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Tax rates in Belarus

Tax Rates

Consumption Taxes

Nature of the Tax
Nalog na dobavlennuyu stoimost (NDS) - Value-added tax (VAT)
Tax Rate
20%
Reduced Tax Rate
The following items are exempt from VAT: financial services; insurance services; educational services; cultural services; housing services; medical services; certain medical equipment, prosthetics and devices for disabled persons.
A reduced rate of 10% applies on sales of crops (except flowers and ornamental plants); sales of store cattle; sales of fish and hive products produced in Belarus; sales and/or imports into Belarus of goods for children and food products as per the list established by the Belarusian President; sales or imports into Belarus of medicines and medical devices.
Telecommunications services are subject to a higher rate of 25% (e.g., phone services, data transmission and telematics, TV broadcasting).
Exported goods and related services are zero-rated.
Other Consumption Taxes
Excise duties are levied on alcohol, tobacco, energy products, liquid and hydrocarbon gas, carburettors and diesel. Duties are collected per taxable item at fixed amounts varying between BYN 0 to BYN 481.08.

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Corporate Taxes

Company Tax
18%
Tax Rate For Foreign Companies
Foreign companies are taxed at the same rate as national companies, but only on their Belarus-sourced revenue.
Foreign companies may not establish branches in Belarus, but may establish subsidiaries, representative offices, or permanent establishments, which are taxed at the 18% rate.
Income of non-resident companies sourced in Belarus that is not related to the activities of a permanent establishment is subject to withholding tax at rates ranging from 0% to 15%.
Capital Gains Taxation
Capital gains are included in the taxable income of companies and taxed at the ordinary rate of corporation tax. Capital gains obtained by non-residents that do not have a permanent establishment in Belarus are subject to a withholding tax.
Main Allowable Deductions and Tax Credits
The deductibility of expenses is contingent on their economic justification.
Amortisation of tangible and intangible assets is tax-deductible at rates ranging from 0.8% to 20% (the excess is not deductible). Capital expenditure on costs incurred in the reconstruction and modernisation are considered as one-off deductible items at rates ranging from 20% (buildings) to 40% (machinery, equipment, intangible assets). Goodwill cannot be amortised for tax purposes.

Start-up costs cannot be deducted, while interest charges and bad debts are generally deductible. Donations to charitable organisations or expenses incurred for the acquisition of property and works for the benefit of charitable organisations are deductible up to 10% of gross profit.

Most taxes, except corporate tax and VAT, are deductible. VAT may be deductible if the purchase of goods and services is used to produce or sell goods and services that are exempt from VAT.

Belarus introduced the concept of "limited expenses" under which entertainment, representation fees and delayed interest on loans can be deductible up to 1% of the company's annual revenue (including VAT).

Tax losses can be carried forward in full for up to ten years. Nevertheless, losses resulting from activities outside Belarus (where the company is also a tax resident abroad) or losses that are incurred while the company enjoys a corporate tax exemption, are not deductible. The carryback of losses is not permitted.

Other Corporate Taxes
Social security contributions payable by the employer amount to 34% of the gross salary (28% pension insurance and 6% social insurance). Furthermore, employers pay a contribution for workplace accident insurance equal to 0.6% of salary (multiplied by coefficients of up to 1.5 for certain trade groups). An amount equal to 1% of an employee’s wages is withheld by the employer and paid on behalf of employees for the benefit of the social security fund.

The property tax is levied at a rate of 1% on all types of buildings and installations (including car parks). Belarus introduced new gradual rates of real estate for capital contractions. The rates go from 0.2% during the second year from putting contractions into operation to 0.8% in the fifth year. The property tax is levied on agricultural land at amounts ranging between 0.05 BYN and 15.31 BYN per hectare.

The Belarussian tax system has a series of state taxes that include, among others, stamp duties as well as notary and consular fees. Companies are subject to an environmental tax on the discharge of pollutants into the environment, the storage and disposal of industrial waste and the discharge of wastewater. The extraction of natural resources is subject to a tax as well as the collection or acquisition of wild plants, mushrooms or raw materials of floral origin (at a rate of 5% maximum).
Wire transfers (or non-cash settlements) to entities registered in offshore jurisdictions are subject to an offshore duty of 15% (deductible for CIT purposes).

A transport tax was introduced in 2021, with rates varying according to the type of vehicle.

Other Domestic Resources
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

Country Comparison For Corporate Taxation

  Belarus Eastern Europe & Central Asia United States Germany
Number of Payments of Taxes per Year 7.0 13.9 10.6 9.0
Time Taken For Administrative Formalities (Hours) 170.0 226.2 175.0 218.0
Total Share of Taxes (% of Profit) 53.3 36.5 36.6 48.8

Source: Doing Business, Latest available data.

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Individual Taxes

Tax Rate

Income tax 13%
A specific tax rate applies to employment income received by individuals who work under employment agreements from residents of the High Technology Park 9% (however, for 2021 and 2022 the rate is increased to 13%, in response to the COVID-19 crisis)
individuals working in the South-East regions of the Mogilev region in the period from 1 July 2015 till 31 December 2025 10%
Individual entrepreneurs applying the general taxation regime 16% (6% if operating in the territory of rural areas and small urban settlements)
Income from prizes received from Belarusian gambling organisers 4%
Allowable Deductions and Tax Credits
Education expenses (both for self-education and relatives), insurance premiums (capped), and property-related expenses (costs of construction or purchase of a property in Belarus, expenses incurred in the purchase and/or disposal of property) are tax-deductible. 

Individuals may also be eligible for monthly tax-exempt amounts:

- BYN 135 per month for individuals whose monthly income is below BYN 817
- BYN 40 per children and/or dependent per month (or BYN 65 in case of two or more children)
- BYN 190 per month for socially vulnerable taxpayers (disabled, veterans, victims of natural disasters).
Special Expatriate Tax Regime
Non-residents (who spend less than 183 days annually in the country) are taxed at the same rate as nationals, but only on their Belarusian revenues.

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Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed
List of countries that have signed a double taxation agreement with Belarus
Withholding Taxes
Dividends: 0% (paid to a resident company)/12% (non-resident company)/9% (paid to individuals by High Technology Parks-registered companies/13% (non-resident individual); Interest: 0% (paid to a resident company)/10% (non-resident company)/13% (individuals); Royalties: 0% (paid to a resident company)/15% (non-resident company)/13% (individuals)

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Latest Update: November 2022