TABLE OF CONTENTS

INTRODUCTION.........................................................................................................3
CHAPTER 1 THEORETICAL ASPECTS OF THE TAX SYSTEM .........................5
1.1 The concept, essence and role of the tax system ....................................................5
1.2 Functions and types of the tax system.....................................................................8
CHAPTER 2 FEATURES OF THE TAX SYSTEM OF THE REPUBLIC OF
BELARUS...................................................................................................................12
2.1 Characteristics of the tax system of the Republic of Belarus and its structure.....12
2.2 Types of taxes and fees levied in the Republic of Belarus and their legal regula-
tion ..............................................................................................................................14
2.3 Advantages and disadvantages of the modern tax system of the Republic of Be-
larus ............................................................................................................................23
CHAPTER 3 DIRECTIONS FOR IMPROVING THE TAX SYSTEM OF THE
REPUBLIC OF BELARUS........................................................................................25
CONCLUSION...........................................................................................................29
REFERENCES............................................................................................................31
 INTRODUCTION

The relevance of the topic of the course work is due to the fact that the interests
of the state and society as a whole, as well as all segments of the population, enter-
prises and organizations are closely connected with the tax system. Therefore, the
formation of a legal framework and effective instruments of tax regulation is a neces-
sary condition for the socio-economic development of the country. The tax system is
the most important attribute of any state, and the state of the national economy and
the solution of social problems largely depend on the degree of its perfection.
With the transition of the Republic of Belarus to market relations, a national
tax system, which absorbed many elements of the tax systems of countries with de-
veloped market economies, was created. Since its inception, it has been repeatedly
changed and improved, but at the moment there is a potential for enhancement in the
Belarusian tax system.
The tax system is the most important administrative and economic lever in the
hands of the state to influence the economic and social processes in the country. With
the help of the tax system, the state can slow down or vice versa create favorable con-
ditions for the development of business entities and solving social problems of soci-
ety.
In modern conditions, the most important task at the macro level is to ensure a
long-term sustainable development of the national economy, which is hardly possible
without improving the country's tax system. It should be noted that the state and tax-
payers have different attitudes towards the tax system. The state is interested in maxi-
mizing the receipt of tax payments, and taxpayers are interested in minimizing them.
The more balanced the interests of the state and taxpayers, the more perfect is the tax
system.
Taxes, which are the main element of the tax system, are a key instrument of
state influence on the development of the national economic complex, designating the
priorities of economic and social development. In the Republic of Belarus, the opti-
mal formation of taxes and the tax system is a priority.
Object of study: the tax system of the Republic of Belarus.
Subject of study: the tax system of the Republic of Belarus.
The purpose of the course work: to reveal the essence, composition and princi-
ples of the organization of the tax system of the Republic of Belarus.
In accordance with the goal, it is advisable to highlight the following tasks of
the course work:
 to study the theoretical aspects of the tax system;
 analyze the regulatory framework, composition, principles of organization
of the tax system of the Republic of Belarus, basic taxes and fees;
3
  recognize the main problems and identify ways to improve the tax system
in Belarus.
In the process of work, methods of cognition (analysis, synthesis, description,
comparison) were used, as well as special scientific methods (comparative economic,
structural and functional analysis) and a systematic approach.
When writing a term paper, normative legal acts, textbooks, publications in pe-
riodicals, statistical data, etc. were used.
The topic of taxes and taxation, the tax system is rather well developed in vari-
ous sources. Thus, among the Belarusian researchers it is necessary to indicate L.Ya.
Abramchik, L.A. Khankevich, G.A. Shmarlovskaya and others.
The author confirms that the given calculation and analytical material correctly
and objectively reflects the state of the process under study, and all theoretical,
methodological, methodological and conceptual provisions borrowed from literary
and other sources are accompanied by references to their authors.

4
 CHAPTER 1
THEORETICAL ASPECTS OF THE TAX SYSTEM

1.1 The concept, essence and role of the tax system

One of the most important methods of state influence on the development of

socio-economic processes is tax regulation, which has now firmly taken a leading
place in the arsenal of means for conducting state socio-economic policy. The tax
system in modern conditions of market relations is the main economic regulator, the
basis of the financial mechanism of state regulation of the economy. The effective
functioning of the economy and organizations depend on the literacy of the created
system of taxation in the state [24, p. 41].
The most important element of the tax system is the tax. Tax is a mandatory
contribution of individuals and legal entities to the budget or to an off-budget fund,
carried out in the manner and in accordance with the conditions determined by law
[21, p. 12].
The Tax Code of the Republic of Belarus (art. 6.1) states that tax is a manda-
tory individual gratuitous payment levied from organizations and individuals in the
form of alienation of funds belonging to them on the basis of ownership, economic
management or operational management of funds to the republican and (or) local
budgets [2].
Also, a tax is understood as a forced withdrawal by state tax structures of funds
from individuals and legal entities, necessary for the state to carry out its functions.
Thus, a mandatory payment from legal entities and individuals to ensure state
functions should be considered a tax.
The concept of "tax system" is one of the most important in determining almost
all aspects of the taxation of a sovereign state. However, despite the widespread use
of this term in the specialized literature and its consolidation in the regulatory acts of
the tax legislation of some countries, this concept has not yet acquired a single mean-
ing.
The essence of the tax system can be characterized in a narrow and broad
sense. In a narrow sense, the tax system is a system of various types of taxes and fees,
determined by the legislative state power and levied by executive authorities, as well
as methods and principles for constructing taxes. In a broad sense, the tax system is a
complex social entity, the elements of which are the tax system, tax law, tax authori-
ties, the tax activity itself, including accounting, control, and enforcement of tax obli-
gations [5, p. 71].
The content of the tax system is:
5
  the entire set of taxes, payments, as well as obligations that are accepted in
the state and are collected from citizens in order to replenish all levels of the state
budget of the country;
 the whole set of legislation in the field of tax collection and payment, as
well as the calculation of rates and the calculation of payments in force in a particular
state;
 the whole set of state institutions involved in the processes of collecting
and accruing, as well as calculating taxes and payments in the country.
The analysis shows that in the Republic of Belarus and in other countries of the
post-Soviet space, a narrow approach is used to determine the essence of the tax sys-
tem.
The tax system of each state is formed according to its socio-political structure,
the ultimate goals of economic policy. The tax system of any country is based on the
relevant state legislative acts that establish specific methods for collecting and
building taxes, namely, they determine the elements of the tax.
The structure and organization of the tax system show the level of economic
development of the state.
In addition to the high value of a distributive nature, the tax system is also in-
volved in solving fiscal and redistributive tasks related to withdrawing monetary re-
sources from various subjects of taxation and transferring them to the state to replen-
ish the treasury. These entities include small, medium and large businesses, ordinary
citizens of the country.
Main characteristics of the tax system:
 the procedure for establishing and enacting taxes and tax payments;
 tax system and types of taxes;
 classification of taxes according to the national budget classification;
 the procedure for distributing tax payments between the links (levels) of the
budget system;
 system of tax authorities;
 obligations of taxpayers and their rights;
 duties of tax authorities and their rights;
 responsibility of all participants of tax relations;
 protecting the interests and rights of taxpayers;
 tax law [24, p. 46].
Each state has its own system of taxes, or a list of statutory taxes. Their number
varies depending on many economic and historical circumstances. In order to achieve
comparability and achieve diversity in the construction of the tax system, which is
required by integration processes and the norms of international financial law, all
taxes are divided according to the criteria of budget classification.
6
 Let’s consider the composition of the tax system. Thus, the tax system in-
cludes:
 types of taxes legally defined in the country by the legislative authorities;
 tax subjects (or taxpayers) paying fees and taxes in accordance with the
laws adopted in the country;
 bodies of state power and local self-government as institutions of power,
endowed with specific rights in the field of tax withdrawal from tax subjects and es-
tablishing control over the payment of taxes by tax payers;
 legislative framework (namely, the Tax Code, laws, resolutions, orders, in-
structions) in the field of taxation, the rights, obligations and responsibilities of tax
subjects and institutions for the collection of taxes and control over their payment by
taxpayers [22, p. 59].
Establishing the principles on which the tax system is based is the most impor-
tant problem of all financial science.
The principles of taxation are understood as the basic provisions and ideas that
determine the key directions of state policy in the field of tax (financial) activities and
are enshrined in the rules of law [22, p. 29].
In the General Part of the Tax Code (art. 2) in 2019, eight fundamental princi-
ples of taxation, which are designed to ensure legal certainty and stability of tax legis-
lation in the Republic of Belarus, were enshrined. Some principles are introduced for
the first time. In pursuance of these principles, a number of provisions of the Tax
Code have been amended and supplemented.
Taxation in the Republic of Belarus is based on the following principles [2]:
 the principle of legality of taxation. No one can be entrusted with the obli-
gation to pay taxes, fees (duties) that are not established by tax legislation;
 the principle of compulsory taxation. Payers are obliged to pay legally es-
tablished taxes, fees (duties);
 the principle of equal taxation. Taxes, fees (duties) cannot be discrimina-
tory. Benefits established in the Tax Code should not be of an individual nature;
 principle of presumption of good faith of the payer. This is one of the new
principles enshrined in the Tax Code of 2019, in order to implement the provisions of
the Decree of November 23, 2017 N 7 "On the Development of Entrepreneurship". It
implies that the payer is recognized as acting in good faith until this fact is refuted on
the basis of documented evidence;
 the principle of fair taxation. One and the same object of taxation may be
subject to the same tax, due (duty) from one payer only once for the corresponding
tax period;
 the principle of stability of tax legislation. Taxes, fees (duties) cannot be
changed during the financial year;

