On 27 December 2023, Belarus announced that it had made amendments to its transfer pricing rules. The new transfer pricing provisions are outlined in Law No. 327-Z of 27 December 2023, which went into effect on 1 January 2024.
The new regulations apply to transactions involving the purchasing or selling goods, services, or property rights between related companies. These rules are applicable when at least one of the companies is exempt from calculating or paying corporation income tax.
Such transactions include those conducted with residents of free economic zones, taxpayers under special tax regimes, and taxpayers in legally designated areas such as the High-Tech Park, Great Stone Industrial Park, and Augustow Canal tourist and recreational park.
Transfer pricing rules do not apply to loans granted to specific agricultural entities. For transactions with interest-free loans, the interest rate used for transfer pricing purposes is deemed to be zero percent. When multiple methods are applicable, the comparable uncontrolled price (CUP) method is given priority. In cases where the CUP method is not suitable, alternative methods such as the resale price method, transactional net margin method, cost-plus method, or transactional profit-split method are taken into consideration.
When applying the resale price method to transactions in a foreign currency within a tax period, it is permissible to convert the amount into Belarusian roubles. This conversion is based on the average official exchange rate of the Belarusian rouble to the foreign currency, as determined by the National Bank of Belarus.
