It will be possible to make operations with cryptocurrency after March 28, 2018

A new decree will be effective from March 28,2018

Payment systems changes are announced in Belarus.

On 26 December 2017 Aleksander Lukashenko signed a Decree № 462 “on establishing visa-free order of entrance and departure of foreign citizens”, aimed at enhancing the use of objects of tourism infrastructure and further cross-border tourism development.

Visa-free regime

According to the document, the period of visa-free stay of foreign citizens in certain areas of the Brest and Grodno regions is extended to 10 days.

In particular, foreign visitors of Augustow Canal Park are allowed to stay on the territory of Grodno and Grodno region, and visitors to the National Park “Belovezhskaya Pushcha” on the territory of tourist-and-recreational zone «Brest» that includes Brest, Zhabinka, Brest, Kamenets, Pruzhany districts of Brest region, Svisloch district of Grodno region.

In addition, the list of crossing points is supplemented, which allows foreign citizens visa-free entry for tourist purposes in Belarus. The list includes checkpoints, which are located at railway stations and airports in the territories of Brest and Brest region, as well as Grodno and Grodno region. Among them are such road checkpoints as Brest (Terespol), Domachevo (Slovatichi), the Peschatka (Polovtsi); railway crossing Brest (Terespol); Brest airport checkpoint, etc.

According to the Decree, to visit the Augustow Canal Park or tourist-and-recreational zone  “Brest”, foreign citizens are required to have the following documents:

a valid document for travel abroad;

a document that provides the right to individual or group visiting the territory.

A list of states in a legal act in respect of which the citizens are allowed visa-free entry and exit was introduced. The list includes 77 States.

The Decree shall enter into force from January 1, 2018.

Open company in Belarus: rules, steps and timeframes

Allford Morisson – for the Ukrainian business portal UBR.ua. According to «Doing business 2015» the Republic of Belarus ranked 57^th. Despite difficulties which are connected with a transitional economy, setting up your own business in Belarus much easier than in many other European countries.

FORMS OF BUSINESS ENTITIES IN BELARUS

In accordance with Belarusian law there are more than 7 forms of business entities. The most popular are following:

1. Unitary Enterprise (UE). The number of founders: 1 (person or legal entity). There is no minimum amount of the charter capital. Founder liability: the founder isn’t  liable for liabilities of UE.
2. Limited Liability Company (LLC). The number of founders: from 2 to 50 (person or legal entity). The minimum size of the charter capital: not regulated. Founder liability: the founders aren’t  liable for liabilities of LLC.
3. Closed Joint Stock Company (CJSC). The number of founders: from 2 to 50 (person or legal entity). The minimum size of the charter capital: 18 million Belarussian rubles (about 1100 US dollars ).

Steps of setting up of a company in Belarus:

1. Company name approval;
2. Payment of state fees for company registration;
3. Submission of documents for state registration to authorities;
4. Producing seal for the company;
5. Opening of a bank account.

1. COMPANY NAME APPROVAL

One the founders can get the approval of the company name. There are 3 ways how to do this: to submit the application form to the state authorities; to do it by post; to do it online through the web-site of the authorities at www.egr.gov.by. Using this web-site the future founder can also check if the name for a new company is available. When you do that the state authorities will issue a certificate of name approval.

2. PAYMENT OF STATE FEES FOR THE REGISTRATION OF A NEW COMPANY

State fees for the registration of a new company is 540 000 Belarussian rubles (approx. 36 US dollars).

3. SUBMISSION OF DOCUMENTS FOR THE REGISTRATION OF THE COMPANY

All founders personally should come and submit the documents for the company formation to the state authorities. Founders should have the passport; non-residents of the Republic of Belarus should have certified translation of passport into Russian or Belarusian language. If the number of founders is more than 3, it is possible to authorize one of them to represent their interests in the state authorities.

Required documents for the company registration:

1. Application;
2. 2 copies of signed Charter;
3. The electronic version of the charter on CD;
4. Confirmation of the state duty payment.

In accordance with the law the registration of a new company takes only 1 day. After that the representative of the state registry during 5 working days should inform state authorities (Tax authorities, State insurance agency RUP Belgosstrakh, Social Security Fund) about that.

After the company stamp is made the founders can chose the bank and open a current bank account.

TAXATION IN BELARUS

There are two main types of tax systems in Belarus: General taxation system and Simplified taxation system. Depends on activity the company is obliged to pay some additional taxes: tax on gambling business, tax on income from lottery activity, ecological tax.

According to General taxation the following taxes should be paid:

Value Added Tax (VAT)

Corporate income tax

Real estate tax;

Land tax;

Ecological tax;

Tax on extraction of natural resources;

Off-shore duty and some other taxes.

Simplified tax system.

Currently business entities use the following popular variants of the simplified tax system:

1) tax at a rate of 5% from the turnover – for legal entities, which do not pay VAT.

2) tax at a rate of 3% – for legal entities, which pay VAT.

DEVELOPMENT OF MANUFACTURING

Taxation of borrowed money

The changes of the section 178 of the Tax Code of the Republic of Belarus (hereinafter – The Tax Code) came in force from the 1^st of January, 2015. In restrained terms they provide for the income tax on loans and credits borrowed from individuals who are not self-employed entrepreneurs, foreign organizations not operating on the territory of the Republic of Belarus by means of permanent mission, and from foreign self-employed entrepreneurs.

The taxation of the loans and credits mentioned above is executed only if they are included in  the assets and income declaration provided by an individual as required by tax authority, or  they are specified in the commentary on income source provided as required by tax authority within the examination of demanded assets and income declarations.

Income tax is payable on the ground of the notice of assessment during a 30-day-period after its receiving at the rate of which is currently at 13 %.

In case of full loans and credits repayment, paid income tax can be offset or refunded to a person who paid it. The offset (refund) of income tax is exercised by tax authority where an individual is registered on the ground of his application and documents verifying full loans and credits repayment (refund) during a one month from the day of filing of an application for offset or refund.

However, in case of loans and credits repayment (refund) funded with the money coming from the mentioned persons on a repayable or conditionally repayable basis, income tax is not recalculated and cannot be refunded (offset).

It should be noted that income tax is not calculated on the basis of the amount of loans borrowed from the organizations and self-employed entrepreneurs – residents of the Republic of Belarus, and on the basis of the amount of credits borrowed from the Belarusian banks and nonbank financial intermediaries.

nbsp;            Take note:

nbsp;nbsp;           Tax authority does not calculate income tax on the basis of the amount of loans and credits if such loans and credits:

*borrowed from the persons nearly related: marital partners, parents (adoptive parents), children (including the adopted), sisters and brothers, grandparents, grandchildren, great grandparents, great grandchildren;

*borrowed from the persons nearly related to a marital partner: close relatives of a partner as well decedent’s;

*fully repaid (refunded) on condition that tax authority to be provided with documents verifying the fact of full loans and credits repayment (refund). In case of partial loans and credit repayment, the tax is calculated on the basis of the amount outstanding.

Things we can do for you:

We can consult you on the tax questions concerning borrowing assets legal relations and on other questions of interpretation and enforcement of tax legislation.