7
  the principle of publicity of tax legislation. Normative legal acts regulating
taxation issues are subject to official publication. This principle implies the immedi-
ate publication of a new regulatory legal act “without delay”, so that payers can fa-
miliarize themselves with the innovations and have time to respond to changes, in
particular, to receive clarifications on how to apply such a regulatory legal act. It
should be noted that bringing a normative legal act to the public by placing its text on
the National Legal Internet Portal of the Republic of Belarus (www.pravo.by) is rec-
ognized as official publication. The date of official publication of the act is the date
of its placement on the specified Internet portal;
 the principle of economic justification of taxation. Taxes, fees (duties)
should be established taking into account the need to balance budget expenditures
with their revenues. At the same time, the costs of tax administration should not ex-
ceed directly tax revenues to the budget.
Therefore, the tax system in the narrow sense is a system of various types of
taxes and fees, determined by the legislative state power and levied by executive au-
thorities, as well as methods and principles for constructing taxes. The tax system in a
broad sense is a complex social entity, the elements of which are the tax system, tax
law, tax authorities, the tax activity itself, including accounting, control, and enforce-
ment of tax obligations. The tax system includes the types of taxes, the subjects of
taxes, the legislative framework and government bodies in the field of taxation. The
principles of taxation form the tax system. This is laid down in Art. 2 of the Tax
Code: 1) legality of taxation; 2) mandatory taxation; 3) equality of taxation; 4) pre-
sumption of good faith of the payer; 5) fairness of taxation; 6) stability of tax legisla-
tion; 7) publicity of tax legislation; 8) economic validity of taxation. The high role of
indirect taxes in the Republic of Belarus and the rather high tax burden (taking into
account contributions to the Social Protection Fund) should also be mentioned).

