Decree of the President of the Republic of Belarus No. 345 of 22.09.2017 "On the Development of Trade, Public Catering and Consumer Services" has been amended by Decree No. 42 of 02.02.2024.
For individual entrepreneurs and business entities engaged in retail trade, public catering, and provision of consumer services in rural areas and small towns, the validity of certain tax benefits is renewed from January 1, 2024, to December 31, 2028.
This includes a 50% reduction in profit tax rates on the sale of goods (works, services) obtained from activities in the specified territories, and personal income tax for individuals (if the beneficiaries of the benefits are taxpayers of this tax), compared to the rates established by the Tax Code of the Republic of Belarus. Legal entities are also exempted from property tax, land tax, and rent for land plots owned by the state.
The Decree also provides for the introduction of a separate electricity tariff for trade and public catering facilities located in rural areas (not lower than the level established for the tariff group "Agricultural Consumer Production Needs").
The possibility is granted to acquire, use, or possess real estate located in rural areas for the purpose of conducting retail trade, public catering, and providing consumer services without obtaining consent from the antimonopoly authority.
Furthermore, other preferences provided for by the legislative act continue to be in effect.
In particular, legal entities whose share in the volume of retail turnover of food products within the boundaries of districts where their retail facilities are located exceeds 20 percent in the previous financial year retain the right to acquire or lease additional retail space in rural areas within these districts for retail trade or to take other actions aimed at increasing such space.
The effect of the specified norm, as well as tax benefits, applies to territories defined by the Resolution of the Vitebsk Regional Council of Deputies of May 22, 2024 No. 26 "On Defining Lists".
For legal entities and individual entrepreneurs, the possibility of selling alcoholic beverages in stores and pavilions located in rural areas with a retail space of less than 50 square meters is preserved, and for legal entities – also using mobile shops, regardless of whether this entity has a store and (or) pavilion where retail trade in alcoholic beverages is carried out (provided that the route of such mobile shop and the range of goods are agreed with the local executive and administrative body).
Approaches regarding the acquisition of real estate by economic entities continue to be in effect, with some additional conditions.
Capital structures and isolated premises in state ownership can still be alienated to subjects on a compensatory basis without bidding at market value for the purpose of carrying out trade, public catering, and consumer services in rural areas and small urban settlements.
At the same time, the new version of the Decree provides that such activities must be carried out for at least three years after the acquisition of real estate. In case of non-fulfillment of these obligations, buildings and premises are subject to return to state ownership without compensation for the cost of inseparable improvements. Alienation of the real estate object to third parties is prohibited until the sale conditions are met.