On the implementation of agreements on the financing of cross-border cooperation

On the implementation of the Edict of the President of the Republic of Belarus dated August 9, 2019 No. 304 “On the implementation of agreements on the financing of cross-border cooperation”

Resolution of the Council of Ministers. September 26, 2019 No. 661

It should be reminded that between Belarus and the European Commission a number of agreements have been concluded, including on financing cross-border cooperation (CBC), under which our country undertake to provide tax incentives and other preferences within CBC co-financing. So, the following objects are not taxable:

• goods imported to Belarus – on customs fees for customs operations, customs duties, value added tax, excise, utilization fee;
• cash received as a co-financing of CBC – on profit tax, tax under the simplified taxation system, single tax for agricultural producers;
• turnover in Belarus of goods (works, services) supplied (rendered) by the supplier of the CBC project and (or) the recipient of international technical assistance for its implementation, as well as turnover on their further gratuitous transfer in accordance with the goals and objectives of the CBC projects - on value added tax;
• property acquired or received for the implementation of the CBC project – on real estate tax for the period of its direct use in the implementation of the CBC project;
• income received by individuals – on personal income tax.

Resolution defines the procedure for registering CBC projects and the procedure for issuing confirmations on the purpose of goods and cash provided for the implementation of CBC projects.

Resolution came into force on October 14, 2019.