Tax benefits for trade, public catering, and consumer services in rural areas and small urban settlements: changes effective January 1, 2027

The Tax Inspectorate of the Lida District informs business entities that on January 1, 2027, 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 the territory of rural areas and small urban settlements" (hereinafter referred to as Decree No. 277) enters into force.

The document establishes a special procedure for carrying out activities by legal entities and individual entrepreneurs in the territory of rural areas and small urban settlements.

Key tax preferences:

• Reduced rates of corporate income tax and personal income tax:

for organizations: profit from the sale of goods (works, services) derived from activities carried out in rural areas and in 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);

for individual entrepreneurs: income received from carrying out activities in rural areas and in small urban settlements is 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.

• Exemption from real estate tax, land tax, and rent for land plots in state ownership (subject to certain conditions).

The list of populated areas and territories outside populated areas falling within the territory of rural areas and small urban settlements will be determined by regional Councils of Deputies.