Belarus’ telecom operators to pay 30% profit tax in 2021-2022 – law
<p> MINSK, Jan 4 - PrimePress. Belarusian telecommunication service providers will pay a higher income tax of 30% in 2021-2022 to compare with the standard rate of 18% set for business entities, according to the law ‘On Amendments to the Tax Code of the Republic of Belarus’ published on the National Legal Internet Portal. </p> <p> </p> <p> Currently, mobile telecommunication services in Belarus are provided by Beltelecom, A1, MTS and life:). Beltelecom is the national operator for the mandatory provision of universal telecommunication services. </p> <p> </p> <p> According to the law, the higher rate of 30% also applies to profits of commercial microfinance institutions derived from microfinance activities. </p> <p> </p> <p> Also, according to the new amendment to the Tax Code, incomes of individuals received under employment contracts from the residents of the High Technology Park (HTP), residents of the Chinese-Belarusian Great Stone Industrial Park and/or the joint Belarusian-Chinese company established to develop the Chinese-Belarusian Great Stone Industrial Park are subject to the tax on the income of individuals at the standard rate of 13%. Earlier, a preferential rate of 9% was set for these taxpayers. </p> <p> </p> <p> The Finance Ministry explains that the country needs extra funds to finance COVID-19 pandemic response measures. </p> <p> </p> <p> The law provides for abolition of VAT exemption for the import or sale of medicines and medical products in Belarus. The VAT rate of 10% is set for this on January 1, 2021 for the same purpose as Russia did. </p> <p> </p> <p> The draft Tax Code provides for the removal of some food products and goods for children from the list of items subject to VAT at the rate of 10%. </p> <p> </p> <p> The law also provides for an increase in the excise duty rates on cigarettes by 15% on average and on some types of alcoholic beverages by around 5.5% within the projected inflation rate. Excise taxes on motor fuel and motor oils remain unchanged. End </p>
2021-01-05
Primepress
MINSK, Jan 4 - PrimePress. Belarusian telecommunication service providers will pay a higher income tax of 30% in 2021-2022 to compare with the standard rate of 18% set for business entities, according to the law ‘On Amendments to the Tax Code of the Republic of Belarus’ published on the National Legal Internet Portal.
Currently, mobile telecommunication services in Belarus are provided by Beltelecom, A1, MTS and life:). Beltelecom is the national operator for the mandatory provision of universal telecommunication services.
According to the law, the higher rate of 30% also applies to profits of commercial microfinance institutions derived from microfinance activities.
Also, according to the new amendment to the Tax Code, incomes of individuals received under employment contracts from the residents of the High Technology Park (HTP), residents of the Chinese-Belarusian Great Stone Industrial Park and/or the joint Belarusian-Chinese company established to develop the Chinese-Belarusian Great Stone Industrial Park are subject to the tax on the income of individuals at the standard rate of 13%. Earlier, a preferential rate of 9% was set for these taxpayers.
The Finance Ministry explains that the country needs extra funds to finance COVID-19 pandemic response measures.
The law provides for abolition of VAT exemption for the import or sale of medicines and medical products in Belarus. The VAT rate of 10% is set for this on January 1, 2021 for the same purpose as Russia did.
The draft Tax Code provides for the removal of some food products and goods for children from the list of items subject to VAT at the rate of 10%.
The law also provides for an increase in the excise duty rates on cigarettes by 15% on average and on some types of alcoholic beverages by around 5.5% within the projected inflation rate. Excise taxes on motor fuel and motor oils remain unchanged. End