Since the Belarusian tax system is developing at a fast pace, it is recommended to use data below for guidance only. In case someone intends to start a business in Belarus it’s necessary to contact a company that provides consulting services.
After choosing a sphere of business, registering a proprietorship and opening a bank account, every businessman faces with a taxation issue. There’re three taxation systems in Belarus: common tax system (CST) and simplified tax system (STS) with including VAT or not.
CST is going to be the most common form of taxation for individuals in 2013. It provides payments for all businesses which are Belarus tax residents of profit tax received from the sale of products, goods, services and plus other incomes at 18% rate. CST is advantageous to use when most revenues are to cover expenses.
All corporate bodies, residents of Republic of Belarus, while using CST have to make next payments:
- Value added tax (VAT) – 20% from turnover of sale of goods;
- Profit tax – 18% from taxable income;
- Wageworker’s insurance – 34% from payroll.
Sometimes it’s also necessary to pay a real estate, land, ecological, natural resources extraction taxes; excise duty; offshore, road, stamp fees.
STS are pretty flexible and convenient tax systems for small businesses because they provide an opportunity to pay taxes at a fixed percentage of the revenue. It could be as low as 3% (with VAT) or 5% (without VAT). So if there’s no revenue – you haven’t to pay something. But not every enterprise is able to use STS.
Belarus has double taxation agreement with about 60 countries including the USA, UK, most EU members. Preferential tax treatment is used for free economic zones that were established to create strong private sector business and investments in Belarus.