A foreign citizen can become a tax resident of Belarus. In this case, he will have an obligation to pay taxes in Belarus, although he may not know about it. The consequences of non-payment of taxes may be unfavorable for a foreigner, it is possible to refuse entry to Belarus. We tell you when a foreign citizen becomes a tax resident of Belarus and how we can help when this happened.
When does a foreign citizen become a tax resident of Belarus?
A foreigner who stays in Belarus for more than 183 calendar days in a calendar year is recognized as a tax resident of Belarus. Tax residency is determined in each calendar year.
The peculiarity is that until July of each calendar year (until the end of 183 days) it is impossible to determine whether a foreigner is a tax resident of Belarus. In this case, the tax residency is determined according to the previous calendar year (Part 2 of paragraph 1 of Article 17 of the Tax Code).
When a foreign citizen is recognized as a tax resident of Belarus, income tax must be paid from his income that he received in Belarus in the order determined for citizens of Belarus.
When does a foreign citizen have no tax residence in Belarus?
A foreign citizen is not recognized as a tax resident of Belarus in the current calendar year, when he was in another state for 183 or more days in the previous calendar year.
When a foreign citizen is not a tax resident of Belarus, when paying dividends to him by a Belarusian company, the norms of international treaties are applied, according to which it is possible not to withhold income tax or apply reduced income tax rates.
A foreign citizen must confirm that he is a tax resident of a foreign state. Such confirmation must be provided at the place of payment of income (dividends) — the company or the person who withholds and transfers income tax to the budget of Belarus. Such a company or person is called a “tax agent”.
The confirmation of foreign residence is issued or certified by the authorized state body of the foreign state in which the foreign citizen resides. It is valid until the end of the calendar year in which it was issued or certified or during the period specified in the confirmation. The confirmation of foreign residence issued in December of the current year, in which there is no validity period, is valid for the next calendar year (clause 4 of Article 224 of the Tax Code). When a foreign citizen has not submitted a confirmation to a tax agent, his income will have to pay income tax in Belarus in a general manner.
When can income tax be recalculated?
A foreign citizen who receives income in Belarus is not always informed that it is necessary to provide proof of foreign tax residency before income is paid to him. In this case, he will receive his money minus the amount of income tax. In this situation, a foreign citizen has a chance to recalculate the amount of income tax in his favor. This is possible when an international agreement between Belarus and the state in which the foreign citizen resides provides for more preferential taxation than in Belarus. Belarus has concluded agreements on avoidance of double taxation with 75 states. In particular, these are Austria, Georgia, Egypt, Israel, Kazakhstan, Qatar, Lithuania, Russia, Saudi Arabia.
To recalculate the tax, it is necessary to submit to the tax agent a confirmation of foreign tax residence and an application for the refund or offset of the excess amount of income tax no later than 5 years from the date of its payment. In this case, the refund or offset of income tax is the duty of the tax agent.
How we can be useful when a foreign citizen is recognized as a tax resident of Belarus
Our lawyers and lawyers are experienced specialists in the field of tax relations and speak English. We can:
- Advise you on tax residency issues.
- Make a request to confirm the tax residence of a foreign state.
- Recalculate income tax in accordance with an international agreement concluded with your state to determine whether there is a financial feasibility of its refund or offset.
- Represent your interests with a tax agent for the transfer of confirmation of foreign tax residency or refund (offset) of withheld income tax.
- Represent your interests in the tax authority if you are called to receive income in Belarus.
Contact us
If you have any questions about the tax residence of Belarus — we will be happy to help you! Our many years of experience in this field will help you in resolving any situations and disputes.
Phone and email communication options are available for your convenience:
- +375293664477 (WhatsApp/Telegram/Viber);
- info@ambylegal.by.
