Legislation news | Belarus

The amendments to the Law on the currency regulations and currency control will come into force on 12/12/2009.
After the amendments come into force, current operations will be considered as payments under the export or import contracts (except real estate, stocks and bonds contracts), payments under the rent or leasing contracts, recepting of dividends and other investment income. So the 180-day period which determines whether the payment is current or not is canceled.

The Law on the amendments and changes to the Law of the Republic of Belarus on Commercial Companies is being drafted.
Its aim is to change the Law according to the current legislation and to determine some rules. For example, it specifies the determination of the “major transaction”, simplifies the procedure of sponsor’s help, determines the list of affiliated persons.
The Law is supposed to be changed according to the remarks and offers and brought to the discussion of the House of Representatives of the Parliament.

The Resolution N 842 of the Council of Ministers came into force on 09/07/2009
The Resolution changes such documents as the Typical Memorandum on Commission on Bankruptcy Preventing, the Memorandum on Accreditation of Insolvency Manager, the List of the Bankruptcy Preventing Judicial and Economic Measures, the Memorandum on the Coordinating Council of Commissions on Bankruptcy Preventing.

On the 12th of May 2009 the amendments to the President’s Ordinance N 452 on the obligatory sale of foreign currency were adopted. They will come into force on 21st of July 2009.
Now companies and sole traders which are the residents of the Republic of Belarus are obliged to sell 30% of foreign currency income on the Belarusian market. After the amendments come into force the amount of foreign currency that has to be sold will be determined by the National Bank of the Republic of Belarus.

On the 21st of March 2009 the Council of Ministers of the Republic of Belarus adopted the Resolution N 346
On the registration of license contracts, contracts of a concession and pledge contracts of the rights to objects of the industrial property and contracts of the complex enterprise license (franchise).
Upon the said Resolution is published the parties of relevant contracts are obliged to register them in special State Registers. Also all amendments to these contracts are to be registered.
The main distinction from the previous Resolution is that the requirement to register contracts of the complex enterprise license (franchise). The registration of the contracts is held within one month from the date of application.

On April 1st, 2009 the amendments to the President’s Ordinance N 178 on the foreign trade transactions’ procedure and control came into force.
The amendments simplify the procedure of foreign trade transaction’s conduction. In particular, instead of legalization of a transaction’s passport in beneficiary bank, it will be just sufficient to register the transaction in that bank.
Additionally the Ordinance will not regulate any transactions conducted in the performance of a rent, lease contracts, insurance contracts, loan and bank credit contracts, as well as transactions that are regarded by law as bank transactions and others.

01.02.2009 The Decree N1 came into force. This Decree significantly simplifies the procedure of public registration and liquidation of enterprises and entrepreneurs, the procedure of opening of a current bank account as well as some other changes.
Therewith there is not obligatory to notarize Articles of Association and Memorandum of Association.
On the other hand the Decree strengthens the responsibility of owners for the information supplied by them during the public registration. In the case of false information supplied a registered enterprise is considered to be illegal and shall be closed, all its incomes shall be exacted in local budgets on court’s decision.

Opportunities for Importers
Requirements of Resolution of the Board of the National Bank of the Republic of Belarus No. 165 on Payment Procedures under Foreign Trade Agreements Involving Import dated 11.11.2008 do not apply to payments by an importer by letter of credits.
A letter of the National Bank of the Republic of Belarus No. 31-14/1517 “on Payment Procedures under Foreign Trade Agreements Involving Import dated 18.11.2008 illustrates that a letter of credit is a separate obligation with respect to obligations arising from a sales contract or other contract involving such method of payment (part three, Article 254 of the Banking Code of the Republic of Belarus).

No Prepayment
Starting from November 16, 2008 a Resolution of the Board of the National Bank of the Republic of Belarus No. 165 on Payment Procedures under Foreign Trade Agreements Involving Import dated 11.11.2008, prohibiting prepayment for effecting advance payments by an importer in favor of a non-resident, came into effect.

Re-execution of Contracts
In Minsk sublease contracts for communal property premises are to be re-executed into direct lease contracts, as the Republican Commission for Regulation of Administrative Buildings, Constructions, Production Areas and Other National Property Units recognized national property sublease as inappropriate.

On Breach Classification
State Customs Committee approved common approach to qualification of breaches related to provision of corrupt data in transport (shipping) and commercial documents. Now customs authorities shall distinctly differentiate between non-deliberate faulty actions implying no damage to national economy, and illicit transfer of goods.

On National Property Sublease
In March of the current year the Republican Commission for Regulation of Administrative Buildings, Constructions, Production Areas and Other National Property Units adopted the Decision on Prohibition of the National Property Sublease in the Republic of Belarus from April 24, 2008 (Protocol No. 39 dated 25-26.03.2008). Later currency exchange offices, ATMs, information kiosks, electronic interactive games sale points set by Sport-Pari CJSC were allowed to work under national property sublease conditions as an exception.

Extension of Foreign Trade Transactions
Ministry of Trade of the Republic of Belarus advised that admission of documents for permits to extend foreign trade transactions shall be stopped on October 1, 2008 at18.00 .
Starting from October 2, 2008 (the date Decree of the President of the Republic of Belarus No. 178 dated 27.03.2008 comes into effect), this transaction shall be carried out by the National Bank of the Republic of Belarus (its main branches regionally).
Permits shall be issued pursuant to Resolution of the Board of the National Bank of the Republic of Belarus No. 100 on Approval of the Instructions for Issue of Permits for Extension of the Terms for Discharge of Obligations in the Exercise of Foreign Trade Transactions dated 28.07.2008.

To the Attention of Importers
Ministry of Economy of the Republic of Belarus intends to cancel resolution No. 179 dated 27.08.2008 starting from September 14, 2008 as well as Regulations for Price and Rate Setting and Application Procedures, approved by resolution ¹ 43, as amended.

