In order to enhance the efficiency of utilizing funds allotted for advertising, marketing, consulting and information, representation and staff training the president of the Republic of Belarus on June, 15 2006 signed an edict №398 “On the adoption of advertising, marketing, consulting and information, representation and staff training expenditures norms”. The normative act defines the boundaries within which the abovementioned articles may be regarded as expenditures liable to taxation.

The presidential edict №398 lays down general norms for representation expenditures of juridical persons and private proprietors as related to meeting and catering for foreign delegations and private persons (hotel bills, nourishment, cultural guidance and everyday service, interpreter’s service and transport expenditures), organizing meetings, conferences, seminars etc. The total sum of financing the activities equals 0,2% of the amount of employees’ wages fund for the accounting period. 2% of the amount of the employees’ wages fund is a maximum for training staff expenditures on the basis of agreements concluded with the establishments of higher, professional and specialized education provided that the president does not fix another ratio for some particular case.      

In addition a multiplying rate of expenditures on advertising, marketing, information and consulting services is fixed for the organisations and private proprietors engaged in the sphere of tourism and mass entertainment.

The organisations and private proprietors the core activity of which is organising exhibitions and markets, and those placing advertisements with state-owned TV and radio broadcasting organisations having the state share of no less than 51% are granted the right to include the advertising money into general expenditures. State-owned TV and radio broadcasting organisations are allowed to include marketing, information and consulting expenses into general expenditures.

The expenditures of juridical persons and private proprietors will be calculated in accordance with the Belarusian legislation on accounting. They will either hinge on gross income or on gross profit for the accounting period.

The presidential edict №398 “On the adoption of advertising, marketing, consulting and information, representation and staff training expenditures norms” comes into force on July, 1 2006.