MINSK - Belarusian businessmen’s unions suggest changing simplified taxation regulations for small businesses, Chairman of Belarus’ Union of Entrepreneurs Alexander Kalinin told a press-conference on Feb 22.
“Currently, there are two criteria for simplified taxation: there is a ceiling on annual earnings (VAT included) at Br1.85 million ($926,700) or without VAT – Br1.3 million ($651,200). We suggest putting the ceiling at Br2 million ($1.002m), which will not affect budget revenues and will help the development of small business. When Belarusian small businesses reach the ceiling, they either stop developing or start splitting up into small companies. We will try to persuade Belarus’ tax authorities to change criteria for simplified taxation,” said Kalinin.
Businessmen choose simplified taxation not only because of a lower tax burden, but also owing to a lower risk of default on tax payments: in some businesses the tax burden with simplified taxation is even higher than without simplified taxation, Kalinin explained.
The expert also suggested enhancing Belarus’ definition of small businesses, which refers to the number of employed personnel, rather than earnings.
In his words, there is a Belarus-based small business company with less than 15 employed personnel, which deals in import/export of oil products. Elsewhere in the world it would classified as a medium-sized or a large business company, said Kalinin.