Belarus revises taxation of self-employed entrepreneurs

<p> MINSK, Feb 25 - PrimePress. Changes in taxation of self-employed entrepreneurs proposed by the State Control Committee (SCC) of Belarus aim at a transition to more complex forms of their organization and operation, Chairman of the Council for Entrepreneurship Development of Belarus Dmitri Krutoy said on February 24, 2021. </p> <p>   </p> <p> The SCC proposed in early February to change the operating environment for self-employed entrepreneurs, in particular, to abolish the single tax, raise the tax rate under the simplified taxation system for self-employed entrepreneurs fr om 5% to 16%, lim it the amount of cash withdrawals from self-employed entrepreneurs’ accounts and raise the minimum required deduction to the Social Protection Fund. </p> <p>   </p> <p> According to Krutoy, this is meant to combat tax evasion, initiate systemic evolutionary changes, ensure fair competition, stimulate the evolution of business, and to transit to more complex organization and operation forms. </p> <p>   </p> <p> Republican Union of Industrialists and Entrepreneurs speaks against </p> <p>   </p> <p> The Republican Union of Industrialists and Entrepreneurs and experts of the Belarusian Scientific and Industrial Association opposes the SCC’s initiative. </p> <p>   </p> <p> “The proposal does not meet the general taxation concept, fundamentally misbalancing the taxation system established to regulate activities of the self-employed and micro-organizations,” reads the statement. </p> <p>   </p> <p> The Union of Industrialists and Entrepreneurs believes it is possible to consider a differentiated approach to the taxation of self-employed entrepreneurs: to maintain the single tax for those who do not hire employees, gradually abolishing the single with the transition to a simplified taxation system; differentiation of simplified tax system rates by type of activity for those who have employees and a turnover comparable to that of legal entities. </p> <p>   </p> <p> Experts also criticize the proposal to raise tax rates for self-employed entrepreneurs who provide management, marketing, consultancy, audit, legal, accounting, information and some other services. </p> <p>   </p> <p> “Given the specifics of such services, we consider suspicions of cashing out by paying for the outsourcers’ services (consultants, licensed lawyers, auditors, accountants, customs clearance specialists, marketers, system administrators) to be groundless,” reads the statement. </p> <p>   </p> <p> Most often, outsourcing some auxiliary functions is a pressing need for many companies that cannot afford full-time narrowly focused specialist, the Union says. </p> <p>   </p> <p> “The proposal to increase the deductions to the Social Protection Fund for non-material-intensive activities seems unfeasible and discriminatory,” reads the statement. </p> <p>   </p> <p> “A simultaneous increase in taxes under the simplified tax system, the abolition of the single tax and increased deductions to the Social Protection Fund will force entrepreneurs to massively engage in shady businesses,” the Union says. </p> <p>   </p> <p> The tax law may be amended no earlier than January 1, 2022, though, says the Union. End </p>

2021-02-26

Primepress