Page 9 - Central and Eastern European Transfer Pricing Review

Belarus | 9

Transfer pricing Transfer pricing audit and What defenses are available with
disclosure overview penalties respect to penalties?
If a taxpayer makes a tax self-adjustment
Are disclosures related to transfer When the tax authority requests and pays the additional tax liabilities and
pricing required to be prepared a taxpayer s transfer pricing late payment interest prior to the tax
or submitted to the revenue documentation, how long does audit, no penalties should apply.
authority on an annual basis (e.g. the taxpayer have to submit its
with the tax return)? documentation? What trends are being observed
No. Usually transfer pricing compliance in currently?
Belarus is tested within a regular tax audit. None.
Transfer pricing If an adjustment is proposed by the
methods tax authority, are dispute resolution Special considerations
options available to the taxpayer
Are transfer pricing methods Are secret comparables used by tax
outlined in Chapter II of the OECD outside of the competent authority? authorities?
Guidelines acceptable? Any additional tax assessments can be Not applicable.
contested by a taxpayer to a higher-level
Belarus is not an OECD member
country, and Belarusian legislation tax authority, or in court. Is there a preference, or
does not provide for any reference to If an adjustment is sustained, can requirement, by the tax authorities
OECD methodology or approaches. for local comparables in a
penalties be assessed? If so, what benchmarking set?
Nevertheless transfer pricing methods rates are applied and under what No.
indicated in the Tax Code are similar to conditions?
the methods outlined in Chapter II of If a transfer pricing adjustment results Do tax authorities have
the OECD Guidelines: in an additional tax liability, the taxpayer requirements or preferences
is subject to late payment interest regarding databases for
1) method of the value of the of 1/360th of the currently effective comparables?
transaction with the identical refnancing rate established by the
(homogeneous) goods (the OECD National Bank of the Republic of Belarus No, all the available information may
method is CUP); be used. Article 30-1 of the Tax code
(annual rate of 23.5 percent as at August provides for the hierarchy of available
2) method of the value of subsequent 2013). The penalty for underpayment sources of information, but the list of
sale (the OECD method is resale of tax arising from non-compliance sources is open.
minus); with the transfer pricing regulations (as
well as non-compliance with any other What level of interaction do tax
3) cost method (the OECD method is tax regulations) is 20 percent of the authorities have with customs
cost plus).
underpaid tax. authorities?
If there is no priority of methods, High.
is there a best method rule? To what extent are transfer pricing
penalties enforced?
Each method indicated above is used Are management fees deductible?
subsequently, if the market price of Please refer to Chapter 5, article 52 Management fees may be tax deductible
goods cannot be determined by the of the Tax Code and Chapter 13 of the if all of the following conditions are
application of the previous method. Code of Administrative Offences of the met: they must be supported by
Republic of Belarus. documentation evidencing them and the

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