The tax on professional income will become mandatory for artisans and agro-ecotourism entities from July 1

Since 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 the performance of 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. The 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 who 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 referred to as the Fund bodies) at their place of residence.

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

The exception applies to individuals in respect of whom local executive and administrative bodies make a decision on the payment of a fee for craft activities and/or activities for the provision of services in the field of agro-ecotourism. Such individuals, after July 1, 2023, are entitled to continue paying the fee for craft activities and/or the fee for activities for the provision of services in the field of agro-ecotourism (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 or lawyers, and who are not recognized as payers of professional income tax (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 by self-employed individuals (including those engaged in craft activities and/or activities for the provision of services in the field of agro-ecotourism) registered as payers with the Fund's bodies, and their registration as payers of professional income tax, you should contact the territorial bodies of the Fund to be deregistered as a self-employed individual.

Vitebsk Regional Department

of the Social Protection Fund of the Population.