The standard tax deduction for citizens of Belarus in 2012 has been increased to Br440 thousand.

12 January, Minsk /BELTA correspondent/. Standard tax deduction amounts have been indexed in Belarus. This was reported to a BELTA correspondent by the Ministry of Taxes and Duties, commenting on amendments to tax legislation concerning individuals, including individual entrepreneurs, introduced from 2012. Standard tax deductions are a benefit provided to citizens in the form of full exemption from income tax on a certain amount of income. From 1 January 2012, the amount of the standard tax deduction granted to taxpayers has been indexed. Thus, from 1 January 2012, the standard tax deduction at the place of primary employment for citizens whose monthly income does not exceed Br2,680,000 will be Br440,000. In 2011, such a deduction was provided in the amount of Br292,000 to citizens whose monthly income did not exceed Br1,766,000. "Thus, an increase in the amount of the standard tax deduction will lead to a reduction in the income amount from which income tax is calculated, and, consequently, the amount of income tax payable to the budget will decrease," the ministry specialists noted. Other standard tax deductions have also been indexed. The deduction for children under 18 and dependents has been increased from Br81,000 to Br123,000, and for persons entitled to receive such a deduction in an increased amount (widows, widowers, single parents, guardians, trustees, etc.) - from Br162,000 to Br246,000. The deduction for certain categories of taxpayers (disabled persons of the first and second groups, disabled persons since childhood, WWII veterans, etc.) has been increased from Br410,000 to Br623,000. In order to further reduce the tax burden, from 1 January 2012, income received by citizens in need of medical care, including surgical operations, in the form of gratuitous (sponsorship) assistance from Belarusian organisations and citizens of Belarus, is exempted from income tax. Such income is fully exempt from income tax upon provision of appropriate confirmation issued in the manner established by the Ministry of Health of Belarus. "In 2011, such income was exempted within the limit of up to 1,000 basic units per year, i.e., in the amount of Br35 million," the Ministry of Taxes and Duties noted.

Furthermore, since January 1, 2012, a benefit has been introduced regarding income received as payment for the cost of vouchers to sanatorium-resort and health improvement organisations in Belarus, purchased for children by Belarusian organisations or individual entrepreneurs. Such income is exempt from personal income tax within the limit of Br1 million 750 thousand.

The amount of income not subject to personal income tax, not related to the performance of labour duties, including material assistance, gifts, prizes, payment for vouchers, and insurance services, has also been increased. For citizens receiving such income at their primary place of work (service, study), the amount of income not subject to personal income tax has been increased from Br5 million 250 thousand to Br8 million per year, and when receiving the aforementioned income from other organisations and individual entrepreneurs – from Br350 thousand to Br530 thousand per year.

Since 2012, parents with two or more children under the age of 18 have been granted the right to receive a standard tax deduction for children in an increased amount – Br246 thousand per month. Previously, this right was granted to parents only if they had three or more children under the age of 18.

To simplify tax administration, since January 1, 2012, tax agents have been exempted from the obligation to transfer personal income tax from their own funds when issuing loans to individual entrepreneurs or private notaries.

In addition, the procedure for taxing the income of entrepreneurs – payers of a single tax has been simplified. Thus, since January 1, 2012, income from the sale of goods from retail outlets to business entities is subject to a single tax. In this regard, the need for such entrepreneurs to maintain separate accounting of income and simultaneously apply different tax systems is eliminated. Previously, such income was taxed either under the generally established procedure or under a simplified taxation system, as clarified by the Ministry of Taxes and Levies.

Changes have also been made to the rules for calculating the single tax. Thus, a multiplier of 2 to the single tax rate is now applied when selling goods at retail for which the entrepreneur lacks documents confirming their acquisition. In this case, it does not matter whether such goods are foreign or domestic. Previously, the multiplier of 2 was applied only to the sale of foreign goods, regardless of the availability of documents for such goods.

BELTA