MINSK, 11 August (BelTA) – Belarus is streamlining the application of the simplified tax system. Belarus President Alexander Lukashenko signed Decree No. 349 “On the application of the simplified tax system” on 9 August, BelTA learnt from the presidential press service.
The document is aimed to implement Directive No. 4 “Development of entrepreneurship initiative and encouragement of business activity in the Republic of Belarus” adopted by the President on 31 December 2010, in particular, it deals with the use of the simplified tax system.
Under the decree, the right to use the simplified tax system in 2011 is granted to organizations and self-employed businessmen if their gross revenues do not exceed Br12 billion on an accrual basis during the calendar year (if company’s gross revenues (earnings) are under Br3.4 billion, it also qualifies for the simplified tax system without paying the VAT and can use the gross earnings as the tax base); organizations employing under 15 people and self-employed businessmen are exempt from bookkeeping operations and financial reporting, instead they are allowed to maintain accounts using the income and expenditure book of organizations and self-employed businessmen; taxpayers who had switched from the simplified tax system to the general system or to the simplified tax system with the VAT payment before the decree came into force, are allowed to resume using the simplified tax system.
Taxpayers that stopped using the simplified tax system do not have to submit an application to the tax authorities in order to resume the use of the simplified tax system. The decree sets forth the rules for recalculating taxes, duties (dues), other mandatory payments in case of switching from the simplified tax system to the general one and vice versa.
The document also specifies the gross revenue limit for those willing to switch to the simplified tax system from 1 January 2012. As the gross revenue limit was increased to Br12 billion, the amount of gross revenues in January-September 2011 that allows organizations and self-employed businessmen to apply for the simplified tax system from 1 January 2012 is set at Br9 billion. The applications should be submitted from 1 October to 30 November 2011.
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