. profit of institutions of education from activity that generate incomes;

1.136. profit received from realization of 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 profit received from realization of material objects related to these results 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 application of the exemption shall be the indication in the contracts stipulating the transfer of property rights to results of scientific and scientific and technical activity by their holder to another person or the granting by the right holder to another person of the right to use results of scientific and scientific and technical activity of the data about the number and the date of registration of the rights to results of scientific and scientific and technical activity, description of said rights contained in the state register of rights to results of scientific and scientific and technical activity and also the conduct of a separate accounting of the revenue on realization of property rights to results of scientific and scientific and technical activity and material objects, expenses and sums participating in the determination of the tax base on the mentioned realization;

1.14. profit of organizations in other instances determined by the President of the Republic of Belarus.

2. [Excluded]

3. [Excluded]

4. [Excluded]

Article 141. Determination of tax base for the tax on profit

1. The tax base for the tax on profit is determined as a monetary expression of gross profit subject to taxation.

2. Payers conduct accounting of the revenue and costs on production and realization of goods (works, services) on operations the profit from which is exempted from the tax on profit (including when released sums of tax on profit are to be used according to a special purpose) or is subject to taxation with the tax on profit at decreased tax rates, and also on operations on which, in accordance with this Chapter, other than generally established procedure of account of the profit (damages) is established. In this instance:

2.1. direct costs which, on the basis of primary accounting documents, are immediately related to one or another operation are referred to a respective operation by direct counting without distribution;

2.2. indirect costs (including general production expenses, overhead expenses) which, on the basis of primary accounting documents, cannot be referred to one or another operation are distributed among operations proportionally to the sum of revenue decreased by sums of taxes and dues payable from the revenue received on respective operations or proportionally to another distribution criterion determined according to the accounting policy of the organization accepted for calculation of prime costs of realized production (works, services).

21. Provisions of sub-clause 2.2 of clause 2 of this Article, in the part of the order of distribution of costs, cover also operations the incomes from which are received when applying special taxation regimes and in accordance with this Code are not recognized as taxation objects for the tax on profit, and also when the financial organization carries out activity through two and more permanent representations located in the territory of the Republic of Belarus.

22. Organizations that reflected revenue from realization of goods (works, services), property rights as the shipped goods (performed works, rendered services), transferred property rights were paid for the purposes of computing the tax under the simplified taxation system and that began applying in the current calendar year the common taxation regime (single tax on imputed income) shall take into account revenue from realization of goods (works, services), property rights, shipped (performed, rendered), transferred and not paid for till the date from which the application of the common taxation regime (single tax on imputed income) began and non-realization incomes due to be received and not received till that date, the reflection of which in accordance with Article 128 of this Code does not fall on the mentioned date or thereafter for determining the tax base for the tax on profit as payments for goods (works, services), property rights arrive and actual receipt of non-realization incomes, but not later than on the last day of the current calendar year.

3. When determining the tax base for the tax on profit:

revenue (income) of a Belarusian organization from activity (sources) outside the Republic of Belarus is accepted in the amount prior to retention (payment) of taxes (dues, deductions) according to the legislation of the foreign state;

from revenue (income) specified in indent two of this clause, sums of taxes and dues included by the Belarusian organization in the revenue (income) according to the legislation of the foreign state are subject to be deducted;

costs on production and realization of goods (works, services), property rights and non-realization expenses that are taken into account for taxation, incurred in relation to carrying out activity outside the Republic of Belarus, are accepted by a Belarusian organization in accordance with this Chapter.

4. Tax base for the tax on profit on dividends calculated by Belarusian organizations are determined in accordance with this clause by Belarusian organizations which calculated the dividends.

The date of calculation of dividends is the date of the decision on distribution of profit by means of declaring and paying dividends, and on dividends calculated by unitary enterprises and income equated to dividends – the date of reflection in the accounting of obligations on payment (transfer), respectively, of dividends and incomes equated to dividends.

Calculation of the tax base is performed according to the formula:

НБ = К х (ДН – ДП), where:

НБ – sum of the tax base;

К – ratio of the sum of dividends due to the payer to the total sum of profit distributed as dividends;

ДН – total sum of profit distributed as dividends;

ДП – sum of dividends received by a Belarusian organization which calculated the dividends in the current calendar year and/or in the calendar year immediately preceding, if these sums of dividends have not been accounted earlier by such organization when determining the tax base within the factor ДП and received not earlier than January 1, 2009. In this instance dividends receive in foreign currency are recalculated in Belarusian rubles at the official rate established by the National Bank of the Republic of Belarus on the date of their receipt.

When determining the tax base, the value of the factor ДП is taken into account in the amount not exceeding the value of the factor ДН.

Article 1411. Transfer of losses in the future

1. A Belarusian organization is entitled to decrease the tax base by the sum of loss (sum of losses) according to results of the preceding tax period (preceding tax periods), determined in accordance with clause 2 of this Article (to carry out the transfer of losses on the profit of the current tax period) under the procedure established by this Chapter, provided that it has, according to the results of this preceding tax period (preceding tax periods), an excess of the total sum of costs on production and realization of goods (works, services), property rights, depreciable value of fixed assets and intangible assets and non-realization incomes over the sum of revenue and non-realization incomes, decreased by the sum of taxes and dues payable from the revenue, and within the limits of this excess, unless legislative acts established a procedure for covering losses for it.

2. For the purposes of this Article, losses mean an excess of the total sum of costs on production and realization of goods (works, services), property rights and non-realization expenses, named in sub-clauses 3.18, 3.24 and 3.25 clause 3 of Article 129 of this Code over the sum of revenue from realization of goods (works, services), property rights and non-realization incomes, named in sub-clauses 3.15, 3.17 and 3.18 of clause 3 of Article 128 of this Code, decreased by the sum of taxes and dues payable from the revenue and from non-realization incomes specified in sub-clauses 3.15, 3.17 and 3.18 of clause 3 of Article 128 of this Code. The said revenue, costs, non-realization incomes and expenses:

are determined under the procedure established by the provisions of this Code, applied when calculating the gross profit;

do not include revenue, costs, non-realization incomes and expenses concerning the activity the taxation of which is carried out with the single tax for producers of agricultural produce, with the tax under the simplified system of taxation, with the tax on incomes from carrying out lottery activities, the tax on incomes from conducting electronic interactive games, the single tax on imputed income or the due for carrying out activity for providing services in the sphere of agroecotourism.

In this instance the sum of loss (sums of losses) does not include the sum of loss (sums of losses) received:

from activity outside the Republic of Belarus on which a Belarusian organization is registered as the payer of taxes of a foreign state;

according to the results of a tax period (periods, a part of a tax period) in which a Belarusian organization had the right to apply the legislation establishing exemption from the tax on profit (the right not to pay the tax on profit) in the course of several tax periods determined by this legislation.

If according to the results of a tax period the sum of loss computed in accordance with parts one and two of this clause exceeds the total sum of loss for this tax period computed as a difference between the total sum of costs on production and realization of goods (works, services), property rights, depreciable value of fixed assets and intangible assets and non-realization expenses and the sum of revenue and non-realization incomes decreased by the sum of taxes and dues payable from the revenue, the total sum of loss is accepted as the sum of loss which can be transferred in the future.

3. Losses determined in accordance with clause 2 of this Article, in the part of:

3.1. losses received from the following groups of operations, unless otherwise established by part two of sub-clause 3.2 of this clause, are transferred on the profit of the current tax period, received from the same groups of operations:

the first group – operations with derivative financial instruments, with securities, including securities which are covered by specific features of taxation, provided by Article 138 of this Code;

the second group – operations on alienation of property referred, in accordance with the legislation, to fixed assets (including parts of a capital construction (building, structure) being a fixed asset) unfinished construction objects and parts thereof and uninstalled equipment and the enterprise as a property complex.

Loss (profit) received from each of the groups of operations specified:

in indent two of part one of this clause, is determined as a negative (positive) difference between incomes and expenses on these operations accepted in accordance with this Code for determining the gross profit;

in indent three of part one of this sub-clause, is determined:

concerning fixed assets (a part of a capital construction (building, structure) being a fixed asset) – in accordance with the provision of clause 2 of Article 127 of this Code;

concerning unfinished construction objects and parts thereof and uninstalled equipment – as a negative (positive) difference between the revenue from realization thereof decreased by the sum of taxes and dues payable from the revenue and the costs on creation (acquisition) and realization thereof;

concerning the enterprise as property complex – in accordance with the provision of clause 8 of Article 127 of this Code.

The sum of losses for a tax period on each from the groups of operations specified in indent two and three of part one of this sub-clause is to be transferred on the profit of the current tax period based on its actual amount, unless otherwise established in part four of this sub-clause.

In the event if the sum of losses for a tax period on each from the groups of operations specified in indents two and three of part one of this sub-clause or the total sum of losses for a tax period in all mentioned groups of operations on which losses are received exceeds the sum of loss determined in accordance with clause 2 of this Article for this tax period, the sum of losses to be transferred on the profit of the current tax period:

Is determined on each from the groups of operations as a product of the sum of loss determined in accordance with clause 2 of this Article and the specific weight of the sum of loss on each group of operations in the total sum of losses on all groups of operations on which losses are received – if losses are received on more than one group of operations;

is accepted within the limits of the sums of loss determined in accordance with clause 2 of this Article – if loss is received on one group of operations;

3.2. losses remaining after the exclusion of losses received on the groups of operations specified in indents two and three of part one of sub-clause 3.1 of this clause are transferred on the profit of the current tax period irrespective of operations and kinds of activities on which it is received.

Provisions of part one of this sub-clause cover losses from operations being referred in accordance with indent two of part one of sub-clause 3.1 of this clause to the first group, received by Belarusian organizations which carry out professional and exchange activity with securities on the basis of respective special permits (licenses) on the date of performance of these operations.

4. Transfer of losses on the profit of the current tax period may be made within the limits of the tax base with account of the sum of profit being exempted from taxation with the tax on profit.

In the event if the sum of taxable profit for a tax period on each from the groups of operations specified in indents two and three of part one of sub-clause 3.1 of clause 3 of this Article or the total sum of taxable profit for a tax period in all mentioned groups of operations on which the profit is received exceeds the tax base indicated in the tax declaration (calculation) for this tax period, the tax base of the current tax period within the limits of which the transfer of losses of past tax periods is effectuated:

is determined on each of the groups of operation as a product of the tax base of the current tax period on each of the groups of operations in the total sum of taxable profit on all groups of operation on which the profit is received, if the profit is received on more than one group of operations;

is accepted within the limits of the tax base of the current tax period if the profit is received on one group of operations.

When there is the tax base taxable at different rates, the transfer of losses on the profit of the current tax period is made in the following order of priority:

in the first place are transferred sums of losses determined in accordance with sub-clause 3.1 of clause 3 of this Article (if available). In doing so, the sum of loss being transferred on each of the groups of operations specified in indents two and three of part one of sub-clause 3.1 of clause 3 of this Article is distributed proportionally to the sums of the tax base referred to this group, taxable at respective rates and/or covered by the benefits in accordance with the legislation;

in the second place is transferred the sum of losses determined in accordance with sub-clause 3.2 of clause 3 of this Article. In doing so, the said sum of losses is distributed proportionally to the sums of the tax base taxable at respective rates and/or covered by the benefits in accordance with the legislation.

5. A Belarusian organization is entitled to make the transfer of a loss on the profit of the current tax period within ten years immediately following the tax period in which this loss had been received.

A loss not transferred on the following year may be transferred, entirely or in part, on the following year from subsequent nine years.

If a Belarusian organization received losses in more than one tax period, the transfer of such losses on the profit of the current tax period is made in the same order of priority in which they were suffered.

The said order of priority must be observed upon transfer of losses on the profit of the current tax period separately on each of the groups of operations specified in indents two and three of part one of sub-clause 3.1 of clause 3 of this Article, and also separately on losses determined in accordance with sub-clause 3.2 of clause 3 of this Article.

6. A Belarusian organization is entitled to deduct from the tax base only the sum of loss (sums of losses) which is received according to the results of a preceding tax period (preceding tax periods) on its activity, unless otherwise established by clause 8 of this Article.

Provisions of this Article apply to simple partnerships (participants of contracts on joint activity) and also affiliates, representative offices and other separate divisions, fulfilling the tax obligations of a legal person of the Republic of Belarus, having regard to provisions of clause 9 of this Article.

7. A Belarusian organization is obliged:

to ensure separate accounting of the revenue, costs, non-realization incomes and expenses:

on groups of operations specified in indents two and three of part one of sub-clause 3.1 of clause 3 of this Article, both for a tax period the losses according to the results of which are being transferred on the profit of the current tax period and for a tax period on the profit of which the losses are being transferred;

on activity determined by indent two of part two of clause 3 of this Article, for a tax period the losses according to the results of which are being transferred on the profit of the current tax period;

for the part of a tax period specified in indent three of part two of clause 2 of this Article, the losses according to the results of which are being transferred on the profit of the current tax period;

to keep documents (contracts, primary accounting documents, ledgers of accounting) confirming the volume of a loss suffered in the course of all period when it decreases the tax base of the current tax period by sums of losses received earlier, and also till the tax body terminates the inspection of correctness of calculation, timeliness and completeness of payment of the tax on profit for the period in the course of which the Belarusian organization has decreased the tax base by the sum of loss (sums of losses) according to the results of a preceding tax period (preceding tax periods).

