Valuation of Controlled Transactions

When selling or purchasing real estate, companies should take into account that such transactions can be classified as transactions subject to control for compliance of prices applied by companies with market prices. In accordance with sub-clause 1.3 of clause 1 of Article 88 of the Tax Code of the Republic of Belarus such transactions include transactions for sale or purchase, and in particular, of real estate (part thereof), concluded with related persons or payers that apply special tax treatment, as well as transactions resulted in transfer of shared-equity construction units to equity holders; of residential and/or non-residential premises to holders of housing bonds.

Article 90 of the Tax Code of the Republic of Belarus covers information to be used to establish whether the profit tax base in relation to such transactions has been calculated correctly. Provisions of this Article allow for using information on the market value of items subject to valuation conducted in accordance with the legislation on valuation activities, determined on the basis of actual market prices for identical goods in a comparable tax period.

Advantages of choosing services of valuation firm VALUERS’ COLLEGIA for an independent valuation:

  • a valuer will correctly draw up an agreement on providing independent valuation services specifying all independent valuation terms and conditions, including the purpose of valuation as the result of independent valuation can be used only in accordance with the valuation purpose: “other purposes not inconsistent with the law, - for determination of taxable profit from sale/purchase of (to indicate property involved in a transaction) for compliance with the established market prices for identical (similar) real estate in comparable conditions”;
  • a certified valuer, qualified by the State Committee on Property of the Republic of Belarus to perform independent valuation, will professionally determine the market value of real estate of any complexity to which it is difficult to find identical property; specific real estate located in any place throughout the Republic of Belarus;
  • an agreement on providing valuation services and valuation engagement, taking into account the purpose of valuation, will stipulate that market valuation of real estate will be made by applying only the comparative method;
  • based on the findings of independent valuation the conclusion of value and valuation report will be prepared in full compliance with the concluded agreement and applicable laws on valuation activities effective as at the date of valuation.

Managing Partner of VALUERS' COLLEGIA
Mrs. ELENA LENKOVA, Certified Valuer
E-mail: lenkova@collegia.by
Tel. +375 (44) 708-70-87, +375 (44) 709-70-97