Q&A: Humanitarian activities in Belarus

Question 3: What are general expenses of an organization?

Answer:

In accordance with Passage 14 of Paragraph 1 of Ordinance No.3 "On Foreign Gratuitous Aid" issued by the President of the Republic of Belarus on 25 May 2020  (hereinafter – the Ordinance) foreign gratuitous aid received by legal entities of the Republic of Belarus, individual entrepreneurs registered in the Republic of Belarus can be used to pay general expenses related to the management of a legal entity, an individual entrepreneur and to ensure their activities, according to the list as defined by the Belarus President Property Management Directorate.

In pursuance of the Ordinance, the Belarus President Property Management Directorate issued Resolution on 12 August 2020 to define the list of general expenses related to the management of a legal entity, an individual entrepreneur and to the ensuring of their activities, for which foreign gratuitous assistance can be used.

1. Expenses for labor remuneration of administrative staff of a legal entity, an individual entrepreneur and of employees servicing the administrative office of a legal entity, a individual entrepreneur.

Expenses for guarantees and compensation envisaged in the labor laws to employees listed in part one of this Paragraph.

2. Expenses for labor remuneration under civil law contracts concluded with natural persons who are not individual entrepreneurs to provide services (perform works) related to the functions of the administrative staff of a legal entity, an individual entrepreneur and to the functions of employees servicing the administrative office of a legal entity, a individual entrepreneur.

3. Expenses for mandatory insurance contributions to the state extra-budgetary social security fund of the Republic of Belarus, including contributions to professional pension insurance, and also compulsory insurance against accidents at work and occupational diseases, put against expenses specified in Paragraphs 1 and 2 of the list.

4. Expenses for the maintenance and servicing of fixed assets and general intangible assets, including maintenance, major and current repairs, depreciation of fixed assets and intangible assets.

5. Expenses for maintenance and servicing of individual items as part of general assets (hereinafter - individual items), including payment of their cost, maintenance, major and current repairs of individual items, the cost of used general materials.

6. Expenses related to the temporary possession and use or temporary possession of general assets under a lease agreement (temporary possession and use of general assets under a financial lease contract).

7. Expenditure for utilities, landscaping and maintenance of territories attributed to general objects of a legal entity, an individual entrepreneur.

8. Expenses for remuneration to copyright holders for the use of general intellectual property, which is not the intangible asset of a legal entity, an individual entrepreneur.

9. Expenses for communications services, including access to the internet.

10. Expenses for banking services;

11. Expenses for occupational safety, training, retraining, and internships of administrative staff of a legal entity, individual entrepreneurs and employees who service the administrative office of a legal entity, an individual entrepreneur.

12. Expenses for consulting, information, auditing and other services of outside organizations and individual entrepreneurs;

13. Taxes and fees that make part of production and sale costs of goods (works, services) and property rights and that are calculated in respect of the activities of the administrative office of a legal entity, an individual entrepreneur.

14. Foreign gratuitous aid registration fee.

According to part two of Paragraph 8 of the Ordinance, aid used to pay for general expenses is not exempt from taxes, fees (duties).

In accordance with Paragraph 6 of the Ordinance, recipients (legal entities and individual entrepreneurs) shall pay a registration fee of 0.5% of the amount of aid not exempt from taxes, fees (duties).

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