In the absence of the separate accounting established in indents two – five of part one of this clause and/or documents specified in indent six of part one of this clause, a Belarusian organization is not entitled to make transfer of losses on the profit of the current tax period.

In the period when the tax body conducts an inspection, the transfer of losses not transferred earlier, including those established and/or corrected towards an increase during the inspection, shall not be effectuated.

Losses not declared by the payer prior to the beginning of the inspection (with the exception of the chamber inspection), including those established and/or corrected towards an increase during the inspection, are not subject to transfer.

Transfer of losses not declared by the payer prior to beginning of the chamber inspection may be effectuated by the payer in the order determined by this Article.

8. When a Belarusian organization is reorganized in the form of transformation, the Belarusian organization – successor is entitled to deduct from the tax base, under the procedure and on conditions established by this Article, the sum of losses received by a reorganized organization prior to the reorganization.

Upon liquidation of a Belarusian organization, such an organization is entitled to effectuate transfer of losses in the order and on conditions established by this Article prior to the expiration of the current tax period with reflection of sums of the transferred loss in the tax declaration (calculation) for the tax on profit, being presented in accordance with part two of clause 21 of Article 63 of this Code.

9. A Belarusian organization, and also affiliate, representative office and another separate division, fulfilling the tax obligations of this organization, is entitled to transfer loss on the profit of the current tax period only the part, respectively, of a sum of the loss of the organization determined without account of losses of affiliates, representative offices and other separate divisions, fulfilling the tax obligations of this organization, and the sum of loss of this affiliate, representative office and another separate division.

10. A Belarusian organization is entitled to begin the transfer of losses starting with the losses received according to the results of 2011.

Article 142. Rates of tax on profit

1. The rate of the tax on profit is established in the amount of 18 percent, unless otherwise determined by this Article.

2. [Excluded]

3. [Excluded]

4. [Excluded]

5. The rate of the tax on profit on dividends specified in clause 1 of Article 126 of sub-clause 3.1 of clause 3 of Article 128 of this Code and also on incomes of founders (participants, shareholders) in the form of exchange rate differences arising upon reassessment of accounts receivables on settlements with foreign organizations concerning dividends payable by them is established in the amount of 12 percent.

6. Scientific and technological parks, center of technology transfer, resident of scientific and technological parks pay the tax on profit at the rate of 10 percent (with the exception of the tax on profit calculated, retained and remitted upon fulfillment of duties of a tax agent.

Provisions of part one of this clause are applied provided that activity of scientific and technological parks, centers of technology transfer correspond to directions of activities determined by the legislation, and activity of residents of scientific and technological parks is innovated in accordance with the legislation.

Soundness of application in the tax period of the rate specified in part one of this clause shall be confirmed my means of presenting to the inspectorate of the Ministry on Taxes and Dues of the Republic of Belarus at the place of putting on record, annually not later than the time limit established by the legislation for submission of the tax declaration (calculation) for the tax on profit according to the results of the fourth quarter of the expired tax period a confirmation of the State Committee on Science and Technology of the Republic of Belarus about observation by scientific and technological parks, centers of technology transfer, residents of scientific and technological parks of the condition provided by part two of this clause.

7. Profit of organizations received from realization of goods of own production, included in the list of high-technology goods is taxable with the tax on profit at the rate of 10 percent, with the exception of the instance established by sub-clause 1.133 of clause 1 of Article 140 of this Code.

8. Banks and insurance organizations shall pay the tax on profit at the rate of 25 percent.

Article 143. Tax and reporting periods of the tax on profit. Procedure for computation of the tax on profit. Time limits for submission of tax declarations (calculations) and payment of the tax on profit

1. The tax period for the tax on profit is recognized a calendar year.

2. The reporting period for the tax on profit is recognized a calendar quarter, unless otherwise established by part two of this clause.

The reporting period for the tax on profit from dividends calculated by Belarusian organizations is recognized a calendar month.

3. The sum of the tax on profit according to the results of a reporting period is calculated on an accrual basis from the beginning of the tax period as a product of the tax base decreased by the sum of profit exempt from taxation, and according to the results of the fourth quarter also by a sum of losses being transferred on the profit of this reporting period in accordance with provisions of Article 1411 of this Code, and the tax rate, unless otherwise established by indent two of clause 7 of part one of clause 11 of this Article. The payer is entitled to decrease the said sum of the tax on profit in the instances and under the procedure established by the legislation, in particular when applying benefits which provide for exemption from payment of the tax on profit, when setting off the tax on profit (income) paid in a foreign state, and also upon occurrence of circumstances provided by clause 10 of Article 139 of this Code.

The tax declaration (calculation) on the tax on profit according to results of a expired reporting period shall be submitted by the payer to tax bodies not later than on the 20th day of the month following the expired reporting period, irrespective whether or not there are taxation objects, unless otherwise established by part three of this clause, clauses 6 and 7, part two of clause 8 of this Article.

The tax declaration (calculation) on the tax on profit according to results of an expired tax period shall be submitted not later than on the 20th day of the month following the expired tax period.

Organizations that apply special taxation regimes effectuate the submission of the tax declaration (calculation) for the tax on profit according to the results of the reporting period only upon availability of sums participating in determining the tax base for the tax on profit.

4. Upon liquidation of the payer, the tax on profit is paid based on the actual gross profit of the payer.

Upon termination of the activity of a payer as a result of an reorganization (with the exception of reorganization in the form of transformation), the tax on profit is paid based on the actual gross profit of such a payer for the period till the reorganization.

Upon liquidation of affiliates, representative offices and other separate divisions of legal persons of the Republic of Belarus, including as a result of change of the structure of the legal person, the tax on profit is paid based on the actual gross profit of the affiliate, representative office and another separate structural division for the period till their liquidation. This provision also covers the instances of occurrence of a circumstance in relation to which the obligation of the affiliate, representative office and another separate structural division of a legal person of the Republic of Belarus is terminated to fulfill tax obligations the this legal person.

When a foreign organization terminates activity in the territory of the Republic of Belarus through a permanent representation, the tax on profit shall be paid prior to termination of such activity based on the actual gross profit of such a payer.

5. Payment of the tax on profit shall be effectuated within the tax period according to results of the expired reporting period not later than on the 22nd day of the month following the expired tax period, unless otherwise established by parts two-four of this clause, and also by clauses 6 and 7, part two of clause 8, clause two of clause 9 of this Article.

Payment of the tax on profit for the fourth quarter of 2014 shall be effectuated not later than on December 22, 2014 in the amount of two-thirds of the sum of tax on profit computed based on the sum of tax on profit for the third quarter 2014 with subsequent recalculation for 2014 in full and computation of the sum of tax on profit to be additionally paid or decreased not later than on January 22, 2015.

Payment of the tax on profit for the fourth quarter of 2015 shall be effectuated not later than on December 22, 2015 in the amount of two-thirds of the sum of tax on profit computed based on the sum of tax on profit for the third quarter 2015 with subsequent recalculation for 2015 in full and computation of the sum of tax on profit to be additionally paid or decreased not later than on January 22, 2016.

Beginning from the tax period of 2016, payment of the tax on profit for the fourth quarter of the tax period shall be effectuated not later than on December 22 of that period in the amount of two-thirds of the sum of tax on profit computed based on the sum of tax on profit for the third quarter of the tax period with subsequent recalculation in full for the tax period and computation of the sum of tax on profit to be additionally paid or decreased not later than on March 22 of the year following the expired tax period.

6. Budgetary organizations, social and religious organizations (associations), republican state-public associations, other non-commercial organizations, with the exception of consumer societies and unions thereof being subject of trade, shall submit the tax declaration (calculation) for the tax on profit for the expired tax period not later than on March 20 and pay the tax on profit not later than on March 22 of the year following the expired tax period.

In this instance submission of the tax declaration (calculation) for the tax on profit is not required when according to results of the expired tax period there is no gross profit (loss).

7. The Department of Protection of the Ministry of Internal Affairs of the Republic of Belarus and its subdivisions, and also organizations under its jurisdiction, shall submit the tax declaration (calculation) for the tax on profit for the expired tax period not later than on March 20 and pay the tax on profit not later than on March 22 of the year following the expired tax period. In this instance:

in the part of rendering protection services (works) to organizations not being budgetary organizations, the sum of tax on profit from gross profit is computed as a product of the tax base being determined having regard to specific features established by clause 5 of Article 137 of this Code and/or the President of the Republic of Belarus and the tax rate;

computation of the tax on profit on other activities shall be effectuated in accordance with provisions of part one of clause 3 of this Article.

8. Payment of the tax on profit on the consolidated balance sheet if main activity of the he State Association “The Belarusian Railway” is made in a centralized manner.

The procedure and time limits for presentation of tax declarations (calculations) and payment of the tax on profit on the consolidated balance sheet of the main activity of the State Association “The Belarusian Railway” are determined by the President of the Republic of Belarus.

9. The tax on profit of a foreign organization carrying out activity in the Republic of Belarus through a permanent representation is calculated by the payer itself.

A foreign organization that opened a representative office, but does not carry out activity in the Republic of Belarus through a permanent representation submits, not later than on March 20 of the year following the expired tax period, a report about the activity in the Republic of Belarus and the tax declaration (calculation) for the tax on profit for the tax period, makes payment of the tax on profit not later than on March 22 of the year following the expired tax period .

In the event of carrying out by a foreign organization entrepreneurial activity through a permanent representation at the place of location of a representative office opened in the Republic of Belarus, and also in other places in the territory of the Republic of Belarus the carrying out of activity in which leads to creation of a permanent representation, the tax declaration (calculation) for the tax on profit is submitted to the tax body at the place of location of the representative office, and also to the tax body at each place of carrying out of entrepreneurial activity through a permanent representation.

10. An organization or a natural person, recognized in accordance with this Code as a permanent representation of a foreign organization through which the foreign organization carries out entrepreneurial and other activity in the territory of the Republic of Belarus, pays 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. Tax declarations (calculations) for the tax on profit submitted to the tax body and payment instructions on remittance of the tax on profit to the budget for a foreign organization shall indicate the accounting number of the payer assigned to the foreign organization.

A sum of the tax on profit paid to the budget by a foreign organization is confirmed by a statement issued by the tax body at the place of location of the permanent representation of the foreign organization according to the form established by the Ministry on Taxes and Dues of the Republic of Belarus.

11. The sum of the tax on profit from dividends specified in part two of clause 1 of this Article is calculated as a product of the tax base and the tax rate, retained and remitted to the budget by Belarusian organization which calculated the dividends. Such Belarusian organizations are recognized tax agents, have rights and bear duties, established in Article 23 of this Code.

Tax declaration (calculation) on sums of the tax on profit from dividends posted by Belarusian organizations shall be submitted to the tax bodies by tax agents not later than on 20th day of the month following the month in which the dividends were posted.

Remittance to the budget of sums of the tax on profit on dividends specified in part two of clause 2 of this Article is performed by tax agents not later than on the 22nd day of the month following the month in which the dividends have been calculated.

Article 144. Special provisions. Elimination of double taxation

1. Sums of the tax on profit (income) actually paid (retained) in accordance with the legislation of a foreign state in relation to income received in this foreign state are reckoned by a Belarusian organization when paying the tax on profit in the Republic of Belarus under the procedure and in amounts established by this Article.

2. Income received in a foreign state is deemed to be income (revenue) of a Belarusian organization in relation to which in accordance with the legislation of the foreign state, and if available a treaty of the Republic of Belarus on issues of taxation – in accordance with its provisions, taxation with the tax on profit (income) is performed in the foreign state.

3. A sum of the tax on profit (income) actually paid (retained) in accordance with the legislation of a foreign state and/or a treaty of the Republic of Belarus on issues of taxation, in relation to income received in the foreign state, recalculated in Belarusian rubles at the official rate established by the National Bank of the Republic of Belarus on the date of payment of the tax to the budget of the foreign state, is reckoned by the Belarusian organization when paying the tax on profit in the Republic of Belarus upon presentation of a statement (another document) of a tax body (other competent authority the functions of which include levying of taxes) of the foreign state confirming the payment of the said sum in this state in the tax period in which such a statement has been presented, unless otherwise established by part four of this clause.

A statement confirming the payment of the tax on profit (income) in a foreign state must indicate the name of the payer, title of the tax, date of payment of the tax and the period for which the tax is paid, title, amount of the object of taxation (tax base), tax rate and sum of the tax paid to the budget of the foreign state. To make the setoff, also a statement (another document) in the form established by the tax body (another competent authority the functions of which include levying of taxes) of the foreign state if it confirms the sum of the paid tax on profit (income) in this state.

