Implementation of the Decree of the President of the Republic of Belarus of September 22, 2017 No. 345 "On the Development of Trade, Public Catering, and Consumer Services"

For individual entrepreneurs and business entities engaged in retail trade, public catering, and consumer services in rural areas and small urban settlements, 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 sales of goods (works, services) derived from activities in the specified territories, and personal income tax (if the beneficiaries of the benefits are individual entrepreneurs liable for 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 retail 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 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 the boundaries of 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 decision of the Vitebsk Regional Council of Deputies dated November 21, 2017 No. 226 "On measures to implement Decree of the President of the Republic of Belarus dated September 22, 2017 No. 345".

Legal entities and individual entrepreneurs retain the opportunity to sell alcoholic beverages in shops and pavilions located in rural areas with a retail space of less than 50 square meters, and for legal entities – also using mobile shops, regardless of whether this entity has a shop and/or pavilion where retail sale of alcoholic beverages is carried out (provided that the route of such mobile shop and the product assortment list 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 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, the 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 sales conditions are met.