New Regulations for Goods Acceptance in Terms of Volume and Quality
New Regulations for Goods Acceptance in Terms of Volume and Quality were approved by resolution of the Council of Ministers of the Republic of Belarus No. 1290 dated September 3 and introduced into the National Register of Legal Acts of the Republic of Belarus on September 2008, Ref. No. 5/28293. The said Regulations come into effect upon their official publication and supersede Regulations for Goods Acceptance in Terms of Volume and Quality, approved by resolution of the Cabinet of the Republic of Belarus No. 285 dated 26.04.1996.

Registration of Real Estate, Rights Thereto and Transactions Therewith
Law of the Republic of Belarus No. 335-Ç dated 02.05.2008, according to which numerous amendments to the Law of the Republic of Belarus on State Registration of Real estate, Rights Thereto and Transactions Therewith were introduced, came into effect.
The renewed law allows any registration activities with respect to estate shares, simplifies the procedure of real estate division, cancels the requirement that the application for registration is to be signed by both Parties to transaction; new revision thereof sets out rules and procedures for registration etc.

Rules of Motor Trucking
Rules of motor trucking, approved by Resolution of the Council of Ministers of the Republic of Belarus No. 970 dated 30.06.2008 (Reg. No. 5/27990 dated 15.07.2008) came into effect on July 1, 2008.
The Rules regulate requirements to safe motor trucking, requirements to carriers, drivers and vehicles during national and international transport operations, general conditions of motor trucking.

Procedure for Safety Confirmation
Opportunities to confirm safety and quality of the imported goods were extended.
Resolutions of the Ministry of Trade of the Republic of Belarus, Ministry of Agriculture and Food of the Republic of Belarus, Ministry of Health of the Republic of Belarus, State Standardization Committee of the Republic of Belarus No. 28/35/38/27 on Confirmation of Safety and Quality of Goods upon Their Sale in Retail Facilities, Public Catering Trade Facilities, Market Trade Places dated 07.05.2007 were respectively amended.

Privileges Come Into Effect
Pursuant to Decree of the President of the Republic of Belarus No. 1 on Production and Disposal of Goods (Work, Services) Stimulation dated 28.01.2008, business entities, established after April 1, 2008 in little towns, shall be granted additional privileges.
The entities shall be exempted form income tax, fee to the Republican Agricultural Producer, Foodstuff Producer and Agricultural Science Support Fund and some other taxes for 5 years from the date of establishment. These preferential conditions shall be valid in localities with population below 50 thousand (according to the list approved by the Government of the Republic of Belarus).

Transition to OKED
Date of transition to the National Economic Activity Classifier (OKED) has been set.
Obligatory use of OKED starting from January 1, 2011 by all economic agents of the Republic of Belarus shall be regulated by Resolution of the Council of Ministers of the Republic of Belarus No. 1129 on Approval of Measures for Statistical and Economic Implementation of the National Economic Activity Classifier in the Republic of Belarus dated 12.10.2005.

Tax benefits for commercial companies starting activity in small cities.

Changes in taxation in 2008.

For State Registration Applicant
According to Resolution of the Ministry of Justice of the Republic of Belarus No. 90 dated 27.12.2007, measures for implementation of Decree of the President of the Republic of Belarus No. 8 concerning state registration and liquidation (termination of business) of economic agents were specified.
The Resolution approved application forms for state registration of a legal entity, state registration of amendments to instruments of incorporation of a legal entity, state registration of a sole proprietor, state registration of amendments to Sole Proprietor’s State Registration Certificate.

On Vehicle and Trailer Import Procedure
Decree of the President of the Republic of Belarus No. 503 on Preferential Transfer of Goods for Personal Use over the Customs Frontier dated 15.10.2007 came into effect on December 22, 2007.
According to the State Customs Committee, vehicles and trailers, registered in the Republic of Belarus and the Russian Federation, as well as vehicles and trailers, registered in foreign states and imported by non-residents, shall not be liable to customs duties, taxes and may be imported for any period without submission for customs clearance.

As it was published earlier, The President Decree ¹7 that regulates the order of reception of licenses (special permissions) on some kind of activities was passed in November 2007.
From the moment of the entering into force the Decree grants the right to obtain a license to foreign legal persons and organizations that were formed according to legislation of foreign country in case if they have representative office on the territory of the Republic of Belarus (if legislation doesn’t establish that the right of realization of licensed kinds of activity have only Belarusian legal persons and private entrepreneurs registered in the Republic of Belarus). Until now the order has been established only concerning foreign companies that carry on freight forwarding.

Minister of justice during the press conference in Minsk notified that the Ministry of Justice of the Republic of Belarus is working out the document that will render additional financial and tax benefits and privileges for foreign companies.

The Government of the Republic of Belarus the decision ¹1120 of 01/09/2006 cancelled the license requirement to adhere to relative density of the goods of a domestic production in total amount of commodity circulation of a retail trading network.
It will allow subjects of retail trade to be more free in a choice of suppliers, that, undoubtedly, stimulates development of trade in our country.

With the aim to stimulate the development of domestic goods (works, services) export legislation provides the opportunity of insurance of export risks with support of the state (Decree ¹534 of 25/08/2006).
The President establishes the order of insurance of export risks, payment of insurance compensation on which is carried out with attraction if necessary the funds stipulated in the republican budget; also concessionary terms of credits for manufacture of export production are established.
The Decree is coming into force on 01/01/2007.

Addition to Decree ¹ 373 of 15/08/2005 is included.
Limitations of discharges without funds receipt, established by present Decree from 01/10/2006 will not be applied in case of bank credit repayment and credit interests.