The procedure for calculating income tax is determined by Chapter 16 of the Tax Code of the Republic of Belarus (hereinafter - the Tax Code)
1. Since 2019, has not been subject to income tax, that is, the cost of donated goods (works, services), property rights, including costs of their free transfer (paragraph 1 of Article 168 of the Tax Code) are not included into revenues.
2. The date of revenue recognition for tax purposes is the same as recognition in accounting records. When recognizing it, one should take into account the regulations of the resolution of the Ministry of Finance of the Republic of Belarus of 08.08.2018 No. 55 'On the date of individual business operations'.
3. The date on which revenue is recognized under contracts in which the amount of obligations is expressed in Belarusian rubles equivalent to the amount in foreign currency, revenue is considered expressed in Belarusian rubles from the date the amount payable in Belarusian rubles is determined in accordance with the law or by agreement of the parties and is not subsequently restated (paragraph 7 of Article 168 of the Tax Code).
4. When selling goods at retail prices in retail and (or) catering, the date of recognizing of revenue is determined in accordance with paragraph 3 of Article 121 of the Tax Code, according to which when selling goods at retail prices in retail network and (or) catering using cash registers, carried out during a shift beginning on one calendar day and ending on another calendar day, the date of shipment of goods sold on another calendar day is the opening date of this shift, recognized in single daily (shift) report (Z-report) being generated by such cash equipment.
5. The date of transfer of property rights is recognized the day determined in accordance with paragraph 8 of Article 121 of the Tax Code.
In accordance with paragraph 8 of Article 121 of the Tax Code, the day of transfer of property rights at the choice of the payer, the following shall be recognized:
- either the last calendar day of each month to which the transfer of property rights relates, and if the transfer of property rights ends before the end of the month – the last day of such transfer;
- or the day of property right transfer, executed by the accounting source document.
6. In 2019, for the purposes of taxation, additional types of standardized costs were introduced by the Tax Code (paragraph 1 of Article 169 of the Tax Code). The list of standardized costs is defined in Article 171 of the Tax Code.
The standardized costs include the following types of costs:
- travel expenses (expenses on business trips) within the limits established by law;
- the cost of paying the cost of fuel and energy resources spent within the limits established by law. In the absence of such standards for motor vehicles, costs are accepted within the limits of fuel consumption established by their manufacturer, and in the absence of such – within the limits established by the head of the organization. The regulations established by the head of the organization are effective until the moment of approval by the regulatory legal act in the established procedure for the relevant motor vehicle, unless otherwise provided by law. In the absence of established norms for the consumption of fuel and energy resources, the expenses of paying for their cost are recognized as limit-exceeding;
- losses from shortages and (or) damage during storage, transportation and (or) sale of goods, stocks within the limits of natural loss rates, as well as loss (breakage) norms established by law, and in their absence – within the limits established by the head by coordination with the owner, the general meeting of members, members of the consumer society, authorized persons or person authorized by them. In the absence of established standards, such shortages and (or) damage to goods are recognized as limit-exceeding;
- expenses for management services provided by individual entrepreneurs, as well as organizations applying special taxation regulations, within the amount calculated on the basis of the ratio of the average salary of the heads of organizations and the average salary in the organization, determined in the manner and amount established by law. This size is determined by the Decree of the Council of Ministers of the Republic of Belarus dated 08.07.2013 No. 597 'On improving the conditions of remuneration of heads of organizations subject to the results of financial and economic activities ...';
- costs of controlled indebtedness to the extent calculated in accordance with Article 172 of the Tax Code;
- for organizations operating the housing stock and (or) providing housing and communal services, with the exception of organizations of the system of the Ministry of Energy of the Republic of Belarus, – the costs of paying overhead costs and technological losses within the norms and standards established in accordance with the law;
- other expenses specified in paragraph 2 of Article 171 of Tax Code.
