Belarusian enterprises are likely to improve financial health
As of October 1st, 2017, the compulsory sale of foreign currency earnings requirement would be reduced from 20% to 10%. Previously, the requirement was reduced from 30% to 20% in August 2016. The requirement has been reduced due to the need to meet the EFSR condition under the USD 2 billion loan agreement. The reduction is unlikely to have a significant impact on the foreign exchange market, albeit currency sales by legal entities are likely to decrease, net sales of currency on the domestic market are likely to persist. Should the Belarusian rouble start devaluing, the reduced requirement would reduce exchange rate losses from the compulsory currency sales and would contribute to the growth in enterprises’ financial stability.
The Labour and the Tax Ministries are considering the possibility to include persons engaged in some economic activity without forming a legal entity in the social security system. When the decree No 337 comes into effect, the number of private entrepreneurs is likely to reduce due to the possibility of reducing the tax burden when switching to a tax payment as an individual. 95% of self-employed, including PE, pay insurance premiums on the basis of the minimum wage. The number of self-employed citizens is expected to increase, the number of insurance contributions to the pension system from PE will decrease, the number of citizens who will pay a fee to finance government spending will decrease by several tens. Self-employed citizens have the alternative not to pay social security fees and save resources for future pensions, which, given the gradual restriction by the state of pension requirements could be a more long-sighted option.