January

2001

THE DECREE OF THE PRESIDENT OF THE REPUBLIC OF BELARUS (project)

About single tax from the personal businessmen

And other physical persons realising

Production (goods, work, services), and also about separate

Questions connected with the indicated activity

To create favourable conditions for development of business, to maintain social guaranties and to perfect the order of taxation of the personal businessmen, other physical persons and according to the third part of article 101 of the Constitution of the Republic Belarus I ORDER:

1. To enter the single tax:

From the personal businessmen and foreign citizens and stateless persons at realisation of  work and services and also at retail realisation of production (goods) according to the List of kinds of works at realisation of which personal businessmen and other physical persons pay the single tax and base rates of the single tax appended to this Decree through points of sale (except for shops);

From the citizens of the Republic of Belarus who are not personal businessmen at single (not systematic) realisation of production (goods) which was made, converted or acquired by them to realise at the markets.

This Decree is not distributed to the personal businessmen who are part of the agreement of the special partnership (of the agreement about co-operation).

With the purposes of this Decree the points of sale are:

- Points of a small-retail trade network (tents, kiosks which do not have trade halls, pavilions, mini-cafe, summer cafes and also delivering and street-hawking trade network);

- Isolated trade places at the markets outside of a fixed trade network; isolated trade places submitted by juridical persons or by citizens in the order established by the legislation for the trade;

- Isolated places at the trade areas which belong to personal businessmen on the property right.

2. To approve an appended List of kinds of works at realisation of which personal businessmen and other physical persons pay the single tax and base rate of the single tax (the List is below).

3. To establish, that:

3.1. At payment of the tax established by point 1 of this Decree, his payers are freed from the payment of:

Income tax from physical persons from the incomes received by them at realisation of activity indicated in the second paragraph of point 1 of this Decree;

Value added tax except for the tax paid by personal businessmen on the goods imported to the customs territory of the Republic of Belarus;

Tax for the use of natural resources (ecological tax);

The local taxes and collections the payment of which is made at realisation of the activity indicated in the second paragraph of point 1 of this Decree by personal businessmen;

3.2. Regional and Minsk Municipal Councils of the deputies establish the rates of the single tax outgoing from base rates of the single tax indicated in the List appended to this Decree (the established rates of the single tax are below) depending on:

inhabited locality in which the activity is realised (Minsk, city of regional subordination, cities of district subordination, settlements of a urban type, agricultural inhabited localities);

places of realisation of activity inside of an inhabited locality (centre, suburb, transport upshots etc.);

mode (working in shifts) of activity;

remoteness of a place of realisation of activity from stops of a public transport;

types of a point of sale;

other features and conditions of realisation of activity.

3.3. Established rates of the single tax are lowered on:

25 percents - for the citizens who are registered as personal businessmen for the first time (they have not been earlier included into the Unified state register of juridical persons and personal businessmen) during first three months from the date when he receives the testimony about the state registration;

20 percents - for personal businessmen - pensioners on age or physical inability;

If personal businessmen have simultaneously several basis foreseen in the present sub-item, the established rate of the single tax is lowered on 45 percents;

3.4. Personal businessmen and other physical persons who realise production of animal industries (except for breeding of animals for furs), bee-keeping and plant-growing except for realisation of flowers and seeds of flowers if they show the note from local executive and executive body verifying that the production sold by these citizens is made on the land lot submitted to him according to legislation of the Republic of Belarus to keep a personal part-time farm, gardening, market-gardening (concerning commodity of bee-keeping - veterinary-sanitary passport of an apiary) and also medicinal plants, berries, mushrooms, nuts, other wild production are freed from payment of the single tax;

3.5. At realisation of several kinds of activities (services) indicated in the List appended to this Decree the payment of the single tax is made on that kind of activities (services) on which the highest rate of tax is established.

If physical persons according to the labour or civil-law agreement are attracted to realise activities (services) then taking into account every hired physical person the tax at the rate of 60 percents from the established rate of the single tax on the appropriate kind of activities (services) executed by this physical person is increased additionally. Thus, if a physical person executes some kinds of activities (services) the payment of the tax at the rate of 60 percents is made on that kind of activities (services) on which the highest rate of this tax is established.

At realisation of several kinds of production (goods) indicated in the List appended to this Decree the payment of the single tax is made on that kind of production (goods) on which the highest rate of tax is established. At realisation of the goods which were not made in the Republic of Belarus (except for the goods which are the subject to be marked by the excise marks) the raising factor 1,3 irrespectively of specific weights of these goods in trade assortment is applied to the established rate of tax.

At realisation of production (goods) indicated in the List appended to this Decree in several points of sale the single tax is paid on each point of sale;

3.6. Personal businessmen executing the activity indicated in the second paragraph of point 1 of this Decree calculate independently the single tax which is the subject to be paid taking into account rules of the sub-items 3.3 and 3.5 of point 3 of this Decree and outgoing from the rates of the single tax established in the inhabited locality in which the activity is realised and at realisation of activity outside the Republic of Belarus - outgoing from the rates established in the inhabited locality in which a personal businessman is registered as a taxpayer.