Other costs include:
- payments to individuals working in organizations under labor contracts in cash and in kind in the form of:
- remuneration based on annual work results, payments having the nature of remuneration based on annual results;
- lump sums for retirees;
- surcharges, compensations, benefits, the payment procedure of which and their minimum amount are established by law and for which the law provides the right to increase them, in amounts established by the collective labour agreement, agreement, tenant, exceeding the minimum amount;
- surcharges, compensations, benefits, for which the legislation provides the right to determine the amount and procedure for payment, in the amounts established by the collective labour agreement, agreement, tenant, to the extent established by law, in case of their availability
- lump-sum payment (material assistance, allowance) for health improvement;
- payment of additional holidays, the obligation to provide which is established by law.. This provision also applies to the payment of monetary compensation for unused days of the specified additional holidays, in accordance with the law;
- expenses for improvement of settlements and adjacent territories, and memorable places;
- expenses for holding public holidays, holidays and memorable dates of official celebrations, military parades, artillery salutes and fireworks in compliance with the legislation;
- remuneration and (or) reimbursable expenses to members of the board of directors (supervisory board), state representatives in the management bodies of organizations, unless otherwise provided by law;
- entertainment expenses;
- the costs of transportation (delivery) of buyers (customers) to the trading facility (the place of work performance, rendering of services) and back in the directions served by public passenger transport;
- compensation for the use of personal vehicles paid to employees whose work does not entail traveling, as well as the amount of rent paid to such employees acting as lessors of personal vehicles;
- membership fees (affiliation fees and other) in associations of entrepreneurs and employers, unions, associations;
- interest on overdue payments on the principal debt on loans and credits.
The aggregate amount of other expenses taken into account during taxation shall not exceed one (1) percent of the revenues from the sale of goods (works, services), property rights and rental income recognized in non-operating incomes in accordance with subparagraph 3.18 of paragraph 3 of Article 174 of the Tax Code, including value added tax.
7. The interest rate of investment deduction has changed for buildings, structures and transmission devices used in entrepreneurial activity, and the cost of investments in their reconstruction, as well as for cars and equipment used in entrepreneurial activity, and the cost of investments in their reconstruction, for vehicles (except for cars ) (Subparagraph 2.2 of Article 170 of the Tax Code).
8. Additional costs included in non-operating expenses (subparagraph 3.48 of paragraph 3 of Article 175 of the Tax Code) are provided for. Non-operating expenses include reserves for doubtful debts created based on the results of the inventory of receivables not paid off by the last date of the reporting (tax) period arising from the sale of goods (works, services), property rights, intangible assets, but no more than five (5) percent of the revenues from the sale of goods (works, services), property rights, intangible assets, including value added tax, and calculated as follows:
- for doubtful debts with a period of occurrence of more than ninety calendar days – the total amount of the debt identified on the basis of the inventory is included in the amount of the created reserve;
- for doubtful debts with a period of occurrence from forty-five to ninety calendar days (inclusive) – fifty (50) percent of the amount identified on the basis of the inventory of the debt is included in the reserve amount;
- for doubtful debts with a term of occurrence up to 45 calendar days – the amount of debt identified on the basis of an inventory shall not not increase the amount of the created reserve.
Applying these statutory regulations, the following should be considered.
Non-operating incomes include incomes in the form of a reduction or cancellation of allocations to reserves, expenses for the formation of which were recognized in the previous reporting periods as non-operating expenses or in expenses that are taken into account in taxation (subparagraph 3.22 of paragraph 3 of Article 174 of the Tax Code).
9. The profit tax rate for dividends in the event that during the previous three calendar years profit has not been distributed among the participants (shareholders) of the Belarusian organization – residents of the Republic of Belarus, is set in the amount of six (6) percent.
The profit tax rate for dividends, in the event that during the previous successive five calendar years profit has not been distributed among the participants (shareholders) of the Belarusian organization – residents of the Republic of Belarus, is set in the amount of zero (0) percent (Article 184 of the Tax Code).