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4.1. Domestic PE of a Foreign Entity

Unless a tax treaty provides otherwise, a foreign enterprise is deemed to have a permanent establishment in Belarus if it wholly or partly conducts business through a place of business, including:

  • A place of production, or sale of goods, commodities, or property rights;
  • A place for the rendering of services and performance of works and similar activities for a period of more than 180 days (increased from 90 days effective from 1 January 2019) within any 12-month period;
  • A construction site, assembly or assembly facility, if such a site or facility exists on the territory of Belarus for more than 180 days within any 12-month period; or
  • An agent, other than an agent of independent status acting in the course of his business, who concludes contracts on behalf of the non-resident, or agrees to their essential features, or otherwise furthers the business interests of the non-resident.

However, the following activities do not constitute a permanent establishment for a foreign enterprise in Belarus:

  • Storage, display or delivery of goods;
  • Purchase of goods or property rights for a foreign enterprise;
  • Collection or dissemination of information for a foreign enterprise; or
  • Carrying out other types of activities if, taken as a whole, they are of a preparatory or auxiliary character.

Effective 1 January 2021, foreign companies can register a permanent establishment only if a bank account is opened with a Belarusian bank and a copy of a bank statement along with other registration documents is submitted to the tax authority.