The tax on professional income will become mandatory for artisans and agro-ecotourism entities from July 1
From January 1, 2023, a special tax regime – the tax on professional income – has been introduced for individuals engaged in activities approved by the Resolution of the Council of Ministers of the Republic of Belarus dated December 8, 2022, No. 851 "On the List of Activities".
For reference. Professional income is the income of individuals from activities in which they do not have an employer and do not engage other persons under labor and (or) civil law contracts, unless otherwise established by legislative acts.
Individuals recognized as taxpayers of the tax on professional income are subject to mandatory state social security. Payment of mandatory insurance contributions for pension insurance by individuals who are taxpayers of the tax on professional income, who are not recipients of pensions, and also do not apply a tax deduction for this tax, is made by paying the tax on professional income.
We further inform you that individuals – taxpayers of the tax on professional income, during the period of receiving a pension and applying a tax deduction for the tax on professional income, have the opportunity to voluntarily pay mandatory insurance contributions, for which they need to contact the territorial bodies of the Social Protection Fund of the Population of the Ministry of Labor and Social Protection (hereinafter – Fund bodies) at their place of residence.
In addition, citizens engaged in craft activities and activities for providing services in the field of agro-ecotourism, from July 1, 2023, are obliged to apply the tax on professional income in respect of such activities.
An exception are individuals whose craft activities and (or) activities for providing services in the field of agro-ecotourism will be decided by local executive and administrative bodies to pay a fee; such individuals after July 1, 2023, have the right to continue paying the fee for carrying out craft activities and (or) the fee for carrying out activities for providing services in the field of agro-ecotourism (during the period of the decision of local executive and administrative bodies).
We further inform you that individuals engaged in activities not related to entrepreneurship, and who are not notaries, lawyers, and are not recognized as taxpayers of the tax on professional income (hereinafter – self-employed individuals) are granted the right to be registered with the Fund bodies and pay mandatory insurance contributions for pension
For reference. The full list of activities not related to entrepreneurial activities is contained in Article 1 of the Civil Code of the Republic of Belarus.
In case of changes in the tax regime of self-employed persons (including those engaged in craft activities and/or agro-ecotourism services), registered as payers with the Fund's bodies, and their registration as payers of professional income tax, it is necessary to contact the territorial bodies of the Fund to deregister as a self-employed person.
Vitebsk Regional Department
Social Protection Fund of the Population.