1.2 Functions and types of the tax system

The tax system allows the regulation of all economic processes of the country,
being the essence of the entire credit and financial mechanism. It should also be noted
that the national economy is directly dependent on a well-organized tax system, the
more efficiently the system works, the more successful the national economy.
The tax system affects economic and social processes through its functions in
many areas and, above all, through the filling of budgets and extra-budgetary funds of
various levels and the creation of favorable conditions for the functioning of business
entities. The more positive and negative effects of taxation are balanced, the more
8
beneficially the tax system affects social processes. Commercial organizations are the
basis for the development of the country's economy. The level and dynamics of their
development determine the size of the revenue part of the budgets of different levels,
the size of the national income and GDP. Therefore, the main task of the state should
be to create favorable conditions for their development [21, p. 79].
The key functions of the state tax system and, accordingly, the taxes available
in the state, are:
 fiscal – consists in replenishing state revenues at different levels necessary
for the performance of its functions by the state;
 regulatory – lies in the active state influence through economic methods
and levers on social and economic processes in society;
 distribution – consists in the process of distributing the total social product
between individuals and legal entities, spheres and sectors of the economy, the state
as a whole and its territorial and administrative units;
 control – consists in observing and monitoring cost proportions in the
course of distribution and formation of incomes of different subjects of the economic
system;
 stimulating – has an impact on reproduction, increasing its pace, increasing
or weakening the accumulation of capital, expanding or reducing the effective de-
mand of people, applying a system of benefits and exemptions;
 restraining – lies in the purposeful curbing of reproduction rates by means
of an increase in tax rates or the introduction of additional taxes;
 reproductive – is intended for the accumulation of funds for the restoration
of the resources used;
 social – lies in maintaining social balance by reducing inequality in real in-
comes of some groups of the population [21, p. 82].
An analysis of the tax systems of states shows that, despite their differences,
they have common elements in their structure, albeit in different combinations. The
state can impose taxes for various reasons: from the redistribution of income of the
population to the elimination of external economic effects. Taxes have an economic
impact on all market entities: consumer, producer, state budget.
Reducing taxes on the consumer allows him to increase the amount of con-
sumed goods or increase his long-term savings. The first occurs at a low level of con-
sumption, the second – at a stable and high level of personal consumption. With a de-
crease in tax revenues, the state budget is reduced, and as a result, support for public
sector enterprises and public investment are reduced.
So, the tax system performs such functions as fiscal, regulatory, distributive,
control, stimulating, restraining, reproductive, social.
In the world, there are two main types of tax systems that operate in a particu-
lar country:
9
 Schedular tax system. This tax system is based on schedules. Scheduler is the
part of the taxpayer's income that is taxed. It should be noted that absolutely the en-
tire income of payers is subject to similar schedules, but to a different extent, that is,
each part of the income separately applies its own tax rates or benefits, and even dif-
ferent taxes;
Global tax system. Such a system, unlike the scheduled one, does not use the
division of income into different groups, which does not imply different taxes on the
income of payers. In this system, all taxpayers pay the same, regardless of whether it
is an individual or a legal entity. This system greatly simplifies all processes related
to the collection of taxes, their distribution, the legislative framework, etc. [22, p.
101].
Furthermore, tax systems can be classified depending on the burden that it has
on the entire economic activity of a country. Allocate tax systems of a fiscal-liberal
nature, such systems involve the payment of taxes and fees, taking into account the
policy of social contributions. This tax system is typical for the countries: USA,
Japan, Portugal, Australia, as well as most countries in South America. It should be
noted that social payments reach a level of up to 30% of GDP [22, p. 104].
There are also tax systems of a fiscally moderate nature. Such systems imply
that the total tax burden on taxpayers should not exceed 40% of the country's total
GDP. Such countries include: Russia, Canada, Greece, Switzerland, Spain, Germany,
Great Britain, etc. Tax systems of a fiscally rigid character. Such systems imply a
clear redistribution of GDP within the country and abroad, but it should be noted that
the tax burden should also be no more than 40% [22, p. 104].
In the tax system, most often there are main direct taxes, but there are also indi-
rect taxes, if considered by the share of indirect taxes, then tax systems can be classi-
fied as follows:
 Tax system dominated by income taxes. Such a system involves focusing
on those incomes and property of taxpayers whose total share of indirect taxes is less
than 35% of all tax revenues. Such a tax system prevails in the following countries:
Australia, UK, USA, Canada, etc.;
 The tax system where indirect taxes occupy a moderate position, that is, the
tax burden is distributed fairly evenly and the totality of indirect taxes does not ex-
ceed 50% of the country's total tax revenues. Countries with a similar tax system in-
clude: Italy, France, Germany, etc.;
 The tax system, where indirect taxes occupy a leading position and account
for more than 50% of all tax revenues in the country. Such countries with such a tax
system include: India, Pakistan, Brazil, Russia, etc.
Also, the tax system can be subdivided depending on the level of powers that
exist within the tax system and which can be divided according to the centralization
of power [24, p. 57].
10
 A tax system where powers are internally centralized. The entire control center
in such a system is concentrated in the federal bodies, which account for more than
65% of all tax revenues, which are of a consolidated nature. Countries of this order
include: Russia, Austria, France, etc.;
A tax system where powers between tax institutions are moderately central-
ized, meaning that all governments have some level of power. Such powers, espe-
cially at the federal level, should provide up to 65% of all tax revenues, of a consoli-
dated nature. Countries with such a tax system include: India, Australia, Germany,
etc.;
A tax system where powers are decentralized, that is, all lower levels of gov-
ernment have much more powers than higher ones. Such powers, especially at the
federal level, should provide up to 55% of all tax revenues, of a consolidated nature.
The countries with such a tax system include: Canada, Denmark and the USA [24,
p.58].
So, there are different classifications of tax systems. First of all, schedular and
global tax systems are distinguished. Also, depending on the load, tax systems of a
fiscal-liberal nature, a fiscal-moderate nature and tax systems of a fiscal-hard nature
are distinguished. Types of tax systems are depending on the share of direct and indi-
rect taxes, depending on the level of authority in the tax system.

11
 CHAPTER 2
FEATURES OF THE TAX SYSTEM OF THE REPUBLIC OF
BELARUS

2.1 Characteristics of the tax system of the Republic of Belarus

and its structure

In the Republic of Belarus, taxes and the tax system occupy an increasingly
significant place in the economic system of the state, both in terms of their volume in
budget revenues and in terms of their importance in regulating the development of the
entire national economy. Therefore, the state pays great attention to the regulation of
the tax system as an instrument of state regulation of the economy.
With the help of a system of rates, benefits or discounts, taxes affect entrepre-
neurial and economic activities in the country and in foreign markets, they act as an
effective tool in managing the economy of the state.
Tax payments, which determine the structure of the taxation system of the Re-
public of Belarus, are divided into two groups: republican payments and local ones.
Therefore, the Belarusian tax system is a two-level.
This structure makes it possible to assert the establishment of a two-tier tax
system in the country, which corresponds to the organization of the budget of the re-
public, which includes two independent parts: the republican budget, as well as local
budgets.
The Law "On Local Government and Self-Government in the Republic of Be-
larus" determines the mechanism for calculating taxes and fees to local budgets. The
objects of taxation, the procedure for payment, rates, benefits for each type of tax and
fee are determined by special acts of tax legislation [4].
The structure of the tax system of the Republic of Belarus includes direct taxes
(profit tax, real estate tax, income tax, etc.), indirect taxes (excise taxes, VAT), mixed
taxes (environmental and land taxes, contributions to innovation funds, etc.) and
other taxes (import, export customs duties and fees, offshore tax, etc.).
The most capacious is the group of indirect taxes [11].
Table 2.1 reflects the composition of the tax system of the Republic of Belarus
according to the Tax Code of the country [12].

12
Table 2.1 – Composition of taxes of the Republic of Belarus in accordance with the
Tax Code
Types of taxes
republican taxes, fees local taxes and fees special regimes
(duties) taxation
value added tax; dog ownership tax tax under the simplified system of
excises; resort fee; taxation;
income tax; collection from man- a single tax from individual en-
tax on income of foreign organizations that ufacturers. trepreneurs and other individuals;
do not operate in the Republic of Belarus a single tax for producers of agri-
through a permanent establishment; cultural products;
personal income tax; gambling business tax;
property tax; tax on income from the implemen-
land tax; tation of lottery activities;
environmental tax; tax on income from conducting
tax for extraction (withdrawal) of natural electronic interactive games;
resources; fee for the implementation of
collection for the passage of motor vehicles handicraft activities;
of foreign states on the public roads of the fee for the implementation of ac-
Republic of Belarus; tivities for the provision of ser-
offshore fee; stamp duty; vices in the field of agroeco-
consular fee; government duty; tourism;
patent fees;
customs duties and customs fees.

The tax system of the Republic of Belarus also includes tax authorities.
Tax authorities are state bodies that have the rights of a legal entity and ensure,
within their competence, the economic security of the Republic of Belarus through
the implementation of state policy and the implementation of regulation and manage-
ment in the field of taxation.
In cases stipulated by legislative acts, the powers of tax authorities may be
vested in customs authorities and other authorized state bodies [2].
This is, first of all, the Ministry of Taxes and Dues of the Republic of Belarus,
as well as the State Customs Committee, which performs tax functions when import-
ing goods into the Republic of Belarus.
So, the tax system of the Republic of Belarus began to take shape after gaining
independence. The tax system in Belarus is two-tier, as it is represented by republican
and local payments. In the current tax system in Belarus, general and simplified taxa-
tion regimes can be distinguished. Their essence and conditions of application in rela-
tion to various categories of payers are regulated by tax legislation. The tax system of
the Republic of Belarus also includes tax authorities.

