On April 23, 2024, Resolution of the Council of Ministers dated April 19, 2024 No. 299 “On application of special restrictive measure” has been published.
The Resolution establishes the following rules under dividends payment in favor of foreign shareholders:
1. Restriction on payment of distributed profits/dividends to shareholders from so-called “unfriendly” countries: the USA, Great Britain, members of the European Union, Switzerland, Norway, Iceland, Liechtenstein, Albania, North Macedonia, Montenegro, Canada, Australia, and New Zealand.
NOTE: The restriction applies if amount of dividends paid during a calendar year exceeds 80 thousand basic units or the equivalent of this amount in foreign currency. As of today, this amount is equal to 3,2 million Belarusian rubles or about 980 thousand USD.
2. Restriction on payment of dividends does not apply if company receives permit to pay dividends from the regional executive committees (Minsk City Executive Committee).
The procedure for obtaining permit and application requirements are established by the Resolution. The term is 30 calendar days since documents submission.
To obtain a permit, one shall meet criteria, including: the ratio of amount of payment to the volume of foreign direct investment, number of staff, absence of losses, delays in salaries payment, other mandatory payments, as well as requirements to amount of wages.
3. In case of permit issue refusal, dividends payment is carried out by transferring funds to a bank account in a Belarusian bank with a special operation regime.
On operation of special bank accounts – please refer to our overview.
4. Notifying regional executive committee and the Minsk City Executive Committee is introduced in case of dividends payment. The notice is submited in the prescribed form within 10 calendar days from the date of payment.
The Resolution comes into force after its official publishing and is valid until December 31, 2025.
If you have any additional questions, please contact us.
