Surrogate mothers tend to avoid taxes
The demand for their services keeps increasing every year and the fees reach 11 thousand dollars.
More than 30 Belarusians have become parents with the help of surrogate mothers since 2006. For some of them it was an opportunity to become happy parents and for others - a profitable business.
The overwhelming majority of Belarusian agreements about surrogacy are concluded in Minsk state notary's office #1. There were 7 of them in 2007 and 7 – in 2008 (one of them was signed in Pershamaiskaya notary's office #2 ). The manager of the office Svyatlana Hurynovich continues:
"There were 11 agreements in 2009. All of them were signed in Minsk notary's office #1. We have already approved three agreements this year. The last one was signed on June 23”.
Minsk notary's office #1 has a lot of experience if the field of surrogacy so genetic parents from all over the country address them most often. At the same time, not a single agreement has been signed in Hrodna for three and a half years since surrogacy was allowed in Belarus. One agreement was signed in Mahileu and one more - in Orsha.
According to Svyatlana Hurynovich, signing such an agreement does not take more than 1.5 hours. Foreigners come to the office from time to time, most of them are Russians. However, they can only consult specialists in Minsk now.
Svyatlana Hurynovich: "Our legislations differ in some ways. For example, the genetic mother has to get the permission of the surrogate mother to be registered as the baby’s mother in Russia. But surrogate mothers have no rights for children in Belarus. That is why we have not concluded agreements with foreign parents yet. We have only given them some explanations”.
The demand for surrogate mothers’ services keeps increasing every year. People are ready to pay a lot for an opportunity to become happy parents: according to Ms. Hurynovich, a surrogate mother’s fee reached 35 million rubles in Belarus!
Svyatlana Hurynovich: "The fee for such a contract can reach 35 million rubles in Belarus. It is not much in comparison with Russia and Ukraine. Russian surrogate mothers ask for 50 thousand dollars and Ukrainians – for $35 thousand. At the same time, gratuitous services have become more frequent in Belarus”.
Aksana Kalyatsen, the director of Malazdechna “Surconsult” company rendering legal services for surrogacy since 2007 confirms it. However, people’s unselfishness is not the reason for it. Vice versa. Women are just trying to avoid taxes for their huge fees! ERB has asked Minsk tax inspectorate about the way surrogate mothers had to pay taxes:
Lyubou Kaubaska, head of physical entities taxation control department:
"We have been asked this question for the first time! If it is the income surrogate mothers get from physical entities, the rate is 12%”.
Tatstsyana Kazlova, deputy head of the private entrepreneurs and physical entities control department of the tax inspectorate has expressed a different opinion about the situation
Tatstsyana Kazlova: "It is unlikely to have anything to do with taxation. An income up to 500 base amounts received from physical entities cannot be taxed. It is 17 million 500thousand rubles”.
So what has to be done with a fee of 35 millions? According to Ms. Kazlova, the way out is simple. A pregnancy that started in October and finished in July can be divided into two legal years. That is 17 million 500 thousand rubles per year.
However, Aksana Kalyatsen has taken Ms. Kaubaska’s side.
Aksana Kalyatsen: "I can tell you how it happens in reality. Genetic parents transfer money to the surrogate mother’s account. The tax inspectorate notices it and starts asking where the money comes from. And it turns out they have been transferred according to a surrogacy agreement. Then the tax inspectorate asks why it has not received any taxes”.
A surrogate mother will have to pay 4 million 200 thousand rubles of taxes for the fee of 35 millions. It is about 1400 dollars. The sum is not small!
However, it is small change in comparison with the real cost of having a baby with the help of a surrogate mother. Besides the fee, a surrogate mother gets about $300 a month during the pregnancy. Legal services will cost about 6 or 7 million rubles. There are also medical expenses. According to Aksana Kalyatsen, not every couple manages to go through the procedure of extracorporal fertilization after the first attempt.
Aksana Kalyatsen: "The biggest problem is starting a pregnancy. A healthy surrogate mother with a doctor’s permission may fail to get pregnant after the second, third and fifth attempt”.
Neither taxes, nor medical difficulties scare surrogate mothers. Internet forums for parents are full of their offers. Svyatlana Hurynovich says that some women have decided to do it for the second time and have concluded contracts with genetic parents again:
Svyatlana Hurynovich: "There are cases when a surrogate mother decides to get pregnant for the second time and makes money this way although she already has her own children. It is her business”.
According to Aksana Kalyatsen, surrogate mothers are allowed to join the programme only three years after the previous pregnancy. So, the first Belarusian surrogate mothers have just got an opportunity to get pregnant for money again. 9 months with someone else’s’ child in your belly for 35 millions. Is the business worth not being able to pay enough attention to your own children?
