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May 2020
COVID-19: Regulatory Measures in Belarus
Given these unprecedented times and the challenges we are all facing with COVID-19, the Belarusian Government and the business community discussed various tax and regulatory measures to support the Belarusian economy due to this situation. As a result, the Edict of the President of the Republic of Belarus “On supporting economy” dated 24 April 2020 No. 143 and some other acts were adopted. They introduced both tax and regulatory measures aimed at minimizing the negative consequences of the current situation.
PwC Belarus team has prepared this brief newsletter to inform you on the key regulatory measures introduced in Belarus.
Some of the regulatory benefits and privileges apply to the businesses whose activities are negatively affected by the epidemiological situation (Negatively Affected Business). It covers retail, HoReCa, tourism, cultural and entertainment events, air transport, medical centers, etc.
According to business, the measures taken seems to be insufficient. However, the Belarusian authorities continue to elaborate the measures and new legal acts are yet to be adopted.
In addition to the incentives, the Belarusian government also adopted range of control measures. For example, now it is allowed to carry out extraordinary audits within 2 years from the date of company’s state registration (previously prohibited) in case the company carries out activities related to trade and catering.
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Introduction
No. Regulatory Measures For whom Comments
1. Extension of the term for closing foreign trade transactions, as well as the validity period of permits to open accounts with foreign banks by 100 calendar days
● Residents whose foreign trade transactions should be closed from 1 April 2020 to 30 June 2020
● Residents whose permits for account opening are valid for the period from 1 April 2020 to 30 June 2020
Extension of the terms does not require any applications and documents to be submitted to the National Bank
2. Deferreral of lease payments till 30 September 2020 with installments to be paid before 31 December 2020
● Negatively Affected Business (lessees)
● Lessees providing customer services
● Change of payment terms should be formalised by signing an additional agreement to a lease contract based on the lessee's application
● Applies only to state-owned real estate
Regulatory Measures (1/5)
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No. Regulatory Measures For whom Comments
3. Moratorium on the increase of base lease unit and lease payments for the use of real estate until 30 September 2020
Lessees of state-owned real estate
● The base lease remains equal to BYN 16.90. The new amount of the base lease established by the Resolution of the Council of Ministers of the Republic of Belarus No. 162 dated 20 March 2020 (BYN 17.85) will not apply until 30 September 2020
4. Changes in the procedure of public procurement (in particular, the possibility of changing the price and term of obligations)
Participants of public procurement procedures (suppliers, contractors, executors)
The full list of amendments is set out in Resolution No. 186 of the Council of Ministers of the Republic of Belarus dated 31 March 2020 and Edict of the President No. 143 of 24 April 2020
Regulatory Measures (2/5)
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No. Regulatory Measures For whom Comments
5. The term for notifying an employee on changes in material working conditions was reduced to 1 calendar day
Employers whose activities are negatively affected by the epidemiological situation (but not limited to specific types of business activities)
● Previously, the term was 1 month
● The new rule does not apply to cases when an employee's remuneration is reduced
6. The possibility of temporary transfer of an employee to another structural unit, to another employer for up to 3 months
Employers whose activities are negatively affected by the epidemiological situation (but not limited to specific types of business activities)
The term of transfer can be extended upon agreement with an employee
Regulatory Measures (3/5)
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No. Regulatory Measures For whom Comments
7. It is allowed to sell medicines without taking into account the registered maximum selling prices of manufacturers.
Manufacturers of pharmaceuticals, legal entities engaged in sale of pharmaceuticals
It is carried out in coordination with the Commission on Questions on State Regulation of Pricing under the Council of Ministers of the Republic of Belarus
8. It is allowed to trade in OTC medicines in the form of sample retail without (out of) trade objects
Legal entities engaged in medicines retail and included into the list determined by the Council of Ministers of the Republic of Belarus
The delivery may be performed by 29 companies determined by the Council of Ministers of the Republic of Belarus
Regulatory Measures (4/5)
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No. Regulatory Measures For whom Comments
9. Extension of validity period for documents on 202 administrative procedures for individuals and on 167 - for legal entities and individual entrepreneurs.The validity period of 11 other types of documents has also been extended.
Individuals, legal entities and individual entrepreneurs
The validity period of documents shall be extended by three months if they expire (expire) in the period from 30 April to 31 July 2020
Regulatory Measures (5/5)
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Key contacts
This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PwC, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.
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Eugenia Chetverikova
Tax and LegalServices Leader+375 17 [email protected]
Viktar Ramanouski
Senior Tax and Legal Associate+375 17 [email protected]
