Because freelancers are not our employees and we don't pay taxes on payouts, they must declare any income received via Solar Staff by themselves (as per Article 222 of the Tax Code of the Republic of Belarus).
To carry on tax accounting in the Republic of Belarus for your Solar Staff income, you need to:
Be a tax resident
Have a tax ID number
Comply with the tax obligations
Tax residence
Belarus citizens and residents are subject to Belarusian income tax on their worldwide income. For non-residents, only the income derived from sources in Belarus is taxable.
Individuals who are physically present in Belarus for a period of more than 183 days in a calendar year are considered Belarusian tax residents.
A “physical stay” includes both the actual length of the period during which an individual stays in Belarus, as well as any other period of an individual’s absence from Belarus for business trips, holidays or medical treatment abroad.
Individuals who were physically present in Belarus for a period less than 183 days in a calendar year are qualified as non-residents for tax purposes.
If in the calendar year for which their tax residence is determined an individual is not a tax resident of any state, including the Republic of Belarus, for more than 183°days, then such an individual is recognized as a tax resident of the Republic of Belarus, provided in this calendar year they have the citizenship of the Republic of Belarus or a residence permit in the Republic of Belarus.
Tax ID number
In Belarus, a unique tax identification number (TIN) is assigned to each taxpayer when they register with the tax authority to be used for reporting and paying taxes, fees, duties, and so on. The procedure and conditions for assigning, implementing, and changing the ID number and rendering it invalid was approved by Resolution No. 96 of the Ministry of Taxes and Duties dated December 31, 2010. TIN consists of 9 characters. There are 2 types of TIN:
An individual's TIN: Assigned once for an indefinite period, remaining the same upon a change of the place of residence.
An individual entrepreneur's / legal entity's TIN: Assigned when setting up as a business entity and voided upon the dissolution of the IE / legal entity.
Republic of Belarus: Freelancer tax statuses
Tax obligations in Belarus depend on the freelancer's status and/or fulfillment of certain conditions. Belarus has 3 tax statuses for Solar Staff users to choose from:
IMPORTANT! Solar Staff does not have the option to choose a tax status for freelancers based in Belarus, but you can fill in your tax ID (SSN) in your account.
Read on for more details.
Individual
Individuals are taxed at a rate of 13%. This is a status for freelancers who receive income from activities other than employment or entrepreneurial activity (otherwise, earnings are taxed at 26%).
According to Article 1 of the Civil Code of the Republic of Belarus, entrepreneurial activity shall constitute independent activity of legal entities and individuals carried out on their own behalf, at their own risk, and for which they are liable with their own property, such activity being aimed at systematically receiving profit from works or services, provided such works or services are intended for sale to other persons as opposed to own consumption. According to tax service clarifications, entrepreneurial activity is understood to mean income from 2 or more sources (income received through Solar Staff constitutes one source). Therefore:
In cases where income comes from one source during the reporting year (regardless of the number of inbound transactions), it is possible to carry on reporting in the status of an individual, even for individual entrepreneurs.
If during the reporting year funds come from 2 or more sources, reporting must be carried on in the status of an individual entrepreneur.
If you are eligible for a deduction under Articles 209–212 of the Tax Code of the Republic of Belarus, you will be able to reduce the tax, but you are still required to declare the income.
To report earnings, you need to fill out (manually or using software) and file (online or on paper) to the tax office an income tax return/calculation using the form. The filing deadline is March 31 of the year following the reporting one. Learn more:
Information on income received via Solar Staff needs to be provided in section 2, item 3:
Payment of tax. Based on the return, the tax authority notifies the taxpayer (by April 30) of the tax, payable no later than 15 calendar days from the day the notice is received. The notice is considered received on the day of its signed-for delivery, or following 10 calendar days since it's sent by snail mail or online via the taxpayer account.
According to sub-clause 22 of Article 208 of the Tax Code of the Republic of Belarus, amounts not exceeding BYN 7,521 for 2021 / BYN 8,078 for 2022 / BYN 9,338 for 2023 / BYN 10,431 for 2024 are eligible for tax exemption if they're received from an individual under a non-entrepreneurial agreement, namely as a gift or as free-of-charge real estate under a rental agreement. Under the applicable legal rules and Clause 6 of Article 198 of the Tax Code of the Republic of Belarus, payments received via Solar Staff are not eligible for such exemption. Article 208 of the Tax Code of the Republic of Belarus sets out the full list of income types that are exempt from personal income tax, and income received via Solar Staff does not fit any of those. In other words, these "benefits" are not applicable to any income received via Solar Staff, and you do have to pay tax on it.
Penalties. You can view up-to-date information on the consequences of violating deadlines and payment terms for 2022 on the website of the Belarusian tax authority.
For this status, social and pension contributions are voluntary.
The activities listed in Article 337 of the Tax Code of the Republic of Belarus make individuals eligible for the single tax system (Chapter 33 of the Tax Code of the Republic of Belarus, also available for individual entrepreneurs). The single tax is figured by the tax authority based on the notification from the individual and/or on the tax base and tax rates specified in the return. The tax base for the calculation is determined on the basis of the activity type, and the amount of tax payable – in accordance with Appendix 24 to the Tax Code of the Republic of Belarus. The deadline for paying the single tax (Article 343 of the Tax Code of the Republic of Belarus) for individuals: no later than the day preceding the day they commence the activity, or no later than the day following the day the notice is delivered. The benefits afforded under the single tax regime are listed in Article 340 of the Tax Code of the Republic of Belarus. The reporting is done by filling out the form in the taxpayer's account, either on paper or using software. Sample form (filled out).
