Activities of foreign payment aggregators in the Republic of Belarus

In April 2022 the Republic of Belarus adopted the Law “On Payment Systems and Payment Services” (hereinafter – the “Law”). The Law regulates, inter alia, the activities of foreign payment aggregators providing payment services on the territory of the Republic of Belarus. The respective provisions of the Law come into force on August 27, 2022. 

According to the Law, a payment aggregator is an organization engaged in accepting payments to third parties and transferring payments in favor of their recipients. Accordingly, a “non–resident payment aggregator” (or, within this article, “foreign payment aggregator”) is a legal entity established under the legislation of a foreign state with a location outside the Republic of Belarus. 

The Law contains the following norm:
A foreign payment aggregator operating on the territory of the Republic of Belarus is considered as providing payment services on the territory of the Republic of Belarus if it accepts payments to the residents of the Republic of Belarus.

Based on this wording, the acceptance of payments (acquiring) to the address of a resident of the Republic of Belarus, with whom a corresponding contract will be concluded, is recognized as the provision of services on the territory of the Republic of Belarus.

For reference: If a foreign payment aggregator provides services on the territory of the Republic of Belarus for a period exceeding 183 days continuously or in aggregate in any 12-month period beginning or ending in the relevant tax period, such activity from the beginning of its performance is recognized as a permanent representation of a foreign organization, including in the case of its performance in different locations (Part 2, paragraph 3 of Article 180 of the Tax Code of the Republic of Belarus).

Foreign organizations that, on the basis of a contract, provide services on the territory of the Republic of Belarus for a period exceeding the terms specified above, are subject to registration with the tax authority upon their application submitted to the tax authority at the place of activity on the territory of the Republic of Belarus prior to the commencement of such activity (paragraph 1.5 of Article 70 of the Tax Code of the Republic of Belarus).

As a general rule, the provision of payment services on the territory of the Republic of Belarus will be possible only after inclusion in the Register of payment services providers and the types of payment services provided by them (hereinafter – the “Register”), the procedure for maintaining which will be determined by legislation. According to the transitional provisions of the Law, non-resident organizations operating as a payment services providers on the date of entry into force of the Law have the right to perform such activities without being included in the Register within 12 (twelve) months after the entry into force of the Law. If they intend to perform this activity in the future, they must apply to the National Bank for inclusion in the Register before the expiration of the specified period.

In order to provide payment services on the territory of the Republic of Belarus, a foreign payment aggregator shall: 

  • have a special permit for the provision of payment services (other similar document) in the country of its registration, if the need to obtain such documents is established by the legislation of the country of registration;
  • ensure the guarantee of the completion of settlements and the fulfillment of their payment obligations for accepted payments in accordance with the requirements established by Law; 
  • ensure the safety of funds; 
  • ensure the protection of information, the dissemination and/or provision of which is restricted in accordance with the legislation. 
     

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