Companies in Belarus are taxed on levels that are comparable with neighboring countries. The usual tax rates are as follows:
Corporate income tax rate: 18 %
Value added tax: 20 % (exceptions apply)
Real estate tax: 1%
Dividend income: 12 %
Interest income: 10 %
Royalty income: 15 %
For information about payroll taxation, please see our previous article.
In this piece, we will look at some of the special tax regimes that are available for companies working in certain sectors of the economy. First, the Belarusian High-Tech Park or HTP.
HTP membership offers companies several tax benefits. It´s possible to apply for membership if your company meets certain requirements regarding its business activity in the IT industry. It´s not necessary for the company to be physically located in any certain location to be eligible, anywhere in Belarus will do. Member companies contribute 1 % of their turnover as fees to the HTP. The main tax benefits are as follows (the list is not exhaustive):
0 % corporate income tax rate (exceptions apply to certain types of income, for example interest income, sales of equities and securities, dividends, etc. for which the CIT rate is 9 %).
Exemption from import duties and VAT on certain types of equipment
13 % personal income tax rate – the same as outside the HTP – used to be 9 %, but was recently increased for a period of 2 years
Compulsory social security contributions, normally 34 % of gross salaries, are calculated not from the actual gross salary but from the Belarusian average wage. As the average wage is several times lower than the average wage in the IT industry, this benefit brings sizable savings to HTP firms´ salary costs.
Companies working in the industrial sector may benefit from membership in the Great Stone industrial park. Companies may apply for membership if they operate in the industrial park´s premises near the Minsk national airport, and their business must be related to sectors that are approved by the park´s charter. The main tax benefits are (the list is not exhaustive):
Exemption from corporate income tax for 10 years after reaching profitability
Zero dividend tax rate for five years starting from first dividend payment
Exemption from real-estate tax on property located inside the park
Several kinds of VAT exemptions
9 % personal income tax rate – social security contributions are calculated in the same way as in the HTP
A minimum investment of USD 5 million applies for potential GS residents. The park´s residents enjoy a stabilization clause which stipulates that park residents are not affected by changes in the Belarusian tax laws until the 1st of January 2027.
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