13
 2.2 Types of taxes and fees levied in the Republic of Belarus and
their legal regulation

The main taxes in the Republic of Belarus are: VAT, excises, income tax, real
estate tax, land tax, etc. In the current tax system in Belarus, general and simplified
taxation regimes can be distinguished. Their essence and conditions of application in
relation to various categories of payers are regulated by tax legislation.
Let’s consider the key taxes in Belarus.
Value Added Tax (VAT). The payers of this tax are legal entities – it is they
who make transfers to the budget, however, VAT is included in the price of goods
and services, therefore, in practice, VAT also applies to individuals. The VAT rate in
Belarus is 20%, however, there are a number of goods and services for which benefits
are provided: the tax rate may be reduced or absent altogether [3].
Value added tax is the most important source of state tax revenues; as a rule, it
forms about a third of all tax revenues. VAT goes to both the republican and local
budgets.
Personal income tax. This tax is paid by citizens from the income they receive.
Basically, it's wages. In addition, income tax in some cases may be subject to income
from bank deposits, income from the sale of real estate and other property, gifts, and
so on. The income tax rate in Belarus is 13%, but in some cases it can be lowered.
Due to this tax, as a rule, about 15% of the income of the consolidated budget is
formed. In this case, the recipients of income tax are local budgets.
Import and export customs duties, or so-called taxes on foreign economic ac-
tivity. These taxes are paid mainly by organizations in the course of their foreign eco-
nomic activity. Customs duty rates are set individually for different partner countries
and activities [3]. The duties go to the republican budget, and at the expense of them
10-12% of the income of the consolidated budget can be formed.
income tax. This tax is paid by organizations at the expense of their profits.
The basic income tax rate is 18%, but in some cases it may be lower or higher. Profit
taxes are received both in the republican and local budgets. This tax usually forms
about 10% of the consolidated budget of Belarus.
Excises. This tax is imposed on a number of excisable goods: automobile fuel,
alcoholic beverages, tobacco products. Excise rates are set individually for each
group of goods. As in the case of VAT, excises are included in the price and trans-
ferred to the budget by legal entities. Due to excises, 7-8% of the income of the con-
solidated budget is usually formed, and the recipient of this tax is the republican bud-
get.
Property taxes. They are paid by people and organizations that own real estate
or land [3]. The rates of these taxes are set locally and may vary from region to re-
14
gion. Property taxes are paid to local budgets, and as a rule, up to 4% of all revenues
of the Belarusian treasury are formed at the expense of them. Other taxes such as pet
tax or resort fee. Other taxes can be received both in the republican and local budgets,
and are paid depending on the type of tax, both by individuals and legal entities. The
share of such taxes in the consolidated budget is very small.
After gaining independence during the formation of the domestic tax system, it
was based on the adopted Law of the Republic of Belarus dated December 20, 1991
No. 1323-XII “On taxes and fees levied in the budget of the Republic of Belarus”,
which defined the basic principles for building the tax system , its structure, as well
as the rights, duties and responsibilities of payers and tax authorities, and special acts
of tax legislation that determine specific objects of taxation for each type of tax, the
procedure for payment, rates and benefits [8, p. 207].
The activity of the state tax service was regulated by the Law of the Republic
of Belarus dated February 2, 1994 No. 2737-KhP “On the State Tax Inspectorate of
the Republic of Belarus”. The adopted system of acts of tax legislation was a signifi-
cant step forward, but the tax system was imperfect.
An important event in the development of the Belarusian tax system was the
adoption of the Law of the Republic of Belarus dated January 4, 2003 No. 184-3 “On
the Enactment of the General Part of the Tax Code of the Republic of Belarus” and,
accordingly, the entry into force on January 1, 2004. General Part of the Tax Code of
the Republic of Belarus.
The special part of the Tax Code was put into effect on January 1, 2010 by the
adoption of the Tax Code of the Republic of Belarus dated December 29, 2009 No.
71-1 “Tax Code of the Republic of Belarus (Main Part)” [8, p. 208].
In general, it is important to point out that during the years of independence in
Belarus, a regulatory legal framework for organizing the country's tax system has
been formed. There is a system of sources of tax law.
National sources of tax law include:
 The Constitution of the Republic of Belarus. In accordance with Art. 56 of
the Constitution, citizens of the Republic of Belarus are obliged to take part in the fi-
nancing of public expenditures by paying state taxes, duties and other payments. Is-
sues related to taxation are also addressed in other articles of the Constitution, but
they are related to the competent aspects of tax relations. So, in accordance with Art.
97 of the Basic Law, the House of Representatives of the National Assembly of the
Republic of Belarus considers draft laws on the establishment of republican taxes and
fees [1].
 The Tax Code of the Republic of Belarus, which includes norms of a gen-
eral (General Part of the Tax Code of the Republic of Belarus of December 19, 2002)
and a special nature (Special Part of the Tax Code of the Republic of Belarus of De-
cember 29, 2009) [2, 3].
15
On January 1, 2022, a new edition of the Tax Code came into force, providing for the
simplification of the mechanism for collecting taxes and tax administration, as well as
stimulating the development of the economy.
 Decrees and decrees of the President of the Republic of Belarus. Acts of
the head of state in the field of taxation, as a rule, are aimed at providing various
kinds of individual and general tax preferences, regulating special taxation regimes.
 Resolutions of the Council of Ministers of the Republic of Belarus, issued,
as a rule, in cases stipulated by the tax legislation in relation to certain elements of the
tax.
 Acts of state bodies of special competence (Ministry of Taxes and Duties,
State Customs Committee, Ministry of Finance of the Republic of Belarus, etc.),
which include departmental subordinate regulatory legal acts on issues related to tax-
ation, adopted in within their competence.
 Acts of local governments and self-government, adopted within the rights
granted to them by law [17, p. 56].
The group of international sources of tax law is made up of various kinds of
International conventions on taxation.
The acts of this type include, for example, numerous agreements on the elimi-
nation of double taxation concluded by the Republic of Belarus; Treaty on the
Eurasian Economic Union of May 29, 2014 on the principles of levying indirect taxes
on the export and import of goods, the performance of work, the provision of services
between the EAEU member states; bilateral agreements on the provision of adminis-
trative assistance in tax matters (they are concluded between the tax authorities of dif-
ferent countries in order to exchange information, strengthen tax control, etc.).
A special place among the sources of tax law belongs to interstate agreements
on taxation issues, which have the status of international treaties of the Republic of
Belarus.
The norms of the ratified agreements are priority in the regulation of tax legal
relations in comparison with the norms of the national legislation (with the exception
of those enshrined in the Constitution of the Republic of Belarus).
Most of the current agreements establish rules on the elimination of double tax-
ation (with the Republic of Bulgaria, within the framework of the CIS) [17, p. 57].
Let us consider the composition and structure of incomes of the consolidated
budget of Belarus (Table 2.2) [7]. The table shows that over the past four years the
share of tax revenues has increased in Belarus and the share of non-tax revenues, as
well as gratuitous receipts, has decreased.

