Rate indexation, token transactions: What's changing in tax legislation starting in 2025?

January 1, MINSK . Amendments have been made to the Tax Code of Belarus. The Ministry of Finance and the Ministry of Taxes and Duties announced the main changes, BELTA reports.



The first major set of changes concerns basic tax policy measures. This includes indexation of tax rates set in Belarusian rubles based on the inflation forecast. Land tax, real estate tax , environmental tax, and personal income tax rates have been indexed in fixed amounts. Income tax deductions and benefits are also being indexed, based on the growth rate of nominal wages. Furthermore, excise rates on tobacco and ALCOHOL products have been increased.

The Tax Code has been revised to eliminate existing benefits that are ineffective and unused. Specifically, the income tax benefit for individuals on income received from the sale of shares in authorized capital and stocks of Belarusian organizations owned by the taxpayer for at least three years has been eliminated. In addition, a phased elimination of reduced rates of corporate income tax and income tax on dividends is planned. The tax rate on dividend income received by foreign organizations will also be increased from 15% to 25%.

The procedure for applying the investment deduction has also been revised. This right will now only apply to commercial organizations for industrial buildings and structures. Budgetary organizations, public and religious associations, and other non-profit organizations will no longer be eligible for the investment deduction due to the lack of industrial activity.

Additional income tax preferences have been introduced for individuals: the restriction on the one-time property deduction for large families constructing or purchasing a residential building or apartment has been lifted. A separate article of the code expands the list of young specialists and young workers (employees) who have received higher education, scientifically oriented secondary specialized education, or vocational education and are eligible for the standard tax deduction. The amount of this deduction has also been increased.

To combat shady schemes, certain provisions have been included in the Tax Code. First, the simplified tax system is prohibited for organizations created as part of a reorganization. Second, the tax authority has been given the right to restrict and restore access to a taxpayer's personal account on the electronic invoice portal. However, this will only be possible if the taxpayer is not actually conducting business transactions and has outstanding debt.Value-added tax (VAT) has been adjusted to the budget. This provision will affect suppliers.

A new article, "Specifics of Calculating and Paying Personal Income Tax on Income Received from Transactions with Digital Symbols (Tokens)," has been added to the Tax Code of Belarus. Income is defined as any funds received from such transactions, including mining, exchanging tokens for other tokens, and selling them for Belarusian rubles, foreign currency, and electronic money . Residents of the High Technology Park (HTP) are subject to a 9% income tax rate. Non-HTP residents will be subject to the standard 20% rate, and 25% for gross profits exceeding Br25 million. Individuals will not be subject to income tax if income is received from transactions with tokens created by and/or through HTP residents, or from transactions with tokens conducted through HTP residents. Income from mining activities, from the exchange of tokens for other tokens (except for illegal and prohibited activities), and if tokens are received as gifts or inheritances from individuals will also be exempt from taxation.