In Belarus, they plan to expand the list of persons subject to the increased personal income tax on excess income. The corresponding provision is included in the draft amendments to the Tax Code for 2027.

According to the updated document, the progressive tax scale will affect foreign citizens and stateless persons who permanently reside in the Republic of Belarus (i.e., hold a residence permit). They will have to pay the increased rate of 25% on income received in the form of dividends.

How does the new scheme work?

In Belarus, the basic personal income tax rate is 13%. However, since 2024, the country has had a so‑called 'wealth tax' for individuals whose total annual income exceeds a limit set by the state.

For calculating the increased tax on dividends, a threshold of 350,000 Belarusian rubles per year has been set:

If the amount of annual dividends of a foreign citizen falls within 350,000 rubles, tax is paid at the standard rate – 13%.

If the profit from equity participation in a business exceeds this limit, then the entire excess amount must be paid to the state at a rate of one‑quarter – 25%.

Previously, this provision mainly regulated the income of Belarusian citizens. Including permanently residing foreigners and stateless persons in this list aims to equalize tax conditions and create a unified fiscal mechanism for all country residents receiving excess income from business.

Reminder: the amendments to the Tax Code are currently under consideration and, if approved by parliament and signed by the President, will come into force on January 1, 2027.