Belarus: Proposed amendments to transfer pricing control provisions

Belarus: Transfer pricing control provisions

Proposed amendments to the Belarus tax code (Law N 72-3) published in January 2021 would clarify and update some transfer pricing control provisions in Belarus from 2021 onwards.


The changes in transfer pricing would apply from the beginning of 2021 and include the following.

  • There would be a new procedure for calculating the arm’s length range that would disregard “extreme values” (interquartile range).
  • The list of information sources for conducting benchmark studies would be refined and clarified.
    • The priority given to different sources of information would be repealed. Information sources that allow for the greatest number of comparable criteria to be used would be given precedence.
    • The “internal” source of information would be clarified. Transactions of a taxpayer's counterpart with third parties would be used for analysis.
    • Data of European Economic Community (EEC) companies and, if not available, of other foreign companies would be allowed for profitability analysis if there is no data on the profitability of Belarusian companies in databases.
  • The possibility to use results of independent valuations as the arm’s length price would be expanded. Specifically, the notion of a “one-off transaction” would be introduced, and the number of permissible valuation methods in certain cases would be expanded. As before, the valuation would be applicable for determining the arm’s length prices, provided certain requirements are met.  
  • The instances when transfer pricing documentation is required would be reduced. Specifically, there would be two additional exceptions:
    • Transfer pricing documentation would not be required for controlled transactions if profits are exempt from income tax.
    • Transfer pricing documentation would not be required if the amount of an individual foreign trade transaction of a major taxpayer with a related party does not exceed 10% of the amount threshold (currently 200,000 Belarusian rubles (approximately U.S. $78,700)) and cannot be grouped on the basis of the transactions having homogeneity. The issue of whether it is necessary to prepare and provide economic justification upon a request from the tax authorities for these transactions would remain open.
  • Transactions with owners of certain international payment systems, registered in offshore zones, would be excluded from the list of controlled transactions from the beginning of 2021.

KPMG observation

The proposed amendments would clarify the application of transfer pricing rules in Belarus, bringing them closer to those adopted in neighbouring countries. At the same time, since the practice of applying transfer pricing controls in Belarus is still very limited, many issues would still require careful consideration.

For more information, contact the Global Leader of KPMG’s Global Transfer Pricing Services:

Komal Dhall | +1 212 872 3089 |

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