Recruitment in Belarus

Recruitment in Belarus: Frequently Asked Questions

What is the monthly cost of using an Umbrella Company in Belarus? 

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What is the cost of a Work Permit in Belarus?

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How long does it take to get a work permit in Belarus?

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What is the estimated net retention in Belarus for a contractor earning USD 500 per day?

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What is the estimated net retention in Belarus for a contractor earning USD 1000 per day?

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Read more about the work permit process.

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Recruitment in Belarus can be a challenge, but you don’t have to drown in time-consuming admin just to place a candidate. You can simplify complications by using an Umbrella Company (or “contractor management company”), as long as you pick the right one.

Skip ahead to find out how we can help you place candidates faster, or simply read on to find out more about the specific issues you’ll face.

Placing a new contractor in Belarus: what are the challenges?

Taxation

Recruiting in Belarus generally requires a lot of complex admin duties, and contractors might end up paying too much in taxes or failing to comply with Belarus tax law. It’s important to know what kind of concerns you’ll be facing.

  • Double taxation: Contractors can incur a tax liability in both their home country and in Belarus. Many countries have agreements that mitigate this type of issue, but whether or not you can take advantage of them will depend on factors like the length of the contractor’s stay, or the laws of the contractor’s home country. You can learn more about double taxation here (note: this info was written with respect to the UK, but the general concepts will still apply).
  • Withholding tax: If a foreign company is used to provide services overseas, the payments made to that company by the Belarus client could be liable for withholding tax under Belarus tax law. Find out more about withholding tax.
  • Individual taxation and tax residency: A contractor’s tax liability will often be determined by his or her residency status in their home country and in Belarus. Figuring out their tax residency can be difficult and is often tied to the length of their stay in Belarus (or out of their home country). Read more about tax residency and individual tax liability here.
  • Permanent establishment: Most double taxation agreements limit the scope of taxation in the host country by providing that a business is only taxable in another state if it has a permanent establishment in that state. A permanent establishment is a fixed base such as a branch, office, factory, workshop, mine or oil well. To find out how to avoid permanent establishment and unnecessary tax liability, read more about the issue.

Work permits

Contractors will need to find a sponsored work permit, which can be difficult and may seriously slow the placement process. Additionally, they’ll need a new permit for each new contract, spawning even more paperwork.

See our FAQ to find out more about the cost and processing time of Belarus work permits.

Why use a contractor management company?

An efficient way to manage these problems is to outsource them to a contractor management company. They’ll act as the contractor’s “employer,” handling all of their invoicing, fees, and social security. As Belarus tax experts, they also help contractors comply with local tax law while maximising the amount they get to keep.

A quicker, better recruitment process: Working with an Umbrella Company means saving time, effort, and resources. Higher earnings and a smoother transition also make contracting a more attractive opportunity, helping you place candidates more quickly and successfully.

Still, you’ll need to find the right company for you and your candidate.

How to find the right Umbrella Company?

Making sense of the optionsFor free, we match contractors with Umbrella Companies and can help dramatically reduce waiting times. There are numerous Umbrella Companies in Belarus and each has its own specialties, services, and payment structures. Choosing the right one is crucial, but it can be difficult when you’re facing a bunch of unfamiliar options.

We’ve developed an extensive database of these companies. We can guide you through your options and help connect you with the best company for you and the contractor.

Get in touch: If you want straightforward, honest advice on recruitment in Belarus, we’re easy to contact. Call, e-mail, or chat with us online - for free.

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Work Permits & Payroll - Frequently Asked Questions

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What documentation is required for a Belarus work permit?

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What is the work permit process in Belarus?

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Can you transfer from a Business Visa to a Work Permit in Belarus?

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Can we organise Business Visas in Belarus?

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How long does it take to process a Business Visa in Belarus?

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How much does a Work Permit cost in Belarus?

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Can nationals of certain countries enter Belarus without a Business Visa (ex. on an entry visa or visa waiver)?

 

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What is the monthly cost to run a local payroll in Belarus?

 

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How does payroll work in Belarus?

 

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Contractor Payroll in Belarus

Positioning a candidate internationally means navigating unfamiliar tax and payroll systems. Not only does this generally mean more work for you, but even small missteps can have serious financial or even legal consequences.

