Profit tax may be reduced to 20% in Belarus

Starting 2012 there are plans to reduce the pressure on the main source of corporate investments – profits, said the official. “Coupled with the removal of the territory development fee the overall tax will be reduced from 27% to 24%. In the future we believe it is quite feasible to reduce the profit tax to 20%,” said Dmitry Kiyko.

It is one of the future measures meant to remodel the taxation system and make it stable and simple before 2015. There are plans to remove the right of local authorities to introduce multipliers for real estate tax and land tax. Procedures used to collect the main taxes (VAT, profit tax, property tax) will be streamlined through introducing commonly accepted mechanisms such as carry forward, full VAT rebate, introduction of effective ways to use resources and utilize production waste.

There are plans to start gradual reduction of transfers to the Social Protection Fund by 2015. “The matter is, however, tied to the pension system reform and will be considered together,” said Dmitry Kiyko.

There are also plans to scrap fees paid to innovation funds. It is possible they will be replenished voluntarily by corporate savings. It is possible that the VAT will be reduced in 2013-2014.

Taking into account the streamlined taxation, reduction of the number of tax payments, reduction of the size of the main taxes the application of the many tax preferences that exist at present will be revised.

 According to Belarusian portal