{"id":84217,"date":"2024-05-08T11:41:23","date_gmt":"2024-05-08T08:41:23","guid":{"rendered":"https:\/\/pozirk.online\/en\/longreads\/84217\/"},"modified":"2026-03-09T20:10:49","modified_gmt":"2026-03-09T20:10:49","slug":"belarus-to-withdraw-tax-breaks-from-some-small-businesses","status":"publish","type":"longreads","link":"https:\/\/pozirk.online\/en\/longreads\/84217\/","title":{"rendered":"Belarus to withdraw tax breaks from some small businesses"},"content":{"rendered":"\n<p><em>By Ale\u015b Hudzija<\/em><\/p>\n\n\n\n<p>A law, signed by Alaksandar \u0141uka\u0161enka in late April, is expected to make more than 100,000 small businesses ineligible for tax breaks and simplified accounting.<\/p>\n\n\n\n<figure class=\"block-image block-image-normal\">\n\n    <img decoding=\"async\" width=\"1128\" height=\"752\" src=\"https:\/\/pozirk.online\/wp-content\/uploads\/2024\/05\/closed-door_1128_pixabay-com.jpg\" class=\"attachment-full size-full\" alt=\"\" srcset=\"https:\/\/pozirk.online\/wp-content\/uploads\/2024\/05\/closed-door_1128_pixabay-com.jpg 1128w, https:\/\/pozirk.online\/wp-content\/uploads\/2024\/05\/closed-door_1128_pixabay-com-354x236.jpg 354w, https:\/\/pozirk.online\/wp-content\/uploads\/2024\/05\/closed-door_1128_pixabay-com-734x490.jpg 734w, https:\/\/pozirk.online\/wp-content\/uploads\/2024\/05\/closed-door_1128_pixabay-com-178x118.jpg 178w, https:\/\/pozirk.online\/wp-content\/uploads\/2024\/05\/closed-door_1128_pixabay-com-768x512.jpg 768w\" sizes=\"(max-width: 1128px) 100vw, 1128px\" \/>\n    <figcaption>\n        \n                    <div class=\"block-image__author\">\n                                <span>(pixabay.com)<\/span>\n            <\/div>\n            <\/figcaption>\n<\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Tax incentives<\/h2>\n\n\n\n<p>Registering as an individual entrepreneur is the easiest way to start a small business because it does not require a minimum capital, an office, an accountant or hiring other employees. Individual entrepreneurs also pay lower taxes and take advantage of a simplified tax accounting system.<\/p>\n\n\n\n<p>Depending on the business activity, some individual entrepreneurs paid income tax as low as 5 percent, whereas the standard corporate income tax rate for companies is 18 percent.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Numbers<\/h2>\n\n\n\n<p>At the beginning of the year there were 252,000 individual entrepreneurs in the country. The total number decreased by 6 percent (17,000) from the 2020 level.<\/p>\n\n\n\n<p><strong>Individual entrepreneurs at the end of the year, number<\/strong>&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-flourish wp-block-embed-flourish\"><div class=\"wp-block-embed__wrapper\">\n<iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" title=\"Interactive or visual content\" src=\"https:\/\/flo.uri.sh\/visualisation\/17799046\/embed#?secret=cNwLL49cHH\" data-secret=\"cNwLL49cHH\" frameborder=\"0\" scrolling=\"no\" height=\"575\" width=\"500\"><\/iframe>\n<\/div><figcaption class=\"wp-element-caption\">Source: Bie\u0142stat<\/figcaption><\/figure>\n\n\n\n<p>The number of individual entrepreneurs is expected to plunge to approximately 140,000 after the legislation is finalized, the Belarusian economy ministry estimated earlier this year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Business activities<\/h2>\n\n\n\n<p>The government is expected to publish a new list of business activities eligible for tax breaks before July 1, Iryna Baba\u010donak, deputy director of the economy ministry\u2019s department overseeing small businesses, told <em>Belarus 1<\/em> last month.<\/p>\n\n\n\n<p>She said that retail trade, passenger transportation and some construction services had been included in the preliminary list.<\/p>\n\n\n\n<p>On January 1, most individual entrepreneurs were licensed to engage in the following business activities: trade (34.8 percent), transportation (14.6 percent), research and development (10.6 percent), construction (7.9 percent) and IT (4.5 percent).<\/p>\n\n\n\n<p><strong>Individual entrepreneurs by type of business activity on January 1, 2024<\/strong><\/p>\n\n\n\n<p>Industry, construction, trade and vehicle service, transportation, information and communication technologies, realtors, research and development, administrative and support services, other services, other activities<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-flourish wp-block-embed-flourish\"><div class=\"wp-block-embed__wrapper\">\n<iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" title=\"Interactive or visual content\" src=\"https:\/\/flo.uri.sh\/visualisation\/17799147\/embed#?secret=cnIJ3Nl4Bo\" data-secret=\"cnIJ3Nl4Bo\" frameborder=\"0\" scrolling=\"no\" height=\"575\" width=\"500\"><\/iframe>\n<\/div><figcaption class=\"wp-element-caption\">Source: Bie\u0142stat<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Economy can&#8217;t do without small businesses<\/h2>\n\n\n\n<p>Because of their flexibility and adaptability, small businesses play an important role in Belarus\u2019 overregulated economy by creating jobs for workers laid off from state-owned enterprises.