Government set to raise taxes for sole entrepreneurs in 2014

The finance ministry has drawn up changes to the Tax Code providing for an increase of 10 percent on average in the rates of so-called “single tax” levied on sole entrepreneurs in 2014.

The tax is a fixed amount that is paid by sole entrepreneurs irrespective of their proceeds and varies by region and specific locality.

The single tax rates were raised by 20 to 25 percent this year.

The highest tax rates are applied to sole entrepreneurs based in the city of Minsk and the Minsk region, followed by Brest and Hrodna. The single tax rates in Vitsyebsk, Mahilyow and Homyel are lower, while sole entrepreneurs based in smaller cities have to pay even less.

The highest single tax applies to car traders in Minsk who pay 1.5 million rubels ($170) per month. Sole entrepreneurs who engage in agricultural activity in rural areas pay 50,000 rubels ($5.6) per month, the lowest level of single tax.