Inspection of the Ministry of Taxes and Fees of the Republic of Belarus for the Svetlogorsk district, in connection with emerging practical questions related to the taxation of income received by individuals from securities transactions under agreements (contracts) for securities transactions (hereinafter – contracts) concluded with a foreign organization, clarifies the following.

According to paragraph three of the first part of point 8 of Article 202 of the Tax Code of the Republic of Belarus (hereinafter – the Tax Code), the tax base for personal income tax (hereinafter – personal income tax) on securities transactions under contracts concluded with a foreign organization is determined as the monetary expression of income from securities transactions, reduced by the amount of actually incurred and documentally confirmed expenses in the form of monetary funds (electronic money) transferred (credited to an electronic wallet) by the individual to the foreign organization in accordance with the contract.

Income from securities transactions under contracts concluded with a foreign organization is recognized as any type of income received within the framework of such contracts.

At the same time, the tax base for personal income tax is determined on the date of actual payment of income by the foreign organization to the individual separately for each concluded contract and for the entire set of transactions carried out within the framework of such a contract.

In the absence of actual payment, the tax base cannot be determined, and consequently, one of the elements of the tax is missing, so the tax cannot be calculated.

Thus, the tax liability for payment of personal income tax and the obligation to submit a tax return (assessment) for personal income tax from individuals (hereinafter – tax return) in the manner established by Article 222 of the Tax Code, for an individual who is a tax resident of the Republic of Belarus, arise upon the actual payment to them by a foreign organization of any income, including dividends, from securities transactions received from the entire set of transactions carried out within the framework of the contract.