As a general rule, resident companies of the Hi-Tech Park are exempt from income tax, except when they perform the duties of a tax agent. However, there are transactions that you need to pay attention to in order to prevent non-payment of income tax.
How much is the income tax paid on
The amount from which the income tax is calculated is called the object of taxation income tax. This is the amount of profit from the sale of goods, works, services, property rights and non-operating income, from which non-operating expenses are deducted.
Non-operating income includes income:
- Which the company receives from its activities.
- Which are not directly related to production and sale.
Non-operating expenses include: expenses of the company, losses not directly related to production and sales that the company incurred in carrying out its activities.
When residents of a Hi-Tech Park do not pay income tax
When the resident companies of the Hi-Tech Park receive revenue (income) from the activities that they carry out precisely as residents of the Hi-Tech Park (main activity), there is no need to calculate and pay income tax.
Such activities include the types of activities of a resident of the Hi-Tech Park, which are prescribed in the business plan approved by the Supervisory Board of the Hi-Tech Park. So, these types of activities include:
- software design and development,
- production of programs as directed by the user,
- data processing activities using third-party or proprietary software, etc.
Residents of the Hi-Tech Park do not have the right to conduct activities that are not related to residence in the Park. For example, it is not possible to lease or sublet property.
But there are circumstances when residents of the Hi-Tech Park receive income not from their business partners in their core business, but from other sources.
When residents of the Hi-Tech Park pay income tax
- Sale of property
Residents of the Hi-Tech Park can make transactions for the sale of property, including real estate, which they used. Mandatory conditions for the sale of property:
- The property was used by a resident of the Hi-Tech Park;
- The property was used for at least 12 months from the date of purchase or receipt of rights to this property.
Residents of the Hi-Tech Park can earn income from the sale of such property. In this case, the income tax on the sale of used property usually needs to be paid at a generally established rate of 20%.
- Interest for the provision of funds for use
Residents of the Hi-Tech Park often place money on deposit accounts in banks at interest. These percentages are the permitted income of the residents of the Hi-Tech Park. Furthermore, income refers to income in the form of interest for the provision of funds for use, the income tax rate of 9% is applied to it.
- Dividends from sources in other States
Resident companies of the Hi-Tech Park may own companies in other countries. In this case, the income tax rate of 9% is applied when receiving dividends.
- Income of the owner in case of liquidation of the company, withdrawal from the membership
It is about income that is higher than the amount of the participant’s contribution to the authorized capital or the cost of buying a share. The income tax rate in this case is 9%.
- Profit from the sale of a share, part of a share
The owner of a Hi-Tech Park resident company has the right to sell his share or part of it in the company’s authorized capital. In this case, the company pays income tax at the rate of 9%.
- Profit from the sale of the enterprise as a property complex
It is about the profit from the sale of the enterprise as a property complex, which is used in its activities by a resident of the Hi-Tech Park. The structure of the enterprise, as a property complex, includes all types of property for its activities, in particular:
- Land plots,
- Buildings and structures,
- Construction in progress,
- Separate rooms,
- Parking spaces,
- Equipment, goods, inventory,
- Rights of claim and debts,
- Trademarks, brand name, etc.
The profit from such a sale is subject to income tax at the rate of 9%.
As a tax agent
A resident company of the Hi-Tech Park can pay dividends to its owners, Belarusian companies. In this case, the resident of the Hi-Tech Park is a tax agent and must calculate and pay income tax. The income tax rate in accordance with the generally established procedure is 12%. A resident of the Hi-Tech Park can apply reduced income tax rates:
- When the profit was distributed for the first time in 3 years — 6%.
- When the profit was distributed for the first time in 5 years — 0%.
How to keep records
Since residents of the Hi-Tech Park sometimes pay income tax, they need to keep separate records of revenue (income) and costs (expenses) for each activity or operation:
- The turnover for which is exempt from taxes.
- The turnover for which a reduced tax rate is applied.
- The turnover for which is not an object of taxation.
The procedure for separate accounting is not defined specifically for residents of the Hi-Tech Park. Separate tax accounting is conducted in a generally accepted manner.
For transactions that are exempt from income tax, you need to determine the tax base and file a tax return.
How we can be useful in determining the tax base for income tax and accounting
Our employees are experienced specialists in the field of taxation of residents of the Hi-Tech Park. We can:
- Advise you on the taxation of income tax on your income.
- Prepare accounting and tax accounting documents.
- Represent your interests in the tax authorities.
How to contact us
If you need help or additional information in this area, do not hesitate to contact us. We are here to help and support you personally.
Phone and email communication options are available for your convenience:
- +375293664477 (WhatsApp/Telegram/Viber);