In Belarus, employers bear significant tax responsibilities, with the largest being contributions to the Social Security Fund (SSF). The standard rate for these contributions is 34% of an employee's gross salary. These contributions are used to support state-funded social benefits such as pensions, sick pay, and disability benefits.

Social Security Contributions (SSC)

Employers are required to make contributions to the Social Security Fund (SSF). The standard rate for these contributions is 34% of an employee's gross salary. These contributions are used to fund state-provided social benefits like pensions, sick pay, and disability benefits.

Income Tax Withholding

Employers are also responsible for withholding a flat income tax of 13% from employee salaries. It is required that these withheld income taxes are remitted in a timely manner, typically within the following month.

Mandatory Insurance

Employers are required to pay mandatory insurance premiums for workplace accidents and occupational diseases. The rates for these premiums range between 0.6% and 3.6%, depending on the industry and assessed risk levels.

Additional Considerations

Monthly payroll is standard in Belarus, although some industries may split payments into an advance and a final payment. Employers are also required to file reports with relevant authorities, including tax authorities and the Social Security Fund. Deadlines and specific requirements should be carefully observed. Non-compliance can result in fines and other penalties.

In Belarus, a flat income tax rate of 13% is applied to all residents. This tax is calculated based on the employee's gross income.

Employees in Belarus also contribute to several social security funds.

Pension Insurance

Employees contribute 1% of their gross salary towards pension insurance. This contribution is withheld by employers and paid to the Social Protection Fund.

Mandatory Work-Related Injury and Occupational Disease Insurance

Employees also contribute to mandatory work-related injury and occupational disease insurance. The contribution rate for this insurance varies between 0.1% and 1% based on industry-specific risk factors. This contribution is also withheld by employers and paid to the Belarusian Republican Unitary Insurance Enterprise (Belgosstrakh).

It's important to note that self-employed individuals are required to make their own pension and social insurance contributions. Additionally, Belarus has tax treaties with various countries that may affect tax deductions for foreign employees.

Please note that tax laws and regulations are subject to change. It's always advisable to consult with a Belarusian tax professional or check the official government website for the most current and accurate information on employee tax deductions.

In Belarus, Value-Added Tax (VAT) is the primary consumption tax. It is applicable to most goods and services sold within the country, as well as imports. Businesses providing services in Belarus often have to navigate the complexities of VAT.

Key VAT Rates

The standard VAT rate in Belarus is 20%. A reduced rate of 10% applies to certain goods and services, including specific foodstuffs, children's products, and medical goods. Telecommunication services are subject to an increased VAT rate of 25%.

VAT Registration

Since January 1st, 2018, foreign companies providing digital services to consumers in Belarus must register for VAT, even without a physical presence in the country. Resident businesses in Belarus generally cannot register solely for VAT; a full tax registration is needed. However, foreign providers may only require the VAT-focused registration process.

Determining Where Services are Taxable

The location where a service is considered 'supplied' for Belarusian VAT purposes is crucial. Generally, if you provide services to a Belarusian business, the place of supply is considered where the customer is established. The Belarusian company may be responsible for VAT via a reverse-charge mechanism. Services supplied to Belarusian consumers are usually deemed taxable within Belarus. Foreign providers would generally need to register and charge VAT.

VAT Exemptions

Certain services may be exempt from Belarusian VAT. These include but are not limited to financial services, insurance services, educational services, and healthcare services.

VAT Reporting and Filing

VAT-registered businesses in Belarus must file VAT returns and remit the due tax. The frequency of filing depends on factors like business size and turnover.

VAT rules for services in Belarus can be intricate. To ensure compliance, it's highly recommended to seek expert guidance from a tax professional with specialization in Belarusian tax laws.

Belarus offers a variety of incentives to attract businesses and stimulate economic growth. These incentives are particularly prevalent in key areas such as Free Economic Zones (FEZ), High Technology Park (HTP), rural areas, small towns, and other specific projects or zones.

Free Economic Zones (FEZ)

Companies operating within FEZs may benefit from a significantly reduced corporate tax rate. Profits earned from the export of goods and services may be exempt from taxation under certain conditions. Additionally, import VAT, property taxes, and other taxes may be reduced or exempted.

High Technology Park (HTP)

Companies registered in the HTP can take advantage of a special tax regime. This includes corporate income tax exemption, reduced social security contributions, and VAT exemptions.

Rural Areas and Small Towns

Legal entities and entrepreneurs operating in rural areas and small towns may be eligible for a 50% reduction in profit tax. They may also be exempt from real estate taxes, land taxes, and rent for state-owned land plots.

Other Incentives

Businesses in the Great Stone Industrial Park, a Chinese-Belarusian industrial park, may enjoy preferential policies, including tax incentives and simplified procedures. Companies implementing significant investment projects may be entitled to custom-tailored tax benefits.

Please note that eligibility criteria and conditions apply to each incentive program. Tax incentives are subject to change, so it's crucial to consult with professional tax advisors or the relevant Belarusian authorities for the most up-to-date information.