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12.4.3. Documentation Requirements

Disclosure Requirements

Effective from 1 January 2016, taxpayers are required to submit a controlled transaction notification to the tax authorities on a monthly basis using the electronic VAT invoices. Taxpayers are also required to submit a report on related parties to the tax authorities along with the tax return.

Standard Documentation

Under the TP rules, the transfer pricing documentation is required to be prepared annually. Effective from 1 January 2019, the TP documentation is required to be submitted to the tax authorities upon request. Further, the documentation covering justification for transaction prices must be prepared based on the forms specified by the Belarusian tax authorities.

Belarus has two types of forms for transfer pricing purposes:

  • The Full scope TP Documentation form – applies to foreign trade transactions of large taxpayers and foreign trade transactions involving strategic goods; and
  • The Limited scope TP Documentation form – applies to all other controlled transactions.

Effective 1 January 2021, the full scope TP Documentation form additionally contains a description of the structure of the group of companies, an industry analysis and information on adjustments to the tax base, if any.

The full scope TP documentation cannot be requested earlier than 1 June of the year following the year when the controlled transactions were carried out.

The transfer pricing documentation provisions are not applicable to the following transactions:

  • Transactions concluded based on an exchange (other than transactions with related parties or residents of low-tax jurisdictions);
  • Transactions in relation to which an advance pricing agreement had been concluded;
  • Transactions exempt from corporate tax; and
  • Foreign trade transactions which are not similar and the amount of which with one counterparty in a calendar year is not more than 10% of the established thresholds ( BYR 2 million for large taxpayers and BYR 400,000 for other taxpayers).

However, the tax authorities will still have the right to check that the above transactions are priced at arm’s length and taxpayers may be requested to provide a limited scope TP Documentation.

Country-by-Country (CbC) Reporting

Belarus has so far not introduced Country-by-Country reporting requirement. However, it has joined the OECD’s Inclusive Framework, all members of which have committed to implement the BEPS minimum standards, including Country-by-Country reporting.

Language of Documentation

The TP documentation may be prepared in the Russian or the Belarusian language.

Penalties

Effective 1 January 2020, a penalty of up to BYN 810 applies on non-submission of required documents, including electronic VAT invoices, related to controlled transactions.

Where transfer pricing adjustment is made to adjust the transaction price as per the arm’s length price, the tax authorities may levy a penalty of up to 40% on the additional tax payable along with interest.