An setoff of the tax on profit (income) paid (retained) in accordance with the legislation of a foreign state and/or a treaty of the Republic of Belarus on issues of taxation, in relation to income received in the foreign state is performed within the limits of the sum of the tax on profit paid (payable) in the Republic of Belarus in relation to this income and may not exceed the sum of the tax on profit paid in relation to this income for the calendar in which it was received, and also the sum of the tax on profit due to be paid in accordance with a treaty of the Republic of Belarus on issues of taxation (if available).

If the statement confirming the payment of the tax on profit (income) in the foreign state is presented prior to the time limit established by the legislation for presentation in the Republic of Belarus of the tax declaration (calculation) for the tax on profit according to the results of the expired tax period, then the sum of the tax on profit (income) paid (retained) in accordance with the legislation of a foreign state and/or a treaty of the Republic of Belarus on taxation matters in relation to the income received in the foreign state shall be reflected in the tax declaration (calculation) for the tax on profit of the tax period, the time limit for submission of which follows after presentation of such statement or of the reporting period in which such statement is presented.

4. The fact of permanent location of a Belarusian organization for the purposes of application of a treaty of the Republic of Belarus on issues of taxation is verified by a statement issued according to the form established by the Ministry on Taxes and Dues of the Republic of Belarus. The statement is issued by the tax body at the place of putting on record on the Belarusian organization on the basis of its application containing the name of the state for presentation to the tax (financial) bodies of which the statement is intended, kind and sum of the income received (to be received) from sources in the foreign state.

Provisions of this clause are also applied for verification of a statement according to the form established in a foreign state. Upon applying to the tax body for verification of a statement according to the form established in the foreign state intended for return (setoff) by the Belarusian organization of the tax retained earlier from its incomes (paid by it) in the foreign state, the payer shall indicate the kind and amount of the income received from sources in the foreign state in the application being submitted for obtaining the statement.

CHAPTER 15 

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

Article 145. Payers of the tax on incomes of foreign organizations that are not carrying out activities in the Republic of Belarus through a permanent representation;

Payers of the tax on incomes of foreign organizations not carrying out activity in the Republic of Belarus through a permanent representation (later on in this Chapter – payers) are recognized foreign organizations not carrying out activity in the Republic of Belarus through a permanent representation, but deriving incomes for sources in the Republic of Belarus (later on in this Chapter – foreign organizations).

Article 146. Object of taxation with the tax on incomes of foreign organizations not carrying out activity in the Republic of Belarus through a permanent representation

1. Object of taxation with the tax on incomes of foreign organizations not carrying out activity in the Republic of Belarus through a permanent representation (later on in this Chapter – tax on incomes) is recognized to be the following incomes received by a payer from sources in the Republic of Belarus:

1.1. payment for carriage, freight, demurrage and other payments arising in the course of carriage, in relation to carrying out international carriage (with the exception of carriage of passengers in international carriage, payment for carriage, freight, despatch, demurrage, arising in relation to carrying out international carriage of freight by sea transport) and also payments for rendering forwarding services (with the exception of services in the sphere of forwarding activities when organizing international carriage of freight by sea transport).

For the purposes of this Chapter, international carriage is recognized carriage in the course of which at least one of the transportation points (departure or destination) is located in a foreign state;

1.2. incomes from debt obligations of any kind irrespective of the way of formalization thereof, including:

1.2.1. incomes on credits, loans;

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

1.2.3. incomes for usage of temporarily available means on accounts in the banks of the Republic of Belarus.

Incomes from debt obligations upon discharge of an obligation that arose in relation to opening of a letter of credit include interest (commission) for deferment of reimbursement charged by a financing bank;

1.3. royalty. Incomes in the form of royalty include remuneration for usage of property rights or for granting a right to use property rights to objects of copyright law, including works of literature (which for the purposes of taxation include also computer programs), art, science, software, other works relating to an object of copyright law, to objects of related rights, including performance of a phonogram, broadcasts of organizations of aerial - and cablecasting, and also payment for a license, patent, trademark, service mark, commercial name, technical drawing, utility model, scheme, industrial design or process or for information concerning industrial, commercial or scientific practices (including know-how), for usage of property in the territory of the Republic of Belarus or for granting a right to use such property, except for payments on lease of international (continental and intercontinental) telecommunications channels and networks;

1.4. dividends and incomes equated to them, recognized as such in accordance with clause 1 of Article 35 of this Code;

1.5. incomes from realization of goods in the territory of the Republic of Belarus on the basis of contracts of agency, commission and other similar civil-law contracts;

1.6. incomes from organization and holding in the territory of the Republic of Belarus of cultural events and shows and/or from participation therein, and also from operations in the territory of the Republic of Belarus of amusements and wild beast shows;

1.7. incomes in the form of penalty fees (fines, penalty interest) and other types of sanctions for breaching contract conditions;

1.8. incomes from performance of research and development, technological and experimental works, from development of design and technology documentation for prototype models (pilot runs) of goods, from fabrication and testing of prototype models (pilot runs) of goods, pre-design and design works (development of feasibility studies, design developments and other similar works);

1.9. incomes from granting guarantees and/or suretiships;

1.10. incomes from granting disk space and/or a communications channel for placing information on a server and/or services for its technical maintenance;

1.11. incomes from alienation of:

1.11.1. immovable property located in the territory of the Republic of Belarus;

1.11.2. an enterprise (a part thereof) as property complex located in the territory of the Republic of Belarus, the owner of which is a foreign organization;

1.11.3. securities in the territory of the Republic of Belarus (except for shares) and/or from redemption thereof;

1.11.4. stakes in the statutory funds (stocks, shares) of organizations located in the territory of the Republic of Belarus or parts thereof;

1.12. incomes from rendering services:

1.12.1. consultation, accounting, audit, marketing, legal, accounting, engineering services (except for incomes from services rendered by Belarusian organizations and Belarusian individual entrepreneurs for the purposes of confirmation of conformity of a production process, production, other objects to requirements of technical normative legal acts of the Republic of Belarus in the sphere of technical regulation and standardization and/or requirements established by the legislation of a foreign state and international standards). engineering services include engineering and consulting services on preparation of a process of production and realization of goods (works, services), preparation of construction and exploitation of industrial, infrastructure, agricultural and other objects;

1.12.2. on trust management of immovable property located in the territory of the Republic of Belarus;

1.12.3. of express delivery;

1.12.4. intermediary services. Intermediary services are recognized to be services on facilitating to establishment of contacts and conclusion of transactions (contracts) between producers (contractors, executors) and consumers (ordering customers), sellers (suppliers) and buyers, services on searching and/or submitting 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; Provisions of this sub-clause does not cover income received by foreign organizations for rendering services on booking carriage of passengers in international carriage, accommodation places, agent's services on booking, formalization and/or realization of carriage of passengers in international carriage, selection of the itinerary of carriage of passengers in international carriage;

1.12.5. of management;

1.12.6. on finding and recruitment of personnel, employment of personnel, providing personnel for carrying out activity in the Republic of Belarus;

1.12.7. in the sphere of education;

1.12.8. on safekeeping of property;

1.12.9. on insurance (co-insurance, re-insurance), with the exception of incomes (remunerations, fees) being paid to foreign organizations for settlement of insured accidents on insurance certificates certifying a “Green Card” insurance contract, and also incomes from rendering services in the sphere of insurance in relation to carrying out international carriage of cargo by sea transport;

1.12.10. on advertising (with the exception of incomes being paid to foreign organizations, relating to participation of Belarusian organizations and Belarusian individual entrepreneurs in exhibitions and fairs in foreign states irrespective of the fact whether or not the payment of income is made by a participant of exhibitions and fairs itself or through another organization or individual entrepreneur);

1.12.11. on installation, adjustment, examination, servicing, measurement, testing of lines, mechanisms, equipment, instrument, devices, structures, intangible assets being in the territory of the Republic of Belarus (with the exception of incomes received from training, holding consultations and/or rendering services on installation, adjustment, examination, servicing, measurement, testing of lines, mechanisms, equipment, instrument, devices, structures, which are an inalienable conditions of a foreign trade contract for acquisition thereof into ownership (in temporary use));

1.12.12. on escorting and protecting of cargo (with the exception of incomes from services on mandatory escorting and protecting of cargo, provided by the legislation of the state in the territory of which the cargo is being moved, rendered by organizations of the foreign state by the legislation of which requirements on such mandatory escorting and protecting are established);

1.13. incomes from immovable property located in the territory of the Republic of Belarus, transferred into trust management;

1.14. incomes from activities on processing of data and placement of information (services on processing of data; web hosting (including complex services on placement and management of web sites); complex services on processing of data provided by the customer, and producing specialized reports on the basis of those data; services on entering and processing data, including services on management of databases; services on storage of data; provision of access to databases; providing place and time for advertising in the global computer network Internet), and also incomes from activity of web portals on function web sites using searching systems for the purposes of creation and maintaining comprehensive databases of internet addresses and keeping in the format ensuring easy search of information. Provisions of this sub-clause does not cover incomes received from sources in the Republic of Belarus by foreign organizations from rendering repository services, services of the automated system of interbank settlements, international payment systems, international telecommunications systems of transmitting information on payments and/or of making payments.

2. If a contract concluded with a foreign organization contains provisions stipulating payment to this or another foreign organization of compensation for carrying out activities, granting rights, incomes from carrying out or for granting of which are recognized to be object of taxation with the tax on incomes, sums of such compensation (with exception of the payment for carriage, insurance, if they are included in the value of a foreign trade contract of sale of goods) are subject to taxation with the tax on incomes under the procedure and at the rates, established by this chapter for respective activities.

3. Incomes from sources in the Republic of Belarus are recognized incomes (including advanced payments) being posted (paid) to a foreign organization:

3.1. by a legal person of the Republic of Belarus (with the exception of incomes posted (paid out) by affiliates, representative offices and other separate subdivisions of a legal person of the Republic of Belarus, located outside the Republic of Belarus and registered as payers of foreign states);

3.2. by an individual entrepreneur of the Republic of Belarus;

3.3. by a natural person – when paying to a foreign organization not carrying out activity in the Republic of Belarus through a permanent representation incomes specified in sub-clauses 1.2.1, 1.11 and 1.13 of clause 1 of this Article;

3.4. by a foreign organization that opened in the Republic of Belarus its representative office and/or carrying out activity in the Republic of Belarus through a permanent representation – if arising of these incomes relates to this representative office and/or permanent representation;

3.5. by a foreign organization not mentioned in sub-clause 3.4 of this clause from:

3.5.1. alienation of immovable property located in the territory of the Republic of Belarus of a part thereof;

3.5.2. alienation of stakes in the statutory funds (stocks, shares) of organizations located in the territory of the Republic of Belarus or a part thereof;

3.5.3. putting of property into lease (transfer into financial lease (leasing)), hiring, other use of property located in the territory of the Republic of Belarus;

3.5.4. immovable property located in the territory of the Republic of Belarus, transferred into trust management;

3.5.5. rendering services on trust management of immovable property located in the territory of the Republic of Belarus;

3.5.6. using or rendering a right to use in the territory of the Republic of Belarus property rights to works of literature, art, science, computer programs, other works belonging to an object of copyright law and/or of a related right;

3.5.7. operations with securities being realized (redeemed) in the territory of the Republic of Belarus;

1.6. organization and holding in the territory of the Republic of Belarus of cultural events and shows and/or from participation therein, and also operation in the territory of the Republic of Belarus of amusements and wild beast shows.

4. The following incomes of foreign organizations not carrying out activity in the Republic of Belarus through a permanent representation and being true holders of such incomes are exempted from the tax on incomes:

4.1. received from sources in the Republic of Belarus from their granting credits, loans to the Republic of Belarus or to the Government of the Republic of Belarus, and also to residents of the Republic of Belarus against state guarantees in accordance with the procedure established by the President of the Republic of Belarus;

4.2. on bonds of the Open Joint-Stock Company “Bank of Development of the Republic of Belarus” and state long-term bonds of the Republic of Belarus, being state debt obligations that form state external debt and place outside the Republic of Belarus, placed outside the territory of the Republic of Belarus; received for rendering services relating to issue, placement, circulation and redemption of th0se bonds, and also with negotiation of rights to them;

4.1. received from sources in the Republic of Belarus from granting by foreign organizations specified in part one of this clause to Belarusian organizations in the form of credits, loans of monetary means received by those foreign organizations from placement of securities issued by them for the purposes of directing such means to Belarusian organizations;

4.4. received from sources in the Republic of Belarus from providing by foreign organizations specified in indent one of this clause of other credits, loans than those specified in sub-clauses 4.1. – 4.3 of this clause. Provisions of this sub-clause are applied provided that permanent locations of such foreign organizations on the day of posting income (payment) by the tax agent to the foreign organization, being determined in accordance with clause 21 of Article 148 of this Code, is confirmed by the data of the Bankers Almanac (published by Reed Business Information), and according to such data those financial organizations are not located in the list of offshore zones the list of which is approved by the President of the Republic of Belarus. Provisions of this sub-clause are applied to incomes (payments) the day of posting which according to clause 21 of Article 148 of this Code falls on tax periods from January 1, 2016 till January 1, 2017.

