Real estate tax

1. Limit-exceeding construction in progress is excluded from the objects of real estate tax (paragraph 1 of Article 227 of the Tax Code).

2. The increased taxation of unused (inefficiently used) permanent structures (buildings, structures) is canceled (Article 230 of the Tax Code).

3. Real estate tax rates have been introduced for permanent structures erected by organizations after January 1, 2019.

Thus, when calculating real estate tax during the second to fifth years from the moment of commissioning of a permanent structure, differentiated rates are applied ((indents 3 -  - 7 of subparagraph 1.1 of paragraph  1 of Article 230 of the Tax Code) (table 1).

Table 1

Real estate tax under new rates is calculated from the 1st day of the first month of the quarter following the quarter on which the expiration date of the one-year, two-year, three-year, or four-year period from the date of commissioning of the permanent structure (clause 2 of article 232 (of the Tax Code).

4. As before, the permanent structures commissioned for the first time, are exempt from the real estate tax for one year from the date of their commissioning (subparagraph 1.13 of Article 228 (of the Tax Code).

Starting from the sixth year from the moment of a permanent structure commissioning, a tax rate of one (1)% will be applied (indent 2 of subparagraph 1.1 of Article 230 of  the Tax Code).

Land tax

1. In 2019, the following procedure for determining the taxation base is provided for (paragraph 1 of Article 4 (of the  Law of 30.12.2018 No. 159-Z):

• for plots referred to the public and business zone, the cadastral value of the land in Belarusian rubles is established as of the date of assessment of such a zone;
• for the plots of the production zone, the cadastral value of the land in Belarusian rubles is established, obtained by recalculating the cadastral value of this zone effective as of 01.01.2018, determined in US dollars, at the official rate of the National Bank as of 01.01.2016, adjusted according to existing index of consumer price growth for 2017 year and forecast consumer price growth indices for 2018 and 2019;
• for plots of residential multi-apartment, residential estates zones, including horticultural associations and country cooperatives, and recreational areas, the cadastral value in Belarusian rubles is established, adjusted for the forecast consumer price growth indices for 2018 and 2019.

2. The coefficients for the land tax rate have been introduced in relation to the land plots (their parts) on which permanent structures (buildings, structures) are located, their parts erected by organizations after January 1, 2019 (paragraph 12 of Article 241 of the Tax Code).

Thus, when calculating the land tax for the specified land plots during the second to fifth years from the moment of a permanent structure commissioning, differentiated coefficients are applied to the annual rate:

Since 2019, land plots (parts of them) on which permanent structures were first commissioned, are exempted from land tax for one year from the date these permanent structures were commissioned (subparagraph 1.30 of paragraph 1 of Article 239 of the Tax Code).

3. Since 2019, an increase in the land tax rate is not applied(Article 241 of the Tax Code):

• 2 times - in the event a limit-exceeding construction object is located on the plot;
• 10 times - in case of violation of the land use procedure (untimely return of land received for temporary use; unauthorized occupation of land; its misuse).