Social insurance contributions (SICs) and other similar payments
Generally, all payments to employees are subject to SICs at the total rate of 35%. SICs at a rate of 34% (28% pension insurance and 6% social insurance) are paid by an employer and deducted for corporate income tax (CIT) purposes. SICs at a rate of 1% are withheld from an employee's salary and paid by the employer.
Self-employed individuals, as well as private entrepreneurs, are liable for pension insurance at the rate of 29% and social insurance at the rate of 6% payable on their computed income on an annual basis by 1 March of the year following the reporting year.
All the payments to foreigners (except for the citizens of Eurasian Economic Union [EAEU] member countries) employed by local companies or representative offices of foreign companies located in Belarus are subject to SICs on equal footing with Belarusian citizens (34% + 1%). Payments to employees that are citizens of EAEU member countries are subject to 6% social insurance.
In addition, an employer is liable for payments under mandatory insurance against accidents at work and professional diseases to the state insurance company, Belgosstrakh, on behalf of all individuals employed. These payments are charged at a flat rate of 0.6%. For employees engaged in certain sectors of the economy, special coefficients of up to 1.5 are applied; consequently, the amount of payments under mandatory insurance against accidents at work and professional diseases could increase.
Dismissal allowances, compensations for moral damages, legally provided business trips compensations, insurance premiums payable under certain personal mandatory and voluntary insurance, certain types of welfare assistance, and other such payments are exempt from SICs and from mandatory insurance against accidents at work and professional diseases.
The SICs should be paid on a monthly basis by the day established for salary payments but not later than the 20th day of the month following the expired month. Commercial legal entities with average number of employees for the preceding year of less than 100 employees are entitled to pay SICs at least once in a quarter at the day established for salary payments of the last month of the reporting quarter, but not later than the 20th day of the month following the reporting quarter.
Please see the Foreign tax relief and tax treaties section for a description of social security agreements signed with other countries.
Value-added tax (VAT)
The standard VAT rate is 20%, whereas the preferential rate is 10%. See Other taxes in the Corporate summary for more information.
Net wealth/worth taxes
There are no taxes on wealth in Belarus.
Inheritance, estate, and gift taxes
There are no special taxes on inheritance and gifts in Belarus. However, these types of income fall into the scope of PIT. Belarusian tax law provides exemption for inheritance and partial exemption for gifts.
Real estate tax and land tax
Buildings and constructions, including houses, garden houses, villas, accommodations (apartments, rooms), and farm buildings, construction in progress, as well as car parking spaces, owned by individuals are subject to real estate tax at the basic rate of 0.1%. In certain cases, coefficients to the basic rates apply. The tax base is defined according to the expert's evaluation made pursuant to the legislation. The tax is paid on an annual basis.
Land tax is paid on any land plot held in possession of a taxpayer. The land tax rate depends on a plot location and its purpose, and the tax base is determined based on cadastral value of a land plot. For some plots, their area will represent a taxable base. The tax is paid on an annual basis.
Individuals pay real estate tax and land tax on the basis of tax calculations made by the tax authorities, by 15 November of a current tax year.
Luxury and excise taxes
See the Other taxes section in the Corporate summary for a description of excise taxes.