When a credit contract (agreement) or a loan contract contains provisions stipulating the payment to foreign banks granting credits and loans, mentioned in part one of this sub-clause, of compensations (reimbursement of expenses) commissions for carrying out activities in relation to granting of these credits and loans, the sum of such payments is not levied with the tax on incomes.

5. Foreign organizations not carrying out activity in the Republic of Belarus through a permanent representation, being residents of states with which the Republic of Belarus has not concluded treaties on elimination of double taxation, are exempted from the tax on incomes when receiving from sources in the Republic of Belarus the following kinds of incomes:

from putting of sea vessels into lease to merchant shipping entities of the Republic of Belarus for carrying out by the latter activity on operation of such sea vessels;

from rendering to merchant shipping entities of the Republic of Belarus services on training of workers in the sphere of operation of sea vessels.

Article 147. Tax base for the tax on incomes

1. Tax base for the tax in incomes is determined:

1.1. as a total sum of incomes minus costs confirmed by documents:

1.1.1. on incomes for using property or granting a right to use the property mentioned in sub-clause 1.3 of clause 1 of Article 146 of this Code – in the sum of reimbursement of the value of such property falling on the posted sum of income, costs on its insurance, payment to the bank, the government of a foreign state or Permanent Committee of the Union State of interest for a credit received for acquisition of the property. If conditions of the contract on use of property, and also customs documents with invoices, consignment notes or other documents do not allow to single out in the sum of income due to a foreign organization the sum of reimbursement of the value of an object of used property, the tax base for the tax on incomes is determined based on a posted sum of income minus costs confirmed by documents on payment to the bank, the government of a foreign state or Permanent Committee of the Union State of interest for a credit received for acquisition of the property and also on insurance of the property. When documents confirming the sum of costs of a foreign organization on reimbursement of the value of an object of lease (hiring, leasing) of property are presented to the tax body on each fact of posting a payment, the tax is calculated in accordance with provisions of this sub-clause.

The sum of reimbursement of the value of the property falling on the posted sum of the tax from granting the right to use immovable property recognized as such in accordance with Article 185 of this code shall be determined:

as sum of reimbursement of the value of leasing object in the part included in a respective current leasing payment without the value added tax – when fulfilling a contract of financial lease (leasing, sub-leasing);

as part of the lease payment falling on the part of property granted to the tax agent in sub-lease and paid in the time period for which the tax on incomes is to be computed in relation to incomes from granting the right to use such property – when fulfilling a contract of sub-lease;

as sum of depreciation deductions on such property calculated in accordance with legislation of the Republic of Belarus (calculation of depreciation deductions shall be given in a statement of an optional form which is submitted alongside the tax declaration (calculation) for the tax on incomes of a foreign organization) – when fulfilling other contracts on granting the right to use such property;

1.1.2. on incomes specified in sub-clause 1.5 of clause 1 of Article 146 of this Code – in the sum of acquisition price of the good (costs for its production) taken into account in goods accompanying documents. In that instance for the purposes of computing the tax on incomes, the acquisition price of the good (costs on production thereof) shall be recalculated in Belarusian rubles at the official rate established by the National Bank of the Republic of Belarus on the date of arising of obligation on payment of the tax on incomes. Costs are accepted only in the part falling on goods actually realized, including from the territory of the Republic of Belarus outside its limits. If conditions of contracts of agency, commission and other similar civil-law contracts, and also customs documents with invoices, consignment notes or other documents do not allow to determine the acquisition price of a good being realized (costs for its production) in relation to non-indication of the amount of remuneration of a foreign organization, the tax base for the tax on incomes is determined based on the posted sum of income minus costs confirmed by documents. When documents confirming the acquisition price of a good being realized (costs for its production) are presented to the tax body, the tax is calculated in accordance with provisions of this sub-clause;

1.1.3. on incomes specified in sub-clause 1.6 of clause 1 of Article 146 of this Code – in the sum of costs on feeding animals during the period of staying of wild beast shows and circuses in the territory of the Republic of Belarus, and also on payment of veterinary services, transportation and rental to Belarusian organizations and/or Belarusian individual entrepreneurs;

1.1.4. on incomes specified in sub-clause 1.11 of clause 1 of Article 146 of this Code:

upon alienation of immovable property located in the territory of the Republic of Belarus – in the sum of costs incurred on acquisition, construction of the immovable property minus depreciation deductions made in accordance with the legislation of the Republic of Belarus (calculation of depreciation is given in a statement of an optional form which is submitted alongside the tax declaration (calculation) for the tax on incomes of a foreign organization);

upon alienation of an enterprise as property complex located in the territory of the Republic of Belarus , the owner of which is a foreign organization, of a part thereof – in the sum of costs on acquisition of such an enterprise or a contribution to its statutory fund falling on a part being alienated;

upon alienation, redemption of securities (except for shares) in the territory of the Republic of Belarus – in the sum of costs on acquisition of securities and alienation thereof. In that instance costs on acquisition of securities (except for shares) and alienation thereof incurred in foreign currency shall be recalculated in Belarusian rubles at the official rate of the Belarusian ruble to the relevant foreign currency established by the National Bank of the Republic of Belarus on the date of arising the obligation on payment of the tax on incomes;

upon alienation by the participant of an organization located in the territory of the Republic of Belarus of a stake in the statutory fund (stock, shares) of the organization – in the sum of costs on acquisition of the stake (stock, shares) or in the sum of contribution made (paid) to the statutory fund of such organization; upon alienation by the participant of an organization located in the territory of the Republic of Belarus of a part of the stake in the statutory fund (a part of the stock) – in the sum of costs computed as a product of the specific weight of the part of the stake in the statutory fund (part of the stock) being alienated in the stake in the statutory fund (part of the stock) of that participant in the statutory fund of the organization and the sum of costs made by the participant of the organizations for acquiring the stake (stock) or contribution made in the statutory fund. In that instance the sum of income of a foreign organization and the sum of its contribution or expenses on acquiring of a stake in the statutory fund (stocks, shares) of the organization are subject to be recalculated into US dollars at the official rate set by the National Bank of the Republic of Belarus, respectively, on the date of receipt of incomes and on the date of actual making the contribution, or of actual making (paying) expenses on acquiring of the stake in the statutory fund (stocks, shares) of organizations. Income determined in this manner in US dollars is to be recalculated in Belarusian rubles at the official rate of Belarusian ruble to US dollar established by the National Bank of the Republic of Belarus on the date of computing by the tax agent of the income of the foreign organization, established by Article 148 of this Code;

1.1.5. on incomes specified in sub-clause 1.12.9 of clause of Article 146 of this Code – in the sum of:

commission (broker’s) remuneration for services of a Belarusian insurer or co-insurer;

insurance indemnity or insurance coverage, paid under the contract of co-insurance upon occurrence of an insured accident;

reimbursement of a share of losses paid under a contract of re-insurance upon occurrence of an insured accident;

being paid by an insurance organization of the Republic of Belarus to the foreign organization carrying out settlement of losses on an insured accident, made outside the Republic of Belarus, as a reimbursement of costs incurred by the foreign organization, relating to formalization of documents on the insured accident and determination of the amount of harm;

1.1.6. on incomes specified in sub-clause 1.13 of clause 1 of Article 146 of this Code – in the sum of remuneration to the trustee, if payment of such a remuneration is stipulated by the contract of trust management;

1.2. on incomes specified in sub-clause 1.4 of clause 1 of Article 146 of this Code – under the procedure established by clause 4 of Article 141 of this Code;

1.3. as a total sum of incomes – on other incomes specified in clause 1 of Article 146 of this Code.

2. Costs of a foreign organization are taken into account when calculating the tax on incomes, if by the date of posting (paying) of incomes the tax agent which retains the tax on incomes from such incomes in accordance with this Chapter has at his disposal the data about such costs presented by this foreign organization, confirmed by documents.

3. Foreign organizations not carrying out activity in the Republic of Belarus through a permanent representation are entitled to decrease the tax base by a sum of incomes (profit) received from operations with state securities, securities of the National Bank of the Republic of Belarus, bonds of local executive and administrative bodies and determined in accordance with clause 2 of Article 138 of this Code.

Article 148. Determination of the date of arising an obligation on payment of the tax on incomes

1. For the purposes of this Chapter, the date of obligation on payment of the tax on incomes is determined as the day, falling on the tax period, of posting of income (payment) by a foreign organization.

2. The day of posting of income (payment) to a foreign organization is recognized, unless otherwise provided by this Article, the most earlier from the following dates:

2.1. the date of reflection in the accounting (but not later than the date when such reflection must be performed in accordance with the legislation) of the fact of executing by the foreign organization of works, rendering of services, acquisition from the foreign organization of immovable property, acquisition of an enterprise (a part thereof) as property complex, belonging to the foreign organization, acquisition of a stake (stock, shares), or a part thereof, belonging to the foreign organization as a participant of the organization;

2.2. the date of reflection in the accounting (but not later than the date when such reflection must be performed in accordance with the legislation) of obligations toward the foreign organization on payment of incomes in the form of dividends, incomes from debt obligations, with the exception of incomes from debt obligations on granted credits, loans, royalty, operations on redemption of securities (except for shares), realization of goods on the basis of contracts of agency, commission and other similar civil-law contracts;

2.3. the date of reflection in the accounting (but not later than the date when such reflection must be performed in accordance with the legislation) of the fact of payment by a tax agent of income to the foreign organization (the fact of carrying out a payment, transfer of property, property rights, performance of a setoff of similar counterclaims, depending on the form of settlements established by the parties of the contract).

21. The day of posting income (payment) from debt obligations on credits, loans to a foreign organization is recognized, at the choice of the tax agent, one of the following dates:

21.1. the date of reflection in the accounting (but not later than the date when such reflection must be performed in accordance with the legislation) of obligations toward the foreign organization on payment of incomes from debt obligations on credits, loans;

21.2. the date of reflection in the accounting (but not later than the date when such reflection must be performed in accordance with the legislation) of the fact of payment by a tax agent of income from debt obligations on credits, loans to the foreign organization (the fact of carrying out a payment, transfer of property, property rights, performance of an setoff of similar counterclaims, depending on the form of settlements established by the parties of the contract).

Tax agent that have chosen as the day of posting income (payment) from debt obligations on credits, loans to the foreign organization the date of reflection in the accounting of the fact of payment of the income, shall make a respective notice in the tax declaration (calculation) for the tax on incomes of a foreign organization not carrying out activity in the Republic of Belarus through a permanent representation which reflects this kind of income of the foreign organization. Decision taken by the tax agent about the choice for posting the income mentioned in this clause to a foreign organization is not subject to be changed in the course of the current calendar year.

22. The day of posting income (payment) to foreign organization by tax agents that use the right not to conduct the accounting, granted by the legislation, is recognized the date of payment of the income to the foreign organization (of carrying out a payment, transfer of property, property rights, performance of an setoff of similar counterclaims, depending on the form of settlements established by the parties of the contract).

3. The day of posting of income (payment) by a foreign organization that has no representative office in the Republic of Belarus to another foreign organization is recognized the earliest from the following dates:

3.1. the date of performance of an economic operation in the territory of the Republic of Belarus with which receipt of an income recognized as an object of taxation with the tax on incomes is connected;

3.2. the date of payment of income to the foreign organization (the fact of carrying out a payment, transfer of property, property rights, performance of an setoff of similar counterclaims, depending on the form of settlements established by the parties of the contract).

4. In the case of payment, debiting from the accounts of legal persons or individual entrepreneurs of monetary means due to a foreign organization in the form of incomes recognized an object of taxation with the tax on incomes on the basis of a court resolution, the date of posting of income (payment) to a foreign organization is recognized the date of reflection in the accounting of actual execution of the court decision, unless the income (payment) was reflected in the accounting under the established procedure.

5. In the case of payment of incomes from granting a guarantee (under a bank guarantee) the date of posting income (payment) is the date when a bank – resident has received a notice about the necessity to remit (notification about forthcoming debiting from the account) of remuneration for a granted guarantee to a bank – non-resident or a foreign non-bank credit and financial organization, unless the date of remittance (debiting from the account) of monetary means is an earlier date.

Article 149. Rates of tax on profit

1. The rates of the tax on incomes are established in the following amounts:

on incomes specified in sub-clause 1.1 of clause 1 of Article 146 of this Code – 6 percent;

on incomes specified in sub-clause 1.2 of clause 1 of Article 146 of this Code – 10 percent;

on incomes specified in sub-clauses 1.4 and 1.11.4 of clause 1 of Article 146 of this Code – 12 percent;

on other incomes specified in clause 1 of Article 146 of this Code – 15 percent.