Belarusian surrogate mothers still answer “it is”.
More than 30 Belarusians have become parents with the help of surrogate mothers since 2006. For some of them it was an opportunity to become happy parents and for others - a profitable business.
The overwhelming majority of Belarusian agreements about surrogacy are concluded in Minsk state notary's office #1. There were 7 of them in 2007 and 7 – in 2008 (one of them was signed in Pershamaiskaya notary's office #2 ). The manager of the office Svyatlana Hurynovich continues:
"There were 11 agreements in 2009. All of them were signed in Minsk notary's office #1. We have already approved three agreements this year. The last one was signed on June 23”.
Minsk notary's office #1 has a lot of experience if the field of surrogacy so genetic parents from all over the country address them most often. At the same time, not a single agreement has been signed in Hrodna for three and a half years since surrogacy was allowed in Belarus. One agreement was signed in Mahileu and one more - in Orsha.
According to Svyatlana Hurynovich, signing such an agreement does not take more than 1.5 hours. Foreigners come to the office from time to time, most of them are Russians. However, they can only consult specialists in Minsk now.
Svyatlana Hurynovich: "Our legislations differ in some ways. For example, the genetic mother has to get the permission of the surrogate mother to be registered as the baby’s mother in Russia. But surrogate mothers have no rights for children in Belarus. That is why we have not concluded agreements with foreign parents yet. We have only given them some explanations”.
The demand for surrogate mothers’ services keeps increasing every year. People are ready to pay a lot for an opportunity to become happy parents: according to Ms. Hurynovich, a surrogate mother’s fee reached 35 million rubles in Belarus!
Svyatlana Hurynovich: "The fee for such a contract can reach 35 million rubles in Belarus. It is not much in comparison with Russia and Ukraine. Russian surrogate mothers ask for 50 thousand dollars and Ukrainians – for $35 thousand. At the same time, gratuitous services have become more frequent in Belarus”.
Aksana Kalyatsen, the director of Malazdechna “Surconsult” company rendering legal services for surrogacy since 2007 confirms it. However, people’s unselfishness is not the reason for it. Vice versa. Women are just trying to avoid taxes for their huge fees! ERB has asked Minsk tax inspectorate about the way surrogate mothers had to pay taxes:
Lyubou Kaubaska, head of physical entities taxation control department:
"We have been asked this question for the first time! If it is the income surrogate mothers get from physical entities, the rate is 12%”.
Tatstsyana Kazlova, deputy head of the private entrepreneurs and physical entities control department of the tax inspectorate has expressed a different opinion about the situation
Tatstsyana Kazlova: "It is unlikely to have anything to do with taxation. An income up to 500 base amounts received from physical entities cannot be taxed. It is 17 million 500thousand rubles”.
So what has to be done with a fee of 35 millions? According to Ms. Kazlova, the way out is simple. A pregnancy that started in October and finished in July can be divided into two legal years. That is 17 million 500 thousand rubles per year.
However, Aksana Kalyatsen has taken Ms. Kaubaska’s side.
Aksana Kalyatsen: "I can tell you how it happens in reality. Genetic parents transfer money to the surrogate mother’s account. The tax inspectorate notices it and starts asking where the money comes from. And it turns out they have been transferred according to a surrogacy agreement. Then the tax inspectorate asks why it has not received any taxes”.
A surrogate mother will have to pay 4 million 200 thousand rubles of taxes for the fee of 35 millions. It is about 1400 dollars. The sum is not small!
However, it is small change in comparison with the real cost of having a baby with the help of a surrogate mother. Besides the fee, a surrogate mother gets about $300 a month during the pregnancy. Legal services will cost about 6 or 7 million rubles. There are also medical expenses. According to Aksana Kalyatsen, not every couple manages to go through the procedure of extracorporal fertilization after the first attempt.
Aksana Kalyatsen: "The biggest problem is starting a pregnancy. A healthy surrogate mother with a doctor’s permission may fail to get pregnant after the second, third and fifth attempt”.
Neither taxes, nor medical difficulties scare surrogate mothers. Internet forums for parents are full of their offers. Svyatlana Hurynovich says that some women have decided to do it for the second time and have concluded contracts with genetic parents again:
Svyatlana Hurynovich: "There are cases when a surrogate mother decides to get pregnant for the second time and makes money this way although she already has her own children. It is her business”.
According to Aksana Kalyatsen, surrogate mothers are allowed to join the programme only three years after the previous pregnancy. So, the first Belarusian surrogate mothers have just got an opportunity to get pregnant for money again. 9 months with someone else’s’ child in your belly for 35 millions. Is the business worth not being able to pay enough attention to your own children?
Belarusian surrogate mothers still answer “it is”.