At realisation of activity indicated in the second paragraph of point 1 of this Decree less than 15 days in calendar month the size of the single tax is determined by multiplying of the established rate of the single tax to factor 0,04 and multiplying to quantity of days of realisation of activity.

Personal businessmen executing activity less than 15 days in calendar month prior to the beginning of the realisation of activity are obliged to submit the application with the indicating of period of realisation of activity to the tax organ where they are registered as taxpayers. At non-presentation of the application or if the activity is realised more than 15 days in calendar month the single tax which is the subject to be paid is calculated by a personal businessman and he does not take into the account the rules of the second paragraph of this sub-item.

3.7. The citizens of the Republic of Belarus who are not personal businessmen, foreign subjects and stateless persons are calculated the single tax by the state tax organs taking into the account the rules of the sub-item 3.5 of point 3 of this Decree outgoing from the rates of the tax established in the inhabited locality in which they are registered as the taxpayers. If the activity is realised less than 15 days in calendar month the size of the single tax is determined in the order established by the second paragraph of sub-item 3.6 of point 3 of this Decree;

3.8. The payment of the single tax is made in the Belorussian roubles outgoing from a course of euro to Belorussian rouble at the rate of the National bank of the Republic of Belarus which has its force on the first day of the month in which the payment of the tax is realised:

By the personal businessmen - monthly not later than 28^th-of the month which is before the month of realisation of activity indicated in the second paragraph of point 1 of this Decree and if the activity is realised less than 15 days in calendar month - prior to the beginning of the realisation of activity. The payment of the single tax for the first month is made by personal businessmen registered for the first time not later than a day before the realisation of activity.

By the citizens of the Republic of Belarus who are not personal businessmen, foreign subjects and stateless persons – before the beginning of realisation of activity.

The payment of the single tax is made at a place of registration as the taxpayer or at a place where the activity is realised.

The payers of the single tax show the document about the payment of the single tax on which the tax organ makes a mark about the payment of the single tax to the tax organ where they are registered as the taxpayer or at the place where the activity is realised.

The personal businessmen in the document about the payment of the single tax indicate: a kind activity they realise; period of realisation of activity; a place of realisation of activity (place where points of sale are situated; assortment of the goods, production which are realised; quantity of attracted faces who directly participate in realisation of activities (of services).

The document (its copy) verifying the payment of the single tax with the appropriate mark of the tax organ is showed on demand of the workers authorised of the tax organs to this;

3.9. Recalculation (return or offset) of the single tax is made in cases of:

Temporary incapacity to work - on the basis of the documents (their copies) verifying disability which has been given by the authorised bodies;

The forfeits of the right to use points of sale, fix goods, including rooms (buildings) used to realise activity indicated in the second paragraph of point 1 of this Decree by the taxpayer - on the basis of copies of the documents verifying the forfeit of the appropriate right:

The failure to realise the activity because of the decision of the state bodies which hinder to realise this activity except for cases when such decisions are called by improper activity of personal businessmen - on the basis of copies of the solutions of the authorised state bodies or other documents and also as a result of extraordinary situations;

Temporary failure of the personal businessman to realise his activity on period which is no more than 30 calendar days in a year - on the basis of the application of the personal businessman given to the tax organ.

The sum of the single tax which is subject to be returned or offset is determined by multiplying of the sum of the single tax which is the subject to be paid to factor 0,04 and quantity of days during which the activity was failed on the basis indicated in the present sub-item;

4. The personal businessmen realising the activity indicated in the paragraph of the second point 1 of this Decree keep account of the proceeds in the arbitrary form and when a calendar year is finished (not later than February 1 of the year which follows after the financial year) submit the report about the size of the proceeds obtained in the financial calendar year under the form stated by the State tax committee of the Republic of Belarus to the place where they are registered as taxpayers.

The personal businessmen paying the single tax according to this Decree have the right to store the goods, production which are realised in the points of sales without the documents verifying their purchase (entry).

The personal businessmen realising the activity indicated in the second paragraph of point 1 of this Decree do not have the right to apply other order of the taxation. Realising the activity which has not been mentioned in the second paragraph of point 1 of this Decree personal businessmen to register such activity separately.

5. The personal businessmen realising the activity indicated in the second paragraph of point 1 of this Decree can execute the acceptance of cash money resources without the use of the fly-off slips and cash summarising vehicles.

The acceptance of cash money resources without the use of the fly-off slips and cash summarising vehicles does not free the personal businessmen from issuing of cash-memo or other document verifying the purchase, fulfilment of activities, rendering of services to customers of production (goods, activities, services).