2. The rate of the tax on incomes received by foreign legal persons not carrying out the activity in the territory of the Republic of Belarus through a permanent representation, on dividends, incomes from debt obligations, royalty, if the source of payment of such income is the resident of the Park of High Technologies, is 5 percent, unless a more favourable regime stipulated by treaties of the Republic of Belarus.

Article 150. Tax period for the tax on incomes. Procedure of calculation, time limits for submission of tax declarations (calculations) and payment of the tax on incomes

1. The tax period for the tax on incomes is recognized a calendar month on which falls the date of occurrence of obligations on payment of the tax on incomes.

2. The sum of the tax on incomes is calculated as a product of the tax base and the tax rate.

3. The tax on incomes is calculated, retained and remitted to the budget by legal persons and individual entrepreneurs, which posts and/or pay income to a foreign organization not carrying out activity in the Republic of Belarus through a permanent representation. Said legal persons and individual entrepreneurs are recognized tax agents and have rights and bear duties, established by Article 23 of this Code.

4. The tax agent does not retain the tax on incomes and does not present the tax declaration (calculation) for the tax on incomes of a foreign organization not carrying out activity in the Republic of Belarus through a permanent representation if it received, prior to the moment of occurrence of the deadline for fulfilling the obligation on retaining and remitting to the budget the tax on incomes, the confirmation about the fact that the foreign organization carries out activity in territory of the Republic of Belarus through a permanent representation, issued by the tax body of the Republic of Belarus in the order established by part two and three of this clause.

The tax body at the place of putting on record of the foreign organization which opened a representative office in the territory of the Republic of Belarus confirms that its carrying out the activity in the territory of the Republic of Belarus through a permanent representation in the case of receiving from such an organization a notification in which indicates the accounting number of the payer and the address of location of the tax agent, type of income, and also the data about the fact that that type of income is the income of this organization from the activity in the territory of the Republic of Belarus through a permanent representation.

If the data of tax declarations (calculations) presented by the foreign organization indicated in part two of this clause in the current calendar year, and also other data which are in disposition of the tax body confirm that it carries out the activity in the territory of the Republic of Belarus through a permanent representation, the tax body shall, not later than within two working days after receipt of the notification mentioned in part two of this clause, send one copy of the confirmation on carrying out of the activity in the territory of the Republic of Belarus by the foreign organization through a permanent representation to the tax body at the place of putting on record of the tax agent and the second copy – to the tax agent. In that instance, confirmation indicates the accounting number of the payer and the address of location of the tax agent and also of the foreign organization carrying out activity in the territory of the Republic of Belarus through a permanent representation. The confirmation is effective till the end of the calendar year in which it is issued, unless the tax body recalls it on the ground that the foreign organization has terminated the activity in the territory of the Republic of Belarus through a permanent representation. Tax bodies shall inform the tax agent about the recall of the confirmation not later than on the working day following the day of such recall.

If the data of tax declarations (calculations) submitted by a foreign organization mentioned in part two of this clause in the current calendar year, and also other data which are in dispositions of the tax body, do not confirm that it carries out the activity in the territory of the Republic of Belarus through a permanent representation, the tax body shall, not later than within two working days after receipt of the notification mentioned in part two of this clause, inform the foreign organization about it.

Confirmation and notification mentioned in part one and two of this clause may be sent according to established formats in the form of electronic document. Formats of such confirmation and notification and also the order of their sending are established by the Ministry on Taxes and Dues of the Republic of Belarus.

5. Unless otherwise established by this Article, the tax declaration (calculation) on the tax on incomes is presented by a legal person of the Republic of Belarus, foreign organization or Belarusian individual entrepreneur, which post and/or pay income to a foreign organization not carrying out activity in the Republic of Belarus through a permanent representation to tax bodies at the place of putting on record of such legal person, foreign organization or individual entrepreneur not later than on the 20th day of the month following the expired tax period.

A foreign organization (with the exception of a foreign organization specified in sub-clause 3.4 of clause 3 of Article 146 of this Code) which posts and/or pays income (incomes) specified in sub-clauses 1.11.1, 1.11.2 and 1.11.4 of clause 1 of Article 146 of this Code to a foreign organization not carrying out activity in the Republic of Belarus through a permanent representation shall submit the tax declaration (calculation) for the tax on incomes to the tax body accordingly at the place of location of the immovable property being alienated, at the place of putting on record of an organization located in the territory of the Republic of Belarus the stake in the statutory fund (stocks, shares) of which is being alienated not later than on the 20th day of the month following the expired tax period.

The tax on incomes shall be remitted to the budget not later than on 22nd day of the month following the expired tax period, unless another time limit is provided by this Article.

6. [Excluded]

7. Natural persons calculate and retain the tax on incomes upon payment to foreign organizations not carrying out activity in the Republic of Belarus through a permanent representation of incomes specified in sub-clauses 1.2.1, 1.11 and 1.13 of clause 1 of Article 146 of this Code.

Presentation of the tax declaration (calculation) for the tax on incomes to the tax bodies and remittance of the tax on incomes to the budget is performed by natural persons with the time limits established by clause 5 of this Article.

The tax on the income specified in sub-clause 1.2.1 of clause 1 of Article 146 of this Code is computed and retained by the natural person who at the moment of payment of the income is recognized the resident of the Republic of Belarus in accordance with Article 17 of this Code and provisions of treaties of the Republic of Belarus.

For the purposes of this Article the payment of incomes is understood any form of settlements or any method of termination of an obligation on payment of the income.

8. A foreign organization not carrying out activity in the Republic of Belarus through a permanent representation, which receives incomes from organizing and holding in the territory of the Republic of Belarus cultural events and shows, amusement parks and wild beast shows (with the exception of instances of carrying out the said activity under contract with legal persons and individual entrepreneurs registered in the Republic of Belarus, recognized as tax agents, which stipulate the receipt of revenue to the accounts of such agents) pays the tax on incomes itself. Submission of the tax declaration (calculation) for the tax on incomes of foreign organization not carrying out activity in the Republic of Belarus through a permanent representation and payment of the tax on incomes shall be effectuated by such a foreign organization to tax bodies at the place of holding the said events when holding:

cultural events and shows – not later than on the first working day following the day of holding of each of cultural events and shows;

amusement parks and wild beast shows – not later than on the working day following the day of holding of the last of such events.

9. Foreign organizations not carrying out activity in the Republic of Belarus through a permanent representation, which combined their monetary means for subsequent granting a credit to a Belarusian organization by a bank of the Republic of Belarus (bank-agent) – participant of a syndicated credit contract, pay the tax on incomes received from sources in the Republic of Belarus through the tax agent (bank-agent).

Participants of a syndicated credit contract not specified in part one of this clause fulfil the tax obligations themselves, after distribution of the income among all its participants.

Article 151. Special provisions. Elimination of double taxation

1. For the purposes of application of treaties of the Republic of Belarus on issues of taxation, the foreign organization shall present, in the form and under the procedure established by the Ministry on Taxes and Dues of the Republic of Belarus, a confirmation of the fact that it has permanent location in that foreign state with which there is a treaty of the Republic of Belarus on issues of taxation (later on in this Article – confirmation), which must be verified by a competent body of the respective foreign state. If the condition (one of the conditions) for application of privilege on the tax on incomes in a treaty of the Republic of Belarus on issues of taxation and/or legislation of the Republic of Belarus is receipt of the income for a source in the Republic of Belarus by its actual owner (hereinafter - privilege on income of the actual owner), documents specified in clause 3 of this Article may be requested from the foreign organization in addition to the confirmation.

The confirmation may be presented to the tax body both prior to the payment of the tax on incomes and after this payment. The confirmation may be presented n the form of electronic document. In this case it is sent to the tax body as enclosure to the tax declaration (calculation) if the tax agent submits the tax declaration (calculation) of the tax on incomes in electronic form or to the letter of the agent compiled in the form of electronic document.

The confirmation is submitted to the tax body annually and is effective in the course of the calendar year in which it is issued, unless otherwise established by this Article.

If a competent body of the foreign state indicated the period of validity of the confirmation, then the confirmation is applied in the course of the period indicated therein.

Confirmation issued without indication of its validity period and verified by a competent body of the state of permanent location of the foreign organization in the fourth quarter of the current year may be applied for the subsequent calendar year upon availability in the tax body of a document being confirmation for the current calendar year of the permanent location of the foreign organization in a state with which there is a treaty of the Republic of Belarus on issues of taxation.

In the event of absence in the tax body of confirmation issued for the current calendar year and upon availability of such document verified in the fourth quarter of the current calendar year, it shall be applied as confirmation for the current calendar year or for the period indicated therein.

Confirmation may be applied in the course of subsequent two calendar years upon posting (paying) the income in favour of the foreign organization unless such an organization has changed its location in the foreign state within the indicated period, which is indicated in the contract concluded with the tax agent which stipulates the payment of income in relation to which the tax agent has applied in the first calendar year and in the established order provisions of a treaty of the Republic of Belarus on issues of taxation. For confirmation of the soundness of application of the confirmation within two subsequent calendar years, the tax body is entitled to request from the tax agent the contract (copy thereof) and also documents (copies thereof) confirming the payment of income to the foreign organization according to details indicated in the contract.

For the purposes of this Article, the current calendar year is a year in which the confirmation has been issued.

When a confirmation has been presented to the tax body prior to the date of posting (making) of income (payment) in relation to which a treaty of the Republic of Belarus on issues of taxation provides other provisions than those established by this Chapter in relation to such income (payment), the tax agent does not retain and remit to the budget the tax on incomes or retains and remits to the budget the tax on incomes at decreased rates established by such a treaty of the Republic of Belarus.

Presentation of confirmation to the tax body at the place of putting on record of the tax agent constitutes a ground for non-retention of the tax on incomes or retention of the tax on incomes at decreased rates having regard to provisions of the respective treaty of the Republic of Belarus, unless otherwise established by clause 4 of this Article.

When a confirmation has not been presented to the tax body, the tax on incomes is retained and remitted to the budget under the established procedure.

Return (setoff) of the tax on incomes retained (paid) earlier, in relation to which treaties of the Republic of Belarus on issues of taxation provide other provisions than those established by this Chapter, is carried out by the tax body at the place of putting on record of the tax agent in Belarusian ruble, after submission by the tax agent of an application for return (setoff) of the tax, confirmation, and also if it is determined in a written request of the tax body, a copy of the contract (or another document) in accordance with which the income was paid to a foreign organization, unless otherwise provided by this Article.

When posting (making) incomes (payments) to foreign organizations, the permanent location of which is confirmed by the data of the international reference guide “The Bankers Almanac” (published by Reed Business Information), the international catalogue “BIC Directory” (published by S.W.I.F.T., Customer Operations Services, 1 Av., Adele, 1310 La Hulpe, Belgium) or the international reference guide "Airline Coding Directory" (published by International Air Transport Association, Montreal – Geneva), and also to central (national) banks of foreign states, bodies of state administration and/or local bodies of power of these states, a confirmation is not presented.

2. A foreign organization is recognized to have the status of the actual owner of the income if it carries out entrepreneurial activity related to receipt for sources in the Republic of Belarus of income in relation to which it seeks to receive a privilege on income of the actual owner, is a direct beneficiary of such income and is entitled to independently use and/or dispose of that income at its own discretion. When determining the status of the foreign organization as actual owner of the income, there shall be taken in account functions being performed by it for purposes of receiving such income, powers and risks being accepted.

For determining the status of actual owner additional grounds may be taken in account, including upon conducting a mutually agreeable procedure by the Ministry on Taxes and Dues of the Republic of Belarus with a tax body of the foreign state within the framework of the treaty of the Republic of Belarus on issues of taxation.

A foreign organization shall not be considered as actual owner of the income when for purposes of its receipt, it only carries out intermediary functions, does not accept risks and/or its right to use and/or dispose of the income is restricted by contractual or other obligations on payment (transfer) of the income (in full volume or not less than 60 percent of such income) within the established time limits (but not later than within twelve months after the receipt of paid-out income) in the favour of a tax resident of the foreign state that upon direct receipt of such income would not have the right to the privilege on income of the actual owner according to a treaty of the Republic of Belarus on issued of taxation and/or legislation of the Republic of Belarus or would have the right to application of less favourable provisions of the treaty.

3. When the tax agent that posts (pays out) income to the foreign organization becomes aware on the basis of available documents of doubts that in accordance with provisions provided by clause 2 of this Article, the foreign organization is actual owner of the income for purposes of receiving privilege on income of the actual owner (hereinafter - substantiated doubt), it is entitled to request from such foreign organization documents (information) for confirmation of its status.

As documents (information) confirming the status of actual owner of the income from the foreign organization may be requested:

documents (information) confirming that is has unrestricted right to use and/or dispose of the income in relation to which it seeks to receive a privilege on income of the actual owner, absence of obligation before third persons (the place of tax residency of which is a state with which there is no treaty of the Republic of Belarus on issues of taxation or a state provisions of the treaty of the Republic of Belarus on issues of taxation with which contain less favourable conditions) restricting its rights to use and/or dispose of such income for purposes of carrying out the entrepreneurial activity;

documents (information) confirming that the foreign organization carries out entrepreneurial and/or other activity in the state the tax resident of which it is.

