Minsk’s new counter-sanctions target taxation

March 13, Pozirk. The government has announced that it raises corporate income tax for foreign entities from “unfriendly states” from 15 percent to 25 percent from April 1 through the end of 2026.

The measure applies to entities operating without permanent branch offices in Belarus, according to Directive No. 164 dated March 7 published on the National Legal Internet Portal today.

The unfriendly states include the European Union, the United Kingdom, Switzerland, the United States, Australia, Canada, and some others.

In addition, on June 1 the government suspends some provisions, mostly those related to dividends and interest, of the double tax treaties with Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Germany, Finland, France, Hungary, Ireland, Italy, Latvia, Lithuania, Macedonia, the Netherlands, Poland, Romania, Slovakia, Slovenia, Spain, Switzerland, Sweden, the UK and the United States.

The period of applying the measure can be reduced if the circumstances that caused it are removed or if the Ministry of Taxes and Duties decides so, the directive says.

In November 2022, Łukašenka threatened to nationalize foreign-owned companies should they decide to leave Belarus over its complicity in the Russian full-scale invasion of Ukraine.

Earlier that year, the government compiled a list of Belarusian companies with owners from “unfriendly” countries, prohibiting them from selling their shares.

The original list included 190 entries and was reviewed several times later.

Economy

Economy

Łukašenka rails against facilitation of asset sales for foreigners

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