How to get a deferment, installment plan for taxes or tax credit?

Andrei Slabko, lawyer

Sub-paragraph 2.1. of paragraph 2 of Decree of the President of the Republic of Belarus of April 24, 2020 No. 143 "On support of the economy" (hereinafter-Decree No. 143) defines some features of getting deferrals, installments of tax payments and tax credit in connection with impact of the epidemiological situation on the economy.

What is the difference between the deferral (installment) payments of tax payments from a tax credit?

A deferral, installment, or postponement with subsequent installments is granted for the amount of delayed tax payments or penalties, and a tax credit is a postponement of the tax payment deadline that has not yet occurred.

What payments are covered?

Decree No. 143 establishes that deferrals, installments, and tax credits apply to taxes (fees), duties paid in full to local budgets, as well as rents for state-owned land plots. The deadline for payment of these payments is from April 1 to September 30, 2020.

The list of taxes (fees) and duties that are fully paid to local budgets is set out in articles 32, 34, 36 of the Budget code of the Republic of Belarus.

With what conditions should I comply to get it?

Decree No. 143 establishes alternative rules for granting deferment, installment plan and tax credit. This means that local authorities should not take into account the conditions for granting deferment, installment plan, tax credit established in the Tax Code when considering the issue of granting deferral, installment plan, tax credit on the basis of Decree No. 143.

Clause 2 of Decree No. 143 establishes that organizations and individual entrepreneurs can apply for deferral, installment plan, tax credit if one of the following criteria is met:

  • the main type of economic activity of a legal entity or individual entrepreneur must be included in the list of economic activities most affected by the adverse impact of the epidemiological situation (approved by decree No. 143); 
  • the applicant is a landlord (lender) who has provided real estate (owned by the state, as well as by business entities in whose authorized funds more than 50 percent of the shares are owned by the Republic of Belarus and (or) its administrative-territorial units) to legal entities and individual entrepreneurs (if their type of activity is included in the list or if they provide household services to the population), if the landlords (lenders) have granted a deferral in accordance with the sub-item. 6.1 and 6.2 of Decree No. 143 of the order. We are talking about granting a deferred payment of rent.

 In addition, conditions for using a deferred payment, installment plan, or tax credit are the timely payment of:

  • current tax payments;
  • other mandatory payments to the budget controlled by tax authorities;
  • within the established period of tax payments for which deferred or installment payments are granted

For what period is it provided?

Tax payments for which a deferred payment, installment plan, or tax credit is granted must be paid in equal installments on a monthly basis from October 1 to December 31, 2020.

Where can I apply for deferred payment, installment payments for tax payments, and tax credit?

Regional, Minsk city, district, city (cities of regional subordination) Councils of deputies or local Executive and administrative bodies on their behalf. You can define the appropriate government body as follows:

  • first determine the tax payments for which a deferral, installment, or tax credit will be requested;
  • then determine what level of budget these payments are paid to.

What documents do I need to submit?

Decree No. 143 does not establish a list of documents that must be submitted to local authorities in order to obtain a deferral, installment, or tax credit. However, such a list of documents is established in the tax code (although the tax code establishes other grounds for granting deferrals, installments, and tax credits). We consider that before submitting documents, you should check with the local authority what documents should be attached to the application.

When preparing documents, you can rely on the list established in the Tax code:

  • application for changing the deadline for payment of taxes, fees( duties), penalties of an organization (individual entrepreneur) in the form approved by the resolution of the Ministry of taxes and duties of the Republic of Belarus dated 26.04.2013 No. 14;
  • annual and (or) interim individual reports for the last reporting period, if the obligation to prepare such reports for the payer is established by law;
  • reference to the last reporting date on the main economic indicators in the form approved by the resolution of the Ministry of economy of the Republic of Belarus dated 20.06.2016 No. 42.

What is the deadline for reviewing documents?

Again, Decree No. 143 does not set a time limit for reviewing documents. In the tax code, this period is 13 working days from the date of submission of the application and the required documents. This period includes a request for the status of the payer's calculations with the budget, preparation of a conclusion on the feasibility of granting a deferral, installment, tax credit, as well as preparation of a draft decision.