Non-profit organizations (NPOs)
The main purpose of non-profit organizations is to obtain stable financing for guaranteed and continuous support of social goals, without generating profit and without distributing any received profit among participants. Entrepreneurial activity and income generation are permitted under certain conditions.
The activities of NPOs are oriented toward solving social problems and supporting the development of civil society in the Republic of Belarus.
The legal basis is provided by the Civil Code of the Republic of Belarus (No. 218-З of December 7, 1998, revised January 5, 2021), Chapter 5, and the Special Part of the Tax Code of the Republic of Belarus (No. 71-З of December 29, 2009, revised December 29, 2020).
Financial Support
Social support for NPOs in Belarus is still at an early stage of development. Available support typically includes training and mentoring during the implementation of various projects, as well as financial assistance in the case of winning contests. Financial support in the form of crowdfunding is also available.
Reducing factors are applied to payments for rented premises by individual entrepreneurs and organizations when persons with disabilities constitute 50% or more of the employees working in the rented space. Compliance with this criterion is confirmed by the lessee at the conclusion of the leasing agreement and may be verified by the leaseholder during its validity period.
Measures are also in place to support the adaptation of persons with disabilities to work activities, aimed at the acquisition and improvement of professional knowledge, skills, and abilities. Under this arrangement, a non-profit organization provides a workplace, the employee performs tasks set by the employer, and the state assumes all expenses related to maintaining that workplace.
Tax Relief
With regard to profit tax, goods, works, services, property rights, and monetary funds received free of charge by NPOs are not taxable objects, provided that these resources are used for their intended purpose. In cases where the intended purpose has not been defined by the transferor, they must be used to fulfil the tasks defined by the charters and/or constituent agreements of the organizations, and other conditions specified by law must be met.
Discounts on Social Security Contributions
Organizations in which persons with disabilities and retirees together constitute at least 50% of the average number of employees, and whose property is fully owned by such persons, as well as children’s villages and towns, pay insurance contributions to Belgosstrakh (the State Insurance Company) at 50% of the standard insurance rate, amounting to a total rate of 0.6%.
With regard to contributions to the Social Security Fund, employers are released from paying obligatory insurance payments for social security retirement payouts on behalf of persons with disabilities of Groups I and II, paying only 6% instead of the standard 34%. Self-employed individuals with disabilities of Groups I and II may choose whether or not to pay fees to the Social Security Fund. Working individuals with disabilities are entitled to an increased standard deduction for income tax purposes.
Public Procurement
Preferences are available for socially oriented NPOs in the area of public procurement.
Educational, Informational and Other Support
No specific educational, informational, or other additional support measures are currently in place beyond the general framework.
