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10 february 2023

Professional income tax: who can opt for new tax regime

As of 1 January 2023, an additional special tax regime - professional income tax - was introduced for individuals in the Republic of Belarus. This tax regime allows individuals to pay lower taxes than provided for individual entrepreneurs.

Initially, it was announced that this regime could be applied by individuals to carry out the activities specified in the list approved by the Council of Ministers of the Republic of Belarus on 08.12.2022, № 851.

But subsequently, additional criteria extending this approach were announced (Art. 7 of the Law of the Republic of Belarus of 30.12.2022 No. 230-Z "On Amendments to the Law on Taxation")

In particular, it has been stated that an individual has the right to apply tax on professional income if the following conditions are simultaneously met

  • the individual performs activities outside the location of the client (its branch, other separate structural unit), territory or object under the control of the client
  • the individual uses the Internet to perform such work (provide such services) and deliver the results of the work (services).

The main question of clients during this time is whether I can apply this regime to specific activities not included in the list from the Decree № 851.

During this time we have received various comments from the tax authorities on this issue, some of them directly contradict each other. Therefore, our recommendation at the moment is as follows - if the individual's activity is not included in the list, it is best to get an answer from the tax authority confirming that it is possible to apply the regime.