Umbrella Company in Belarus
Independent contracting in Belarus isn’t always straightforward. You’ve got immigration issues, tax difficulties, and mountains of complex admin work. Even worse, missteps can cost you serious money, or even land you in legal trouble.
Before you consider taking a contract in Belarus, you should be aware of what you’re getting into – and how you can make it simpler
Difficulties of Contracting in Belarus
Generally, you need to have an employer sponsor in order to secure the appropriate work permit and work visa for Belarus.
If you’re working independently, it can be difficult to find clients willing to sponsor you. Moreover, even if your client can do this, you’ll need a new sponsor each time you decide to take on a new contract. Of course, every new sponsor will mean more paperwork.
Also, are you familiar with the intricacies of the tax system in Belarus, as well as your own country’s laws on overseas earnings? If so, good on you!
However, if you’re like the rest of us, figuring out (much less reducing) your tax liability in Belarus and your home country can seem like full-time work in itself.
How Umbrella Companies Work
Most freelance workers aren’t superheroes who successfully tackle these issues all on their own. There are companies who specialise in helping workers make the most out of their contracts.
They’re called Umbrella Companies (or, contractor management companies).
Basically, an Umbrella Company acts as your full-time employer, even though you maintain your independence as a contractor. They collect and filter payments from your clients, filtering out the necessary social security and fees. You send them your timesheets, and they send you payments.
Because they act as your “employer,’ they can sponsor you and provide a single work permit for multiple contracts in Belarus. Even better, most are experts in Belarusian and expat tax law, meaning they’ll also help you optimise your earnings in Belarus.
Although the Umbrella Company is technically your “employer,” you’re essentially freeing yourself to work even more independently. You still dictate your contracts, your hours, your schedule. The Umbrella Company simply filters out the time-consuming admin and immigration issues, allowing you to focus on your new contract.
Why Use an Umbrella Company in Belarus
Most people want to do their work, earn their money and enjoy their spare time without taking on loads of admin in a new country. That is why an umbrella company can help.
When you’re working through an Umbrella Company, you’ll essentially be outsourcing the admin and tax issues to specialists.
While the umbrella company will charge a fee, you’ll likely end up saving more money in the long run: you’ll be able to focus on your work, expertly reduce your tax liability, and comply with all laws and regulations in Belarus (which means avoiding fees, fines, or even worse penalties).
How We Can Help You
There’s a huge variety of Umbrella Companies with different specialities and advantages in Belarus. How do you find the right one for your circumstances?
We work closely with Umbrella Companies all throughout Belarus and match contractors with the right company for them. If you’ve already secured a contract in Belarus, we can help you find your best match (for free). Or, we can simply give you feedback on your situation (for free).
A Contractor’s Guide to Taxes in Belarus
One of the most consistently challenging aspects of contracting in Belarus is complying with the country’s tax system. As well as paying tax in Belarus, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge.
How do I calculate my taxable income in Belarus
If you’re working in Belarus under a permanent contract, many employers will handle your tax under the PAYE (pay-as-you-earn) system. This means that they calculate and process your taxes in Belarus for you and then send you a net wage. Your income tax, public health insurance, social security and other deductions will all be covered by this payment. This is the easiest way to handle your income tax in Belarus, but contractors may not be offered this service because of their short stay with each employer.
Anybody who can’t pay their tax in Belarus through PAYE is left with the prospect doing everything themselves.
Do you know much about Belarusian Tax Law? Does Belarus have a tax treaty with your home country? You will need to find out or find someone who can help! Income tax in Belarus can range from 9 to 13 percent.
Tax Filing in Belarus
|When Do You Need to Lodge Your Tax Return?||1 March (of the year following the income tax year)|
|Tax Filing Deadline||1 March (of the year following the income tax year)|
|Can you file it online?||No|
How to File Taxes in Belarus
Taxes can be filed on paper or via a downloadable tax filing software.
It is recommended that you consult a Russian translator and/or tax specialist as all forms, instructions and programs are in Russian.
By Electronic Declaration
Step 1: Register
Register for a username and password here(link is external).
Step 2: Obtain a Certificate
Taxpayers who wish to file taxes via electronic declaration software require a certificate. A certificate can be obtained from a registration centre(link is external).
Step 3: Install ‘КРИПТОГРАФИЧЕСКОЕ ПО’
This can be downloaded here(link is external).
Step 4: Install the Electronic Declaration Software
This can be downloaded here(link is external).
Tax payments are due on 15 May in the year following the income tax year (calendar year).
Tax Figures in Belarus
|Currency||Belarusian Ruble (BYR)|
|Tax-free Threshold in Belarus||None|
|Notes||Flat Employment Income Rates: All personal income (employment, property, interest) is taxed at a flat rate of 13%. Employment income for individuals employed by an entity registered with the High Technologies Park is taxed at 9%.|
Monthly Tax Deductions: Individuals are entitled to the following monthly tax deductions.
Tax Residency in Belarus
When do you become a tax resident in Belarus
You become a tax resident in Belarus when:
- You stay in Belarus for more than 183 days per calendar year.
Does the 183 day rule apply in Belarus
Am I taxed on my global income in Belarus
Residents are taxed on their global income. Non-residents are taxed on their Belarus-source income only.
Can you set up your own Limited Company in Belarus
|How long does it take to set up||5 days|
|How much does it cost||BYN48-68|
|Is it easy?||Starting a Business Rank: 30/190|
Using an Umbrella Company for Income Tax in Belarus
Contractors in Belarus are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. A Belarusian umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records).
The companies are experts in Belarusian taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the Belarusian tax office or tax department directly including processing your tax refund if you are eligible.
How We Can Help You with Tax in Belarus
We work with numerous umbrella companies in Belarus, many of whom are experts in tax and immigration laws. If you have any questions about tax in Belarus, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We have comprehensive knowledge of the different services they provide, and can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their Belarusian work permit.
Our advice is 100 percent free, and comes with no obligations. You will be paying taxes in Belarus but without the overhead of directly dealing with the Belarusian tax authorities. Get in touch with us today for some reliable advice on tax in Belarus!
A Contractor’s Guide to Work Permits in Belarus
Immigration is one of the primary concerns for any contractor hoping to start working in Belarus. Permanent employees will find it easy to get their Belarusian work permit because they’ll receive “sponsorship” for their entire stay from their prospective employer.
The Belarusian work permit, known more commonly as the Belarusian work visa, is dependent on this sponsorship because it confirms that you’ll be earning money during your stay in the country. Contracting in Belarus is more difficult because the work permit is tied to one employer, so you have to change it to suit each new contract. Thankfully, umbrella companies provide a convenient and effective solution to this issue.
How Can Umbrella Companies Help You Get a Work Permit in Belarus ?
As your permanent employer, umbrella companies are able to sponsor you for your Belarusian work permit provided they’re on the register of approved sponsors. Many different companies offer this service, because it makes contracting in Belarus infinitely simpler and saves you the hassle of continuous paperwork. Instead of changing your work permit every time you get a new contract, you can just work how you ordinarily would under the same permit. They protect you from the bureaucratic “rain” of legal compliance with the Belarusian immigration authorities. They can even deal with the Belarusian Embassy directly.
Through their service you may be able to use a business visa to get started quickly and then transition to a work visa in Belarus. It depends on your specific visa requirements. Be aware you may have to register for a residence permit in Belarus.
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