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Belarus: Proposals include repeal of arm’s length price “safe harbor”

Belarus: Repeal of arm’s length price “safe harbor”

The Ministry of Finance released draft legislation that would introduce changes to the transfer pricing rules in Belarus.


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The draft law (Russian) is referred to in English as “amendments to certain laws on taxation and accounting issues.” The draft law is currently subject to public discussion, and an updated version of the draft law is expected to be presented to the government tomorrow, 7 December 2018.

Under the proposal, new Chapter 11 would be added to the tax law, and Article 30-1 that allows a 20% “safe harbor” deviation from the arm’s length range of prices would be repealed. Repeal of this safe harbor would affect how taxpayers justify their transfer prices. Other proposed measures would affect: 

  • The list of controlled transactions
  • Value thresholds
  • The hierarchy of transfer pricing methods
  • The hierarchy of information sources 


In addition, certain new provisions would be introduced including rules for:

  • Regulating the approach to selecting a tested party
  • Allowing taxpayers an opportunity to substantiate the choice of the most appropriate transfer pricing method, and requiring the tax authorities to accept that method during a transfer pricing audit unless that method is shown to be non-applicable
  • Requiring taxpayers to provide the tax authorities with documentation that supports the arm’s length nature of cross-border related-party transactions (for large taxpayers only) and cross-border transactions involving strategic goods (for all taxpayers)
  • Allowing taxpayers to conclude advance pricing agreements (APAs) with the tax authorities for “large transactions”


Read a December 2018 report [PDF 78 KB] prepared by the KPMG member firm in Belarus

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