16
Table 2.2 – Composition and structure of consolidated budget revenues of the Repub-
lic of Belarus
2018 2019 2020 2021
Name in % of in % of in % of in % of
million million million million
total total total total
rubles rubles rubles rubles
income income income income
Total income 37 683,4 100,0 39 139,7 100,0 39 290,1 100,0 46 813,2 100,0
Тax revenue 31 491,8 83,6 32 969,7 84,2 33 512,2 85,3 41 549,7 88,8
Non-tax income 4 067,2 10,8 4 380,6 11,2 5 224,6 13,3 4 734,3 10,1
Donations 2 124,4 5,6 1 789,3 4,6 553,3 1,4 529,2 1,1

The structure of tax revenues of the consolidated budget of the Republic of Be-
larus is shown in Figure 2.1 (author’s elaboration on the basis of [15]). The figure
shows that over the past four years in the structure of tax revenues of the consolidated
budget of Belarus, the share of taxes such as VAT, income tax, profit and income tax,
excises has increased, while the share of taxes from foreign economic activity, the
share of property taxes have decreased.

Figure 2.1 – Tax revenues of the consolidated budget, as a percentage of total tax revenues

Let's define the main trends in the development of taxes in the Republic of Be-
larus and their legal regulation.
1. Active rule-making activity by amending the version of the Tax Code,
aimed at reducing the tax burden, reviewing and systematizing tax benefits, simplify-
ing the mechanisms for levying certain taxes. In particular, earlier, in order to reduce
the tax burden, attract investments, reinvest profits in the development of production,
the size of the investment income tax deduction was increased by 1.5 times; reduced
17
from 12 to 6% income tax and income tax rates in respect of dividends, provided that
the profit received is not distributed for consumption within three years; property
taxes on newly built facilities and land plots on which they are located were canceled
in the first year of operation. The reserve for reducing the tax burden without preju-
dice to the fiscal interests of the budget consists in revising and optimizing the com-
position of tax benefits. To this end, the Ministry of Taxes and Duties is currently
conducting purposeful work to analyze the effectiveness of existing tax incentives
and preferences with the aim of a subsequent initiative to reduce the least effective
and maintain effective benefits [23, p. 134].
In general, thanks to the implementation of the indicated measures to reduce
the tax burden, its value began to gradually decrease, which is quite within the limits
of 26% of GDP established by the Socio-Economic Development Program (Figure
2.2) [10]. According to preliminary data, in 2020 the tax burden on the economy of
the Republic of Belarus amounted to 22.8% of GDP and decreased by 1.7 percentage
points compared to 2019, due to the outstripping dynamics of the decline in tax rev-
enues in comparable prices (growth rate – 92.3%) in relation to the reduction of GDP
(growth rate – 99.1%).
36.1%

27.3% 26.0% 25.8%

24.3% 25.1% 24.5%
22.8%

2008 г. 2010 г. 2012 г. 2014 г. 2016 г. 2018 г. 2019 г. 2020 г.

Figure 2.2 – Tax burden on the economy of the Republic of Belarus

in 2008-2020

For 2021, neither on the website of the Ministry of Economy of the Republic of
Belarus, nor in other sources, there is any information on the amount of the tax bur-
den.
To simplify the mechanisms for levying certain taxes and fees, the Tax Code
brought together tax and accounting; organizations are given the opportunity to create
reserves for doubtful debts; expanded list of non-operating income; simplified tax ac-
counting of some normalized expenses. The principle of voluntary application of a
single tax from individual entrepreneurs in the sale of works and services to con-
sumers has been introduced [13].