Self-employed subject to professional income tax
The self-employed subject to professional income tax (introduced on January 1, 2023 in Chapter 40 the Tax Code of the Republic of Belarus) are taxed at the following rates:
10% (4% for pensioners) on income received from:
Individuals, foreign individual entrepreneurs / organizations (any amount)
Belarus-based individual entrepreneurs and organizations (up to BYN 60,000), applicable to income received via Solar Staff (in accordance with the clarifications)
20% (8% for pensioners) on income received from Belarus-based individual entrepreneurs and organizations (in excess of BYN 60,000).
Bear in mind that the self-employment tax (= professional income tax) is only applicable to a limited list of activities. Those who opt for this regime need to use the respective app (Professional Income Tax, Профдоход) to register and make use of it.
The tax authority calculates the tax amount monthly, no later than the 10th of the month succeeding the elapsed calendar month. The tax is to be paid no later than the 22nd of the month following the reporting one. For newly registered self-employed taxpayers, there is an exemption from tax on their first BYN 2,000 (learn more).
The self-employed subject to professional income tax don't need to report anything. All they do is generate a receipt in the Professional Income Tax app upon receiving income to a card (learn more).
As for income determination, activities of individuals who are subject to professional income tax are is not classified as entrepreneurial activity (based on Article 7 of Law No. 230-Z On Amendments to Tax Legislation dated December 30, 2022).
Useful links:
Professional Income Tax: Web version, App Store, Google Play
Individual entrepreneur
Individual entrepreneurs (IEs) need to undergo a special registration procedure (learn more). IEs can choose between the following tax regimes:
IEs subject to general taxation: The income tax is payable at the rate of 20% on the difference between income and expenses (provided the latter are documented, otherwise – at 20% on income). This status carries the obligation to figure and pay VAT, but only if the revenue from the sale of goods (works, services) since the start of the reporting year exceeds BYN 500,000 (can also be applied on a voluntary basis). For income that's received via Solar Staff and is subject to VAT, the VAT rate is 20%. The reporting is done by filling out the form in the taxpayer's account, either on paper or using software. Sample form (filled out).
IEs subject to single tax: The same as individuals under the single tax regime, but with different deadlines:
IEs are to file the single tax return to the tax authority at the place of registration no later than the first day of the quarter.
IEs are to pay the single tax (as per Article 343 of the Tax Code of the Republic of Belarus) monthly, no later than the first day of the month when the activity takes place.
Should a Belarus-based freelancer register an offer agreement?
According to Decree No. 37 by the National Bank of the Republic of Belarus dated February 12, 2021, foreign currency agreements concluded between residents and non-residents are to be registered if they deal with FX transactions falling under Article 13 of the Belarusian Law "On Currency Regulation and Control" and if total liabilities under such agreements are undetermined or, as at the date of the agreement, equal or exceed the equivalent of:
2,000 base amounts for individuals
4,000 base amounts for individual entrepreneurs
The base amount in the Republic of Belarus stands at:
From January 1, 2021: BYN 29, in accordance with Decree No. 783 of the Council of Ministers of the Republic of Belarus dated December 31, 2020
From January 1, 2022: BYN 32, in accordance with Decree No. 792 of the Council of Ministers of the Republic of Belarus dated December 31, 2021.
From January 1, 2023: BYN 37, in accordance with Decree No. 967 of the Council of Ministers of the Republic of Belarus dated December 30, 2022.
From January 1, 2024: BYN 40, in accordance with Decree No. 944 of the Council of Ministers of the Republic of Belarus dated December 27, 2023.
Residents can register foreign currency agreements on the official website of the National Bank.
According to Article 7.1 of the offer agreement between Solar Staff and a Republic of Belarus freelancer:
Before January 10, 2023, the agreement amount shall not exceed BYN 57,999 for individuals and BYN 115,999 for individual entrepreneurs (or an equivalent amount calculated at the conversion rate of the National Bank of the Republic of Belarus as at the payment date).
Between January 10, 2023 / January 29, 2024, the agreement amount shall not exceed BYN 73,999 for individuals / the self-employed and BYN 147,999 for individual entrepreneurs (or an equivalent amount calculated at the conversion rate of the National Bank of the Republic of Belarus as at the payment date).
After January 29, 2024, the agreement amount shall not exceed BYN 79,999 for individuals / the self-employed and BYN 159,999 for individual entrepreneurs (or an equivalent amount calculated at the conversion rate of the National Bank of the Republic of Belarus as at the payment date).
Thus, the amount does not exceed the respective thresholds, meaning the offer agreement between a Belarus-based freelancer and Solar Staff is not subject to registration with the National Bank.
Solar Staff lets those working from Belarus re-sign the agreement – just go to the Documents section in your account and click Sign new:
After this, your accounting documents (certificates and invoices) will have a new offer acceptance date:
Additional info
To read more about Belarusian taxation, see the website of the Ministry of Taxes and Duties of the Republic of Belarus: Individuals, the Self-Employed, Individual Entrepreneurs. Reporting forms for every tax status are available here.
Intentional tax evasion involving significant amounts of money entails liability in accordance with Article 243 of the Criminal Code of the Republic of Belarus (fines, ban on holding office / engaging in activities, jail, or prison time).
Income received via Solar Staff is declared using certificates and invoices, and in accordance with the offer agreement.
If you have any questions, get in touch via the chat in your Solar Staff account or email us at [email protected].