One Of Important Tax Reliefs May Be Cancelled In Belarus
4- 15.11.2024, 8:35
- 19,436
Taxes in absolute terms will increase.
They want to cancel one of the tax benefits in Belarus. It's about the reduced rate of income tax on income from dividends. This innovation, which affects both the population and companies, is provided by the draft amendments to the Tax Code. Details of this were given by Finance Minister Yury Sialiviorstau.
Officials want to cancel the preferential income tax rate on income from dividend income in stages. It's about individuals, who have shares of companies or are owners of Belarusian companies, as well as legal entities.
Yury Sialiviorstau notes that the analysis of investment benefits on dividends has shown that the benefits are quite significant. However, according to the minister, they have not had the desired effect, expected by the authorities. The head of the Ministry of Finance reminded that if dividends are not distributed for three years, the tax rate on them is 6%, and if five years, then 0%.
We remind you that the standard tax rate is 13%, but if a certain amount is exceeded, it can increase to 25%.
‘This was done so that people tried to invest in their development. It did not have a big effect. They simply placed most of these funds in banks at interest, accumulated, they were withdrawn in terms of additional income for the owners of these securities and this business,‘ said the head of the Ministry of Finance. ‘So we propose to abolish it. But to do it in stages. The 6% rate should be removed from 2026 and then the zero rate should be removed from 2028. Therefore, it will not affect the next year in any way’.
As for the tax rates, which are set in Belarusian rubles, they are going to be indexed in 2025, said Yury Sialiviorstau.
‘Taxes in absolute terms will increase. We must index to inflation where the rates are set in Belarusian rubles. The question is that certain measures, which we want to apply, entail an increase in the tax burden. But it will not be one-time and not immediately,’ said the minister.
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