3.1. Representation of a foreign legal entity

The representative office of the organization is its separate subdivision located on the territory of the Republic of Belarus, which performs protection and representation of the interests of the organization and other functions that are not contrary to the legislation.

3.2. The status of representation of a foreign legal entity

Representations of legal entities and other organizations registered in accordance with the established procedure in a foreign country, administrative and territorial units of foreign states are opened and carry out activities in the territory of the Republic of Belarus on the basis of permits issued by the Ministry of Foreign Affairs, unless otherwise provided for by legislative acts of the Republic of Belarus.

The representative office of the organization is its separate subdivision located on the territory of the Republic of Belarus, protecting and representing the interests of the organization and other functions that are not contrary to the legislation.

The representation of the organization is not a legal entity.

Representative offices of organizations are entitled to engage in entrepreneurial activity on the territory of the Republic of Belarus only for and on behalf of the organization it represents.

3.3. The order of opening, accreditation and term of activity of representative offices

Foreign organizations open their representative offices in the territory of the Republic of Belarus with the permission of the Ministry of Foreign Affairs with the possibility of extending the validity of the permit. The representative office is considered established on the territory of the Republic of Belarus from the moment it receives permission from the Ministry of Foreign Affairs to open it.

3.4. State fee for issuing permission to open a representative office

The state fee for the issuance of permits to open and extend the term of the activities of representative offices is paid by a foreign organization prior to obtaining permission to open and extend the term of the office in the Republic of Belarus.

  • for the opening and extension of the term of the activities of the representative offices of foreign organizations in the Republic of Belarus - 65 basic values ​​for each year of the permit’s validity.
  • for opening and prolonging the term of activity of representations of non-profit foreign organizations, as well as representative offices of foreign organizations that carry out exclusively charitable activities in the territory of the Republic of Belarus - 20 basic values ​​for each year of the permit's validity.

3.5. Documents for obtaining permission to open representations

To obtain permission to open a representative office, the organization submits the following documents to the Ministry of Foreign Affairs:

  1. an application in which it should be indicated:
  • goal (s) of opening a representative office;
  • full name of the organization;
  • date of establishment of the organization;
  • location of the main office;
  • description of activities of the organization;
  • information on persons authorized to conduct business on behalf of the organization in the Republic of Belarus;
  • term for opening the representative office;
  1. copies of constituent documents of the organization, legalized in accordance with the established procedure;
  2. a copy of the document confirming the state registration of the organization in the authorized body of the applicant country (extract from the trade register, certificate of registration of the organization, etc.), legalized in accordance with the established procedure;
  3. a power of attorney for the head of the representative office, legalized in accordance with the established procedure;
  4. a provision on the representation approved by the organization which specifies the goal (s) of opening a representative office on the territory of the Republic of Belarus, the address, organizational structure, the competence of the head of the mission, the procedure for closing the representation;
  5. a power of attorney authorized in the established procedure for a person authorized to carry out activities related to the opening of a representative office;
  6. The original document confirming the payment of the state fee for obtaining permission to open a representative office.

3.6. Term of registration

The Ministry of Foreign Affairs issues or refuses to issue a permit within ten days from the date of submission of documents. If it is necessary to obtain additional information from the republican government bodies, diplomatic missions and consular offices of the Republic of Belarus on the activities of the organization, the period for consideration of documents is extended to one month.

3.7. Permission to open a representative office

The representative office is considered established on the territory of the Republic of Belarus from the moment it receives permission from the Ministry of Foreign Affairs to open it, which states:

  • the name of the organization;
  • the goal of opening a representative office;
  • the conditions on which the organization is allowed to open an office;
  • the date of issue of the permission and its number;
  • the period for which the permission is granted;
  • the number of foreign citizens - employees of the mission.

3.8. Representative office activities

The representation of the organization has the right to carry out activities aimed at achieving the goals for which it is opened from the moment it receives permission to open a representative office.

Representative offices of organizations are entitled to engage in entrepreneurial activity on the territory of the Republic of Belarus only for and on behalf of the organization it represents.

The types of activities for which a special permit (license) is required to be obtained may be carried out by the representation only on the basis of such a special permit (license) received by the organization in accordance with the procedure established by law.

The organization that opened a representative office within the time limit and in the manner prescribed by the legislation of the Republic of Belarus must register itself with the tax and other authorities of the Republic of Belarus and open accounts with banks of the Republic of Belarus.

The Head of the representative office:

  • in case of a change in the location of the representative office, within ten working days notifies the interested state bodies of the location of the representative office with indication of the postal address, telephone and fax numbers and ensures appropriate changes to the provision on representation;
  • once a half-year (from 1 to 10 July and from 1 to 10 January) submits to the Ministry of Foreign Affairs a written report on the activities of the mission. The report on the activities of the representation of the organization includes information on the location of the mission, the staffing table of employees, open accounts, ongoing projects and programs, the timing and resources for their implementation, the amount of grants allocated to public associations and citizens, and on their recipients, as well as a description of activities for the past period, phone and fax numbers.

