The new edition of the Law of the Republic of Belarus dated 22.07.2003 No. 226-Z “On currency regulation and currency control” has been in force for more than a year. In our material, we have collected the main aspects of the procedure for conducting foreign exchange transactions that affect the activities of organizations.
Forms of foreign exchange transactions
- cash;
- non-cash, including in the form of money transfers.
Prohibition on conducting foreign exchange transactions in foreign currency< /p>
1. Between legal entities – residents. There are exceptions (Article 12),but they mostly do not relate to the normal business activities of the organization:
2. Mbetween a resident legal entity and a resident individual
3. Between a legal entity – a resident and non-residents in cash
4. Between a resident legal entity and a non-resident individual
Repatriation
Legal entities – residents are obliged to ensure crediting to their accounts opened in banks of the Republic of Belarus (repatriation), unless otherwise provided by paragraph 2 article 19 of Law No. 226-Z or the President of the Republic of Belarus:
- when exporting – Belarusian rubles and (or) foreign currency;
- when importing – Belarusian rubles and (or) foreign currency in the event of a refund in case of non-fulfillment or incomplete fulfillment of obligations by a non-resident.
But there are exceptions:
The term of repatriation is determined by the resident based on the conditions and actual terms for the fulfillment of obligations by the parties under the foreign exchange agreement. The procedure for determining such a period is established by Instruction No. 147.
It is important to provide terms for the performance of obligations by non-residents in foreign exchange contracts (Law No. 226-Z contains the following obligation):
- on payment for goods transferred to a non-resident, undisclosed information, exclusive rights to intellectual property, property rights, property for rent (payment of rent and other lease-related payments), work performed, services rendered;
- on the return by a non-resident of Belarusian rubles, foreign currency paid by a resident as an advance payment, in case of non-fulfillment or incomplete fulfillment by a non-resident of obligations to transfer goods, undisclosed information, exclusive rights to intellectual property, property rights , property for rent, performance of work, provision of services.
For reference: The repatriation period is a concept used from 07/09/2021, i.e. is from the date of entry into force of the new version of Law No. 226-Z. Until 07/09/2021, the concept of the completion date of a foreign trade operation was used, which was:
- for export – no later than 180 calendar days from the date of shipment of goods (transfer of protected information, exclusive rights on the results of intellectual activity), performance of work, provision of services;
- when importing – no later than 90 calendar days from the date of payment.
Registration of foreign exchange agreements
Law No. 226-Z provides for the obligation of legal entities to register foreign exchange agreements. At the same time, such an obligation is assigned exclusively to residents of the Republic of Belarus. When concluding a foreign exchange agreement, registration is subjectforeign exchange agreements subject to the following conditions:
- concluded between residents and non-residents,
- providing for foreign exchange transactions in accordance from Art. 13 of Law No. 226-Z and referred to in part 2 of paragraph 3 of Instruction No. 37,
- if the amount of monetary obligations under such foreign exchange contracts is not determined or, as of the date of conclusion of the foreign exchange contract, is equal to or exceeds the amount equivalent to 4000 base units ( 128,000 Belarusian rubles).
If it is necessary to recalculate obligations under a foreign exchange agreement, the official exchange rate of the Belarusian ruble set by the National Bank in relation to foreign currencies on the date of conclusion of the foreign exchange agreement (for the purpose of determining if registration is required).
A currency agreement can be registered by a resident both independently and by banks of the Republic of Belarus, OJSC Development Bank of the Republic of Belarus, provided that they carry out banking operations, including the resident’s cash settlement agreement, under a currency agreement. Requirements for agreements concluded with banks are contained in paragraph 5 of Instruction No. 37.
How long does it take to register a foreign exchange agreement?
Registration of a foreign exchange agreement must be carried out depending on which of the following events occurs earlier:
- either before the resident performs actions aimed at fulfilling the foreign exchange agreement,
- or no later than 7 working days from the date, following the date of receipt of funds under a foreign exchange agreement to an account opened by a resident in a bank or a foreign bank.
In addition, a foreign exchange agreement should be registered in cases where changes have been made to it, and the amount liabilities reached or increases to 4000 basic units, or becomes uncertain. The term is no later than 7 working days from the date of making such changes to the foreign exchange agreement.
What needs to be done besides the registration of the foreign exchange agreement?
In addition to the registration of foreign exchange agreements, resident legal entities are also required to submit documents and other information on the fulfillment of obligations under registered foreign exchange agreements:
- the information listed in clause 13 of Instruction No. later than the 15th of each month. If during the calendar month the currency agreement was not executed, the specified information is not provided in the calendar month following it; of the contract in full.
The date of execution of the currency contract in full is the date of completion of the fulfillment of all obligations by the parties under the currency contract, including the date:< /em>
– the last receipt (execution) of a payment or shipment (receipt) of goods, including the return of payments and goods, carried out as a result of the refusal of one of the parties to fulfill its obligations;< /p>
– performance of work, provision of services, transfer (receipt) of undisclosed information, exclusive rights to intellectual property, property rights;
– loan repayment , repayment of a loan, contribution (deposit) .
- documents and other information at the request of the National Bank of the Republic of Belarus – within the time limits specified in the request. The request can be sent through the resident’s personal account on the web portal, the system of interdepartmental electronic document management of state bodies (SMDO) or on paper.
