On 2 February 2024, Belarus issued Presidential Decree No. 42, dated 2 February 2024, in the Official Gazette. The decree introduces tax incentives for entrepreneurs and businesses in rural areas and small towns. This decree offers a 50% reduction in the profit tax rate in accordance with paragraph 1 of Article 184 of the Tax Code for qualifying profits. Under the recent amendment, the standard profit tax rate stands at 20%. The rate increases to 25% if the total tax base exceeds BYN 25 million annually. As per the tax benefits, the rate will be reduced to 10% or 12.5%.
Following recent amendments, the standard tax rate, as outlined in paragraph 3 of Article 214 of the tax code for individual entrepreneurs, is 20%. If the total income surpasses BYN 500,000 annually, the tax rate increases to 30%. As per the tax benefits, the rate will be reduced to 10% or 15%. Additionally, taxpayers will get exemptions on real estate taxes, land taxes, and state-owned land plot rents.
Incentives for rural areas apply to entrepreneurs and legal organizations, while small town tax incentives are only for entrepreneurs and micro-enterprises. To qualify for the incentives, individual entrepreneurs and legal entities must maintain separate accounting records.
These incentives are accessible from 1 January 2024 to 31 December 2028.