18
 2. Improvement of the simplified taxation system was carried out. In particu-
lar, the possibility of conducting accounting in a simplified manner for organizations
was expanded by increasing the gross revenue criterion by 1.5 times; the criterion of
gross revenue is indexed to the forecast level of inflation; the tax base excludes the
amount of reimbursement of utility services when renting out property. However,
since 2023, changes have been announced in the taxation system for entrepreneurs
and a move away from the simplified system.
3. Improving tax administration. A special place in the implementation of this
area of tax policy belongs to the liberalization of the practice of applying enforcement
measures. In particular, the mechanism for suspending transactions on the accounts of
legal entities with debts to the budget was changed through the introduction of a risk-
based approach with the division of organizations into risk groups depending on the
degree of conscientiousness of the payer [23, p. 135].
The procedure for collecting receivables has also been improved. In particular,
a list of documents confirming its existence, the term and forms of data presentation
are defined. The duty of the tax authorities to inform the debtor about the decision
taken to collect funds from his accounts to pay off debts on payments to the budget of
his creditors has been introduced. Approaches to the calculation of penalties have
been changed - its size should not exceed the amount of the additional tax. Thus, the
complex transformation of the debt management system made it possible to solve al-
most all problematic issues related to enforcement, which were actively discussed by
the business community.
4. Active use of advanced IT technologies in the activities of tax authorities.
Thus, the use of advanced IT technologies made it possible to change approaches to
control and analytical work by strengthening preventive measures while improving
the quality of the selection of tax audit objects. An automated system for identifying
economic entities that are inactive has been introduced; developed an electronic re-
source "Personal account of the payer" with a corresponding set of electronic ser-
vices; AIS "Accounting of invoices" was developed. In addition, Decree of the Presi-
dent of the Republic of Belarus dated October 16, 2018 No. 4 14 “On improving
cashless payments”, which entered into force on January 1, 2020, provides for the in-
troduction of an automated information system for the fulfillment of monetary obliga-
tions [6].
Further efforts to use advanced IT technologies in the work of tax authorities should
be aimed at improving the quality of tax services provided in the direction of simplic-
ity, mobility and convenience for payers. In addition, this line of activity is fully con-
sistent with the global trend of digitalization of the activities of tax services.
5. Shifting the focus of the control work of the tax authorities from purely fis-
cal goals to the implementation of preventive and precautionary measures.
Such targets in the practice of state control are enshrined in the norms of De-
19
crees of the President of the Republic of Belarus No. 510 of October 16, 2009 “On
improving control and supervisory activities”; No. 376 dated October 15, 2017 "On
measures to improve control and supervision activities." Such a shift in emphasis re-
duced administrative pressure on conscientious payers, minimized the interference of
tax authorities in the financial and economic activities of business entities [23, p.
136].
Desk control has become the dominant form of control work of the tax authori-
ties, which allows, on the basis of databases, to identify violations among payers,
promptly notify them of this, providing an opportunity to voluntarily clarify their tax
obligations and independently pay taxes to the budget without bringing them to ad-
ministrative responsibility.
6. Formation of high standards of tax culture and a positive behavioral stereo-
type of conscientious fulfillment by payers of their tax obligations. The growth of tax
culture in society is the most important priority of the tax policy of the Republic of
Belarus at the present stage, the full implementation of which will entail an increase
in tax collection in the country.
To implement this area of tax policy, purposeful systematic work is being car-
ried out with the population, starting with secondary schools. The information pres-
ence of tax authorities on the Internet is expanding by improving official accounts on
social networks and using modern public chats. The Association of Taxpayers and the
Chamber of Tax Consultants are conducting a survey of payers in order to study their
opinion on the efficiency of the work of tax authorities.
The role of traditional events in the formation of tax culture is still great: hold-
ing seminars, round tables, debates, etc. According to the Ministry of Taxes and Du-
ties, over 25,000 explanatory events are held annually by tax authorities with the par-
ticipation of the media, including business meetings, round tables and seminars, di-
rect and "hot" telephone and Internet lines [23, p. 137].
In 2022, separate changes were made to the procedure for calculating VAT. So,
for example, services for the participation (organization of participation) of Belaru-
sian organizations and (or) Belarusian individual entrepreneurs in conferences, fo-
rums, summits, symposiums, congresses held remotely with or without training by
foreign organizations are exempted from VAT who do not carry out activities in the
Republic of Belarus through a permanent representative office and who are not regis-
tered with the tax authorities (subclause 1.10.5 clause 1 article 118 of the Tax Code).
A VAT rate of 10% has been established since January 1, 2022 for the importa-
tion into the territory of the Republic of Belarus of medicines that have passed all
stages of the technological process, with the exception of packaging and (or) packag-
ing processes (i.e., when importing so-called in-bulk products, bulk product).
The validity of the VAT rate of 10% must be confirmed by the conclusion of
the Ministry of Health on the import of such medicinal preparations into the territory
20
of the Republic of Belarus, confirming their purpose for performing the stages of the
technological process of packaging and (or) packaging (subclause 2.2, clause 2, arti-
cle 122 NK) [3].
According to the additions to Article 139 of the Tax Code, import VAT col-
lected by tax authorities is not charged if goods imported from the territory of the
EAEU member states are placed under the customs procedure of a free customs zone,
and subsequently under the customs procedure of re-import. From July 1, 2022, the
procedure for levying VAT on goods sold to individuals of the Republic of Belarus
and Belarusian organizations through the Internet platform (showcase) of foreign or-
ganizations is introduced, through the mechanism of registering such foreign organi-
zations with the tax authority of the Republic of Belarus (Article 141 of the Tax
Code) [3].
Thus, the main taxes of the Republic of Belarus are: VAT, income tax, import
and export customs duties, income tax, excises, property taxes and others. The basis
of the national tax system was formed by such laws as: the Law of the Republic of
Belarus "On taxes and fees levied to the budget of the Republic of Belarus", the Law
of the Republic of Belarus "On the state tax inspection of the Republic of Belarus", as
well as the Law of the Republic of Belarus "On the introduction into force of the
General part of the Tax Code of the Republic of Belarus". Moreover, the Constitution
of the Republic of Belarus, the Tax Code of the Republic of Belarus, Decrees and
edicts of the President of the Republic of Belarus, Resolutions of the Council of Min-
isters of the Republic of Belarus, Acts of state bodies of special competence (the
Ministry of Taxes and Duties, the State Customs Committee, the Ministry of Finance
of the Republic of Belarus, etc.), Acts of local governments and self-government are
national sources of tax law. In recent years, the share of tax revenues has increased on
the territory of the Republic of Belarus and the share of non-tax revenues, as well as
gratuitous receipts, has decreased. In addition, in the structure of tax revenues of the
consolidated budget of Belarus, the share of VAT, income tax, profit and income tax,
excises increased, while the share of taxes from foreign economic activity, the share
of property taxes decreased. The main trends in the development of taxes in the Re-
public of Belarus and their legal regulation include:
 amendments to the version of the Tax Code aimed at reducing the tax bur-
den;
 improvement of the simplified taxation system;
 improvement of tax administration;
 application of advanced IT technologies in the activities of tax authorities;
 shifting the focus of the control work of tax authorities from purely fiscal
goals to the implementation of preventive and preventive measures;
 formation of high standards of tax culture.

21
 2.3 Advantages and disadvantages of the modern tax system of
the Republic of Belarus