Regional executive committees, Minsk municipal executive committee as agreed with the Ministry of business and investments can determine points of sale in which the realisation of production (goods) is carried out only with applying of cash summarising vehicles or the list of kinds of production (goods) realisation of which is carried out only in specially retracted places with applying of cash summarising vehicles.

6. Realising activity indicated in the second paragraph of point 1 of this Decree without payment (at incomplete payment) of the single tax the economic sanctions in the double size from the rate of the single tax established in an inhabited locality in which the activity is realised are applied.

To give the right to apply the economical sanctions foreseen by this point to the officials of bodies of the State tax committee of the Republic of Belarus authorised to that.

7. Undertaking the property agreements and declaring of the incomes from realisation of activity indicated in the second paragraph of point 1 of this Decree as sources of money resources, in the declaration obtained incomes are actually indicated. In these purposes the income applicable to the paid single tax is determined by multiplying of the sum of this tax to 10. Declaring the incomes in the sizes higher than the income which corresponds to the paid single tax as sources of money resources from the sum of such excess the single tax at the rate of 10 percents is paid additionally. The payment of the single tax is made in a month’s time from the date of handing of the payment notice on payment of the tax by the tax organ.

8. The sums of the single tax are completely entered in the budgets of regions and Minsk.

IS APPROVED

The decree of the President of the Republic of Belarus

List of kinds of activity at realisation of which the personal businessmen and other physical persons pay the single tax and base rates of the single tax

Kinds of activity                                                                           the base rate of the single tax for one month (in euro)                                             

Retail trade (except for retail trade

through the objects of public catering): by beer, tobacco articles                           50-150                                                                                         

By bread and articles from bread,                                                                        15-45

by milk and lactic production,

by potatoes, vegetables,

fruits, berries, water-melons, melons, grapes                                                              

by other articles of food (except for alcoholic commodity)                                                                                  25-75                                                                                           

By clothes from natural fur and natural skin, furniture,                                   50-150

carpets and carpet articles, composite household electro-goods,

TV-, radio-goods (except for cassettes of all kinds, compact discs,

elements of feed, spares and accessories to these goods,

devices of remote off-wire control)                                                                                 

By auto-, moto-vehicles                                           60-180

By spares to cars                                                                                                    40-120

By articles of medical assigning                                            20-60                                

By printed publicity materials                                            10-30                                     

By other non-food articles (except for precious metals                                 25-75

and precious stones and articles from them, goods of

special-purpose, petroleum through petrol stations)                                                

Retail trade through objects of public catering                                                  25-75

relating to small retail trade network (except for

retail trade by alcoholic drinks)                                                                                        

Retail trade through objects of public catering                                                 80-240

relating to small retail trade network (including retail

trade by alcoholic drinks)                                                                                                  

Maintenance and repair of automobiles                                                              25-75

motorcycles and motor scooters;

restoration of rubber tyres                                                                                                

Repair of the household goods and subjects of personal use  12-36                   

Production of clothes, footwear and head-gears                                              15-45

according to books of the citizens                                                                                  

Activity in the field of photo                                                                                     20-60                                                                                                      

Carrying out of cinema and video production                                                     25-75

according to books of the citizens                                                                                  

Services of hairdressers’ and other services of beauty saloons      15-45           

Services of taxi and other passenger land vehicles                                          20-60

within the limits of the Republic of Belarus                                                                  

Services of cargo land vehicles                                                                              25-75

within the limits of the Republic of Belarus                                                                  

Services of passenger and cargo land vehicles                                             45-135

outside the Republic of Belarus                                                                                      

Activity on cleaning of buildings                                                                            8-24

General building of buildings; insulation activities;                                           20-60

metal-work and water-pipe activities;

plaster activities; the installation of joiner's elements;

cover of floors and walls; painting and glazing                                                          

Services in the area of plant-growing                                                                     5-15

except for exploitation of sprinkling and bilge systems                                                                                                                                                  

Production of other articles from concrete, gypsum,                                        10-30

cement, cutting, designing and finishing of the stone,

production of other metal articles

according to the books of the citizens                                                                           

Activity in the field of education                                                                               20-60                                                                                                      

Concert activity                                                                                                            30-90                                                                                                      

Medical and dental surgery practice                                                                       15-45                                                                                                      

Activity connected with the maintenance of physical comfort    15-45

Rent of property, cars and equipment,                                                                  10-30

hire of the household goods and subjects of personal use                                                                                                                                          

Reproduction of recorded materials                                                                      15-45

(sound- and video-records, engine information carriers)                                                                                                                                               

Activity in the field of packaging                                     10-30                                       

Looking after children in the day time (children's day nursery)                          8-24

Service in storage of vehicles which belong to the citizens     25-75                     

Other kinds of activities realised by the citizens,                                               25-150

services determined by regional

and the Minsk Municipal Councils deputies                                                                 

Notice: the Strike Committee of the businessmen acts against the increase of the present rates of the fixed tax and declares about a one-day national strike on February 28, 2001.