BELARUS TO JOINT THE GLOBAL FORUM ON TRANSPARENCY AND EXCHANGE OF INFORMATION FOR TAX PURPOSES

5 november 2020


On 12 October 2020 the Resolution of the Council of Ministers of the Republic of Belarus was adopted under No.590 “On joining the Global Forum on Transparency and Exchange of Information for Tax Purposes and the Inclusive Framework to implement the Action Plan on Base Erosion and Profit Shifting”.



By this Resolution the Council of Ministers declared:

  • the purpose to facilitate cooperation between Belarus and the Organisation for Economic Co-operation and Development;
  • acceptance of the proposal of the Ministry for Taxes and Levies that the Republic of Belarus should join the Global Forum on Transparency and Exchange of Information for Tax Purposes and the Inclusive Framework to implement the Action Plan on Base Erosion and Profit Shifting.

In the beginning of the year 2020 we stated that Belarus has not yet joined the BEPS Action Plan, but transfer pricing rules; thin capitalization rules; the concept of beneficial owner and the concept of unjustified tax benefit have already been successfully implemented and applied in the Belarusian tax legislation.

By the above Resolution, the Government actually started moving towards cooperation with the OECD on tax issues.

It is worth reminding that the Global Forum on Transparency and Exchange of Information for Tax Purposes has been operating within the OECD's Committee on Fiscal Affairs since 2000 and it monitors and controls how countries across the world apply the OECD’s standards in the field of transparency and exchange of tax information. Russia and all major trade partners of Belarus have long been members of the Global Forum.

At the same time, the possible joining of Belarus to the Inclusive Framework to implement the Action Plan on Base Erosion and Profit Shifting (the so-called BEPS Plan) does not mean that the country will automatically implement the Plan at the legislative level. However, in our opinion, such a step will contribute to the implementation of certain elements and measures provided for by the BEPS project in tax legislation, as well as participation of Belarus in monitoring and verification of processes for the implementation of the BEPS project at the global level.

It's worth paying attention that states seeking to become members of the Inclusive Framework will have to agree to introduce into their procedures the measures and the so called minimum standards provided for by the BEPS Plan that are intended to improve the international tax rules and combat tax evasion. The full list of 137 states members of the Inclusive Framework can be viewed here.

Information prepared as at 01/11/2020