Comment on Decree No. 358 of 15 August 2013

On 15 August President of Belarus Aleksandr Lukashenko signed Decree No. 358 to amend Belarus President Decree No. 280 of 19 May 2008.

The document expands the list of voluntary kinds of insurance other than life insurance, which insurance premiums can be included into merchandise production and sale costs for taxation purposes.

Thus, Decree No. 358 expands the clause specified by Decree No. 280 of 19 May 2008 on voluntary insurance against accidents and diseases during foreign trips.

This is why for taxation purposes the cost of producing and selling merchandise and services will include not only insurance premiums of insuring companies, which offer international transportation by certain kinds of transport, but also insurance premiums of any insuring companies that insure against accidents and diseases during foreign trips (in line with contracts signed by insuring companies on behalf of natural persons, who work for these insuring companies in line with labor contracts and are sent for business trips abroad or travel abroad a lot for business purposes).

In line with the new Decree the costs taken into account for taxation purposes will include insurance premiums paid for voluntary insurance of the civil liability of shipping agents.

A policy to insure the civil liability of the shipping agent is now a must for signing shipping contracts with international corporations. The insurance of the civil liability of the shipping agent guarantees the reliability of the agent and is believed by foreign contractors to be part and parcel of a shipping contract.

In line with Decree No. 358 the costs taken into account for taxation purposes will include insurance premiums paid to voluntarily insure the civil liability for damage caused in the course of professional activity.

Contracts to insure the civil liability for damage caused in the course of professional activity can be signed to insure the liability of various professions: hairdressers, medics, lawyers, auditors, architects, engineers, bookkeepers, software developers and other ones.

The inclusion of insurance premiums paid to insure the professional responsibility into the costs taken into account for taxation purposes will be an additional incentive for developing this kind of insurance. In turn, it will contribute to the larger volume and better quality of services rendered to individuals and corporations. It will lessen the workload of courts and consumer rights protection societies.

Apart from that, the costs taken into account for taxation purposes will include insurance premiums paid for the voluntary insurance of the civil responsibility of owners of customs warehouses and/or temporary storage warehouses, of customs representatives, of copyright holders for damage caused due to the suspended release of merchandise that contains intellectual property objects. It will lessen the tax burden on insurers, who use these kinds of insurance. Hence it will improve their financial and economic performance.