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.
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.
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.
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.