Point detailing and simplification of administration: studied changes in the draft Tax Code for 2027

The draft law “On Amendments to the Tax Code of the Republic of Belarus” was published on the National Legal Internet Portal. Earlier, the draft in coordination with the President was sent to the House of Representatives. The document sets the main vectors of tax policy for 2027. As noted in the Ministry of Finance, the priority remains unchanged – ensuring a stable income in the budgets of all levels to fulfill state obligations. For the vast majority of taxpayers, the tax burden and tax conditions will not change next year. The approaches for 2027 are based on basic measures to index fixed tax rates to the forecast inflation rate. This is a planned recalculation that allows you to preserve the real value of tax revenues without changing the principles of taxation. It is also planned to detail the provisions of the Tax Code in the framework of law enforcement practice, simplify administration and control, synchronization of legislation. The details are in our review.

It is worth saying that the main work on tax consolidation was carried out in previous years. Belarus has consistently implemented a set of measures aimed at strengthening the revenue side of the budget: an increased income tax rate, a differentiated income tax rate and others. When adjusting the Tax Code for 2027, no radical changes are proposed. The main goal is a point superstructure, adaptation to changing conditions. It provides for the implementation of basic, additional and fiscal measures of tax policy. First of all, it is envisaged to index tax rates established in absolute values by the forecast inflation rate. The basic measure of tax policy is the indexation of tax rates and individual elements of taxation, which are set in fixed amounts in Belarusian rubles. It takes into account the growth rate of the consumer price index, nominal accrued wages, the cost of construction and installation works, said Minister of Finance Vladislav Tatarinovich.

The taxation system, taking into account the practice of application, specifies the procedure for calculating and paying individual taxes so that the mechanism is clear, understandable and transparent.

- In particular, the procedure for confirming the zero rate of value added tax in the provision of export transport services will be significantly simplified. We will tie it to the approach that exists in accounting. That is, you will not need to wait for confirmation from the buyer that he received the exported goods. The information will be reflected in accounting, the minister added. Now we propose to understand in detail what changes are expected in the tax legislation from 2027. And first about the adjustments for individuals. On income tax, in order to make it more comfortable for both payers and tax authorities to work, a proposal was made to shift the deadlines for submitting a tax return for the year by a month - until April 30. The deadline is now 31 March. The additional payment of the tax itself is shifted until August 1. In addition, measures are being taken to simplify tax administration procedures. They are increasingly being translated into digital format.

Most citizens do not need to file an annual declaration. If a person receives only a salary from a Belarusian employer that does not reach the threshold of super-income taxation, or a pension, then the declaration is usually not required: the employer keeps the salary tax, and pensions are exempt from income tax.

The obligation to file a declaration may arise when receiving taxable foreign income, income from the sale of property not subject to exemption, gifts from persons who are not close relatives, in excess of the established non-taxable limit, as well as income taxed at higher rates under the so-called super-income tax.

The draft law “On Amendments to the Tax Code of the Republic of Belarus” provides for the indexation of the amounts within which individual income is exempt from income tax. In particular, the limit for the category “Material assistance, gifts and other income that are not wages at the place of main work” increased in 2027 to 4293 rubles. The limit on gifts from individuals who are not close relatives received in Belarus is up to 6,588 rubles. The limit of income received from individuals abroad or from abroad, including money transfers, is proposed to increase to 6588 rubles. This rule does not apply to business income and other income expressly excluded from exemption by law.

The draft law proposes to change the current procedure for calculating the tax on excess income, in which you can offset previously withheld for a month tax on all income, including that part of it that does not exceed the established threshold. Under the new rule, the offset will be made proportionally: taking into account the ratio of income taxed at higher rates to the total amount of income accrued for the month. A tax on the usual portion of monthly income will no longer reduce the tax on excess income. The amendment concerns the calculation of tax at increased rates of 25 and 30 percent. In respect of income tax, it is planned to establish the procedure for granting a property tax deduction for the construction or purchase of housing after the dissolution of marriage by the spouses. It is also expected to change the procedure for recognizing souvenirs and memorable products as non-taxable.

According to the draft law “On Amendments to the Tax Code of the Republic of Belarus”, it is proposed to increase the general standard deduction from 216 to 237 rubles per month, and the maximum monthly income for its application from 1308 to 1436 rubles. The deduction for a child under 18 years of age and each dependent is expected to increase from 63 to 69 rubles per month, and the increased deduction for children and dependents for the categories provided for by the Tax Code - from 120 to 132 rubles per month. As for the deduction for young professionals and other categories of young workers provided for by law, it will increase from 860 to 964 rubles per month.

According to the draft law, the monthly amount of income tax for each rented living room will be 56 rubles in Minsk, 52 rubles in regional centers and Minsk district, 35 rubles in large cities listed in the Tax Code, and 21 rubles in other settlements and other territories. This is a separate taxation procedure for renting housing to individuals. The postponement of the annual declaration does not mean the postponement of the fixed tax payment. As for land tax, it is envisaged to increase rates in rubles and cadastral value thresholds for the purposes of the tax base, as well as to establish procedures for determining the tax base and paying advance payments for 2026. An adjustment will be made to the inclusion of tax in costs when taxing profits.

Adjustments are planned for the transport tax. The procedure for applying the benefits in respect of mothballed vehicles will change, tax rates for organizations, individual entrepreneurs and other individuals will increase. In addition, the procedure for calculating the tax paid by individuals will be supplemented. Thus, when changing the procedure for calculating the tax paid by individuals, the new procedure is used in respect of objects of taxation, the calculation of transport tax on which is made for the tax period from the moment of changing this procedure.

From 1 January next year, it is planned to fix that in transactions with financial instruments of fixed-term transactions, two turnovers are formed: one for the implementation of property rights, the second for the sale of the underlying asset. They also intend to introduce a ban on the application of the VAT rate of 20 percent when selling (importing) goods subject to VAT at a VAT rate of 10 percent, if their purchase (import) is financed from budget funds. In addition, it is planned to allow the use of copies of transport (shipping) documents when confirming the zero VAT rate when exporting goods to the EAEU member states and to attribute to exported transport services subject to VAT at a rate of 0 percent, transportation of oil and oil products via main pipelines.

ACCISES

From January 1, 2027, it is planned to increase excise duty rates on individual excisable goods. At higher rates - 1.5 times the current rates for the corresponding category of drink - it is proposed to impose excise duties on premium alcohol products. Thus, the excise tax on strong premium alcohol will be 41.85 rubles per liter of anhydrous alcohol against 27.90 rubles for ordinary. For premium wines, the rate will reach 2.42 rubles per liter, for the rest - 1.61 rubles. Excise duties on liquids for electronic smoking systems and non-tobacco nicotine-containing products are expected to increase by 20 percent.

sichevich@sb.by