Transfer Pricing
Country Summary
Belarus
This document summarizes the transfer pricing requirements and regulations in Belarus. Belarus introduced transfer pricing (TP) restrictions in 2012. Initially, these laws did not impose obligations on taxpayers, such as notifying authorities or producing TP documents. Starting in 2016, such duties were gradually introduced. In 2019, Belarus significantly updated and enhanced its TP regulations, aligning them more closely with the OECD’s guidelines. Belarus follows its own local rules for TP, contained in Article 30-1 of the Tax Code. Conditions for entities/persons to be considered related parties are well-defined. Advance Pricing Agreements (APAs) became permissible in 2019, offering protection to taxpayers who comply with their conditions. Belarus conducts TP audits to ensure compliance with TP regulations.
Overview:
Belarus’s Transfer Pricing Evolution
Belarus initiated transfer pricing (TP) regulations in 2012. Initially, these rules didn’t require taxpayers to perform specific actions, such as notifying tax authorities or preparing TP documents. However, from 2016 onwards, these obligations were gradually introduced. In 2019, Belarus significantly revamped its TP regulations, bringing them more in line with the guidelines set forth by the OECD.
Local TP Rules in Belarus
Belarus does not adopt the OECD’s TP guidelines and instead follows its own local TP rules, as outlined in Article 30-1 of Belarus’s Tax Code.
Definition of Related Parties
Belarus has a well-defined set of criteria for entities or individuals to be considered related parties for TP purposes. These criteria encompass ownership of shares, voting rights, and formal status.
Advance Pricing Agreements (APAs)
Belarus introduced APAs in 2019, allowing for agreements between taxpayers and the Ministry of Taxes and Duties. These APAs provide clarity on pricing and methodologies for tax purposes. Eligible taxpayers include significant taxpayers and those involved in controlled transactions over a specific threshold.
TP Audit Practices
Belarusian tax authorities carry out TP audits to verify compliance with TP regulations. These audits can include desk reviews or other forms of tax audits. If the authorities identify price deviations from market ranges, they may modify the Corporate Income Tax (CIT) basis accordingly.