Verified Facts
The tax rates in Belarus range from 9% to 13% for individuals, with a corporate tax rate of 18%, and a value-added tax (VAT) rate of 20%, making it essential for expats and businesses to understand the tax system to navigate their obligations effectively.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Belarus operates a territorial tax system, where residents are taxed on their worldwide income, but non-residents are only taxed on their income derived from Belarus. The residency rules for tax purposes are based on the individual's physical presence in the country, with those spending more than 183 days in a calendar year considered tax residents. This means that expats and foreign workers may be subject to taxation on their global income if they meet the residency requirements.
The tax system in Belarus is overseen by the Ministry of Taxes and Duties, which is responsible for collecting taxes, enforcing tax laws, and providing guidance to taxpayers. The country has a relatively complex tax system, with multiple tax rates and exemptions, making it essential for individuals and businesses to seek professional advice to ensure compliance with tax regulations.
Personal Income Tax
| Income Bracket (BYN) | Tax Rate |
|---|---|
| 0 - 4,750 | 9% |
| 4,751 - 12,000 | 11% |
| 12,001 - 25,000 | 12% |
| 25,001 and above | 13% |
| Individuals in Belarus are entitled to various deductions and allowances, including a personal allowance, mortgage interest relief, and charitable donations. Taxpayers are required to file their tax returns by May 25th of each year, and those with complex tax situations or high incomes may need to file additional forms and supporting documentation. |
Corporate & Business Tax
- The corporate tax rate in Belarus is 18%, with a reduced rate of 10% for small businesses with an annual turnover of less than BYN 200,000.
- Small businesses may also be eligible for tax incentives, such as exemptions from value-added tax (VAT) and social security contributions.
- Belarus has several free economic zones, which offer tax exemptions and other benefits to businesses operating within these zones.
- Companies are required to register with the tax authorities and obtain a tax identification number (TIN) before commencing business operations.
- Foreign companies may also be required to register a permanent establishment in Belarus if they have a significant presence in the country.
VAT / Sales Tax
- The standard VAT rate in Belarus is 20%, with a reduced rate of 10% for certain goods and services, such as food, medicine, and children's clothing.
- Exemptions from VAT include financial services, insurance, and education services.
- Some goods and services, such as tobacco and alcohol, are subject to excise taxes, which are levied in addition to VAT.
- Tourists may be eligible for a tax refund on certain purchases, such as goods purchased at duty-free shops.
For Expats & Foreign Workers
- Expats and foreign workers are considered tax residents in Belarus if they spend more than 183 days in the country in a calendar year.
- Belarus has double taxation treaties with 64 countries, which can help reduce the tax burden on individuals and businesses with international income.
- Foreign workers may be required to make social security contributions, which are used to fund pension, healthcare, and other social benefits.
- Expats may be eligible for a tax exemption on certain types of income, such as foreign-earned income, if they meet specific conditions.
- Foreign workers may also be subject to remittance rules, which govern the transfer of funds out of Belarus.
- Expats and foreign workers should consult a tax professional to ensure they understand their tax obligations and take advantage of available tax benefits.
Crypto & Investment Income
- Investment income, such as dividends and interest, is subject to income tax in Belarus, with a tax rate of up to 13%.
- Cryptocurrency is considered a type of property in Belarus, and gains from the sale of cryptocurrency are subject to capital gains tax.
- Belarus has introduced tax incentives for companies operating in the IT sector, including exemptions from income tax and VAT.
- Individuals and businesses investing in venture capital and private equity may also be eligible for tax benefits, such as reduced tax rates and exemptions from tax on investment income.