Paying Taxes in Belarus
Updated on Monday 07th May 2018
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1. What is the corporate tax in Belarus?
The corporate tax rate for a company registered in Belarus is 18% from the sales profit, from 2012. Some exemptions may be granted, for example, the incomes provided by the sale of hi-tech and innovative goods are not taxed at all. The corporate tax is paid quarterly in equal rates: by 22 March, 22 June, 22 September and 22 December.
2. What is the VAT in Belarus?
The Value Added Tax (VAT) in Belarus is 20%. However, there are some exceptions in several areas, such as food, agriculture, repairing or hairdressing, where the VAT is only 10%. A zero VAT is applied for banking services, insurance, and education, as well as for exportation.
3. How can the VAT be refunded in Belarus?
You have six months ahead from the moment you register the request for VAT refund. The refund period is usually 90 days but in certain cases, the term may be longer.
4. What is the dividend tax in Belarus?
The rate for tax in dividends in Belarus is 12% if not reduced or exempt by an anti-avoidance agreement Taxes have to be paid once a year.
5. What are the taxes rates applied on other payments?
If there are no double tax provisions applicable, the interests are taxed with 10%, while the royalties are taxed with 15%. The freight from international carriage is taxed with 6%. The technical services fees are taxed with 15% withholding tax. Branches don’t need to pay a remittance tax on the profits delivered to their parent companies, unlike in other European countries.
6. Are there any incentives for foreign investors in Belarus?
There are several incentives when it comes to foreign investment in Belarus. For instance, there is a beneficial tax system for rural areas and small towns. Some conditions on personnel and gross revenues may also offer some incentives for foreign business. Due to the 65 double tax treaties signed so far with foreign countries, corporate taxes of foreign companies opened here may be exempt or credit on the Belarusian territory. Also, the withholding taxes on interest, dividends, and royalties may be abolished or minimized.
7. Why do I need a local accountant for my business in Belarus?
When opening a company in Belarus, one may prefer to hire a local accountant, as he might have more experience with law and be me prepared for the risks that may arise, especially because of the recent changes introduced in the Tax Code from the 1st of January 2012.