Along with documents (information) specified in part two of this clause, the foreign organization is entitled to present confirmation of a tax body of the foreign state that it is actual owner of the income, and also other documents (information) for substantiation of its right to the privilege in income of the actual owner.

4. If, prior to the day established by this Code for submission of the tax declaration (calculation) for the tax on profits for a tax period on which, in relation to such kind of income of the financial organization as dividends, falls the date of arising of an obligation on payment of the tax on profits in relation to which the foreign organization seeks to have the privilege on income of the actual owner, the foreign organization from which the documents (information) confirming its status of actual owner of the income in relation to arising substantiated doubts:

does not submit documents (information) confirming the status of actual owner of the income, requested not later than 90 days prior to the date of submission of the mentioned declaration (calculation), the tax agent shall not apply the privilege on income of actual owner (corresponding remark about which is to be made in the tax declaration (calculation)) and shall submit to the tax body along with such tax declaration (calculation) documents (information) that confirm its substantiated doubt and a copy of the request;

does not submit documents (information) confirming the status of actual owner of the income (if the request was sent later than the time limit specified in indent two of part one of this clause), the tax agent shall apply the privilege on income of actual owner (corresponding remark about which is to be made in the tax declaration (calculation) and shall submit to the tax body along with such tax declaration (calculation) documents (information) that confirm its substantiated doubt and a copy of the request;

submits documents (information) confirming the status of actual owner of the income which confirm that the rights to the privilege on income of actual owner:

belong to another foreign organization, the privilege on income of actual owner may be applied to that other financial organization subject to submission to the tax body by the tax agent of confirmation in relation to that foreign organization (if privilege on income of actual owner is determined in a treaty of the Republic of Belarus on issues of taxation with the foreign state tax resident of which that other foreign organization is);

are not available for it and the data about another foreign organization being actual owner of the income are not submitted, the tax agent shall remit to the budget the tax on incomes without applying the privilege on income of actual owner (corresponding remark about which is to be made in the tax declaration (calculation)) and shall submit to the tax body along with such tax declaration (calculation) documents (information) that confirm its substantiated doubt and documents (information) confirming the status of actual owner of the income on the basis of which the tax agent made the conclusion about the unavailability of the right to the privilege on income of actual owner for the foreign organization.

Upon submission by the foreign organization of documents (information) confirming its status of actual owner of the income after the day of submission of the tax declaration (calculation) specified in indent one of part one of this clause, the return (setoff) of the tax in incomes is carried out by the tax body at the place of putting on record of the tax agent in Belarusian rubles after the tax agent submits an application for return (setoff) of the tax along with documents (information) confirming the status of actual owner of the income submitted by the foreign organization and with the confirmation (unless it was submitted earlier). The tax agent shall lodge mentioned documents if the documents submitted on the basis of the request that the foreign organization has actual rights to the privilege on income of the actual owner).

5. If the foreign organization does not agree with actions of the tax agent on retaining the tax on income without applying the privilege on income of the actual owner, it is entitled to apply to the tax body at place of putting on record by submitting an application for return (setoff) of the tax on income, copies of documents (information) confirming the status of actual owner of the income, and the confirmation and a copy of the contract (or another document) in accordance with which the income (payment) was posted (paid out) to the foreign organization (unless they were submitted earlier).

If submitted documents (information) confirm the status of actual owner of the income the tax body shall:

within three working days from the day of sending a respond to the foreign organization, notify the tax agent thereabout and also about the need to submit a tax declaration (calculation) for the tax on incomes with additions and changes within five working days from the day of sending the notification;

effectuate the return (setoff) of the tax on incomes accordance with the standard procedure.

For confirmation of circumstances specified in documents (information) confirm the status of actual owner of the income, submitted by the foreign organization, the tax body is entitled to send a request to the tax or another competent body of the foreign state.

CHAPTER 16

PERSONAL INCOME TAX

Article 152. Payers of personal income tax

Payers of personal income tax (later on in this Chapter – payers) are recognized to be natural persons.

Article 153. Object of taxation with personal income tax

1. The object of taxation with personal income tax is recognized to be incomes received by payers:

1.1. from sources in the Republic of Belarus and/or from sources outside the Republic of Belarus – for natural persons recognized to be residents of the Republic of Belarus in accordance with Article 17 of this Code (later on – tax residents of the Republic of Belarus);

1.2. from sources in the Republic of Belarus – for natural persons not recognized to be residents of the Republic of Belarus.

2. As object of taxation with personal income tax is not recognized incomes received by payers:

2.1. from operations related to property and non-property relations of natural persons being, in accordance with the legislation, in a relationship of kinship or affinity, tutor, curator and person under care, with the exception of incomes received by mentioned natural persons as a result of conclusion between them of labour contracts, contracts of sale and/or other civil law contracts connected with carrying out of entrepreneurial activity.

For the purposes of this Chapter:

persons being in a relationship of kinship include parents (step parents), children (including stepchildren), brothers and sisters, grandfather, grandmother, grandchildren, great-grandfather, great-grandmother, great-grandchildren, spouses;

persons being in a relationship of affinity include close relatives of another spouse, including a deceased one;

2.2. in the amount of payment by organizations and individual entrepreneurs for expenses on holding presentations, jubilees, banquets, conferences, cultural, representative events related to the activity carried out by them;

2.3. in the form of material maintenance in the amount of payment for services, expenses or reimbursement thereof, other outpayments provided by the legislation upon conducting sporting events and made to participants of such events conducted in the territory of the Republic of Belarus and to persons included in sport delegations of the Republic of Belarus and being sent abroad for participation in sporting events (with the exception of incomes in the form of prizes received by the payers in monetary form and/or in kind, remunerations to coaches, umpires for sport, and also to other natural persons being engaged for conducting such events under civil-law contracts);

2.4. [excluded]

2.5. in the amount of the cost of fresh bottled water acquired by organizations and individual entrepreneurs, in the amount of the cost of natural flowers received as gift, and also of acquired personal protective equipment, washing off and detoxifying means being given out under the procedure established by the legislation or in the amount of cost of such means acquired by the payer at the own costs, to be compensated under the procedure established by the legislation, sporting clothing, uniform being given out into temporary use, special harness, including one being given out collection service employees in accordance with the normative legal acts of the National bank of the Republic of Belarus;

2.6. in the amount of the refund value of tare being returned, with the exception of instances, when collection and subsequent delivery the tare are carried out in relation to carrying out entrepreneurial activity;

2.7. that caused harm, in the amount of reimbursement of this harm by other persons who are obliged to reimburse it in accordance with the legislation, unless otherwise established by this Chapter;

2.8. in the amount of payment for the cost of medical services or reimbursement of expenses on payment for such services in the case when the payer suffered an injury or other harm to the health through the fault of other persons, including as a result of offences, emergency and/or road accidents;

2.9. in the amount of payment for the cost of transporting services (with the exception of taxi) on carriage of workers of an organization or individual entrepreneur to the place of work and back, made at the expense of means of the organization or individual entrepreneur;

2.10. in the amount of excess of amounts of payment for services in the sphere of education, rendered by an education institution, of the actual sum of payment for respective services in the sphere of education in this education institution;

2.11. in the amount of the cost of mandatory medical examinations of workers, extra-ordinary medical examinations upon deterioration of the health of workers, paid at the expense of means of an organization or individual entrepreneurs, being held under the procedure established by the Ministry of Health of the Republic of Belarus upon consent of the Ministry of Labour and Social Protection of the Republic of Belarus;

2.12. in the amount of the cost of medical services being rendered by healthcare organizations or other organizations carrying out medical activity in the order established by the legislation and maintained at the expense of means of organizations or individual entrepreneurs for workers of such organizations and individual entrepreneurs;

2.13. in the amount of the cost of services on inviting natural persons to work, their living and registration, paid at the expense of means of an organization or individual entrepreneur, the duty on bearing of such expenses is imposed on the organization or individual entrepreneur in accordance with the legislation;

2.14. in the amount of the cost of instruction of the payers which master educational programs of additional education for adults persons upon their retraining, vocational training, improvement of professional skills, on-the-job training, instruction on instructing courses, related to the activity carried out the employer, paid at the expense of means of the budget, organization or individual entrepreneur, being their primary place of work (service, studying).

For the purposes of this Chapter the following is recognized as:

primary place of work – an employer which, in accordance with the legislation has the right to conclude and terminate a labour contract and which conducts the labour book of the worker, and also organizations which, in accordance with the legislation, carry out mandatory engagement in labour or labour therapy (rehabilitation) of natural persons, territorial colleges of advocates (for advocates which carry out advocatory activity in a legal consultation office) and advocates offices (for advocates being its founders (participants)), territorial notarial chambers (for notaries carrying out notarial activity in notarial offices);

primary place of service – an organization in which the payer, in accordance with the legislation, does military service, service in bodies and divisions on emergency situations, bodies of internal affairs, the Investigative Committee of the Republic of Belarus, the State Committee of Forensic Examinations of the Republic of Belarus and bodies of financial investigation of the Committee of State Control of the Republic of Belarus;

primary place of studying – an education institution, organization, implementing educational programs of postgraduate education, at which the payer receives a principal education in the form of full time learning;

2.15. in the form of outpayments made by an organization or individual entrepreneur and compensated in accordance with the legislation at the expense of means of the republic budget, intended for reimbursement of expenses on liquidation of consequences of the Chernobyl catastrophe;

2.16. in the form of excesses of the payment for housing and communal services established for the population living in dwelling houses of the state and private housing funds over the sum of such payment actually made by natural persons with account of benefits established by the legislation;

2.161. in the amount of payment made at the expense of means of local budgets for using premises provided for a period of passing alternative services and for housing and communal services;

2.162. in the amount payment (reimbursement) by the tenant (sub-tenant), lessee (sub-lessee) of the cost of housing and communal services and/or other services, if the duty for payment of such services is imposed on the tenant (sub-tenant), lessee (sub-lessee) by a corresponding contract of rent (sub-rent), lease (sub-lease) of dwelling and/or non-dwelling premises;

2.17. in the amount of the value of goods (works, services) distributed (performed, rendered) within the frameworks of performing advertising and advertisement games, if according to the conditions of their performance, the date about recipients of such goods (works, services) are not available;

2.18. in the amount of sums received against the pledge of property (including movable property intended for personal, family or household consumption) in organizations, including pawn shops, and not received within the time limits established by the contract of pledge;

2.19. in money or in kind from another person for fulfilling his instructions on carrying out settlements, payment in his favor or in favor of third persons for goods (works, services) or on transfer to third persons of received means and fulfilling obligations, including tax obligations;

2.20. in money or in kind for discharging obligations under a loan contract without account of the interest stipulated by such a contract (later on – discharge of obligations in the part of the principal of debt). Upon presentation by the payer under a loan contract of monetary means in foreign currency and discharge of obligations in the part of the principal of debt in Belarusian rubles (another currency), the amount of income not recognized as the object of taxation is determined by means of recalculation of the sum of monetary means transferred (received) under the loan contract at the official rate established by the National Bank of the Republic of Belarus on the date of discharge of obligations;

2.21. [excluded]

2.22. in the amount of the cost of general social services rendered free of charge and financed from the budget, and also from the means of social insurance;

2.23. in the amount of the cost of meals, accommodation and transportation, paid:

by a receiving party, upon sending a worker on a business trip;

for the payer by the organization which engages him for participation in spring field operations, harvesting, fodder conservation;

2.24. in the form of granting dwelling premises free of charge on conditions and under the procedure, established by legislative acts;

2.25. by a founder (participant) of an organization, with the exception of a joint-stock company, upon its liquidation, withdrawal (expulsion) of the participant (shareholder) from the organization, upon alienation by a participant of a stake (part of a stake) in the statutory fund (stock (part of a stock)) of the organization in the amount not exceeding the sum of the contribution of the founder (participant) to the statutory fund of the organization or the sum of expenses actually made by him for acquisition of a stake (part of a stake) in the statutory fund (stock (part of a stock)) of the organization. In this instance the amount of income received by a founder (participant) of an organization and sum of his contribution to the statutory fund of the organization or the sum of expenses actually made by him for acquisition of a stake (part of a stake) in the statutory fund (stock (part of a stock)) of the organization are subject to be recalculated into US dollars at the official rate established by the National Bank of the Republic of Belarus, respectively, on the date of actual receipt of the income and on the date of making the contribution or of making expenses on acquiring the stake (part of the stake) in the statutory fund (stock (part of the stock)) of the organization;

2.251. by a participant of a joint-stock company upon its liquidation in the amount not exceeding the sum of expenses actually made by him for acquisition of shares of this joint-stock company.

