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New Tax Awaits Belarusians: Who Should Pay It And How62.08.2022, 12:43 14,518 The regime is looking for new ways to make money.From January 1, 2023, a professional income tax for the self-employed will be introduced in Belarus. Read the material by Myfin.by to find out who will have to pay this tax, and how.What's the tax?The Professional Income Tax for the Self-Employed is a new tax for those who are not engaged in entrepreneurial activities but are engaged in other income-generating activities. We also recall that from January 2022, most individual entrepreneurs cannot apply the simplified taxation system (STS). As an alternative, for those who used to pay under the simplified tax system as an individual entrepreneur, the tax on professional income has been created. As the authorities explain, the key feature of this tax is that it will include mandatory insurance contributions to the budget of the state non-budgetary social protection fund of the country, and thereby form the future pension rights of professional income tax payers.Who will pay the tax?The self-employed can be divided into three categories: payers who pay a fee for agro-ecotourism, artisans, and citizens who pay a single tax. Each of them has the right to have a different (main) place of work. In this case, as before, the citizen will be withheld income tax. If the payer plans to operate as self-employed, then they will need to choose the appropriate tax regime.How to pay it?From January 1, 2023, information on professional income tax will have to be provided in the application of the Ministry of Taxes and Duties “Tax on professional income”. At present, the application is under development. However, the MTC assures that the application is already in a high degree of readiness, and its trial operation is underway. The payer will need to register, and all interaction with the tax service and the fulfillment of tax obligations will take place within the mobile application.The tax will be calculated based on the income received, the amount of which will be indicated by the payer themselves. No minimum amounts will be set. “We proceed from the principle of good faith of the taxpayer. But payers should understand that the tax service is primarily a fiscal body, and there will still be control over this category of payers,” the Ministry of Taxes and Duties noted.
