Generally, a company is resident in Belarus if it is incorporated in Belarus. In some cases, companies registered abroad may be recognised as resident in Belarus.
Permanent establishment (PE)
Since 1 January 2019, Belarusian tax law generalises definition of fixed place of business, which is a step towards harmonising Belarusian PE regulations with the OECD approach used to draft the majority of DTTs, including those signed by Belarus.
This means that from 2019 a fixed place of business is a place through which a foreign company’s business or other activity is wholly or partly carried out in Belarus. Before 1 January 2019, the tax law provided the list of various activities that could lead to PE (e.g. carrying out construction works, selling goods from warehouses in Belarus).
DTTs may establish different rules of PE recognition. According to domestic law, where there is a DTT, the provisions of the treaty shall prevail.
Notwithstanding the activities that create a PE in Belarus, a non-resident company must be registered with the local tax authorities controlling the territory where activities are carried out before starting a business in Belarus.