Lukashenka Exempted Rural Business from Tax

Individual entrepreneurs, operating in the medium and small towns, as well as in rural areas, are now provided with unprecedented tax benefits. They are fixed by the decree №6 “On stimulation of entrepreneurial activities in the medium and small towns and rural areas,” signed by President of Belarus Aliaksandr Lukashenka on May 7.

In particular, commercial organizations and individual entrepreneurs, engaged in the production of goods (works and services) in rural areas, are exempted from income tax, property tax, registration fee for the issuance of special permit or licenses for certain activities within seven calendar years from the date of state registration.

In addition, within a specified period, businesses are not required to sell part of their FX earnings and to make mandatory contributions to innovation funds. They are also not required to buy raw materials, components and materials for their own production on the Belarusian Universal Commodity Exchange.

The same tax benefits are granted by presidential decree to the separate divisions of the Belarusian commercial organizations that are engaged in the production of goods (works and services) in the medium and small towns, or rural areas and have a separate balance sheet.

Decree №6 also provides for the alienation of state-owned capital structures (buildings, constructions), suspended pending capital structures, unfinished non-pending capital structures without selling the right to conclude the land lease contract, if such land is given to the buyer of the property on lease. In this case, the buyer may purchase this plot of land in rural areas without holding an auction and payment for the right to sign the lease.

If desired, the buyer may also get installment payment of property which he acquires for the organization of his own production for up to five years from the date of the contract of sale.

In the case of organizations and individual entrepreneurs who provide transport services, the provisions of the decree can only be applied given the points of departure (loading) or destination (discharge) are located in the middle or small towns, as well as in rural areas.

In addition, the decree removes import duties and VAT for goods imported to Belarus as a contribution to the authorized capital of commercial organizations that are registered in rural areas. The duration of available benefits is also increased for these types of goods - from three to five years.

The Administration of the President notes that a new decree is designed to create more favorable conditions for private business development in the regions, to stimulate economic activity of citizens, which ultimately will increase the export potential of the country. According to legislators, the document will also enhance the investment attractiveness of Belarus, the development of import-substituting industries, create jobs and raise living standards of people in the regions.

Telegraf.by

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