Foreign entities with a registered permanent establishment (for tax purposes) due to their business activities in the Republic of Belarus have less than a month left to decide on the future format of their operations in the country.

Foreign entities whose permanent establishments meet the criteria specified in paragraphs 3 and 4 of Article 180 of the Tax Code — in particular, if the permanent establishment is:

 registered as a construction site, installation, or assembly facility; or

 related to performing other work and/or providing services in the territory of the Republic of Belarus for a period exceeding 180 days — continuously or cumulatively within any 12-month period —

must, no later than May 19, 2025 , either:

• open a branch as a separate subdivision of the foreign entity;

• establish a standalone legal entity;

• merge with an already registered organization in Belarus;

• or cease operations in accordance with the legal procedure.

Reminder: The option to open a branch of a foreign entity has been available since November 2024. For more details, see our publication "Introducing: the Branch of a Foreign Legal Entity". 

Important: If a foreign entity holds a compliance certificate for construction projects of complexity classes I–IV, this does not automatically grant the right to perform relevant construction work or services through a branch. In such cases, re-certification is required to confirm that the branch meets the established qualification requirements, including having the necessary specialists on staff.

Borovtsov & Salei has extensive experience in providing legal support for the operations of foreign entities and assisting in the establishment of their branches or subsidiaries in Belarus.

We are ready to assist you!