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 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 payers 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 payers 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 – payers 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 – the Fund bodies) at their place of residence.

In addition, citizens engaged in craft activities and providing services in the field of agro-tourism are obliged to apply the tax on professional income to such activities from July 1, 2023.

The exception is individuals for whom, regarding craft activities and (or) the provision of services in the field of agro-tourism, local executive and administrative bodies will make a decision on the payment of 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 the provision of services in the field of agro-tourism (during the period of validity of the decision of the local executive and administrative bodies).

We also inform you that individuals engaged in activities not related to entrepreneurial activities, who are not notaries, lawyers, and are not recognized as payers of tax on professional income (hereinafter referred to as self-employed individuals), are granted the right to be registered with the Fund's bodies and voluntarily pay mandatory insurance contributions for pension insurance.

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 a change in the tax regime for self-employed individuals (including those engaged in craft activities and/or providing services in the field of agro-ecotourism) registered as payers with the Fund's bodies, and their registration as payers of tax on professional income, you should contact the territorial bodies of the Fund to deregister as a self-employed individual.

Vitebsk Regional Department
of the Social Protection Fund