3.9. Termination of representative office activities

The activity of the representation of the organization is terminated:

  • in the event of liquidation of the organization;
  • in the event of termination of the concluded international treaty on the basis of which the representation was opened, if this is provided for by the contract;
  • by decision of the organization that opened the representative office;
  • by a court decision in case of violation of the legislation of the Republic of Belarus;
  • in the event of the expiration of the validity of the permit to open or extend the term of the representative office.

After the termination of the activity of the mission, the organization is obliged to execute the procedures related to the termination of the activities of the mission and submit the following documents to the Ministry of Foreign Affairs within a month's time:

  • a copy of the bank's certificate of current account closure;
  • a copy of the certificate on the absence of debts to the budget on the payments collected by tax authorities;
  • a copy of the certificate on the absence of arrears to the budget for payments collected by the customs authorities and obligations not terminated before the customs authorities;
  • a copy of the receipt of the internal affairs bodies confirming the fact of the destruction of seals;
  • the original permission to open a representative office;
  • business cards.

The copies of documents are certified by the seal of the organization or by the signature of the person authorized to commit actions to terminate the activities of the mission.

3.10. Branch of a foreign legal entity

The formation of branches of foreign legal entities on the territory of the Republic of Belarus is not provided for by the legislation of the Republic of Belarus.


FEATURES OF OPENING AND GETTING REGISTERED FOR TAX ACCOUNTING FOR FOREIGN ORGANIZATIONS PLANNING TO CARRY OUT THEIR ACTIVITIES IN THE TERRITORY OF THE REPUBLIC OF BELARUS THROUGH A PERMANENT MISSION

The concept of a permanent mission of a foreign organization located in the territory of the Republic of Belarus is defined by article 180 of the Tax Code of the Republic of Belarus (hereinafter referred to as TC).

In particular, the permanent mission is:

  • the place of performance of works, the provision of services to a foreign organization performing work and (or) providing services in the territory of the Republic of Belarus, provided that the said activity is carried out for 180 days continuously or in aggregate in any 12-month period commencing or ending in the relevant tax period (hereinafter - 180 days) (clause 3, Article 180 of the Tax Code);
  • a construction site, installation or assembly facility from the beginning of its existence, if such a site or facility exists in the Republic of Belarus for a period exceeding 180 days in any 12-month period beginning or ending in the relevant tax period (clause 4, Article 180 of the TC).

Registration of such foreign organizations is carried out in accordance with sub-clause 1.5 of clause 1 of Article 70 of the TC on their application submitted to the tax authority at the place of business in the Republic of Belarus prior to the commencement of such activities under an agreement (contracts) to perform work (services).

The application submitted by a foreign organization is accompanied by the following documents (originals and their copies):

  • a certificate from the tax authority of the country of location of the foreign organization of its registration as a payer in that country with an indication of the payer code or an analogue of the payer code;
  • the original and a copy of the contract according to which a foreign organization performs work and (or) provides services in the territory of the Republic of Belarus for a period exceeding the time limits established by clauses 3 and 4 of Article 180 of the TC;
  • the original and a copy of the power of attorney or other document confirming the authority of the representative of a foreign organization in the Republic of Belarus to carry out transactions, other legally significant actions on behalf of the foreign organization, including the authority to represent its interests in relations governed by tax legislation;
  • a copy of the constituent document of a foreign organization;
  • a copy of an extract from the trade register of the country of location of the foreign organization or other equivalent proof of its legal status in accordance with the legislation of the country of its location.

The original documents submitted to the tax authority for registration are returned to the payer after they are checked against the copies.

Documents drawn up in a foreign language must be translated into Belarusian or Russian. The fidelity of the translation or the authenticity of the translator's signature must be attested by a notary or by diplomatic missions or consular offices of the Republic of Belarus.

An extract from the trade register of the country of location of the foreign organization or other equivalent proof of its legal status in accordance with the legislation of the country of its location must be issued no later than three months before the day of submission of documents for registration with the tax authority of the Republic of Belarus.

A copy of the extract from the trade register of the country of location of the foreign organization or other equivalent proof of its legal status in accordance with the laws of the country of its location must be executed in accordance with the legislation of the issuing state, certified by the competent authorities of that state and legalized in diplomatic missions or consular offices of the Republic Belarus, unless otherwise provided by international treaties of the Republic of Belarus.

The application form for registration with the tax authority of a foreign organization is established in accordance with Appendix 2 to Resolution No. 96.

Features of taxation of income of foreign organizations from the implementation of activities in the field of construction in the territory of the Republic of Belarus

In accordance with Article 180 of the Tax Code, a construction site, installation or assembly facility is recognized as a permanent representative office of a foreign organization, if such a site or facility exists in the Republic of Belarus for a period exceeding 180 days.

