27 August 2026

On tax incentives effective January 1, 2027, for trade, public catering, and consumer services in rural areas and small urban settlements

From January 1, 2027, in accordance with Decree of the President of the Republic of Belarus No. 277 of August 20, 2026, “On the Development of Trade, Public Catering, and Consumer Services in Rural Areas and Small Urban Settlements” (hereinafter referred to as Decree No. 277), special rules for conducting business will come into force for legal entities, including micro-organisations, and individual entrepreneurs (hereinafter referred to as IEs) operating in rural areas and small urban settlements.

With regard to taxation, Decree No. 277 provides for a reduction in the tax burden on profits and income of IEs until January 1, 2029.

Thus, profits from the sale of goods, works, and services derived from activities in rural areas and small urban settlements will be taxed at a rate reduced by 50 percent from the rate established in Paragraph 1 of Article 184 of the Tax Code of the Republic of Belarus (hereinafter referred to as the Tax Code);

Income received by IEs from activities in rural areas and small urban settlements will be subject to personal income tax at a rate reduced by 50 percent from the rate established in Paragraph 3 of Article 214 of the Tax Code.

In addition, Decree No. 277 sets out the conditions for applying exemptions from real estate tax, land tax, and rent payments for land plots in state ownership.

The list of populated localities and areas outside populated localities classified as rural areas and small urban settlements will be determined by regional Councils of Deputies.

Decree No. 277 is available on the official website pravo.by.