Reporting of an HTP resident company in Belarus
Mandatory audit of an HTP resident
HTP residents in accordance with Art. 22 of the Law of 12.07.2013 “On Auditing Activity” (as amended and supplemented) must annually conduct a mandatory audit of the annual individual and consolidated (if drawn up) accounting and financial statements, drawn up in accordance with the legislation of the Republic of Belarus.
An annual independent audit helps HTP residents identify and eliminate accounting violations (if any), and the auditor’s recommendations help minimize the risk of their occurrence in the future. All this significantly increases the reliability of the data presented in the reporting, on the basis of which important strategic decisions are made, and also reduces the likelihood of possible fines and claims from regulatory authorities.
In addition, the positive opinion of independent auditors increases the confidence in the reporting on the part of potential investors and financial institutions.
Mandatory audit of the annual financial statements prepared in accordance with IFRS is carried out only by audit organizations that must comply with the requirements of the current legislation.
The statutory audit must be carried out no later than June 30 of the year following the reporting year.
In accordance with the agreement on the conditions of activity of the HTP resident, concluded between the resident and the HTP administration (the approximate form of the contract was approved by the protocol of the HTP Supervisory Board No. 08 / NS-2pr dated 26.04.2018), the annual statutory audit of the HTP resident’s reporting is carried out, including assessing the correctness of the calculation and transfer of deductions to the HTP administration.
Quarterly reporting of an HTP resident
In accordance with the Regulations on the HTP, HTP residents are obliged, on a quarterly basis, no later than the 10th day of the month following the reporting quarter, to inform the administration and the tax authority about the flow of funds through accounts, as well as about the movement of electronic money through electronic wallets.
On December 14, 2020, the HTP administration approved the order “On approval of the departmental reporting form for 2021 and instructions for filling it out.”
In accordance with the prize, the report is submitted in electronic form in Excel format, through the interdepartmental document management system.
Such a report is filled out on the basis of data reflected in accordance with the legislation in the accounting and personnel records of the resident.
The report reflects data on a legal entity as a whole, including data on the subdivisions included in its structure, including those with a separate balance sheet, regardless of their location (except for structural subdivisions located outside the territory of the Republic of Belarus that have a separate balance sheet).
In the absence of indicators of the activity of a resident (regardless of the reasons), he is not released from the obligation to provide a report.
A legal entity that has lost the status (deprived of the status) of a resident (its successor) in the reporting year submits a report for the part of the reporting period in which the status was lost (deprived of status), reflecting indicators up to and including the date of the specified event.
Annual reporting of an HTP resident
Clause 17 of the Regulations on the HTP establishes that an HTP resident is obliged to submit an annual report to the HTP administration on the activities carried out.
The deadline for submitting such a report is set until February 1 of the year following the reporting year.
The form of the report is determined directly by the HTP administration.
Percentage deduction of revenue by a resident of the HTP
HTP residents are obliged to deduct 1% of the proceeds (income) received for the previous quarter as a result of activities established by the Regulations to the HTP administration on a quarterly basis.
Deductions must be made no later than the 20th day of the month following the reporting one.
The Ministry of Taxes and Levies on its official website posted an overview letter dated 05.09.2018 No. 2-3-13 / 01664 “On the application of the norms of decree No. 12” On HTP “, in which it explained, in particular, that the above quarterly deductions it is prescribed to be included in the costs taken into account in taxation. This is due to the fact that the payment of deductions to the administration is one of the legally established mandatory conditions for carrying out activities as a resident of the HTP.
The correctness of the calculation and transfer of deductions from the proceeds (income) of the HTP administration is checked during the mandatory annual audit. Thus, the audit organization, based on the results of the statutory audit, expresses an opinion not only on the reliability of the reports of the HTP resident, but also on the correctness of the calculation and transfer of deductions from the HTP administration.
In addition, such deductions are reflected in the mandatory quarterly report.
In its letter dated December 6, 2019, the HTP administration warned residents about the need to correctly and timely deduct 1% of revenue (income), and also indicated that the issue of financial discipline by HTP residents is considered in the context of the proper implementation of the provisions of the Regulations and the agreement with the HTP, and also affects the availability of the HTP resident status.