Direct Taxed and Duties
Direct taxes and duties are collected from current income and profit.
Profit Tax
The rate is 24%.
The object of taxation is the amount of profit from sales of goods (work, services), other valuables (including fixed assets, material assets, intangible assets, securities), proprietary rights, and income from extra-sale operations reduced by the amount of cost of such operations.
The organizations shall be deemed any legal entities of the Republic of Belarus, foreign legal entities and international organizations, societies in participation (members to the agreement of joint activity), economic groups.
The profit tax payers shall be any foreign legal entities and international organizations carrying out their activities in the territory of the Republic of Belarus.
Tax concessions:
Profit of commercial companies with foreign investments (except for companies organized in the form of public joint stock companies) with the share of foreign investments in their authorized capital not less than 30%, which profit is derived from sale of goods (work, services) of domestic manufacture (except for profit derived from commercial or commercial-procurement activities) shall be exempt from tax within three years from the date of profit declaration.
Taxable profit shall be reduced by the amount of profit allocated for financing of capital investments in the industrial-purpose objects and house-building, as well as in repayment of banking credits received and used for such purposes.
Should any international treaty of the Republic of Belarus establish any other rules, such rules of the international treaty shall be applied.
Tax on Income
Any foreign legal entities that do not carry out activities in the Republic of Belarus through their permanent representative offices and derive income from any sources in the Republic of Belarus, shall pay income tax at the following rates:
- 15% on dividends, royalty, licenses, other income according to the list specified by the Council of Ministers of the Republic of Belarus;
- 10% on income and debt instruments (claims) of any kind;
- 40% on income from sale (paying off) any securities;
- 6% on payment for transportation, freight related to international transportation;
- 10% of customs value of any goods brought and sold at the exhibitions, trade exhibitions, fairs.
Income tax levied on foreign legal entities shall be withheld by any legal entities and individual entrepreneurs that/who pay the tax.
Should any international treaty of the Republic of Belarus establish any other rules, such rules of the international treaty shall be applied.
Income Tax on Individuals
Since January 1, 2009 Belarus enjoys a 12% unified income tax rate instead of the former 5-level rate scale (9%, 15%, 20%, 25%, 30%).
The income tax payer shall be natural persons. Legal entities shall calculate and withhold income tax from income paid to natural persons.
