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.