1. GENERAL INFORMATION

The Tax Code (comprising the Primary Part and the Special Part) is the principal legal act that regulates the system of taxes and duties levied to the national and local budgets, the main principles of taxation in the Republic of Belarus, regulates official relations that pertain to the introduction, alteration and termination of taxes and duties, and relations arising in the course of discharge of tax liabilities, administration of tax control, appealing against orders of tax authorities, actions/inaction of tax officers, as well as establishes rights and obligations of taxpayers, tax authorities and other participants of tax relations.

The Primary Part specifies the notions of tax obligation, taxpayer, and the object of taxation. It also contains regulations on tax accounting and control and describes the procedure of appealing decisions made by tax authorities. The Special Part of the Tax Code regulates specific taxes and duties, specifies various categories of taxpayers, objects of taxation, rates, privileges, procedures of tax calculation and payments of respective taxes and duties.

All tax payments applicable in the Republic of Belarus are subdivided into national taxes/duties and local taxes/duties.

National taxes/duties include the following:

  • value added tax (VAT);
  • excise duties;
  • profit tax;
  • tax on income of foreign entities having no permanent representative office in Belarus;
  • personal income tax;
  • property tax;
  • land tax;
  • ecological tax;
  • mineral extraction tax;
  • off-shore duty;
  • stamp duty;
  • consular fees;
  • state duties;
  • patent fees;
  • customs fees and duties, customs charges with respect to personal use products;
  • waste disposal fee.

Local taxes and duties include the following:

  • dog tax;
  • resort levy;
  • packer, shipper levy.

2. TRANSFER PRICING

Income tax payable depends not only on actual transaction price stated in transaction documents. In some cases in calculating and paying income tax, business entities are required to apply prices corresponding to the existing range of market prices, and in case of discrepancy, tax base and, consequently, tax amount shall be corrected by taxpayer (or will be corrected by a controlling agency during inspection).

The chart below describes all types of transactions subject to control in 2020:

Transaction type Transaction participants Sum limits

Transactions involving real estate

 related party none
payer using a special taxation regime none

Transactions involving housing bonds

 related party none
payer using a special taxation regime none
Transactions involving foreign trade Activity affiliate 130,100 euros (net of VAT and excise taxes) — for entities not listed as major payers;

650,530 euros (net of VAT and excise taxes) — for entities listed as major payers;
resident of an offshore zone selling/ purchasing goods/works/services or property rights 130,100 euros (net of VAT and excise taxes)
Transactions involving selling/purchasing strategic goods according to the list established by the Council of Ministers of the Republic of Belarus. non-resident (foreign trade transaction) 650,530 euros (net of VAT and excise taxes)
Transactions involving entities not paying income tax Resident affiliate 130,100 euros (net of VAT and excise taxes) — for entities not listed as major payers;

650,530 euros (net of VAT and excise taxes) — for entities listed as major payers;


3. TAXATION OF ECONOMIC ENTITIES

Alongside with the general taxation system, specific regimes of taxation are also applied in Belarus. They provide a number of benefits, lesser number of assessed/ paid taxes, reduced tax rates, etc.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.