Page 8 - Central and Eastern European Transfer Pricing Review

8 | CEE Transfer Pricing Review

Belarus

KPMG's Views on Transfer Pricing in Belarus

Light transfer pricing regulations went into force in Belarus effective from 2012.
Now, the Belarusian tax code contains a procedure for adjustments for tax
purposes to the prices of sold or purchased goods and of sold fxed assets.

Basic information The above adjustments are made if they the existence of relations between these
lead to an increase in CPT. In any case, persons did not affect the outcome of
Tax authority name the Belarusian company is not required such transactions.
Ministry of Taxes and Duties of the to change the price to its market value for
Republic of Belarus/Мiнiстэрства па any other purposes. Method of the value of subsequent sale:
падатках i зборах Рэспублiкi Беларусь The market price of goods sold by the
Tax base determination on the basis of taxpayer is defned as the difference
Citation for transfer pricing rules the market price for goods is performed between the price at which the goods are
using of the following methods: resold by the buyer, and the costs incurred
Article 30-1 of the Tax Code of the
Republic of Belarus (which came into method of the value of transaction by this buyer at the resale, promotion of
force on 1 January 2012) is as follows: with the identical (homogeneous) goods to the market and usual proft of the
buyer of goods upon further resale.
goods;
The tax authority has the right to make a
decision on adjustment of the tax base for method of the value of subsequent Cost method:
Corporate Proft Tax (CPT) and recalculation sale; The market price of goods sold by the
of tax so as if the results of transactions taxpayer is defned as the amount of
were recorded by the taxpayer based on cost method. costs incurred and proft (proftability)
market prices for the corresponding goods Each subsequent method is used if typical for a taxpayer s activity.
in the following cases: the market price of goods cannot be Effective date of transfer pricing
determined by application of the previous
Export/import of goods. Adjustments method. rules
may be applied if goods in the amount 1 January 2012
of more than BYR60 billion are sold Method of the value of transaction with
during a calendar year between the identical (homogeneous) goods: What is the relationship threshold
Belarusian and a specifc foreign This method involves comparison of the for transfer pricing rules to apply
company (which may be related party price applied in the transaction under between parties?
or not) AND applied prices deviate from analysis, with the prices of identical (in The relationship threshold is not
market prices by more than 20 percent; their absence homogeneous) goods applicable. Annual turnover between the
Sale of immovable property if the in comparable economic conditions that parties is a measure of the use of price
transaction price deviates by more are within the range of market prices. Tax adjustments.
than 20 percent from the market authorities take into account transactions What is the statute of limitations
price at the date of property disposal. between persons who are not mutually
dependent. Transactions between on assessment of transfer pricing
mutually dependent persons may be adjustments?
taken into account only in cases where Not applicable.

© 2013 KPMG Central and Eastern Europe Ltd., a limited liability company and a member firm of the KPMG network of independent member firms affiliated
with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.