Taxes

What are the tax liabilities for foreign businesses in Belarus?

Source: http://www.belarus.by/en/business/legal-requirements

Tax liabilities vary depending on:

  • the nature of your business
  • the size of your business
  • the location of your business

Today Belarus provides preferential regimes, primarily tax breaks, to:

In addition, special preferential terms are granted to companies that have signed investment agreements with the Republic of Belarus.

Below you will find the major business tax in Lithuania

Source: http://www.investlithuania.com/lets-talk-lithuania/business-environment/?tab=3

For a quick and simple comparison to other major European countries please find the document attached

Corporate profit tax 0-15%
VAT 21%
Dividends (witholding tax) 0-15%
Personal income tax 15%
Social security tax 9% paid by employee 30.98% paid by employer
Real estate tax 0,3-3%

Other favourable tax conditions available to foreign companies:

  • 0% corporate income tax for six years in free economic zones.
  • If they meet certain conditions, entities can reduce their taxable profit up to 50% providing they are carrying out an investment project into qualifying assets.
  • Expenses incurred by companies carrying out R&D projects can be deducted x3;
  • 0% withholding tax on interest when the recipient of interest is established in the European Economic Area (EEA) or a country with which Lithuania has signed a treaty for the avoidance of double taxation;
  • 0% withholding tax on royalties paid to related parties meeting requirements of the EC Interest and Royalty Directive;
  • 0% percent withholding tax on dividends distributed to a foreign/Lithuanian entity where the recipient has held not less than 10% of voting shares for a continuous period of at least 12 consecutive months;
  • 0% corporate income tax on dividends received from EEA countries if the dividends were distributed from profits which were subject to corporate income taxation;
  • Advanced Pricing Agreements (APAs) and Binding Rulings available as from 1 January 2012;

Contacts for more tax related incentives or see useful links for further information

More detailed information Deloitte Lithuania Highlights 2016 

Tax system in Latvia

Source: http://www.fm.gov.lv/en/s/taxes/ and www.vid.gov.lv

The Ministry of Finance shall develop state tax and customs policy, as well as prepare recommendations for institutions responsible for tax and customs administration on implementation of tax and customs policy activities.

Taxes and fees system in Latvia consists of:

  • state taxes, object and rate of which shall be set by the Saeima;
  • state fees which shall be applicable according to Law "On Taxes and Fees" (LV) specific other laws and regulations of the Cabinet of Ministers;
  • local government fees which shall be applicable according to Law "On Taxes and Fees" (LV) and binding regulations issued by the council of local government;
  • directly applicable taxes and other obligatory payments set in the European Union regulatory enactments.
  • Direct taxes

Enterprise Income Tax

Shall be paid by legal entities and non-resident permanent establishments for their income. Tax rate is 15%.

Personal Income Tax

Shall be paid by natural persons for their income. Tax rate is 23%.

State Social Insurance Mandatory Contributions

Shall be paid by insured persons and their employers.Total rate is 34,09% which varies for different categories of insured persons.

Microenterprise tax

Tax rate is 9% from turnover. Tax replaces state social contributions both for employees and proprietors and business risk state fee as well as personal income tax or corporate income tax depending on legal form of taxpayer. Legal form of microenterprise could be Limited Liability Company or individual merchant or individual performing economic activity without registration as an individual merchant. To qualify for status of microenterprise taxpayer the following criteria shall be met: employee’s income does not exceed EUR 700 per month, turnover does not exceed EUR 100 000 per year, the number of employees may not exceed five.

Real Estate Tax

Shall be paid by real estate owners or legal possessors. General tax rate is 1,5% from cadastral value of property unit. Residential property is taxed at a rate 0,2%-0,4%-0,6% depending on value of the property.

Indirect taxes

Value Added Tax

Shall be paid by legal entities and natural persons. Standard tax rate is 21%, reduced tax rate – 12%. On 1 January 2013 new Value Added Tax Law has entered into force. Value Added Tax Law replaces the Law On Value Added Tax, which was into force from 1995 till 2012.

Excise Duty

Shall be applied to oil products, natural gas, alcoholic drinks, beer, tobacco products, coffee and non-alcoholic drinks (except natural juices and mineral water).

Electricity Tax

Shall be paid by persons supplying electricity to the end-users and self-governing producers. Tax rate shall be set in lats per megawatt-hour.

Tax on Cars and Motorcycles

Tax shall be paid when the car or motorcycle is registered in Latvia for the first time.

Vehicle Operating Tax

Shall be paid by legal entities and natural persons who own, possess or hold a vehicle, which is registered or is going to be registered in Latvia, or whose owned, possessed or held vehicle is given transit number plates.

Company Car Tax

Shall be paid by commercial entities and foreign merchant branch who own or hold passenger vehicle or truck with the total weight up to 3000 kg and which have more than three seats (included driver seat) and which is used also for personal needs of employees and/or proprietaries.

Customs Duty

Shall be paid by natural persons and legal entities when importing goods into the EU.

Other taxes

Natural Resources Tax

Shall be paid by legal entities and natural persons if extracting natural resources, distributing or importing environmentally unfriendly goods or which are allowed to perform such activities.

Lottery and Gambling Tax

Shall be paid by lottery and gambling providers.