Accounting and tax

Legal considerations and taxation in Belarus

  1. Corporate tax rate is levied at a rate of 18% on all net income in Belarus. The tax year is the calendar year and tax returns should be submitted quarterly by the 20th of the month following the reporting quarter;
  2. The standard VAT rate levied on provision of goods and services in Belarus is at a rate of 20%, with a reduced rate of 10%. VAT returns must be filled quarterly by the 20th of the month following the filing quarter;
  3. Capital gains derived from the sale of shares of Belarus companies are taxable at 12%;
  4. Withholding tax is levied on i) dividends paid to non-residents at the rate of 12% ii) royalties paid to non-resident companies at the rate of 15% iii) interest paid to non-residents at the rate of 10% and iv) technical services fees paid to non-resident companies at the rate of 15%. All these rates may be reduced under a tax treaty;
  5. Real property tax is imposed on the value of buildings and construction, as well as car parking spaces owned by a taxpayer at the rate of 1% of the depreciated value of the building;
  6. Capital losses can be carried forward for up to 10 years in Belarus;
  7. Employers must pay Social Security contributions on behalf of their employees at the rate of 34%;
  8. Belarus has concluded income tax treaties with 65 countries including Bahrain, Belgium, Germany, Kuwait, Ireland, Switzerland and Sweden;
  9. Healy Consultants Compliance Department will assist our Clients with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparation of financial accounting records and iv) preparing forecasts, budget and sensitivity analysis.
  10. For an active trading company, these accounting and tax fees are an estimate of Healy Consultants fees to efficiently and effectively discharge your annual company accounting, auditing and tax obligations. Following receipt of a set of draft accounting numbers from your company, Healy Consultants will more accurately advise accounting and tax fees. For a dormant company, Healy Consultants fees are only US$950;
  11. Monthly, quarterly and mid-year Government tax obligations include i) monthly payroll reporting and ii) monthly and quarterly VAT and iii) monthly corporation tax return filing. If you need our help, Healy Consultants can complete monthly Government reporting for a monthly fee of US$1,600. Healy Consultants monthly support will include i) receive in dropbox the monthly invoices from our client ii) label monthly bank statement transactions iii) preparation and submission of VAT returns and iv) monitor monthly profit levels to minimize annual tax v) submission of monthly employee payroll reporting;
  12. It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.

Legal and compliance

  1. The minimum amount of paid up share capital is not determined by law, but by the articles of association written by the company founders for establishing a business environment;
  2. There must be at least one shareholder and one director;
  3. All companies are required to employ a company accountant or the services of an accounting firm for setting up an entity;
  4. All business entities must submit annual audited financial statements by March 31st of each year;
  5. A company secretary is not required for starting a business, however we recommend one be appointed to ensure compliance with the corporation act. A company accountant may also serve in a secretarial role for business establishment;
  6. The Belarusian ruble (BR) is the only currency that can be used for any transactions that take place in Belarus. Payments in other currencies are only permissible if made from outside Belarus;
  7. The process of deregistering a company is dictated by the Government. This process will take a minimum of 6 months. Healy Consultants fee to project manage company de-registration is US$1,450. During this 6 months period it is mandatory to maintain a resident company secretary and a legal registered office.

Contact us

For additional information on our accounting and legal services in Belarus, please contact our in-house country expert, Mr. Saidolim Kodirov, directly:
client relationship officer - Saidolim
  • Mr. Saidolim Kodirov
  • Client Engagements Manager
  • Contact me!