In the Vitebsk region, the unified tax rates for individual entrepreneurs and individuals have been set at the minimum level
The transition period is valid until December 2020. As explained by Tatyana Lipskaya, Deputy Head of the Regional Tax Inspectorate, this norm is provided for by the Law of the Republic of Belarus of December 30, 2018 No. 159-Z, which introduced amendments and additions to the Tax Code.
Why the transition period is needed
The fact is that from January 1, 2019, the Tax Code (TC RB) established rates of single tax for individual entrepreneurs and other individuals (Appendix 24 to the TC RB) and income tax for individuals in fixed amounts (Appendix 2 to the TC RB), whereas previously these issues were within the competence of the Regional Council of Deputies. At the same time, Belarus has a moratorium on introducing new taxes and increasing rates for existing ones. To comply with the moratorium conditions, a transition period has been introduced.
How to pay
Until December 2020, these categories of taxpayers apply the minimum single tax rates for their type of activity or income tax in fixed amounts. That is, two rates are taken – established by the regional council decision as of December 2018 and determined for such type of activity by Appendix 24 of the TC RB, the lower one is chosen, at which the tax is paid.
For example, a resident of Vitebsk receives income from renting out housing and pays income tax in fixed amounts monthly. For this type of activity, the TC RB has set a rate of 30 rubles, and the regional council set 27 rubles (as of December 2018). In other words, for the period until December 2020, such a citizen pays tax at a rate of 27 rubles.
Who it concerns
As of October 1, 2019, nearly 13,000 taxpayers in the Vitebsk region pay a single tax as individual entrepreneurs and other individuals. Among them are about 8.3 thousand entrepreneurs and 4.5 thousand self-employed citizens, i.e., those engaged in activities that do not require registration as individual entrepreneurs. Notably, their number has grown most dynamically over the past year, increasing by almost 23% compared to October 2018. This trend is characteristic of the vast majority of districts: in Shumilino, the number of self-employed has increased 2.3 times, in Liozno – by 72%, in Dokshitsy – by 70%, in Senno – by 62%, in Sharkovshchina – by 39%.
In addition, to further stimulate business development in rural areas, the regional council has established a reducing coefficient of 0.5 to the single tax rates for individual entrepreneurs residing and working in the region (except for Vitebsk, Polotsk, Novopolotsk, Orsha) for 8 types of activities, including the production of clothing and footwear to order, services for growing agricultural products, grain crushing, livestock grazing, creation of ready-made textile products, handmade carpets (excluding clothing) by customer order.