The Belarus Ministry of Taxes and Duties has published Letter No. 2-2-10/00906 of 20 April 2021 concerning the taxation of profits under financial lease contracts from 2021. The letter addresses changes in the Tax Code with effect from 1 January 2021 that excluded a provision setting the date of recognition of income from transactions that involve the transfer of property under a financial lease contract for the purpose of calculating income tax.
The letter notes that in 2019 to 2020, income from transfers under a financial lease contract was included as non-operating income on the corresponding day of transfer of the property, which was recognized as the last day of the month in which the lease payment for such transfer was made, but not earlier than the date of the actual transfer. With this excluded from 2021, taxpayers are required to recognize income from financial lease (leasing) transactions in accordance with national accounting and reporting standards. This includes that in the reporting period (quarter) in which the leased property is transferred to the lessee, non-operating income includes the value of the transferred property (contract value) and non-operating costs include the initial cost of the transferred property. Further, for the first quarter of 2021, taxpayers must include the contact value of any leased property and the initial costs not yet taken into account for a financial lease contract prior to 2021 when calculating corporate income tax.