People expressing a desire for others not to be concerned or distressed.
In Belarus, small businesses and freelancers are navigating a complex landscape of taxation and regulation, as highlighted in a project called "Selfmade in Belarus" by devby.io.
Sofia, an online Russian language teacher, has encountered difficulties with the tax office due to her income coming from abroad. She was initially advised to pay the unified tax but later discovered that it did not apply to her working relationship. This confusion led to a situation where she had to pay taxes twice due to a lack of clear options.
Other entrepreneurs, like Sofia, have had poor experiences with the tax office. Their representatives have been found unhelpful and incompetent, leading to further complications. In fact, Sofia and her online school colleagues received different responses from the tax office regarding the tax payment method to use.
For Sofia, the complexities of the tax system have been compounded by the fact that she pays tax on foreign income. This tax is paid at the end of the calendar year and is 13% of the amount received. This is a significant burden for freelancers like Sofia, who may have to pay twice due to the lack of comprehensive double taxation treaties.
Sergei, a retail business owner, finds the complexities of business regulations challenging. He is not alone in this struggle, as most young entrepreneurs interviewed mentioned taxes as a major hindrance to their businesses.
Small businesses often struggle with cash flow issues such as payment delays and increased tax burdens. Oleg, a vegetable seller, complains about increased extortion by police officers, who now collect $300 per stall, up from $100 before 2020. This financial pressure intensifies under recent changes, including profit tax hikes and VAT expansions on higher revenue businesses.
Alexei, who runs a software studio, faces high taxes for individual entrepreneurs and mandatory FSSN contributions starting from 2023, despite his employer already paying them. This adds to the operational difficulties especially for companies with tight cash reserves, which are common among small firms and freelancers.
The Non-Taxpayer Status (NP) in Belarus has add-ons that can be absurd, such as banning foreign platforms like Zoom and Google Meet for education, or restrictions on working with adults who aren't currently studying.
Employing payroll software or Employer of Record services is often recommended to mitigate compliance issues. However, it is important to note that calling the tax office's paid contact center can provide irrefutable evidence of inquiries, but verbal advice should not be relied upon.
In light of these challenges, it is crucial for individuals to stay informed about taxes and work restrictions in Belarus. Sofia's experiences highlight the need for this information, as misunderstandings can lead to financial difficulties and administrative burdens.
For more information, you can follow Charter97.org, a news site, and various social media accounts. It is essential to stay informed and advocated for change to create a more supportive environment for small businesses and freelancers in Belarus.
Sofia's experiences underscore the importance of understanding personal-finance regulations for freelancers in Belarus, as the complex tax system can lead to financial difficulties and confusing information from the tax office. Meanwhile, the high taxes and financial burdens on small businesses and individual entrepreneurs are causing operational difficulties, especially for those with tight cash reserves.
