The issue of taxation always occupies an essential place in financial relations between citizens and the state. In Belarus, as in other countries, compliance with tax legislation is not only the right but also the duty of every citizen. However, individuals’ non-payment of taxes can lead to severe consequences. In this article, we will look at the main aspects of paying taxes and liability for their non-payment, the types of possible sanctions, and the consequences that may arise as a result of tax evasion. Understanding these issues will help citizens to approach their financial obligations and avoid negative consequences consciously.
When individuals must declare their income and pay taxes
For individuals who work for hire or under a contract or another civil contract or sell property to companies, taxes are paid by the employer or company that buys the property. However, there are cases when individuals must independently declare their income and pay income tax on it. For income received in 2024, the tax return will have to be submitted in 2025, and the tax will have to be paid in the same year.
When to file a declaration
1. Receiving large amounts of gifts
If an individual received gifts in a calendar year, including money worth more than a certain amount, you must complete a tax return and possibly pay income tax. The total amount for the year is considered. The minimum amount of such gifts changes annually and is set by tax amendments effective from January 1 of each year. 2023, this amount was 9,338 Belarusian rubles (approximately 2,630 euros). In 2024 – 10,431 Belarusian rubles (approximately 2,930 euros).
2. Application of the tax deduction for those in need of better housing conditions
If a person has paid back contributions for housing construction, paid off housing bonds, or failed to sell leased housing, then you must submit a tax return to recalculate income tax.
3. Selling real estate twice and more often in the last five years
If there was a sale of housing, including unfinished land, cottages, garages, land plots, and parking spaces, more often than once every five years, you must file a tax return. The sale also includes an exchange if the person receives a financial benefit as a result. But if inherited property was sold, the tax will not have to be paid.
4. Selling a car or other power-driven vehicle more often than once a year
In this case, you will not need to pay the tax if the sold vehicle was inherited.
5. Earning income abroad or from abroad
We are talking about receiving income from close relatives, not from close relatives. The tax inspectorate usually calls when it has information about receiving income in the amount of more than 10,431 Belarusian rubles (approximately 2,930 euros) in 2024.
When receiving income from foreign companies or individuals unrelated to close relatives, tax is also not always necessary. If a foreign customer has paid the tax on the income of a Belarusian individual himself, then you need to take a certificate of tax payment from him and bring it to the tax inspectorate. The amount of tax calculated in Belarus will be credited, and it may turn out that the tax does not need to be paid or will be significantly reduced.
6. Single taxpayers
Single taxpayers include individuals not registered as sole proprietors but engaged in permitted activities from which they receive income. For example, this applies to those who rent out housing. Such individuals pay a flat tax at a fixed rate once a month.
When to pay taxes without a declaration
There are cases when individuals not registered as entrepreneurs must pay taxes without filing tax returns.
Professional income tax
The amount of tax depends on the income registered in the Professional Income mobile app. After the grace period ends, if income was earned in the previous month, the tax must be paid every month.
Land and real estate tax
Once a year, land and real estate taxes are paid by individuals with their own housing or land plots in Belarus. This tax is calculated by the tax office and notified by mail. You can also view the notification on your account on the Ministry of Taxes and Duties of Belarus’ website. You must pay these taxes by November 15, following the reporting year. In 2024, these taxes must be paid for 2023.
What is the liability for non-payment of taxes by individuals established in Belarus?
Belarus has no institution of bankruptcy of individuals due to the inability to pay taxes. Fines and penalties are imposed for non-payment of taxes. Criminal liability is provided in case of non-payment of taxes on a vast scale.
What amounts will you have to pay in case you do not pay taxes?
Liability for non-payment and late payment of taxes is established as fines.
Fines are calculated as a percentage of the unpaid taxes. In addition to fines, the tax inspectorate charges penalties for each day of non-payment. Thus, the tax amount increases by the amount of the fine and penalty fee.
When calculating fines, the tax inspectorate takes into account the reasons why the tax was not paid.
Liability in case of non-payment of tax due to negligence
When the tax is not paid in time due to negligence and the unpaid amount is more than 1 basic value (this is 40 rubles or approximately 11 euros), the tax penalty will be 15% of the unpaid tax amount. In any case, the minimum fine will be no less than half of the base amount—20 Belarusian rubles or approximately 5.6 euros.
Liability in case of non-payment of tax intentionally
When the tax is not paid intentionally, the penalty for non-payment is 40% of the unpaid tax amount. The minimum penalty for such a violation is ten basic units, 400 Belarusian rubles or about 112 euros.
Liability in case of repeated violation
If the tax is repeatedly intentionally not paid within one year after the penalty for intentional non-payment of tax, the fine will be 100 to 200 basic units. This is from 4,000 to 8,000 Belarusian rubles, or approximately 1,123 to 2,247 euros.
Voluntary payment of tax in full or in part (even if you missed the payment deadline) allows you to receive a minimum fine, but this option is not available if you repeat the violation.
What is essential to pay attention to so that you will not be held liable for tax evasion
1. Know your tax obligations
Review your tax obligations: what taxes you must pay (for example, professional income tax, transport tax, property tax) and when these taxes are paid.
2. Specify the deadline for submitting declarations
Find out if you need to file tax returns and specify the deadline for filing them. Follow the deadline for filing tax returns. Failure to meet deadlines may result in fines and penalties.
3. Ask for tax calculation advice.
If you need help understanding how to calculate the tax, contact the tax inspector or accountant with questions. This applies to taxes you calculate on your own or if you want to check the calculation made by the tax inspector. Mistakes can lead to additional tax obligations and liability. We recommend that you have documents that confirm the receipt of income from close relatives, certificates of withholding taxes by foreign customers, and documents that indicate that you did not receive taxable income due to transactions.
4. Save your income and expense documents
Keep all documents confirming your income and expenses. This will help in the case of a tax audit. The tax audit of your documents takes place when you come to the tax inspector’s call to file a declaration.
5. Use tax deductions
Find out about the tax deductions you are eligible for (for example, tuition, children, housing construction, etc.).
6. Study the issue of tax benefits
Explore opportunities to get tax benefits if you meet the requirements (for example, tax benefits for pensioners and disabled people).
7. Consult with professionals
Consider consulting with a tax consultant or accountant to avoid making mistakes.
8. Pay your taxes on time
You must pay the tax before the end of the last day of tax payment. This is the date specified in the notification to the tax office or that you must find out as a payer of a particular tax. If the last day of tax payment falls on a day off or a public holiday, you can pay the tax on the next business day after the non-working day.
By following these guidelines, you can minimize the risks of being held liable for tax evasion.
How to contact us
For more information or advice on issues related to liability for tax evasion in Belarus, do not hesitate to contact us. We are here to help and support you.
Phone and email communication options are available for your convenience:
- +375293664477 (WhatsApp/Telegram/Viber);
- info@spex.by.