If you want to successfully place a contractor, you should first familiarize yourself with the contractor payroll process in Belarus, as well as how you can make the situation simpler.

Contractor Payroll in Belarus

Payroll options in Belarus

There are several different options for payroll in Belarus:

  • The client can provide payroll for the contractor, but not all clients offer this for temporary workers.  
  • The contractor can do it on their own, but this creates serious risk for the end client and possibly your agency, as well. Like most people, many contractors do not specialise in Belarus’s tax system, nor do they always have the time or means to pore over complex tax returns.
  • Your contractor can use a local payroll company.

The third option is the simplest and quickest. An even simpler and quicker option is to use an Umbrella Company, as they offer the same services as a local payroll provider in addition to other services that simplify international assignments (such as Work Permit sponsorship).

Check out our FAQ for specific quotes on payroll providers and Umbrella Companies. 

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Belarus Contractor Payroll Services

When trying to place candidates for international assignments, there are numerous administrative barriers and time-consuming hold-ups.

You cut through many of these concerns by using an Umbrella Company, or “contractor management company.” These companies sponsor contractors for Work Permits, assume legal responsibility for them, and provide payroll and tax services. They are essentially an intermediary that manages all employment and administrative tasks for contractors.

Work Permits in Belarus

Your candidate will need a sponsored Work Permit, and they’ll often need it quickly. Since Umbrella Companies operate as the “employer,” they can sponsor Work Permits as if the contractor were a full-time employee.

They can also organise Business Visas for candidates, helping them get on-site faster. Then, they can transition the contractor onto the appropriate Work Permit, eliminating financial or legal risk for your end client.

Taxation in Belarus

Umbrella Companies can provide specialist advice on taxes in Belarus, ensuring that contractors comply with all local regulations. Their services guarantee local compliance and reduce the legal risk for your client and your agency.

Additionally, their specialisation helps maximise contractors’ earnings, making the assignment more attractive for your candidates.

Get started with an Umbrella Company in Belarus

Different Umbrella Companies offer different services and charge different fees, so you’ll need to find the right one for your assignment.

Luckily, we’ve done all the research for you. We have a large database of Umbrella Companies and have worked extensively with our partners. Let us know your circumstance and we can match your candidate with the right company.

We do this for free, and we do it quickly. Call or chat with us, or simply send us your details. 

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Belarusian Contractor Management Companies

Despite the financial crunch, the IT recruitment market in Belarus has remained resilient. In order to attract expert contractors, recruitment companies are offering slightly higher rates. Recruitment companies are constantly seeking ways to offer higher value contracts without any additional cost to them. With the considerable contractor management complications in Belarus, many contractors are reluctant to take a contract in the country. Add complex international tax rules to the stress of a new contract and contractors need some incentive in order to take a contract.

We provide contractors and agencies a solution to complicated contract management. One of our specialities is contractor management services in Belarus. We start by consulting with a contractor about their situation and needs. We then match them with the right Belarusian contractor management companies. We find umbrella companies that take the burden of fiscal and regulatory compliance issues off the contractor. The end result is the contractor being able to focus on the client, which also benefits the recruitment company. A happy client is always the ultimate goal. We are not affiliated with any recruitment companies, umbrella companies or clients, allowing us to provide unbiased, expert advice on the best umbrella companies in Belarus.

Belarusian Contractor Management Companies

Contractor Management Services in Belarus

In addition to typical administration tasks, Belarus contractor management companies even sponsor work permits. Without an umbrella company, the contractor would be responsible for handling recruitment agency invoicing, social security levies, tax deductions and other fees. The company even provides documentation such as tax certificates and payslips for record keeping. Ultimately, taxes are minimised due to the company's tax experts. Should tax withholding become a problem, the contractor management company will invoice the client directly and pay a commission to the recruiter. As a contractor, the only thing you are responsible for is sending in a timesheet and an expense report. As soon as the agency releases funds to the contractor management company, the contractor receives their portion. Fast turn around of cash keeps both recruiters and contractors happy.

