The Belarus Ministry of Taxes and Duties released Letter No. 05-12/1484/2-2-13/01227 dated 26 April 2024 on 30 April, 2024, detailing the income tax deduction allowances for investments into innovative development funds by technology parks and their inhabitants.
This guidance clarifies that technology parks can create innovative development funds to which the parks and their resident companies can contribute.
These contributions are tax-deductible up to 5% of gross taxable profits for a reporting year, provided they are made by 22 March of the following year. This policy applies to gross income earned from 1 January, 2023, to 31 December, 2027.
The letter also clarified that contributions to the fund are exempt from income tax, provided that the exemption cannot exceed 50% of the total income tax calculated for the reporting year.
If the contributed amount to an innovative development fund surpasses 5% of the gross profit or 50% of the calculated income tax for the same period, the exemption must be recalculated in the tax return submitted for the period in which the excess has happened.
