by Tatiana Smolenskaya, Tax-News.com, Moscow
Profit tax, value-added tax (VAT) and social security charges are to be reduced in stages up to 2015 said Dmitry Kiyko, Head of the Central Office for Tax Policy and Budget Revenues of the Belarusian Finance Ministry, in a media presentation.
According to Kiyko, the government would start in 2012 to reduce the tax burden on corporate income with a cut in the effective rate from 27% to 24%. A further cut to 20% is also being considered. It was part of a plan to simplify the tax regime and make it more stable by 2015, Kiyko said. The streamlining will also involve a move away from monthly and quarterly tax payments to annual payments.
VAT may be reduced in the 2013-2014 period, and with regard to reductions in social security charges, Kiyko said that this would need to be looked at in conjunction with pension system reforms that are also planned.
Other tax reform measures designed to bring Belarus in line with good practice internationally could include restrictions on local government powers with regard to local real estate and land taxes and a simplification of the environment tax.