This article explains the tax laws in Belarus, this article will educate you on the tax laws for a LLC (OOO) which is the most common company structure in Belarus.
BY taxes resident companies in their worldwide income. The established percentage for offshore income, from our research, but seek professional advice, is 18%. Belarus does not have major incentives to transfer in foreign earned profits from outside the country. Taxes are reasonable in Belarus because general corporate tax is 18%. This ranks Belarus as 58th overall with regards to corporate tax rate worldwide.
The VAT rate in BY is 20.00%, that ranks Belarus as 58th when compared to value added tax rate worldwide. In terms of other taxation, an employer will contribute 34% to the equivalent of a social security fund and an employee will contribute 1%. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 59hours. Contributing to this is the number of yearly labor tax payments, which is 1 in BY.
Thin cap laws are in effect. Thin capitalisation refers to any type of restrictions on companies' debt-to-asset ratios. Dividends received by a Belarus company are taxed at 12%. A dividend is a distribution of a portion of a company profit, determined by the board, to shareholders.Dividends can be one of the following stock, cash, or property. The capital gains taxation rate in BY is 18%. A capital gains tax is levied on the profits that a corporation or natural person realizes when they sell sells a capital asset for a price that is higher than the purchase price.
The interest witholding rate is estimated at 10%. This should be interpreted usually that the taxman expects to withold 10% of payments offshore for on interest payments. The dividends witholding rate is 12% This should be interpreted usually that the tax authorities expects relevant legal entities to pay tax on at least 12% of payments abroad on dividend payments. The royalties witholding rate 15% Which means that the taxman expects relevant legal entities to automatically withhold 15% of payments abroad for royalty payments.
There is no known tax on wealth in Belarus. There are no known inheritance taxes in BY. There are no commonly used credits for innovation spend that include tax relieft in BY.
The above is not tax or legal advice for your company's personal tax obligations. We are able to to reference you to a lawyerin Belarus who can get you an answer. Ready to get started? Click the free consultation button above.
It takes approximately 83 hours to file and prepare documents for a Belarus -.
The corporate tax is approximately 18% which is 62 in the world.
Owners of a company in Belarus are not allowed to carry back a loss and may be allowed to carry forward a loss for 10 years.
The vat rate in Belarus is 20% which ranks 134 in the world.
Thin capitalization rules are not in effect.
A corporate director is not permitted, meaning this country is not a good option if you are setting up a structure where you want to protect director liability.
The directors are disclosed in the public registry of Belarus, -. Shareholders are disclosed in the -.
Typically companies take - to setup and there are - director(s) required and - shareholder(s) required at the time of incorporation.
Overall we think Belarus is a bad option and have given it a score of - as an IO score, using the Incorporations.IO proprietary formula.
We can help you form a company in Belarus. Click the button above for a no-obligation quote. We will provide you with all the necessary documents to open a bank account as well as a registered office in Belarus, which is required by law.
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