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BELARUS: Taxation summary

2011, English
CORPORATE INCOME TAX

  • A flat rate of 24%. In some cases the rate goes down to 12% (e.g. the sale of shares in a Belarusian company) or less.
  • Withholdings: dividends – 12%, royalties and other income - 15%, income from the sale of shares – 12%, interest payments – 10%, freight and international transportation fee - 6%.
  • No transfer pricing rules and no traditional thin cap rules. Losses cannot be carried forward.

PAYROLL TAXES

  • Personal income tax: 12% (employees) and 15% (self-employed).
  • Social security: 35% (1% (employee) + 34% (employer)).

INCENTIVES AND SPECIAL TAXATION REGIMES

  • Six free economic zones (reduced tax rates and exemption from CIT for 5 years) and a high technology park (total exemptions or reduced rates for almost all taxes).
  • Business operational regime in rural areas or small towns with up to 50 000 inhabitants (tax benefits).
  • Simplified taxation system. Depending on the circumstances 3%, 6%, 8% and 15% rates apply to gross income or profit.
  • Uniform tax for agricultural manufacturers (2% on gross income)

VALUE ADDED TAX

  • Rates: 20%, 10%, 0.5% and 0%


CAPITAL GAINS TAXATION

Capital gains derived by resident corporate entities are taxed at the rates below:

  • 24% - the sale of real estate
  • 12% - the sale of shares in Belarusian companies
  • 24% - the sale of shares in foreign companies

Non-resident companies are taxed at the below rates:

  • 15% - the sale of real estate
  • 12% - the sale of shares in Belarusian companies

The tax rate for individuals (resident and non-resident), which applies to capital gains, is 12% both for the sale of real estate and shares.

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