In response to Western sanctions, the Government of Belarus introduces tax restrictions for organizations from unfriendly countries. This is stipulated by the Resolution of the Council of Ministers No. 164 of March 7, 2024, which was officially published on the National Legal Internet Portal, BELTA reports.
The document sets the tax rate on income of foreign organizations not operating in Belarus through a permanent establishment at 25% on dividends and similar income from April 1, 2024 to December 31, 2026. At the moment the tax rate is 15%.
The resolution also refers to the suspension of the provisions of international agreements on avoidance of double taxation until December 31, 2026 inclusive. At the same time, the period of application of the retaliatory measure may be reduced in case of elimination of the circumstances that served as a basis for its application, or at the suggestion of the Ministry of Taxes and Duties.
The Ministry of Foreign Affairs has been instructed to send notices to the parties to international agreements on suspension of the implementation of their individual provisions, and the Ministry of Finance together with the Ministry of Taxes and Duties and other interested parties - to study the issue of expediency of changing the rates of profit tax, personal income tax, tax on income of foreign organizations that do not carry out activities.
