Corporate - Significant developments

Last reviewed - 30 May 2021

As of 1 January 2021 there have been no significant developments in Belarus tax regulations.

The comprehensive revision of the Tax Code provisions was implemented in 2019. The major changes are summarised below.

  • Belarus elaborated on the 'business purpose' in taxation. Thus, if the main purpose of a business transaction is (i) non/partial payment of taxes and/or (ii) tax offset/refund, then the tax base for such transaction is subject to adjustment based on the results of a tax audit. This means that each transaction should have a clear business purpose and economic contents. Otherwise, the tax consequences of such transaction may be revised by the Belarusian tax authorities. What's especially important is that the 'business purpose' concept may be applied in tax audit starting in 2019. 
  • Offset/refund of the overpaid amounts of taxes became possible within five years from the date of payment.
  • Furthermore, since 2019, Belarusian courts are entitled to recognise legal entities/individuals as related parties on other grounds than those established in the Tax Code. This means that the list of criteria has become non-exhaustive.

  • Significant changes in transfer pricing rules were implemented. The updated transfer pricing rules bring the Belarusian tax legislation in this sphere closer to the approaches adopted within the Organisation for Economic Co-operation and Development (OECD) and applied in many countries, in particular, to the OECD Guidelines on transfer pricing for transnational corporations and tax authorities.