5 December, Minsk /BELTA/. In Belarus, with the entry into force of the new Tax Code on January 1, 2013, the conditions for applying the simplified taxation system (STS) are improving. This was announced by Irina Luferchik, Deputy Head of the Main Department for Taxation Methodology of Organisations - Head of the Department for Special Taxation Regimes of the Ministry of Taxes and Levies of Belarus, today during an online conference on the BELTA website. Irina Luferchik outlined the main changes that will occur in the simplified taxation system next year. First of all, she noted the change in tax rates under the STS. Thus, the rate applied when paying VAT has been reduced from 5% to 3%, and for entities not paying VAT, it has been reduced from 7% to 5%. At the same time, the STS tax rate of 15% of gross income is abolished. "As a replacement rate for taxpayers not paying VAT, with a staff of no more than 15 people and gross revenue not exceeding Br4.1 billion, a 3% rate has been introduced, which will be applied to revenue from retail sales of purchased goods," clarified the representative of the Ministry of Taxes and Levies. According to her, the result of these changes is the establishment of a unified tax base in the form of gross revenue, as well as a reduction in the number of STS tax rates from six to four, which will not only reduce the tax burden when applying the simplified system but also simplify tax administration. Another innovation is the increase in gross revenue criteria from Br3.4 billion to Br8.2 billion and the number of employees from 15 to 50 people for applying the simplified system without paying VAT. Also, the gross revenue criterion for those wishing to keep records in the income and expenses record book has been increased from Br3.4 billion to Br4.1 billion. "As a third change, it should be noted the introduction of an obligation for STS taxpayers, under circumstances defined by the Tax Code, to pay property taxes," emphasised Irina Luferchik. The last significant change in the simplified taxation system relates to the procedure for calculating the tax base. As the expert explained, organisations keeping accounting records will determine revenue on an accrual basis, while entities keeping records in the income and expenses record book will do so on a cash basis.