In this instance the amount of the income received by the participant of a joint-stock company and expenses actually made by him for acquisition of shares of this joint-stock company are subject to be recalculated into US dollars at the official rate established by the National Bank of the Republic of Belarus, respectively, on the date of actual receipt of the income and on the date of making expenses for acquisition of shares;

2.252. by the owner of a unitary enterprise upon alienation of the enterprise as a property complex in the amount not exceeding the sum of his contribution to the statutory fund of the unitary enterprise or the sum of expenses actually made by him for acquisition of the enterprise as a property complex.

In this instance the amount of the income received by the owner of a unitary enterprise and the sum of his contribution to the statutory fund of the unitary enterprise or expenses actually made by him for acquisition of the enterprise as a property complex are subject to be recalculated into US dollars at the official rate established by the National Bank of the Republic of Belarus, respectively, on the date of actual receipt of the income and on the date of making contribution to the statutory fund of the unitary enterprise or making expenses for acquisition of the enterprise as a property complex;

2.26. by a participant (shareholder) of an organization in the form of stakes in the stakes in the statutory fund (stocks, shares) of this organization and also in the form of increase of the nominal value of shares conducted at the expense of the own sources of the organization, if such payments do not change the percentage of participation in the statutory fund of the organization of no one of the participants (shareholders) or change it for less than 0.01 percent;

2.27. by a natural person from a unitary enterprise or institution, the owner of the property of which is this natural person in the amount of monetary means seized form this unitary enterprise or institution according to a decision of this person and/or in the amount of value of other property seized (stake in the ownership to the property), not exceeding the sum of monetary means and/or value of other property (stake in the ownership to the property) transferred earlier to this unitary enterprise or institution into economic management or administrative operation (with the exception of the sum of contribution to the statutory fund of such unitary enterprise or institution).

In this instance, the sum of seized monetary means and/or value of seized property (stake in the ownership to the property) and the sum of monetary means and/or value of other property (stake in the ownership to the property) transferred earlier to this unitary enterprise or institution into economic management or administrative operation (with the exception of the sum of contribution to the statutory fund of such unitary enterprise or institution) are subject to be recalculated into US dollars at the official rate established by the National Bank of the Republic of Belarus, respectively, on the day of seizing monetary means and/or value of other property (stake in the ownership to the property) from economic management or administrative operation of the unitary enterprise or institution and on the day of transferring monetary means and/or other property (stake in the ownership to the property) to this unitary enterprise or institution into economic management or administrative operation (with the exception of the sum of contribution to the statutory fund of such unitary enterprise or institution);

2.28. by participants of a simple partnership upon return of their contributions to the simple partnership, and also upon distribution of the profit of the simple partnership after its taxation;

2.29. in the form of sums received from putting of dwelling premises (dwelling house, apartment, a dwelling room (part thereof)) into hiring (sub-hiring), the owners (tenants) of which are persons obliged to reimburse expenses incurred by the state for maintenance of children being under state protection, under contracts of hiring (sub-hiring) concluded by local executive and administrative bodies, and remitted, under the procedure and on conditions, determined by legislation, for discharging by these persons of expenses incurred by the state for maintenance of the children being under state protection;

2.30. in the amount of state targeted social assistance, state social benefits and social assistance, being rendered in the instances established by the legislative acts of the Republic of Belarus;

2.31. servicemen, ranks and officers of the Investigative Committee of the Republic of Belarus, the State Committee of Forensic Examinations of the Republic of Belarus, bodies of internal affairs, bodies of financial investigation of the State Control Committee, bodies and divisions for emergency situations (later on this Chapter – servicemen), with the exception of servicemen of compulsory military service, military students of military educational institution, educational institution of the Ministry of Internal Affairs of the Republic of Belarus and the Ministry on Emergency Situations of the Republic of Belarus, and member of their families in the amount of payment at the expenses of means of the Ministry of Defense of the Republic of Belarus, Ministry of Internal Affairs of the Republic of Belarus, Investigative Committee of the Republic of Belarus, State Committee of Forensic Examinations of the Republic of Belarus, Ministry on Emergency Situations of the Republic of Belarus, State Border Committee of the Republic of Belarus, Committee of State Security of the Republic of Belarus, Security Service of the President of the Republic of Belarus, Operative and Analytic Center at the President of the Republic of Belarus (later on in this Chapter – state bodies with military service) of travel and carriage of own property of up to 10 tons of weight upon transfer or release from the military service, service in the Investigative Committee of the Republic of Belarus, State Committee of Forensic Examinations of the Republic of Belarus, bodies of internal affairs, bodies of financial investigation of the Committee of State Control of the Republic of Belarus, bodies and divisions on emergency situations (later on in this Chapter – military service) into reserve (resignation) in the instances involving the relocation in another place;

2.32. by servicemen holding offices in bodies of interstate formations and international organizations, located in the territory of foreign states, and members of their families, and also by military students and attendees which pass training not connecting with a business trip abroad in organizations of foreign states on orders of state bodies with military service, in the form of reimbursement, once a year at the expense of means of these state bodies, of expenses on travel by railway (except for sleeping-coaches), air and automobile transport during the leave to the place of residence in the territory of the Republic of Belarus and backward;

2.33. by certain categories of servicemen, prosecutor’s office employees, to be determined by heads of respective state bodies with military service and bodies of the prosecutor’s office, in the amount of the cost of travel documents (tickets) for travel by all types of public transport (except for taxi) within the limits of the Republic of Belarus, necessary for fulfillment of service duties and acquired at the expense of means of the said state bodies;

2.34. be servicemen which suffered injury (trauma, contusion), mutilation or illness when fulfilling duties of the military service, within the period of their out-patient treatment in relation to this injury (trauma, contusion), mutilation or illness in the amount of the cost of provision of medicines, carried out at the expense of means of respective state bodies with military service, within the limit of the list of basic medicines, approved by the Ministry of Health of the Republic of Belarus;

2.35. from carrying out activities on which, in accordance with this Code, special taxation regimes are applied, which do not provide the payment of the personal income tax;

2.36. in the form of the value of non-used state property being in the republic or communal ownership, received free of charge by an individual entrepreneur into the ownership in accordance with the legislation;

2.37. in the amount of a compensation (reimbursement), in accordance with the legislation, of court expenses, moral damage, reimbursement of the harm in kind or reimbursement of inflicted damages with the real loss, including those indexed under the procedure established by the legislation, unless otherwise established by this Chapter;

2.38. in the form of sums of monetary means being reimbursed by banks to natural persons upon theft thereof from accounts for which bank payment cards are issued and put into circulation and/or in the instances of unauthorized debiting monetary means from such accounts.

Article 154. Incomes received from sources in the Republic of Belarus

1. Incomes received from sources in the Republic of Belarus include:

1.1. dividends and interest received from a Belarusian organization, and also interest received from a Belarusian individual entrepreneur and/or a foreign organization in relation to its activity in the territory of the Republic of Belarus through a permanent representation. Such incomes are recognized to be incomes received from sources in the Republic of Belarus irrespective of the place from which the payment of the said incomes was performed;

1.2. insurance compensation and/or coverage upon occurrence of an insured accident, received from a Belarusian insurance organization and/or from a foreign organization in relation to its activity in the territory of the Republic of Belarus through a permanent representation;

1.3. incomes received from use in the territory of the Republic of Belarus of intellectual property objects;

1.4. incomes received from putting of property into lease (transfer into financial lease (leasing)) or from another use of property located in the territory of the Republic of Belarus, including the value of improvement of the property that was in the use of other persons and returned to its owner (with the exception of the instances when improvement was a result of major repairs the performance of which was caused by extraordinary circumstances (fire, breakdown, natural disaster, road accident and other similar circumstances, including force-majeure)) – upon availability of documents confirming the fact of occurrence of the said circumstances, comparability of their consequences and improvements made;

1.5. incomes received from the alienation of:

1.5.1. immovable property, including an enterprise (a part thereof) as property complex, located in the territory of the Republic of Belarus;

1.5.2. in the territory of the Republic of Belarus, of shares and other securities, stakes of founder (participants) in the statutory fund, stocks in the property of foreign organizations or a part thereof;

1.5.3. of shares and other securities, stakes of founder (participants) in the statutory fund, stocks in the property of Belarusian organizations or a part thereof;

1.5.4. of rights of claim toward a Belarusian organization or a foreign organization in relation to its activity in the territory of the Republic of Belarus through a permanent representation;

1.5.5. of other property located in the territory of the Republic of Belarus;

1.6. remuneration for fulfillment of labour or other duties, including monetary remunerations and allowances for special conditions of work (service), work executed, service rendered, commission of an action (omission), received from Belarusian organizations and Belarusian individual entrepreneurs (notaries carrying out notarial activity in a notarial office) (later on for the purposes of this Chapter – notaries), foreign organizations carrying out activity in the territory of the Republic of Belarus through permanent representation, representative offices of foreign organizations opened in the order established by the legislation, irrespective of the place where the duties imposed on those payers have been actually discharged or from where payment of these remunerations has been made;

1.7. pensions, alimonies, stipends, and other similar outpayments, received by the payer in accordance with the legislation;

1.8. incomes received from use of any vehicles, including aircraft and sea vessels, internal water vessels, mixed river-sea vessels, automobile vehicles, in relation to carriage to the Republic of Belarus and/or from the Republic of Belarus or within its limits, and also fines and other sanctions for idle time (delay) of such vehicles in loading (unloading) points in the territory of the Republic of Belarus;

1.9. incomes received from use of pipelines, electric power lines, telecommunications objects and other means of communication, including computer networks, in the territory of the Republic of Belarus;

1.10. [excluded]

1.11. other incomes received by the payer from sources in the Republic of Belarus.

2. For the purposes of this Chapter, incomes received from sources in the Republic of Belarus do not include incomes of a natural person received by him as a result of foreign trade operations related to importation of goods into the territory of the Republic of Belarus and/or acquisition of goods (works, services) in the territory of the Republic of Belarus.

Provisions of this clause are applied if the place of realization of acquired and/or imported goods is not recognized to be the territory of the Republic of Belarus.

Article 155. Incomes received from sources outside the Republic of Belarus

Incomes received from sources outside the Republic of Belarus include:

dividends and interest, received from a foreign organization (with the exception of those received in relation to activity of foreign organizations through a permanent representation in the territory of the Republic of Belarus, and also interest received from a foreign individual entrepreneur;

insurance compensation and/or coverage upon occurrence of an insured accident, received from a foreign insurance organization not carrying out activity through a permanent representation in the territory of the Republic of Belarus;

incomes received from use outside the territory of the Republic of Belarus of intellectual property objects;

incomes received from putting of property into lease (transfer into financial lease (leasing)) or from another use of property located outside the territory of the Republic of Belarus, including the value of improvement of the property that was in the use of other persons and returned to its owner (with the exception of the instances when improvement was a result of major repairs the performance of which was caused by extraordinary circumstances (fire, breakdown, natural disaster, road accident and other similar circumstances, including force-majeure)) – upon availability of documents confirming the fact of occurrence of the said circumstances, comparability of their consequences and improvements made;

incomes received from the alienation:

of immovable property, including an enterprise (a part thereof) as property complex, located outside the territory of the Republic of Belarus;

outside the territory of the Republic of Belarus, of shares and other securities, stakes of founder (participants) in the statutory fund, stocks in the property of foreign organizations or a part thereof;

of rights of claim toward a foreign organization (with the exception of rights of claim of a foreign organization in relation to its activity through a permanent representation in the territory of the Republic of Belarus);

of other property located outside the territory of the Republic of Belarus;

remuneration for fulfillment of labour or other duties, including monetary remunerations and allowances for special conditions of work (service), work executed (service rendered), commission of an action (omission), received by the payers from foreign organizations (except for incomes received by the payers from foreign organizations carrying out activity in the territory of the Republic of Belarus through permanent representation, representative offices of foreign organizations opened in the order established by the legislation), foreign individual entrepreneurs, missions and bodies of interstate formations located in the territory of foreign states, diplomatic missions and consular offices of foreign states in the Republic of Belarus, irrespective of the place where the duties imposed on those payers were actually discharged;

pensions, alimonies, stipends, and other similar outpayments, received by the payer in accordance with the legislation of foreign states;

incomes received from use of any vehicles, including sea vessels and aircraft, internal water vessels, mixed river-sea vessels, automobile vehicles, and also fines and other sanctions for idle time (delay) of such vehicles in loading (unloading) points, with the exception of incomes provided by sub-clause 1.8 of clause 1 of Article 154 of this Code;

sums received as a compensation (reimbursement) of moral damage in accordance with the legislation of foreign states;

other incomes received by the payer from sources outside the Republic of Belarus.

Article 156. Tax base for personal income tax

1. When the tax base for the personal income tax is being determined, all incomes of the payer received both in money and in kind are taken into account.

If some deductions are made from the income of the payer on his instructions, on a decision of the court or other bodies, such deductions do not decrease the tax base for the personal income tax.

2. The tax base for the personal income tax is determined separately on each kind of incomes in relation to which different tax rates are established.

