Decree No. 277 of Aug. 20, “On the Development of Trade, Public Catering and Consumer Services in Rural Areas and Small Urban Settlements,” has been published on the National Legal Internet Portal.
The decree establishes tax benefits for retail organizations and individual entrepreneurs operating in rural areas.
Under the decree, the benefits will remain in effect until Jan. 1, 2029.
Profits from the sale of goods, works and services generated in rural areas and small urban settlements will be subject to corporate income tax at rates reduced by 50%. The personal income tax rate for individual entrepreneurs engaged in trade will also be reduced by 50%.
In addition, exemptions will be provided from real estate tax, land tax and rent for state-owned land plots.
Regional Councils of Deputies will determine the list of areas where these benefits will apply.
Legal entities and individual entrepreneurs will also be allowed to sell alcoholic beverages regardless of the size of the retail facility and from mobile shops.
The decree also establishes specific rules for compliance with the limit on the share of a retail chain, electricity tariff-setting arrangements and other provisions.
For the purposes of the decree, the territory of small urban settlements is defined as the territory of urban-type settlements and cities where the average annual population in 2025 was more than 2,000 but less than 10,000 people. Rural territory is defined as territory, excluding cities and urban-type settlements, where the population did not exceed 2,000 people in 2025.