Definitive Guide to Hiring in Belarus

Termination of Employment in Belarus

An employment contract can be terminated under the following circumstances:

• Upon mutual agreement of both parties.
• Expiration of a labor contract (in the case of a fixed term contract).
• If initiated by either the employee or the employer.
• If the employee agrees to be transferred to another employer or gets transferred to an elective position.
• If the employee disagrees with moving to another location required by the employer or disagrees with the new labor conditions of their employment.
• If the contract is terminated after a probationary period.
• Due to circumstances beyond one’s reasonable control (force majeure) and some of the ground.
• If an employee is dismissed, they are entitled to 3 months of severance pay.

13th Month Salary in Belarus

• No
• There is no statutory requirement to pay the 13th or 14th month.
• There is no evidence that it is customary.
• The requirement is for holidays to be taken uninterrupted and can maximum be split in two with the employer's consent. (e.g. two weeks in summer, two weeks in winter)

Income Tax in Belarus

• Individuals who are considered to be Belarus tax residents under applicable tax rules have PIT liability on their income sourced from Belarus and abroad (i.e. worldwide income).
• Those who are considered as non-tax residents of Belarus are taxed on income derived from Belarus sources
• Generally, any individual income derived from Belarus and foreign sources is taxed at a flat rate of 13%.
• Employment-related income derived by individuals from entities or entrepreneurs registered with High Technology Park is taxed at the rate of 9%.
• However, for 2021 and 2022 the rate increased to 13%, in response to the COVID-19 crisis
• The income tax rate is set at 16% in respect of the income received by Belarusian individual entrepreneurs (private notaries, solicitors) from business (private notary, sole advocacy) activities.
• Organizations –tax agents are obliged to withhold the calculated sum of income tax from individuals directly from the income of the payer at the moment of their actual payment.
• The tax rates are given below:-

Social Security in Belarus

Work Permit

• In general, foreign citizens who intend to work in Belarus should obtain a special work permit issued by regional Citizenship and Migration Departments of the Ministry of Internal Affairs.
• The validity period of a special work permit is one year, except for highly skilled professionals for whom a special work permit is issued for two years.
• A foreign highly skilled professional is a foreigner with high level of professional knowledge, skills and expertise confirmed by education certificate, and with work experience not less than five years and a contractual monthly salary that is more than the equivalent of BYN4,950.
• CIS nationals, with the exception of Armenian, Kazakh, Kyrgyzstan and Russian citizens employed by Belarusian legal entities, should also obtain a special work permit.
• A special work permit is not required for, among others, the following foreigners who want to work in Belarus:
• Individuals who have permanent residence permits
• Individuals employed by diplomatic missions and consulates of foreign countries, representative offices and/or bodies of international or interstate organizations accredited in the Republic of Belarus
• Journalists from international media organizations accredited with the appropriate Belarusian authorities
• Certain other types of foreigners (for example, clergy invited for religious activities by religious associations that are statutorily registered in Belarus)
• To obtain a special work permit for a foreigner, the following documents should be presented by the Belarusian employer of such foreigner to the appropriate regional Citizenship and Migration Department of the Ministry of Internal Affairs:
• Application in the established form
• Copy of the foreigner’s passport or other equivalent document
• Education certificate and paper on work experience with respect to the profession of not less than five years and confirmed high level of professional knowledge, skills and expertise (for highly skilled professionals)
• Receipt for registration fee
• The procedure for obtaining a special work permit takes up to 15 calendar days.

Residence Permits

• Foreign citizens may stay in Belarus if they have any of the following three statuses:
• Foreigners who are temporarily staying in Belarus
• Temporary residents (individuals who hold temporary residence permits)
• Permanent residents (individuals who hold permanent residence permits)
• A foreigner’s temporary stay in Belarus should not exceed 90 days per calendar year from the date of the first entrance.
• Temporary resident status is the most common status for expatriates working in Belarus.
• A temporary residence permit is a document that allows a foreign national to reside in Belarus during its validity.
• A temporary residence permit is given for the period of up to one year.
• Its validity may be extended if a foreigner has a document confirming the legality of his or her staying in Belarus.
• To obtain a temporary residence permit, an applicant planning to work by hire in Belarus should submit the following main documents:
• Application in the established form
• Passport or other equivalent document
• Document confirming the legality of his or her staying in Belarus
• Special permit to work by hire in Belarus or labor agreement (contract) with a Belarusian employer (if a special permit to work by hire is not required)
• Insurance policy or contract for medical insurance concluded with foreign insurance company
• Document confirming the possibility of staying at the place of temporary residence (usually a long-term rent contract)
• Document confirming the payment of state duty
• A permanent residence permit may be issued to the following foreigners:
• Close relatives of Belarusian citizens permanently residing in Belarus
• Persons who are granted refugee status or asylum in Belarus
• Foreigners who have the right to family reunification
• Foreigners who have lived legally in Belarus for a continuous period of seven years after obtaining the temporary residence permit
• Foreigners who may become Belarusian citizens through the mechanism of registration
• Foreigners who were previously nationals of Belarus
• Workers and professionals who are needed by Belarusian organizations
• Foreigners who have extraordinary capabilities and talent, have outstanding merits for Belarus or have high achievements in science, technology, culture or sports
• Foreign investors who have made investments in the amount not less than EUR150,000 in investment activities in Belarus
• Ethnic Belarusians or their blood relatives in the direct line of descent, including children, grandchildren and great-grandchildren who were born outside the current territory of Belarus
• The Belarusian government may provide other grounds for the obtaining of a permanent residence permit under an agreement with the President of the Republic of Belarus.
• The issuance of a permanent residence permit is a subject to an immigration quota that may be established by the Belarusian government with respect to each foreign country.

Payments And Invoicing

• The tax year in Belarus is the calendar year. Employers are required to withhold, calculate, and pay to the state the relevant tax on compensation paid to employees.
• The tax is transferred to the budget on the date on which the salary is paid.
• Any non-employment income received in a tax year by a tax resident individual must be declared in the individual’s annual tax return.
• The annual tax return must be submitted to the tax office by 31 March of the year following the tax year.
• The taxpayer must pay personal income tax due on income derived in the tax year by 1 June of the year following the tax year.
• Attorneys, notaries and individual entrepreneurs using the general taxation regime compute tax quarterly on a cumulative basis and file tax returns by the 20th day of the month following the reporting quarter.
• The tax for the reporting quarter must be paid by the 22nd day of the month following the end of the reporting quarter.
• Entrepreneurs who use the simplified taxation regime and who pay VAT on a quarterly basis or do not pay VAT must file tax returns quarterly by the 20th day of the month following the end of the reporting quarter.
• Entrepreneurs who pay VAT on a monthly basis must file tax returns monthly by the 20th day of the month following the reporting month.
• Tax must be paid by the 22nd day of the month following the end of the reporting month.
• Entrepreneurs whose business activities are subject to the single tax must pay the tax on a monthly basis by the first day of each calendar month and file a tax return on the first day of each calendar quarter.

Country Accruals Additional Information

Payroll Accruals Additional Information

Accrued Benefits in Belarus