At present, we can say that the tax system of our country has acquired stability
and certainty, its advantages are:
 the tax system is based on laws and not on by-laws;
 taxes are introduced and abolished only through the adoption of relevant
legislative acts;
 tax legislation is based on a single law - the Tax Code, which is a document
of direct action containing the main rules for levying taxes in the country;
 The tax system is based on uniform principles, a single mechanism for cal-
culating and collecting taxes. All taxes and fees are subject to unified control by the
tax authorities;
 In taxation, equal requirements are imposed on payers and equal conditions
are created by determining the list of taxes, streamlining benefits and the mechanism
for their provision [8, p. 210].
It can be stated that the current tax system in the Republic of Belarus in terms
of the number and type of taxes generally meets the requirements and parameters of
modern tax systems. At the same time, the leading role of indirect taxes attracts atten-
tion, which is due to the social orientation of the budget of the Republic of Belarus
and the need to mobilize a significant number of financial resources for these pur-
poses.
In addition, contributions for social insurance and pensions in the Republic of
Belarus are made to the Social Protection Fund. This fund is non-budgetary, there-
fore, to assess its fiscal value, the ratio of SSF revenues to GDP is used, which has
been consistently 11–12% over the past decade [23, p. 138]. Taking into account con-
tributions to the Social Security Fund, the share of taxes in GDP (tax burden on the
economy) of the Republic of Belarus in 2020 amounted to 37.2%.
Thus, the value of the tax burden on the economy of the Republic of Belarus is
quite comparable with the average value of this parameter for the OECD countries
(34.3% of GDP).
The main problems of the tax system of the Republic of Belarus at the present
stage are the complexity of tax legislation, a high tax burden, as well as its uneven
distribution, lack of information and ignorance of certain provisions of tax legislation,
costly administration of taxes, which are the main barriers to development private
sector and attract investment. A high tax burden negatively affects the competitive-
ness of Belarusian products, weakens incentives to work and save, leads to the con-
cealment of income by business entities and leads to tax evasion, which generally re-
duces the efficiency of the economy.
22
 According to the Belarusian researcher M. Sidorenko, additional weaknesses of
the tax system include widespread tax incentives and deductions, which lead to a nar-
rowing of the tax base, a decrease in the growth of basic taxes and distortions in the
economy. In the case of VAT, the increase in revenues in recent years has lagged far
behind the expansion of the tax base, which is explained by the numerous VAT ex-
emptions and the application of reduced VAT rates – the authorities estimate these
tax incentives to be 4% of GDP. As a result, VAT revenues in the Republic of Be-
larus are only close to the regional median, although the law sets rates closer to the
upper end of the range, and the economy is dominated by the public sector, which re-
duces the potential for tax evasion. In the medium term, increased pressure on income
is expected [19, p. 61].
Consider also the problem of taxation of individuals. Today, one of the prob-
lems is the complex procedure for the administration of real estate tax and land tax on
individuals. In connection with the classification as objects of taxation, including ob-
jects, the rights to which are not registered by individuals in accordance with the pro-
cedure established by law, it is not possible to ensure centralized receipt by tax au -
thorities of information about real estate and land plots.
So, today a regulatory framework has been formed, which is represented by the
Constitution, the Tax Code, Decrees and Decrees of the President, Decrees of the
Council of Ministers, acts of state bodies of special competence, acts of local govern-
ments and self-government, adopted within the rights granted to them by law. The
mechanism for collecting local taxes is regulated by the Law “On Local Government
and Self-Government in the Republic of Belarus”. The analysis showed that the
largest share in budget revenues in 2021 was VAT, personal income tax, income tax,
and excises. The main trends in the development of the modern tax system of the Re -
public of Belarus are: clear regulation in the key program documents of socio-eco-
nomic development; focus on reducing the overall level of the tax burden on the
economy, subject to the unconditional implementation of the revenue part of the bud-
gets of all levels; simplification of tax legislation, revision, systematization of tax
benefits, optimization of their quantitative and qualitative composition; improvement
of tax administration; improvement of control work in the direction of strengthening
the role of preventive and preventive measures. At the same time, the liberalization of
tax legislation is accompanied by a set of measures to increase the level of tax collec-
tion and prevent tax offenses. There are a number of advantages of the tax system,
but there are also its disadvantages. The problems of the tax system of the Republic
of Belarus at the present stage, which negatively affect the development of the na-
tional economy, are a high level of tax burden, instability of tax legislation, instability
of the tax base. There are problems in determining the tax base and calculating cer-
tain taxes, for example, VAT, where today there are a large number of benefits and
exceptions, which leads to a narrowing of the tax base. An analysis of the problems
23
of taxation of individuals in Belarus showed that there is a complex procedure for ad-
ministering the real estate tax and land tax on individuals, it should be noted that
there is no uniform electronic accounting of unregistered real estate objects and the
impossibility of ensuring full accounting by tax authorities of objects of taxation
owned by individuals. persons, and, as a result, the impossibility of timely and full
presentation of taxes to such persons.

24
 CHAPTER 3
DIRECTIONS FOR IMPROVING THE TAX SYSTEM OF
THE REPUBLIC OF BELARUS

Improving the tax system in almost any country in the world is permanent. At
the same time, in recent years, against the general background, the Republic of Be-
larus has been distinguished by high rates of reforming the taxation system.
To date, as a result of the tax reform, the structure, composition and number of
taxes have been determined, the frequency of their payment has been significantly re-
duced, and the mechanisms for collecting basic taxes have been simplified.
The analysis in the previous chapter showed the problems of the tax system,
which are the narrowing of the tax base and the presence of many tax benefits. In this
regard, it is advisable to take measures to improve the system of VAT exemptions
and deductions, which lead to a narrowing of the tax base.
Let us single out ways to solve the problem of taxation of individuals in terms
of real estate tax and land tax. In order to simplify the procedure and significantly re-
duce the costs of administering property taxes of individuals, it is advisable to refuse
to calculate property taxes on unregistered real estate objects owned by individuals.
Refusal to calculate property taxes on unregistered real estate owned by individuals,
along with a slight decrease in budget revenues, will significantly reduce the cost of
administering such taxes, which are currently borne by both tax authorities and other
state bodies obliged to form and provide information in accordance with tax legisla-
tion.
In particular, the refusal to calculate property taxes on unregistered real estate
objects will make it possible to determine the data of the unified state register of real
estate as the only source of information about objects of taxation owned by individu-
als. Such a procedure for exchanging information will entail the abolition of the du-
ties for the structural subdivisions of land management of local executive committees
on the quarterly submission of information on the decisions made in relation to land
plots provided to individuals.
Given the decline in revenues from the export of petroleum products and the
loss of budget revenues from "re-customs", it is clear that the government needs to
implement comprehensive fiscal reforms. With regard to taxes, the abolition of spe-
cial exemptions and deductions in order to broaden the tax base should be a top prior-
ity. However, any tax reform must be carried out in the context of broader structural
reforms, including spending reforms needed to improve the structure and efficiency
of spending, and to ensure a gradual reduction in the tax burden, coupled with an im-
provement in the business environment and regulatory legal framework and, most im-

