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Dialogue for security. The official site of non-governmental  association ]]> Foreign Policy and Security Research center ]]> (Minsk, Belarus)

More Belarusians expected to use simplified taxation

MINSK, 12 August (BelTA) – The number of self-employed businessmen, who use the simplified taxation scheme, will greatly increase in Belarus, Alla Sundukova, Head of the Office for International Tax Cooperation of the Belarusian Tax Ministry, told media on 12 August.

The expected increase will be brought about by Belarus president decree No. 349 of 9 August 2011. In particular, the ceiling for using the simplified taxation system has been increased from Br4 billion up to Br12 billion of gross revenues. With the gross revenues under the ceiling and the gross income at Br3.4 billion, the system is used without paying the VAT. Earlier the option was available to economic entities with gross earnings at Br1.177 billion.

There are no definite figures regarding the number of self-employed businessmen, who may use the simplified taxation system, but the ministry expects an increase, said the official. At present 46,000 juridical persons out of 158,000 use simplified taxation in Belarus.

The existing conditions allow small and medium businesses to live and prosper on the home market, said Alla Sundukova. According to the source, the Belarusian ceiling for using simplified taxation is the highest one in the CIS. “Now we have the most liberal system of simplified taxation as far as rates are concerned,” she said. As an example she mentioned several countries that allow simplified taxation. In the UK the ceiling stands at Br340 million (calculated in Belarusian rubles using March 2011 data) and enables businessmen not to pay the VAT. The ceiling in Switzerland is Br310 million, Lithuania – Br120 million, Ukraine – Br112 million, Latvia – Br60 million, Croatia – Br51 million.

The move is expected to reduce the tax burden on companies. As of 1 July 2011 the burden on juridical persons averaged Br15 million while the tax burden on self-employed entrepreneurs exceeded Br2 million. “The present tax load is supposed to encourage the birth of new businesses, invigorate their interest to live and develop, get people to work there,” said Alla Sundukova. She stressed that supporting businesses was the main goal of Belarusian tax authorities.

External source of this news: http://news.belta.by/en/news/econom?id%3D649676
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