The construction site, installation or assembly facility of a foreign organization in the Republic of Belarus includes the place of construction of new, reconstruction (modernization), expansion, technical re-equipment and (or) repair of existing real estate objects (with the exception of aircraft and ships, inland vessels and spacecraft). objects), as well as the place of construction and (or) installation, repair, reconstruction (modernization), expansion and (or) technical re-equipment of buildings, machinery and equipment, the operation of which requires a rigid attachment on the foundation or to the structural elements of capital structures (buildings, structures).

According to international agreements on the avoidance of double taxation of income and property concluded by the Republic of Belarus with foreign states, the term "permanent representation" means any permanent place of business through which a person with a permanent seat in a foreign state fully or partially carries out commercial activities in the Republic of Belarus and includes, in particular, the construction site or construction, installation or assembly object, if they exist during the period defined by the corresponding agreement, usually more than 6 or 12 months (see the Table).

IMPORTANT!

In its activities in the territory of the Republic of Belarus, a foreign organization operating in the territory of the Republic of Belarus should be guided by the regulatory legal acts of the Republic of Belarus, pay taxes, fees and other mandatory payments in accordance with the legislation of the Republic of Belarus.

The list of countries with which the Republic of Belarus has concluded international agreements on the avoidance of double taxation of income and property

Period, months The name of the country
6 Bangladesh, Vietnam, India, Indonesia, Qatar, Kuwait, Latvia, Sultanate of Oman, Pakistan, Saudi Arabia, Syria, Thailand, Turkmenistan, Sri Lanka, Estonia
9 Venezuela, Laos, Lebanon, Ecuador
12 Austria, Azerbaijan, Armenia, Bahrain, Belgium, Bulgaria, Great Britain, Hungary, Germany, Hong Kong, Georgia, Egypt, Israel, Iran, Ireland, Spain, Italy, Kazakhstan, Cyprus, the Democratic People’s Republic of Korea, Korea, Kyrgyzstan, Lithuania, Macedonia , Moldova, Mongolia, Netherlands, United Arab Emirates, Poland, Romania, Serbia, Singapore, Slovakia, Slovenia, Tajikistan, Turkey, Uzbekistan, Ukraine, Finland, Croatia, Czech Republic, Switzerland, Sweden, South Africa, Japan
18 China
24 Denmark, France
36 USA

Clause 2 of Article 5 of the Tax Code determines that if the norms of international treaties of the Republic of Belarus establish other norms than those provided by the Tax Code and other legislative acts of the Republic of Belarus, then the norms of an international treaty shall apply, unless otherwise specified by international law.

Thus, if a foreign organization carries out activities related to a construction site, installation or assembly facility in the Republic of Belarus, beyond the period specified in the relevant international agreement, the income tax is paid from the first day of work at a rate of 18%. When performing such works during the period that lasts less than that specified by the relevant agreement, the profit tax is not calculated and is not paid.

At the same time, a foreign organization carrying out activities related to a construction site, installation or assembly facility in the Republic of Belarus for a period exceeding 180 days, and therefore to be registered with the tax authority in accordance with the provisions of sub-clause 1.5 of clause 1 of Article 70 of the Tax Code, regardless of the period of construction activity in the territory of the Republic of Belarus (more or less the period established by the relevant international agreement), calculates and pays other taxes and fees in the manner prescribed by the legislation of the Republic of Belarus with the object of taxation since the beginning of such activities, in particular the value-added tax with the object of taxation.

The object of income taxation for foreign organizations operating in the Republic of Belarus through a permanent representation is the amount of profit of a foreign organization obtained through a permanent representation in the Republic of Belarus from the sale of goods (works, services), property rights, and non-operating income reduced by the amount of non-operating expenses (clause 2 of Article 167 of the TC).

The tax declaration (calculation) for income tax is submitted to the tax authority at the location of the representative office of a foreign organization, as well as to the tax authority at each place of business activity through a permanent representation (without duplicating the indicators involved in the definition of profit to taxation) (clause 8 of Article186 of the TC).

Thus, the profit of a foreign organization is calculated separately for each construction site.

It is also necessary to keep in mind the requirements established by clause 3 of Article 22 of the Tax Code, according to which foreign organizations in relation to their activities in the territory of the Republic of Belarus that are subject to taxation due to the occurrence of the circumstances established by Article 180 of the Tax Code (activities of foreign organizations recognized by activities carried out through permanent representation for tax purposes), are obliged to comply with the requirements of the legislation of the Republic of Belarus on accounting and reporting.

IMPORTANT!

Recommendations on taxation of foreign organizations operating in the territory of the Republic of Belarus through a permanent representation can be found on the website www.nalog.gov.by in the “Explanations” section (Letter of the Ministry of Taxes and Levies of the Republic of Belarus dated May.24, 2019 No. 4-2-15 / 00761).