Unified approaches to the assessment of compulsory insurance contributions and income tax

On December 28, Resolution of the Council of Ministers of the Republic of Belarus No. 763 “On Amendments to Resolution of the Council of Ministers of the Republic of Belarus No. 115 dated January 25, 2009” was adopted.

The main purpose of the document is to reduce the burden on the accounting services of business entities by unifying the approaches to the assessment of compulsory social insurance contributions to the budget of the state extra-budgetary Social Security Fund and income tax.

The Government decree establishes a List of payments (revised taking into account the existing practice and approaches of tax authorities) on which social insurance contributions are not charged, including occupational pension insurance, contributions to the budget of the Social Security Fund, and payments under compulsory social insurance against accidents at work and occupational diseases to the Belarusian Republican Unitary Insurance Enterprise “Belgosstrakh”.

The List includes such types of payments as:

– funds spent on providing employees with bottled water, washing and detoxifying agents, antiseptic medicines and disinfectants, food received in connection with the implementation of sanitary and anti-epidemic, including restrictive measures; 

– payments financed by the special funds of the President of the Republic of Belarus;

– payment for transport services when employees perform their job duties; 

– reimbursement of expenses for travel to the place of training of employees and back, for renting accommodation, for the payment of daily subsistence allowances (training allowance) during the training period in the manner and in the amount established by law; 

– expenses of the employer for events (seminars, competitions of professional skills, representational expenses, cultural and sports events, and others);

– assessment of contributions for confectionery products for the children of employees in connection with the New Year’s holiday, purchased flowers, funds spent on preventive vaccinations and other.

A uniform procedure for the assessment of compulsory social insurance contributions and income tax on the financial assistance has been established. The List enshrines the maximum limit of the tax-exempt financial assistance equal to the established limit for the assessment of income tax determined by clause 23 of Article 208 of the Tax Code.                                   

Effective date: January 01, 2022