Belarus

Individual - Deductions

Last reviewed - 30 May 2021

Personal deductions

Education expenses

Any individual may also apply PIT deductions for the actual incurred education-related expenses for an individual or for their close relatives, as well as amounts spent for repayment of loans borrowed for this purpose. Such expenses can be deducted if they are incurred by the individual when obtaining the first education (higher, specialised secondary, or professional) and if education is received in educational institutions of Belarus.

Any unused PIT deduction for education can be carried forward to subsequent tax periods.

PIT deductions for education are provided to the employed individual at the principal place of work at the end of a current tax year. For those individuals who do not have principal employment, tax deductions are provided by the tax authorities on the basis of a filed annual tax return.

Insurance premiums

Any individual may also apply PIT deductions for the insurance premiums paid under the contracts of voluntary life and pension insurance concluded for at least three years, and voluntary medical expenses insurance. If such premiums are paid by an individual for the benefit of their close relatives, the deduction is also possible.

Any unused PIT deduction for insurance can be carried forward to subsequent tax periods.

PIT deductions for insurance are provided to the employed individual at the principal place of work at the end of a current tax year. For those individuals who do not have principal employment, tax deductions are provided by the tax authorities on the basis of a filed annual tax return.

Property-related expenses

Individuals, for PIT purposes, can deduct the following actually incurred expenses related to property:

  • Cost of construction or purchase of an apartment or a house located in Belarus as well as repayment of loans provided by Belarusian companies/entrepreneurs and loans of Belarusian banks for this purpose. This deduction is provided only to a taxpayer included in the list of persons in need of improvement of living conditions.
  • Expenses related to the purchase and/or disposal of property (excluding an exemption on capital gains from sale of securities). The list of deductible expenses is stipulated by the Tax Code.

Construction expenses can be deducted for the employed individual by the principal employer during the current tax period based on supporting documents provided, or by the tax authorities based on a filed annual tax return. 

Standard deductions

Monthly tax exempt amounts (TEAs) or standard tax deductions are applied to any income of Belarusian tax residents:

  • TEA of BYN 126 per month is granted to individuals whose income does not exceed BYN 761 per month.
  • TEA of BYN 37 per child or other dependant per month, and TEA of BYN 70 per child or other dependant in case of having two and more children in the family.
  • TEA of BYN 177 is granted to some socially unprotected types of taxpayers (i.e. disabled individuals, veterans, victims of natural collapses or disasters).

TEAs are applied to individuals by their principal employer. For those taxpayers who do not have principal employment, TEAs can be applied by an entity or an entrepreneur from which the income is received (tax agents) or by tax authorities based on the annual tax return. TEAs can only be applied once.

Business deductions

Individual entrepreneurs and individuals involved in creation of IP may deduct business-associated expenses. The list of such expenses is stipulated by the Tax Code.

Individual entrepreneurs are required to maintain simplified records of income and expenses on an accrual basis. The register is of a prescribed format, and all transactions must be supported by primary accounting documents.

All business-associated expenses shall be supported by the relevant documents of the established format. There are explicit regulations on deductible and non-deductible expenses. If an individual entrepreneur is not able to support business-associated expenses by documents, may opt to deduct expenses constituting 10% of the revenue.

Individuals involved in creation of IP may opt for notional deduction (20%, 30%, and 40% of derived income), where the amount of deductions depends on the type of IP object.

Business expenses are deductible by an individual entrepreneur in the period when they were incurred. Business deductions are provided to an individual by the tax authorities when filing a tax return at the end of the tax period or by the tax agent during the year if fixed amounts of deductions are applied.