3. For the incomes in relation to which rates of the personal income tax are established by clause 1 and sub-clauses 3.1 and 3.3 of clause 3 of Article 173 of this Code, the tax base for the personal income tax is determined for each calendar month of the tax period as a monetary expression of such incomes subject to taxation, decreased by the sum of tax deductions applied consecutively in accordance with Articles 164–166 and 168 of this Code, having regard to specific features provided by this Chapter. Subtraction of standard tax deductions is carried out from the posted income in the amounts effective for the month for which the personal income tax is computed.

For incomes in relation to which the rates of the personal income tax are established by sub-clause 3.2 of clause 3 and by sub-clause 4.1 of clause 4 of Article 173 of this Code, the tax base for the personal income tax is determined as a monetary expression of such incomes subject to taxation, decreased by the sum of tax deductions applied consecutively in accordance with Articles 168 and 164–166 of this Code.

31. For incomes specified in part one of clause 1 of Article 182 of this Code, the tax base for the personal income tax is determined for each calendar month of the tax period as a monetary expression of such incomes subject to taxation, decreased by the sum of tax deductions applied in accordance with Articles 164 of this Code, having regard to specific features provided by this Chapter.

4. For incomes in relation to which the rates of the personal income tax are established by clause 2 of Article 173 of this Code, the tax base for the personal income tax is determined as a monetary expression of such incomes subject to taxation. In this instance the deductions provided by Articles 164–166 of this Code are not applied.

41. For incomes in relation to which the rate of the personal income tax is established by clause 5 of Article 173 of this Code, the tax base for the personal income tax is determined as a monetary expression of such incomes subject to taxation. In that instance tax deductions provided by Articles 164 – 166 of this Code and exemption from the personal income tax rpovided by part one of sub-clause 1.19 of clause 1 of Article 163 of this code are not applied.

5. For incomes computed by the tax body based on sums of excess of expenses over incomes in accordance with the legislation, the tax base for the personal income tax is determined as a monetary expression of sums of such excess. In this instance the deductions provided by Articles 164–166 and 168 of this Code are not applied.

51. For incomes in the form of interest, received by payers on bank deposits, monetary means on the current (settlement) bank account in banks located in the territory of the Republic of Belarus, the tax base for the personal income tax shall be determined as monetary expression of such taxable incomes. In that instance tax deduction provided by Articles 164 of this Code and exemption from the personal income tax provided by sub-clause 1.19 of clause 1 of Article 163 of this code are not applied.

6. Incomes (expenses accepted for deduction in accordance with Articles 165, 166 and 168 of this Code) of the payer received (incurred) in foreign currency are recalculated into Belarusian rubles at the official rate established by the National Bank of the Republic of Belarus on the date of actual receipt of incomes (on the date of actual making of expenses, unless otherwise established by this Chapter).

Article 157. Specific features of determining the tax base for the personal income tax when incomes are received in kind

1. When the payer receives incomes from organizations and individual entrepreneurs in kind in the form of goods (works, services), other property, the tax base for the personal income tax is determined as the value (with account of the value added tax, and for excisable goods – and of excises) of those goods (works, services), other property, calculated based on the regulated prices (tariffs), and in the absence thereof – as value (with account of value added tax, and for excisable goods – and excises) determined by organizations and individual entrepreneurs as of the date of posting the income for the payer. In this instance the tax base for the personal income tax is determined in the amount not less than the value of property determined in accordance with part two of this clause.

When the payer receives income from natural persons not being individual entrepreneurs in kind, in the form of goods (works, services), other property, the tax base for the personal income tax is determined:

in relation to capital constructions (buildings, structures), parts thereof, car parking spaces – in the amount of the assessed value determined on the date of receipt of the income by territorial organizations on state registration of immovable property, rights thereto and transactions therewith). In the absence of such value – in the amount of the value determined under the procedure established by the legislation for calculation of the tax on immovable property from natural persons;

in relation to shares – in the amount of their nominal value;

in relation to stakes in statutory funds of organizations, stock in productive and consumptive cooperatives – accordingly in the amount of a part of value of net assets of the organization proportionally to the amount of the stake of the natural person in the statutory fund of the organization or in the amount of the value of the stock;

in relation to the value of an enterprise as a property complex – at the balance-sheet value of the property of the enterprise;

in relation to land plots – on their cadastral value;

in relation to other property not mentioned in this part, works and services – at the price (tariff) for similar property, works and services on the basis of the data of producers, executors, trading entities about the prices (tariffs) for goods, works, services, contained in special domestic and foreign reference books, catalogues, periodicals, information materials of trading entities (including those places in the global computer network Internet). When there are two and more sources of information, containing the date about prices (tariffs) for identical property, works, services, the tax base is determined based on the data about the lowest price (tariff). When determining prices (tariffs) for identical property, works, services, are taken into consideration transactions stipulating the monetary form of fulfilling obligations between persons not being interdependent. Transactions between interdependent parties may be taken into consideration only in the instances when the existence of relations between these persons did not affect the conditions of such transactions.

2. Incomes received by the payers in kind include, in particular:

2.1. payment (in full or in part) by organizations and natural persons for him of goods (works, services), other property or property rights, including housing and communal services, meals, rest, training in the interests of the payer;

2.2. goods received by the payer, works executed in his interests (services rendered) on a gratuitous basis;

2.3. incomes in the form of payment in kind for labour.

Article 158. Article 158. Specific features of determining the tax base on incomes received in relation to conclusion of insurance contracts

1. When the tax base for the personal income tax is being determined, into account are not taken incomes received in the form of:

1.1. insurance compensation and/or coverage in relation to occurrence of respective insured accidents;

1.1.1. on contracts of compulsory insurance carried out under the procedure established by the legislation;

1.1.2. on contracts of voluntary insurance under which the payer and/or the persons specified in sub-clause 2.1 of clause 2 of Article 153 of this Code made contributions (insurance premiums) at the expense of own means (irrespective of his receiving social tax deduction established by sub-clause 1.2 of clause 1 of Article 165 of this Code);

1.1.3. on contracts of voluntary insurance against accidents and diseases for the period of travel abroad, voluntary long-term (for a period of not less than three years) insurance of life, voluntary long-term (for a period of not less than three years) insurance of additional pensions, and also on contracts of voluntary insurance of medical expenses (if such contracts are concluded for a period of not less than one year);

1.1.4. on insurance contracts concluded outside the territory of the Republic of Belarus and stipulating insurance payments for reimbursement of the harm caused to the life, health or property of a natural person, received by the injured person and/or persons being with him in a relationship of kinship or affinity, tutor, curator and person under care;

1.1.5. voluntary insurance of liability for the harm caused (in the case if the harm to life, health or property of natural person is caused by the person whose liability is insured);

1.11. a part of income from carrying out investments by the insurer being paid in addition to the insurance payment under contracts of insurance of life and additional pension;

1.2. expenses, reimbursed by insurers, of the payer – insured incurred in relation to investigation into circumstances of occurrence of an insured accident, establishing amounts of the harm, court expenses, and also other expenses made in accordance with the legislation and conditions of the insurance contract;

1.3. insurance fees (insurance premiums) paid at the expense of means of employers:

on contracts of voluntary insurance against accidents and diseases for the period of travel of a worker abroad when being sent on a business trip;

on contracts of compulsory insurance.

2. Sums of insurance fees (insurance premiums) paid for the payers by organizations and/or individual entrepreneurs under insurance contracts are subject to taxation at sources of payment of such fees (premiums), and sums of insurance fees (insurance premiums) paid for the payers by other natural persons – under the procedure established by Article 178 of this Code.

Article 159. Specific features of taxation of incomes received in the form of dividends

Taxation with the personal income tax of incomes received in the form of dividends recognized as such in accordance with Article 35 of this Code is performed having regard to the following specific features:

dividends received from sources outside the Republic of Belarus are subject to taxation with the personal income tax under the procedure established by Article 178 of this Code;

if the source of dividends is a Belarusian organization, then this organization is recognized to be a tax agent and determines the sum of personal income tax separately on each payer concerning each payment of said incomes, based on the tax base being determined under the procedure established by clause 4 of Article 141 and clause 3 of Article 156 of this Code.

Article 160. Specific features of determining the tax base and computation, retention and payment of the personal income tax when receiving incomes on operations with securities and financial instruments of forward transactions

1. When the tax base for the personal income tax on operations with securities and financial instruments of forward transactions is being determined, incomes received on such operations shall be taken into account.

For the purposes of this Chapter, financial instrument of the forward market is recognized 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. Incomes on operations with securities are recognized to be:

incomes from realization, redemption of securities determined based on the price of their realization, redemption (payment);

incomes in the form of interest (coupon, discount) received on securities, unless otherwise provided by this Article.

Incomes on operations with financial instruments of forward transactions are recognized to be incomes from realization of financial instruments of forward transactions and other incomes on them, including sums of variable margin and/or premiums.

Incomes on operations with basic asset of financial instruments of forward transactions are recognized to be incomes receive from delivery of the basic asset when executing such instruments.

3. Incomes on operations with basic asset of financial instruments of forward transactions are included:

in incomes on operations with securities if the basic asset of financial instruments of forward transactions is securities;

in incomes on operations with financial instruments of forward transactions if the basic asset of financial instruments of forward transactions are other financial instruments of forward transactions;

in other incomes of the payer if the basic asset of a financial instrument of the forward market is not securities or financial instruments of forward transactions.

4. Expenses on operations with securities and financial instruments of forward transactions are recognized to be expenses actually made by the payer and confirmed by documents, related to:

acquisition, realization, redemption and safekeeping of securities;

performance of operations with financial instruments of forward transactions;

fulfillment and termination of obligation on operations with securities and financial instruments of forward transactions.

Such incomes include:

sums being paid to the issuer securities for payment of securities being placed (issued);

sums being paid on transactions with securities, including those directed for acquisition of securities;

periodic or on—time payments stipulated by conditions of financial instruments of forward transactions, including paid sums of variable margin and/or premiums;

payment for services rendered by professional participants of securities market, and also reimbursement of expenses incurred by them, including commission fee, payment for services of depositories, operations on registering the buyer (seller) at the exchange with assigning him a unique registration code, services on reserving monetary and/or other means for securing the fulfillment of exchange transactions on acquisition of securities, financial instruments of forward transactions, reimbursement of the exchange fee;

other expenses directly related to operations with securities and financial instruments of forward transactions.

Sums paid by the payer for acquisition of the basic asset of financial instruments of forward transactions, including to its delivery when fulfilling such an instrument are recognized as expenses when delivering (subsequent realization) of the basic asset.

If securities have been acquired by the payer in ownership on a gratuitous basis or with partial payment, then upon taxation of incomes of operations on realization, redemption of securities, expenses for acquisition of these securities confirmed by documents also include sums from the which the personal income tax has been computed and paid upon acquisition of such securities, and also sums not subject to taxation and/or not recognized taxation objects in accordance with the legislation being in effect at the moment of acquisition of these securities.

If expenses of the payer on acquisition, realization, redemption and safekeeping of securities may not be directly assigned to expenses on acquisition, realization, redemption and safekeeping of specific securities, then the said expenses are distributed proportionally to the share of the assessed value of respective securities in the total assessed value of securities. In this instance the assessed value of securities is determined based on the price of acquisition of such securities.

5. The tax base for the personal income tax on operations with securities is determined as a difference between incomes received on operations with securities and expenses, actually incurred and confirmed by documents, on acquisition, realization, redemption and safekeeping of these securities or the tax deduction established by part four of this Article.

In that instance expenses on acquisition of securities confirmed by documents, incurred in Belarusian rubles are subject to be recalculated into US dollars at the official rate established by the National Bank of the Republic of Belarus on the day of making such expenses. Expenses determined in US dollars are recalculated in Belarusian rubles at the official rate established by the National Bank of the Republic of Belarus on the date when the payer has received incomes on operations on realization and redemption of such securities.

If the rate of the Belarusian ruble toward US dollar established by the National Bank of the Republic of Belarus on the day of making expenses for acquisition securities is higher than the rate of the Belarusian ruble toward US dollar established by the National Bank of the Republic of Belarus on the day when the buyer has received incomes on operations on realization and redemption of such securities, then the recalculation specified in part two of this clause is not performed.

Instead of receiving the tax deduction in the sum of expenses on acquisition, realization, redemption and safekeeping of securities, the payer has the right to apply the tax deduction in the amount of 10 percent of incomes received on operations with securities. In this instance expenses confirmed by documents may not be taken into account simultaneously with application of such deduction.

A tax deduction in the sum of expenses actually incurred and confirmed by documents, on acquisition, realization, redemption and safekeeping of securities or in the amount of 10 percent of incomes received on operations with securities is granted:

within a tax period – by the tax agent (including professional participant of securities market, concluding operation under a contract of commission, agency, and another similar civil-law contract; issuer acquiring securities of own issue at an unorganized market);

upon end of the tax period – on operations with securities taxable in accordance with Article 178 of this Code upon his submitting the tax declaration (calculation) to the tax body.

6. The tax base for the personal income tax on operations with financial instruments of forward transactions is determined as a difference between incomes received on operations with financial instruments of forward transactions and expenses on operations with financ