/ / News
19.12.2011

Belarus’ MPs approve amendments to Tax Code in the first reading

MINSK, 19 December (BelTA) – The House of Representatives of Belarus approved the draft law “On introducing amendments and addenda to the Tax Code of the Republic of Belarus” in the first reading on 16 December, BelTA has learnt.

The amendments and addenda stipulated in the draft law are aimed to fulfill the major targets of the fiscal policy for 2012.

With a view to easing tax burden on the economy and simplifying the tax system, the draft law provides for reducing the profit tax from 24% to 18%. It also changes the approaches to providing tax incentives to encourage investments.

Tax incentives also seek to enhance the competitiveness of the economy, develop the securities market. Profits from selling innovative products of the own make and high-tech products (if such profits make over 50%) will be exempt from taxes. The profit tax rate for companies selling their own high-tech products will make 10%. Additional paid-in capital obtained from the first placement of securities will be exempt from taxes.

The draft law provides for reducing standard tax rates per one percentage point in the simplified tax system. The move aims to reduce the tax burden on small and medium-sized business. Taxpayers will be able to pay profit taxes based on the planned period instead of the previous period. Taxpayers will be able to switch from one method to the other one within one tax period. The procedure of paying the environmental tax will be simplified.

To adapt the budget revenues to high inflation, excisable groups of goods will be merged. Excise duties on alcoholic and tobacco products will be increased within limits conditioned by the terms of providing the EurAsEC loan to Belarus. Non-taxable amounts and income tax deductions will be increased taking into consideration the planned increase in salaries in 2012.

The draft law provides for the further improvement of the tax system, tax calculation and administration procedures. It aims to make the Tax Code easier to comprehend, settles disputable issues based on the practical implementation of the code.

The House of Representatives plans to pass the draft law “On the national budget for 2012” and the draft law “On introducing amendments and addenda to the Tax Code of the Republic of Belarus” in the second reading on 19 December.