Belarus

Overview

Last reviewed - 30 May 2021

Belarus, a landlocked country in Eastern Europe, is bordered by Russia to the northeast, Ukraine to the south, Poland to the west, and Lithuania and Latvia to the northwest. It has an area of 207,600 square kilometres and a population of about 9.5 million. Belarus is divided into six provinces, with Minsk as the capital. The official languages are Belarusian and Russian, and the currency is the Belarusian ruble (BYN).

After seven decades as a constituent republic of the USSR, Belarus attained its independence in 1991. It has retained closer political and economic ties to Russia than any of the other former Soviet republics. Belarus and Russia signed a treaty on a two-state union on 8 December 1999, envisioning greater political and economic integration. Belarus is a member of the United Nations (UN) and the Commonwealth of Independent States (CIS).

Alexander Lukashenko has been the country's President since 1994. President Lukashenko re-employed administrative controls over prices and currency exchange rates and expanded the state's right to intervene in the management of private enterprises. It has seen limited structural reform since. As of today, administrative controls over prices is minimal. Currency exchange rates are based on the Belarusian currency and stock exchange trade results.

Since 2005, the government has re-nationalised a number of private companies. In 2020, gross domestic product (GDP) was estimated as 63.1 billion United States dollars (USD).

Belarus, Kazakhstan, and Russia have continued their integration process, and, since 1 January 2015, have launched the Eurasian Economic Union (EAEU), which is considered as a further step of integration after the Customs Union of these countries. Within the EAEU, single markets of goods, services, labour, and capital, with certain limitations, are introduced. Armenia joined the EAEU on 2 January 2015, and Kyrgyzstan joined the EAEU on 12 August 2015. 

40% of the land in Belarus is forested, and its strongest economic sectors are agriculture and manufacturing. High-skilled personnel, established transit ways, and good infrastructure could be named as positive aspects of Belarus's investment climate. However, the absence of a predictable macroeconomic environment, vague dialogue with international organisations, state interference in the private sector, and administrative barriers makes the local investment climate 'unfriendly'. Nevertheless, Belarus's government continues to work on improvement of the investment climate.

PwC provides services, including tax consulting services, in Belarus. The scope of our tax services includes comprehensive tax advice covering all aspects of local and international taxation, tax reviews and preparation of tax optimisation structures, communications with the tax authorities, tax due diligence services, and tax compliance services.

PwC's tax practice serving Belarus contains one partner, one senior manager, five senior consultants, and one tax consultant located in Belarus and Russia.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%)

18

Corporate income tax (CIT) due dates
CIT return due date

Quarterly, by the 20th day of the month following the reporting period. CIT return for the fourth quarter is to be submitted not later than 20 March of the year following the reporting year.

CIT final payment due date

CIT must be paid on a quarterly basis, no later than the 22nd day of the month following the expired reporting period. CIT payment for the fourth quarter shall be made no later than 22 December of the current year in the amount of 2/3 of CIT for the third quarter of 2020 with subsequent recalculation of CIT for the whole year and calculation of CIT to be additionally paid or reduced no later than 22 March of the following year.

CIT estimated payment due dates

Normally, all payments are based on the actual financial results. There is only one tax estimated payment. It is to be paid by 22 December in the amount of 2/3 of the profit tax calculated for the 3rd quarter.

Personal income tax (PIT) rates
Headline PIT rate (%)

13

Personal income tax (PIT) due dates
PIT return due date

31 March

PIT final payment due date

1 June when paid based on tax returns.

PIT due on employment income is withheld by the employer when paid.

Entrepreneurs make quarterly payments by the 22nd day of the month following the reporting quarter.

PIT estimated payment due dates

There are no estimated tax payments.

Value-added tax (VAT) rates
Standard VAT rate (%)

20

Withholding tax (WHT) rates
WHT rates (%) (Div/Int/Roy)

Resident: NA;

Non-resident: 12 / 10 / 15

Capital gains tax (CGT) rates
Headline corporate capital gains tax rate (%)

Resident: 18;

Non-resident: 12

Headline individual capital gains tax rate (%)

Capital gains are subject to the normal PIT rate.

Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)

NA

Inheritance and gift tax rates
Headline inheritance tax rate (%)

NA

Headline gift tax rate (%)

NA

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.