7. The Tax System 7.1. General Information The Tax Code of the Republic of Belarus, which is made up from the Primary part and Special Part, is the main document that defines the structure of the tax system in the country. The Primary Part formulates the notions of tax obligation, taxpayers, and an object of taxation. It also contains regulations regarding tax accounting and control, and describes the procedure of appealing decisions made by tax authorities. The Tax Code was adopted on January 1, 2004. The Special Part of the Tax Code, entering into legal force on January 1, 2010, regulates particular taxes and duties, defines taxpayers, objects of taxation, rates, procedure of tax calculation and payments of respective taxes and duties. According to the Tax Code of the Republic of Belarus, tax payments are subdivided into republican taxes, duties (tariffs) and local taxes and duties. Republican taxes include the following: – value added tax; – profit tax; – excises; – tax on income of foreign organizations, which do not operate through permanent representative office in Belarus; – income tax on individuals; – property taxes; – land tax; – ecological tax; – tax on extraction (subtraction) of natural resources; – duty for passage of automobile vehicles of foreign states on public roads of the Republic of Belarus; – off-shore duty; – stamp duty; – consular fees; – state due; – patenting duties; – custom tariffs and duties. Local taxes and duties include the following: – dog owners tax; – resort levy; – levy for packer shippers. There are also other types of payments: – dues to the Social Welfare Fund for social needs; – dues paid by employers for obligatory insurance of employees against professional illnesses and accidents at production facilities.
7.2. Taxation of Business Entities Together with general taxation system there are specific regimes of taxation, which provide a number of benefits, reduced tax rates, a complete or partial deferral of some taxes or even full exemption.
Doing Business in Belarus 2012
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