Taxation System and Tax Burden

The taxation system of the Republic of Belarus features 28 taxes and duties. However, only 5 taxes are paid for regular activities (value added tax, income tax, real estate tax, land tax, payments to the Social Security Fund).

The taxation system of the Republic of Belarus is two-tiered: taxes are divided into national and local ones.

National taxes include:

  • value added tax;
  • excise duty;
  • income tax;
  • tax on income of foreign companies that do not have an office in the Republic of Belarus;
  • personal income tax;
  • real estate tax;
  • land tax;
  • environmental tax;
  • tax for the extraction (removal) of natural resources;
  • offshore fee;
  • stamp fee;
  • consular fee;
  • state duty;
  • patent duties;
  • customs duties and customs fees, customs payments in respect of goods for personal use;
  • utilization fee.

Local taxes include a tax on dogs, a resort fee and a harvesting fee.

The Republic of Belarus also has special tax regimes:

  • tax under the simplified taxation system;
  • single tax for individual entrepreneurs and other individuals;
  • single tax for producers of agricultural products;
  • gambling tax;
  • tax on income from lottery activities;
  • tax on income from online games;
  • fee for craft activities;
  • fee for agro-ecotourism;
  • single tax on imputed income.

The Republic of Belarus recognizes the priority of universally acknowledged principles of international law and ensures the compliance of the national tax legislation with them.

To date, double taxation treaties have been concluded with more than 70 countries.

Since 2008, the Republic of Belarus has been actively implementing a tax reform aimed at simplifying taxation and reducing the tax burden on the economy.

On 1 January 2019, a new edition of the Tax Code came into force. It provides for streamlining tax collection and tax administration as well as stimulation of economic development.

Taxation system improvements are reflected in the World Bank's Doing Business 2019 report where the Republic of Belarus ranked 99th out of 190 countries assessed in terms of taxation and thus has moved up by 84 positions compared to 2010.

The tax burden on the economy (the ratio of budget tax revenues to GDP) in 2020 is projected at 24.4% of GDP and will not exceed the level stipulated in the program documents of socio-economic development of the Republic of Belarus for 2016-2020 (no more than 26% of GDP).