ANNOUNCEMENT 20 Dec 2014In December 2014, the government of Belarus announced a rule change for commercial cross-border financial flows.
NUMBER OF INTERVENTIONS
20 2014 . 607
1251 ? ?.
With Presidential Decree Nr. 607 of 20 December 2014 was introduced until 1 February 2015 the obligation for banks to pay a tax at the amount of 30% on the Belarusian Roubles (BYR) orders they submit for the acquisition of foreign currency on auctions, organised by the Belarusian Currency and Stock Exchange.
Currency exchange operations involving oil and gas commodities with codes 2709 00 900 1 - 2709 00 900 9, 2711 11 000 0 - 2711 29 000 0, 2711 21 000 0, 2716 00 000 0 are exempted from the payment of the new tax.
In the decree is also stipulated that the Government of Belarus in cooperation with the National Bank may change the tax rate on currency exchange operations if the situation of the currency market changes.
The stated purpose of the new tax is to stablise the financial and currency markets. However, the measure is likely to alter the relative demand for domestic versus foreign currencies and the perceived cost of foreign products etc.