3 January, Minsk /BELTA/. The profit tax rate in Belarus will be reduced from 24% to 18% in 2012. This was announced on December 30 to journalists by Dmitry Kiyko, Head of the Main Directorate for Tax Policy and Budget Revenues of the Ministry of Finance of Belarus, as reported by BELTA correspondent. Dmitry Kiyko commented on the law signed on December 30, introducing amendments and additions to the Tax Code of Belarus. "This will be the lowest profit tax rate in the Customs Union and one of the lowest in Eastern European countries," he noted. The rate reduction is stipulated by the law on amendments and additions to the Tax Code of Belarus, which was signed by the President on December 30. These amendments come into effect on January 1, 2012. The law takes into account the results of the practical application of tax legislation, Directive No. 4, changes in customs legislation within the Customs Union, as well as appeals from citizens and public associations. The law provides for a number of measures. These are general systemic measures aimed at reducing the tax burden, enhancing investment incentives, and thereby increasing the competitiveness of the economy. "This is achieved by a significant reduction in the profit tax rate – from 24% to 18%," noted Dmitry Kiyko. Simultaneously, the tax legislation introduces generally accepted mechanisms for stimulating investment activities. This includes expanding opportunities for accelerated depreciation of assets, as well as the possibility of carrying forward losses to future profits for 10 years without quantitative restrictions. "The combination of these key tax measures will ensure a reduction in the tax burden by approximately 0.4% of GDP in 2012. The reduction in the tax burden is envisaged for small and medium-sized businesses, emphasized the representative of the Ministry of Finance. To this end, the tax rate under the simplified tax system is reduced by up to 1 percentage point, making it 7% instead of the previously applicable 8%.