Belarus approves amendments to the Tax Code for 2023: how much individual entrepreneurs and individuals will have to pay
More details about some of the changes.
Apartment tax increased by 11%, land tax by 19%
At the end of last year, there were many discussions regarding the upcoming adjustment of the Tax Code. The Ministry of Taxes and Duties held press conferences where upcoming changes were announced. The relevant law was signed on December 30, 2022, and its text was published on the national legal portal on January 4, 2023.
As expected, the tax on the first apartment increased by 11%. As a reminder, it is calculated as follows: the total area of the apartment is multiplied by the estimated cost per m² in the locality, and then the resulting number is multiplied by a tax rate of 0.1%. For example, the estimated cost of one square meter of residential premises in an apartment building for Minsk, instead of the previous 810 rubles, will now cost 900 rubles; in the Minsk region and regional cities, it has increased from 680 to 750 rubles; in small settlements, from 450 to 500 rubles.
Since the beginning of the year, land tax rates have also increased. Residents of the country and business owners will feel its growth at a level of 19% in 2023. The tax base for land tax as of January 1, 2023, for its calculation and payment is determined by the types of functional use of land plots; in particular, the payment amount will depend on whether the land is classified as public-business zone, residential house (including gardening associations and dacha cooperatives), residential apartment, or production zones.
For example, land tax rates for the residential apartment zone have increased from 12 rubles 32 kopecks to 14 rubles 71 kopecks. For businesses, the land tax for owners of car markets, gambling establishments, shopping centers, and markets has been increased from 184 rubles 52 kopecks per hectare to 220 rubles 32 kopecks.
A fondness for cigarettes and animals will affect your wallet
The cost of keeping four-legged pets has also increased since the new year. The fee for dog owners, which animal lovers pay quarterly, has become more noticeable in 2023. For potentially dangerous dog breeds, one will now have to pay 55 rubles 50 kopecks instead of 46 rubles 50 kopecks, while for other "tailed" ones, the fee has increased from 9 rubles 30 kopecks to 11 rubles 10 kopecks.
According to forecasts, the profit tax rate has been raised from 18% to 20%. For mobile operators, for example, the increased profit tax has been extended until January 1, 2025. Previously, they paid 18% of their revenue, and for the last two years, it has been 30%. This figure has been "tied" for another 2 years.
Alcohol and cigarettes will become significantly more expensive from the new year. The reason for this is the increase in excise tax rates. Judge for yourself: if in December the rate for the first price group was 43 rubles 56 kopecks per 1000 cigarettes, and for the second - 91 rubles 36 kopecks, then the updated Tax Code provides that from January 1, 2023, excise tax rates will increase to 55 rubles 60 kopecks, from April - to 66 rubles 25 kopecks, from July - to 78 rubles 97 kopecks, and from October - to 95 rubles 59 kopecks.
Taxes for individual entrepreneurs and individuals
As planned, from January 1, 2023, a tax on professional income has been introduced for individuals. Now, self-employed citizens who have switched to the new tax system will have to pay 10% of their monthly income. It is not mandatory for everyone to switch to the professional tax, although even freelancers can become part of the new system. A list of activities that fall under the new tax has been approved by a government decree.
The unified tax for individuals working without registering as sole proprietors and having the status of "self-employed" has been significantly increased, as planned. For example, for tutors in Minsk, the rate has doubled – from 82 to 164 rubles per month, for the Minsk region and regional centers – from 76 to 152 rubles, and in small settlements – from 58 to 116 rubles. For metropolitan photographers, in 2023, they will have to pay a unified tax of 490 rubles per month instead of the previous 245 rubles; in regional centers, this ratio is 226 rubles versus 452 rubles.
A similar situation applies to sole proprietors. Since the new year, the unified tax for sole proprietors has doubled. For example, small businesses engaged in the trade of fruits and vegetables in the Belarusian capital will have to pay 708 rubles per month in 2023, while last year the unified tax rate was only 354 rubles.
Sole proprietors providing short-term rental services for housing can only operate under the unified tax payment conditions from January 1, 2023. If last year in the capital such entrepreneurs paid 413 rubles per month, and in small settlements – 173 rubles, then from the new year these amounts have increased to 620 and 269 rubles, respectively.
In addition, for sole proprietors, the possibility of applying the simplified taxation system has been abolished from 2023.
Tax changes from the new year are also provided for artisans and owners of agro-estates. And this is not only about the increase in the craft fee and the tax for providing services in the field of agro-ecotourism. Both will have to confirm their right to engage in crafts or agro-ecotourism and obtain permission for activities from local authorities in 2023.
But there is also good news!
Tax-exempt
Thanks to the adjustment of the Tax Code, the amounts that are not subject to personal income tax have increased for Belarusians. This applies to income not related to entrepreneurial activities: gifted sums of money, payments in the form of material assistance or under insurance contracts, as well as donations.
With the amendment of tax legislation for individuals, the amounts of income from gifts or real estate under a rent agreement for free, which is exempt from personal income tax, have been increased. Now, you will not have to pay tax on amounts not exceeding 9,338 Belarusian rubles. Previously, it was 8,078 rubles.
For able-bodied citizens not employed in the economy for the last 5 years, income exceeding 100 base amounts received as a gift from close relatives will be subject to a 10% tax. Please note that from January 1, 2023, the base amount increased to 37 rubles, consequently, the tax-exempt amount increased to 3.7 thousand rubles. Last year, it was 500 rubles less – 3.2 thousand rubles.
In addition, now you can receive material assistance, gifts, prizes, and funds for the payment of vouchers at your primary place of employment with an organization or individual entrepreneur without visiting the tax office, if the amount does not exceed 2,821 rubles. The tax-exempt income has increased by 381 rubles compared to last year.
However, from other institutions, you can receive similar incentives without paying personal income tax if their amount does not exceed 186 rubles (previously – 161 rubles).
The limit for insurance payments from Belarusian specialized organizations, upon receipt of which no tax will be payable, has been increased from 4178 to 4830 rubles. The amount of charitable assistance to disabled persons and orphans, not subject to income tax, has also become more substantial – 18,660 rubles instead of 16,142 rubles.
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