Tax systems of Belarus
To choose the most suitable tax system for your company, you must determine the size of the expected total revenue of the company
In Belarus, there are three types of tax systems, namely the general tax system, the simplified tax system and the fixed tax system (for an individual enterprise only)
The general tax system in Belarus
You have to pay
- Value Added Tax-20%
- Tax on profits - 18% of profit
-According to the type of activity and property of the company, other taxes (land use tax, property tax, excise taxes, environmental tax, etc.)
Net Profit of the owner of the company
After paying all taxes of the company it's time to withdraw the net profit of the owner of the company
According to Belarusian legislation, the owner of the company must pay 13 percent of the company's profit in order to withdraw his net profit
Simplified tax system in Belarus
The company can choose the simplified tax system when it is established or start using it from the beginning of the next calendar year
Due to the fact that you can change the tax regime only from the beginning of the calendar year, it is recommended to choose the simplified tax system at the opening of the company
There are two types of this system:
- 3% of revenue + VAT 20% (the number of employees is not more than 100 people and the company's income is not more than 2,046,668 Belarusian rubles)
- 5% of revenues with exemption from VAT payment (the number of employees is not more than 50 people and the company's income is not more than 1,404,286 Belarusian rubles)
Companies and an individual enterprise do not have the right to be subject to the simplified tax system in the following cases:
Production of goods subject to excise tax or sale of jewelry and other products made of precious metals and precious stones
Membership in free economic zones, hi-tech park or the Chinese-Belarusian industrial zone as the "upper rock";
Carrying out activities related to cryptocurrency;
Companies operating in the field of lotteries, electronic betting, gambling, real estate, insurance and banking services
Summarizing the above, if the expenses in the company are small, it makes sense to choose the simplified tax system
Net Profit of the owner of the company
After paying all taxes on the company it's time to withdraw the net profit of the owner of the company
According to Belarusian legislation, the owner of the company must pay 13 percent of the company's profit in order to withdraw his net profit
How to pay taxes in Belarus on employees ' salaries in detail
The employer pays taxes on the salaries of employees compulsorily, namely:
35 % - from the employee's salary to the Social Security Fund
29 % - for pension insurance and 6% -for social insurance
13 % of the employee's salary (income tax)
More about taxes in Belarus
Fixed tax system
! Only for individual enterprise!
A flat tax is a fixed amount payable
Its size depends on:
- Type of activity;
- The area in which the activity is carried out
- The location of the performance of work and the provision of services (the level of infrastructure development, attractiveness for consumers, remoteness from the city center, etc.);
- Working hours
An individual enterprise must submit a tax return and pay the tax before starting its activity
About other taxes
When goods are imported into the territory of Belarus, VAT is paid from imports (20% of the value of imported goods), the rate of this tax may be 10% for some goods
There are also taxes from foreign companies, land use tax, customs duties, consular fees, government fees, natural resource extraction tax and Environmental Tax (Taxes from polluting enterprises), etc.