The Belarus Ministry of Taxes and Duties has published Letter No. 2-2-10/01250 of 4 June 2021 concerning the carryforward of losses incurred by residents of Free Economic Zones (FEZs) in 2019 to 2021. Under the general loss carryforward rules, losses may be carried forward up to 10 years.
The letter notes that as per clause 2 of Article 183 of the Tax Code, as amended in 2019, the amount of losses that may be carried forward by a company does not include losses incurred at the end of a tax period in which the company had the right to apply legislation establishing an exemption from income tax for certain (several) tax periods.
With respect to FEZ residents, which benefit from profit tax exemptions, the letter provides that the noted limit on the carry forward of losses does not apply because the profit tax benefit for FEZ residents is not limited to certain tax periods. As such, FEZ residents may carry forward losses incurred in 2019 to 2021 according to the standard rules.