25
portantly, with a deep reform of state-owned enterprises in order to increase their
profitability and competitiveness.
In the Republic of Belarus, indirect taxes predominate, which indicates the fis-
cal orientation of the tax system. It should be noted that the fiscal potential of direct
taxes directly depends on the income of legal entities and citizens. That is why direct
taxes are most dependent on the economic situation and can become a reliable and
predictable source of funds to the budget only in conditions of stabilization of the
economy as a whole.
In the coming years, the challenging outlook will put fiscal policy under severe
stress. In the short term, a significant adjustment will be inevitable in order to over-
come the impact of the external shock and eliminate macroeconomic imbalances
[20].
It will need to be complemented by significant ongoing adjustment, under-
pinned by deeper structural reforms needed to adapt to the changed external environ-
ment after the end of the current crisis. Its size will depend on many factors, includ-
ing the depth of contraction in major export markets, the trajectory of commodity
prices, and access to external financing.
To ensure that economic growth is as favorable as possible, most fiscal policy
measures should be aimed at increasing revenues. The remaining measures should
focus on reducing unproductive and inefficient spending (including support for state-
owned enterprises). At the same time, it is necessary to strengthen the fairness of fis-
cal policy by maintaining spending on human capital and increasing social support
for those in need. Productive spending should be maintained and increased as much
as possible, especially given the likelihood of a deep contraction this year and the
need to support a subsequent growth recovery [20].
The emphasis on revenues is driven by the need to offset the significant perma-
nent decline in key tax revenues (on income taxes and export taxes). A key measure
in relation to revenues could be the reduction of tax incentives, the indexation of ex-
cises for inflation and the extension of the property tax to apartment buildings [6].
Also, in order to improve the efficiency of the tax system, it is not the change
in the rates of basic taxes that begins to acquire great significance at the present stage,
but the issues of improving their qualitative characteristics, including tax administra-
tion and the system of relations with payers, ensuring the stability and predictability
of the tax legislator.
According to I.A. Kononchuk, special attention should be paid to optimizing
the level of the tax burden in the Republic of Belarus at the macro level [9, p. 19]:
 ensuring sustainable economic growth at a qualitatively new level;
 continuation of the tax reform aimed at reducing the tax burden and creat-
ing a tax system that is favorable for economic activity;
 ensuring the growth of real incomes of the population;
26
  increasing the efficiency and reducing the level of budget expenditures in
relation to the gross domestic product;
 continuation of consolidation in the budget of the resources of state funds;
 improving the methodology for the formation and execution of the budget,
as well as streamlining the normative and legal regulation of budgetary relations;
 continuing unification of the budgetary and tax legislation of the Republic
of Belarus and the Russian Federation as part of further improvement of the Tax
Code of the Republic of Belarus, as well as in order to implement measures to pre-
pare and adopt the Tax Code of the Union State.
For further development and improvement of the tax system of the Republic of
Belarus, it is necessary to create a favorable tax climate for business, improve control
and analytical work, optimize tax incentives, develop information technology, equal-
ize taxation conditions for all categories of taxpayers, develop international coopera-
tion in the field of taxation [14].
All this will contribute to a more active and stable development of the national
economy.
Improving the tax system should also be aimed at:
 reducing the overall tax burden for law-abiding payers. To do this, it is nec-
essary to achieve a more even distribution of the tax burden; reduce the tax burden on
the wage fund; allow for the deduction from the income tax base of all reasonable ex-
penses necessary for doing business (for example, management expenses, etc.);
 ensuring stability, predictability and simplification of the tax system by re-
ducing the number of taxes and abolishing ineffective fees and deductions to off-bud-
get funds (for example, certain types of environmental payments); maximum unifica-
tion of tax bases and rules for their calculation for individual taxes, as well as the pro-
cedure for their payment. Furthermore, it is unacceptable to make changes every 2-3
months. It is necessary to analyze the situation, accumulate the necessary changes
and additions and submit them for consideration along with the budget. The instabil-
ity of tax legislation scares away both domestic and foreign investors.
Tax reform has a chance of success only if it is possible to reach a compromise
between the government and business regarding the direction of reforms, their speed
and degree of radicalness.
So, taking into account the identified problems in the field of further develop-
ment of the tax system, the main priority should be the abolition of special exemp-
tions and deductions in order to expand the tax base. It is necessary to reduce the tax
burden, simplify the tax system, and ensure its stability and predictability. It is pro-
posed to take measures to improve the system of benefits for VAT and deductions,
which lead to a narrowing of the tax base. As the main directions for improving the
taxation of individuals, it is proposed to refuse to calculate property taxes on unregis-
tered objects of immovable property owned by individuals.
27
28
 CONCLUSION

The research conducted in the course work allows us to formulate the follow-
ing conclusions:
1. The tax system in the narrow sense is a system of various types of taxes
and fees determined by the legislative state power and levied by executive authorities,
as well as methods and principles for constructing taxes. The tax system in the broad-
est sense is a complex social entity, the elements of which are the tax system, tax law,
tax authorities, the tax activity itself, including accounting, control, and enforcement
of tax obligations. The tax system includes the types of taxes, the subjects of taxes,
the legislative framework and government bodies in the field of taxation. The princi-
ples of taxation form the tax system. This is laid down in Art. 2 of the Tax Code: 1)
legality of taxation; 2) mandatory taxation; 3) equality of taxation; 4) presumption of
good faith of the payer; 5) fairness of taxation; 6) stability of tax legislation; 7) pub-
licity of tax legislation; 8) economic validity of taxation. It should be noted the high
role of indirect taxes in the Republic of Belarus and a rather high tax burden (taking
into account contributions to the Social Security Fund). The tax system performs such
functions as fiscal, regulatory, distributive, control, stimulating, restraining, reproduc-
tive, social. There are various classifications of tax systems. First of all, sсhedular and
global tax systems are distinguished. Also, depending on the load, there are tax sys-
tems of a fiscal-liberal nature, fiscal-moderate nature and tax systems of a fiscal-hard
nature. Types of tax systems are depending on the share of direct and indirect taxes,
depending on the level of authority in the tax system.
2. It was revealed that the tax system of the Republic of Belarus began to take
shape after gaining independence. Today, a regulatory framework has been formed,
which is represented by the Constitution, the Tax Code, Decrees and Decrees of the
President, Resolutions of the Council of Ministers, acts of state bodies of special
competence, acts of local governments and self-government, adopted within the
rights granted to them by law. The mechanism for collecting local taxes is regulated
by the Law “On Local Government and Self-Government in the Republic of Be-
larus”. The tax system in Belarus is two-tier, as it is represented by republican and
local payments. In the current tax system on the territory of Belarus, general, special
and simplified taxation regimes can be distinguished. Their essence and conditions of
application in relation to various categories of payers are regulated by tax legislation.
The tax system of the Republic of Belarus also includes tax authorities.
3. The analysis showed that in budget revenues in 2021, the largest share was
VAT, personal income tax, income tax, excises. The main trends in the development
of the modern tax system of the Republic of Belarus are: clear regulation in the key
program documents of socio-economic development; focus on reducing the overall
29
level of the tax burden on the economy, subject to the unconditional fulfillment of the
revenue part of the budgets of all levels; simplification of tax legislation, revision,
systematization of tax benefits, optimization of their quantitative and qualitative com-
position; improvement of tax administration; improvement of control work in the di-
rection of strengthening the role of preventive and precautionary measures. At the
same time, the liberalization of tax legislation is accompanied by a set of measures to
increase the level of tax collection and prevent tax offenses. The problems of the tax
system of the Republic of Belarus at the present stage, which negatively affect the de-
velopment of the national economy, are a high level of tax burden, instability of tax
legislation, instability of the tax base. In the field of further development of the tax
system, the main priority should be the abolition of special exemptions and deduc-
tions in order to expand the tax base. However, any tax reform must be carried out in
the context of broader structural reforms, including spending reforms needed to im-
prove the structure and efficiency of spending, and to ensure a gradual reduction in
the tax burden, coupled with business improvements. environment and regulatory
framework and, most importantly, with a deep reform of state-owned enterprises in
order to increase their profitability and competitiveness. It is necessary to reduce the
tax burden, simplify the tax system.
4. It was revealed that there are problems in determining the tax base and cal-
culating certain taxes, for example, VAT, where today there are a large number of ex-
emptions and exemptions, which leads to a narrowing of the tax base. In this regard,
it is proposed to take measures to improve the system of VAT exemptions and deduc-
tions, which lead to a narrowing of the tax base. An analysis of the problems of taxa-
tion of individuals in Belarus showed that there is a complex procedure for adminis-
tering the tax on real estate and land tax on individuals, it should be noted that there
is no uniform electronic accounting of unregistered real estate objects and the impos-
sibility of ensuring full accounting by tax authorities of objects of taxation owned by
individuals, and, as a result, the impossibility of the timely and full presentation of
taxes to such persons. As the main areas for improvement, it is proposed to refuse to
calculate property taxes on unregistered real estate objects owned by individuals.

30
 REFERENCES

1. The Constitution of the Republic of Belarus of 1994 (with amendments and

additions adopted at the republican referendums on November 24, 1996, October 17,
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