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Belarus Expense Deduction Restriction from 2017 — Orbitax Tax News & Alerts

A general cost deduction restriction has been introduced for Belarus corporate tax purposes. The general restriction provides that costs for the production of goods, works, and services will not be deductible unless economically justified as determined on the basis of accounting documents, with possible tax accounting adjustments or other adjustments in accordance with the tax code. In particular, the new rules specify that costs will not be considered economically justified if any one of the following conditions is met:

  • The goods were not shipped, the works were not performed, the services were not rendered, or the property rights were not transferred;
  • The works were performed or the services were rendered by an individual entrepreneur that has an employment relationship with the taxpayer, and such works or services are related to the employment obligations of the individual; and
  • The works were performed or the services were provided to the taxpayer (except a joint stock company), by the taxpayer's parent company, or its subsidiary, and such works or services are related to the employment obligations of an individual that has an employment relationship with the taxpayer.

The new restriction applies from 1 January 2017.