Umbrella Company Benefits for Recruitment Agencies

We have in-depth knowledge of the best umbrella companies and contractor management in Belarus. We focus on the needs of the contractor, learning about their personal goals and circumstances. The better we understand the contractor, the better matches we can find for them. Our experts save contractors valuable research time so they can focus on other preparations. We provide our service completely free to the contractor. Our pay comes from a commission from the contractor's umbrella company in Belarus of choice; however, the contractor always makes the final choice. Our goal is to make the contractor comfortable and reduce overall contract stress.

Recruitment agencies exist to recruit the right contractors for available contracts, while providing clients with multiple options for their contracts. Once a client has made a decision, we work with the contractor to provide advice. In some circumstances should an agency request it, we will help immediately before a decision is made should a leading candidate have reservations due to the complex administration when contracting in Belarus.

The recruitment company pays nothing when we work with their contractors. Our advice is extremely valuable to contractors, especially the time saving aspect. It also adds value to the services recruitment companies offer. Both parties benefit and neither pay anything.

While the IT sector is booming, we offer advice on umbrella companies in many high demand industries such as telecommunications, engineering, oil and gas and finance. Contractors and recruiters can rely on our second to none expert knowledge of contractor management companies in Belarus.

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Q&A For Recruiters Placing Contractors In Belarus

Overview

 

We have the most recent costs listed here. Be aware that costs can vary according to the nationality of applicant and factors such as whether they have any dependents. They are largely comprised of government fees, which are also liable to change. It is best to contact us and get you an up to date and accurate cost on Belarus work permits for your particular contractors.

Can we provide business visas in Belarus?

Find out here (the short answer is yes)! The long answer is that it depends on the nationality of the contractor, what they will be doing, and what happens after the business visa runs out. e.g. will you be planning to finish the assignment, extend the business visa, or transfer to a work permit?

Can an individual transfer from a Belarus Business Visa to a Belarus work permit whilst still in country? If they have to leave, do they have to go back to their country of origin or just clear the border?

See the answer here. Note we’ll need to check your case with our local partner to be sure. It can be influenced by the individual’s country of origin and the nature of work they will perform. Generally, if you aren’t able to transfer in country, you need to return to your country of origin.

Can we provide local payroll in Belarus?

Yes, our local partner can run a full local payroll. This includes receiving funds from another local company or a foreign entity, deducting local taxes & social costs, reporting same to the relevant government department and supplying payslips. They can make payment within 24 hours of receiving cleared funds. Go here for further details of how payroll works in Belarus.

What level of local payroll is required when contracting in Belarus?

This depends on what job title and visa status the contractor holds. We ensure that the level of salary is sufficient to meet all regulatory requirements. We have listed the minimum salary for a candidate to get sponsored for a work permit.

What are the tax and social security costs in Belarus?

You can have a look at this page.

What is the total onboarding cost for outsourced employment in Belarus?

Unfortunately, we aren’t able to publish figures online because the costs vary according to the circumstances. You can see the management fees here, but there may be other costs like Employers Social Security, Payroll Tax or Withholding Tax. We have a number of local partners who can provide employment outsourcing in Belarus, so you’re assured to get the most competitive price. If you’d like a quote please contact us.

Are there additional taxes that apply in Belarus such as Value Added Tax (VAT), Goods and Services Tax (GST) or Withholding Tax (WHT)?

This can be influenced by which country your company is incorporated in, as well as the tax laws of Belarus. Sometimes the nature of the work or services provided can also influence whether with-holding tax applies. If you can share some details with us, we can confirm with our local experts.

Are there any foreign nationalities which are problematic when getting visas and permits in Belarus?

There are some nationalities who receive extra scrutiny in Belarus, meaning their applications will take longer and require additional documentation or checks. This is often due to political reasons and can change accordingly. It’s not prudent to say that any nationalities are “out of favour.” Our partners in Belarus haven’t recently experienced problems with citizens of the EU, USA, Canada or Australia. For all other nationalities, it’s best to check the current climate.

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Letting your Contractors use their UK Ltd Company in Belarus

This explains the implications for your agency and company if your contractors in Belarus are using their personal Ltd Company. It assumes that you’re dealing with a UK Contractor who has a personal UK Ltd Company which they want to use. Many of the issues are the same for personal service companies registered in other countries (except Belarus).

Overview:

 

What are the agencies' responsibilities?