<\/p>\n\n\n\n<p>Individual entrepreneurs employed about 60,000 workers on January 1.<\/p>\n\n\n\n<p>The government\u2019s move to scale down incentives is expected to generate additional tax revenue and limit the abuse of the simplified system for tax evasion.<\/p>\n\n\n\n<p>Officials may be hoping that the measure will also help address labor shortages. The labor ministry reported more than 134,000 vacancies in the market.<\/p>\n\n\n\n<p><strong>Vacancies, end of month<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-flourish wp-block-embed-flourish\"><div class=\"wp-block-embed__wrapper\">\n<iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" title=\"Interactive or visual content\" src=\"https:\/\/flo.uri.sh\/visualisation\/17799081\/embed#?secret=iifRmU1chT\" data-secret=\"iifRmU1chT\" frameborder=\"0\" scrolling=\"no\" height=\"575\" width=\"500\"><\/iframe>\n<\/div><figcaption class=\"wp-element-caption\">Source: Ministry of Labor and Social Security<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Some incentives still available<\/h2>\n\n\n\n<p>To help nascent businesses stay afloat, the government has introduced new types of business entities with simplified tax accounting, such as craftsmen and self-employed. <\/p>\n\n\n\n<p>Some businesses that are no longer eligible for tax breaks may reregister as craftsmen and self-employed, others may have to adopt a more complex and costly tax system as companies.<\/p>\n\n\n\n<div class=\"insert-block\">\n\n    <div class=\"insert-block__img\">\n        <img decoding=\"async\" width=\"354\" height=\"236\" src=\"https:\/\/pozirk.online\/wp-content\/uploads\/2024\/05\/finance_1128_freepik-com-354x236.jpg\" class=\"attachment-medium size-medium\" alt=\"\" srcset=\"https:\/\/pozirk.online\/wp-content\/uploads\/2024\/05\/finance_1128_freepik-com-354x236.jpg 354w, https:\/\/pozirk.online\/wp-content\/uploads\/2024\/05\/finance_1128_freepik-com-734x490.jpg 734w, https:\/\/pozirk.online\/wp-content\/uploads\/2024\/05\/finance_1128_freepik-com-178x118.jpg 178w, https:\/\/pozirk.online\/wp-content\/uploads\/2024\/05\/finance_1128_freepik-com-768x512.jpg 768w, https:\/\/pozirk.online\/wp-content\/uploads\/2024\/05\/finance_1128_freepik-com.jpg 1128w\" sizes=\"(max-width: 354px) 100vw, 354px\" \/>                        <label class=\"insert-block__tag--mobile\"> \u0410\u043d\u0430\u043b\u0438\u0442\u0438\u043a\u0430<\/label>\n\n                <\/div>\n    <div class=\"insert-block__text\">\n                    <label class=\"insert-block__tag\">\u0410\u043d\u0430\u043b\u0438\u0442\u0438\u043a\u0430<\/label>\n                <h3 class=\"insert-block__title\">\u0141uka\u0161enka turns to unlikely source to ease labor shortage<\/h3>\n        <div class=\"insert-block__descr\">By Ale\u015b Hudzija Alaksandar \u0141uka\u0161enka urged his government to consider job cuts in the banking system to ease skilled labor shortages in agriculture and other sectors. &quot;We are diverting a huge number of specialists from the economy to some banks. &#8230;<\/div>\n        <a class=\"insert-block__btn-block\" href=\"\/en\/longreads\/83656\">\n            <button class=\"btn\">\n                <div class='btn__text'>Read<\/div>\n            <\/button>\n        <\/a>\n    <\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>By Ale\u015b Hudzija A law, signed by Alaksandar \u0141uka\u0161enka in late April, is expected to make more than 100,000 small businesses ineligible for tax breaks and simplified accounting. Tax incentives Registering as an individual entrepreneur is the easiest way to start a small business because it does not require a minimum capital, an office, an [&hellip;]<\/p>\n","protected":false},"author":83,"featured_media":83910,"template":"","rubric":[22],"class_list":["post-84217","longreads","type-longreads","status-publish","has-post-thumbnail","hentry","rubric-theviewer"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Belarus to withdraw tax breaks from some small businesses | Pozirk<\/title>\n<meta name=\"description\" content=\"By Ale\u015b Hudzija A law, signed by Alaksandar \u0141uka\u0161enka in late April, is expected to make more than 100,000 small businesses ineligible for tax breaks and\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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