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12 january 2023

Withholding tax rate on dividends received by foreign companies has been increased

Withholding tax rate on dividends received by foreign companies has been increased from 12% to 15% since 01.01.2023.

Belarus has entered into a number of double taxation treaties (DTT). Many of those DTT reduce the withholding tax rates applied to dividends paid by Belarusian companies to non-residents. For instance, a tax rate is 10% subject to some conditions (amount of participation in the company) under DTT with Israel, China, Latvia, Lithuania, Cyprus, Armenia, and Poland.

So, a reduced withholding tax rate may be applied if the recipient is the beneficial owner of the dividends (who has a beneficial right on the income or assets of the recipient) and has a confirmation of tax residency in the countrywith which the DTT has been concluded.

Tax declaration shall be submitted by the Belarusian company not later than on the 20th day of the month following the expired quarter, when arises the recognition in the tax agent’s accounts of obligations to pay dividends.

The tax shall be paid no later than the 22nd day of the same month.