Your contract with your client will probably mean your agency bears responsibility to ensure that the contractor is legally working in Belarus (i.e. that they are compliant with all relevant local employment, taxation and immigration requirements). The client will hold your agency accountable if this isn’t the case. This could mean you just lose their business or (in the worst case) they may commence action to recover fines or penalties which they incur if the contractor isn’t compliant.

How do you alleviate the risk?

If you are a UK recruitment agency, you will already be familiar with the basic steps you take when placing a new contractor. You need to get copies of their company incorporation certificate and VAT registration certificate. You should also get proof of individual’s identity (such as scanned passport or driver’s license) and potentially their National Insurance number. This ensures you have verified their identity and company registration. Not only is this common sense, it’s also one of the requirements of money laundering legislation.

For foreign assignments, it’s recommended to take a couple of further steps by checking that the Ltd company has been registered for tax and VAT / sales tax in Belarus and also that the contractor has registered with the local taxation system for tax and social security. In some circumstances, the contractor may be able to continue paying social contributions in the UK by supplying a form to the tax authorities in Belarus.

Obviously it may take time for the contractor to complete these registrations but, if you pay their UK Ltd company without confirming they are registered for Belarus tax, it exposes your agency and client.

What can go wrong?

It’s unlikely that the tax or employment authorities in Belarus will investigate your agency directly, but your client is open to inspection by their internal compliance officers, external audits which they may undertake, as well as those direct with the local authorities. Unfortunately, UK Ltd companies get a bit of extra scrutiny at home (and with many foreign jurisdictions) because of some well-publicised cases of abuse. Don’t forget your contractor will be subject to immigration scrutiny each time they cross the border.

Lastly, the UK HMRC may rule the contractor is still liable to UK tax and national insurance. This raises the possibility of IR35 and its counterpart in Belarus.

What are the potential risks to your agency?

The most common danger is damaging the relationship with your client and contractor, although the risk to your agency’s reputation shouldn’t be understated. If the client is investigated or fined because the contractor was on site illegally or wasn’t tax registered, then there may also be significant financial penalties for the client which are passed onto the agency through the indemnity clauses in your contract. You should pass these same indemnity clauses on to your contractor’s limited company – but their personal liability is somewhat shielded by the limited company setup.

What is the risk to the client?

The client has to ensure that any workers on its premises have the legal right to work in Belarus and that any employees or contractors that it uses comply with local tax regulations. If your contractor is found to be liable for local tax but hasn’t registered or paid it, then the authorities may seek to recover funds through the client.

In the worst case scenario, the authorities may rule that your contractor was effectively an employee of the client and the client will be liable for income tax deductions and employers’ social contributions. If the contractor is stopped at the border and doesn’t have the right work permission, they will be deported or refused entry. This poses an immediate problem to the client if their work contribution cannot be easily replaced.

However, if they’re caught on site without a work permit, the employer can be hit with a range of penalties including substantial fines. It may also limit their ability to employ foreign nationals in the future.

What is the risk to the contractor?

If your contractor doesn’t have the right immigration permission, they may be refused entry or deported. If they aren’t paying tax or contributing to national insurance or social security in Belarus, there is potential for fines and worse if the avoidance is ruled deliberate. VAT or sales tax is another liability which they may neglect. If they are collecting tax but not paying it to the authorities the penalties are very serious indeed.

What else can you do?

If the contractor can show full compliance with their UK Ltd company (i.e. they are registered with all the relevant authorities in Belarus before the contract is signed), then you may feel comfortable enough to proceed. If you want to be fully assured that everything is above board, then utilise a specialist contractor management company who run a local payroll in Belarus. This doesn’t stop your contractor from maximising their net income, but it does ensure that they are registered for (and paying) all local taxes and social contributions. The best umbrella companies can also arrange sponsorship for contractors, if necessary, so they are legally entitled to work in Belarus.

Talk to us for more advice

If you would like more advice on placing your contractor into Belarus, please talk to us. We can get you the information you need and help you find the most appropriate solution. We’re partners with a multitude of Belarus contractor management companies, and we’ll check with them to ensure you receive accurate information. We also have a detailed knowledge of their offerings, and we can find you a company which will payroll your contractor legally. They will also supply the supporting documentation to reassure your client that the contractor is properly registered and compliant. Our advice is completely free, and there is no obligation.

Get in touch with us today and see what we can do for you!

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