On 27 December 2023, the Belarus Ministry of Taxes and Duties published a guidance concerning various tax changes for 2024. The tax changes were introduced through Law No. 327-Z of 27 December 2023 as published in the Official Gazette.
The main changes include the following:
Corporate income tax rates
- Starting 1 January 2024, a corporate income tax rate of 25% will be introduced for:
- Belarusian organizations, excluding branches;
- for each branch of a Belarusian organization;
- for each permanent establishment of a foreign organization
The income tax rate will be based on the results of the reporting period, on an accrual basis from the beginning of the tax period, if the total tax base for the year exceeds BYN 25 million.
- Transactions are subject to income tax at 20%. Consequently, It will not affect transactions for which taxation is subject to reduced or increased income tax rates.
- If the tax base for income tax exceeds BYD 25 million, an income tax rate of 25% will be applied to all taxable income generated from the beginning of the calendar year and subject to income tax at the generally established rate.
Personal Income tax rates
- Starting 1 January 2024, a personal income tax rate of 25% will be applied to the totality of income for an amount exceeding BYN 200,000. The income will be subject to taxation at the personal income tax rate if the income is generated by individuals from sources in the Republic of Belarus in the form of dividends under employment contracts and civil law contracts.
- The tax rate for profits from the sale of self-produced goods included in the list of high-tech goods has been raised from 5% to 10%.
- The tax exemption for profits derived from the sale of self-produced food products for young children has been abolished and substituted with a reduced tax rate of 5%.
