In accordance with the Law of the Republic of Belarus as of December 30, 2018 “On Amendments and Additions to Certain Laws of the Republic of Belarus”, the Tax Code of the Republic of Belarus is set out in a new edition.
A revised version of the Tax Code of the Republic of Belarus (hereinafter referred to as the Tax Code) adjusted tax benefits in execution of insurance contracts by organizations and citizens.
In particular, according to the Tax Code (Art. 208, p. 24), the following revenue categories are exempted from personal income tax in the form of payment for insurance services of insurance organizations of the Republic of Belarus, including income under contracts of voluntary life insurance, supplementary pension, medical expenses insurance, received from organizations and individual entrepreneurs, being a place of main job (service, study), including pensioners who previously worked for these organizations and with these individual entrepreneurs, as well as from trade union organizations, in an amount not exceeding BYN 3, 398 from each source during the tax period.
In addition, by virtue of the Tax Code (Art. 210, paragraph 1, subparagraph 1.2) when determining the amount of the tax base in accordance with Art. 199 (paragraphs 3, 4 and 9), a tax payer is entitled to receive a social tax deduction equal to an amount paid by the tax payer to insurance organizations of the Republic of Belarus (compensated by a payer to a fiscal agent) as insurance premiums under voluntary life insurance contracts and supplementary pension negotiated for a minimum period of three years, as well as under voluntary insurance contracts of medical expenses (hereinafter referred to as voluntary insurance contracts).
In view of this, by the Tax Code from 2019: revenue exempt from personal income tax increased from BYN 3,164 to BYN 3,398 in the form of insurance premiums paid to insurance organizations for employees by companies and individual entrepreneurs, being a place of their main job (service, study), and for pensioners who previously worked for them; a new exemption has been introduced, which provides for exemption from personal income tax in the form of payment of insurance premiums by trade unions for members of these organizations within BYN 3,398 per year; a size limit for the social tax deduction under voluntary insurance contracts is excluded (in 2018 the amount of the said benefit could not exceed BYN 3,164 during the tax period).