Tax exemptions for companies and individuals legally dealing in cryptocurrencies in Belarus will continue until January 1, 2025. The new presidential decree extends tax breaks introduced in 2018, when the executive power in Minsk legalized crypto activities such as mining and trading.
Belarus to maintain crypto-friendly tax regime for another two years
Belarusian President Alexander Lukashenko has approved the extension of tax incentives offered to crypto companies registered in the country and those involved in the crypto industry. On Tuesday, the Belarusian leader signed Decree No. 80 “On Certain Issues of the Tax System.”
This document extends the tax breaks introduced by Lukashenko’s Decree No. 8 of December 21, 2017 “On the Development of the Digital Economy.” The latter legalized a number of crypto-related activities in the country when it came into effect on March 28, 2018.
The regulation, which includes tax incentives, applies only to residents of the Belarusian High Tech Park (HTP). Its special legal regime permits the issuance and circulation of cryptocurrencies and tokens, and Belarusian authorities are currently trying to ensure their development.
Under Lukashenko’s latestdecreeno VAT or profit tax will be imposed on the sales and profits of such entities until January 1, 2025. Individuals will also be exempt from income tax for the same period on income derived from the mining, acquisition, exchange, or trading of crypto assets for fiat money.
The President also ordered the HTP’s administration, in cooperation with stakeholders, to develop a concept for the further development of the cryptosphere in Belarus by July 2024. The decree will enter into force upon its issuance, but also covers the first month of this year, as the tax exemption expired on January 1, 2023.
The Belarusian government supports regulated crypto businesses while pursuing unlicensed operations: in August 2022, law enforcement in Minsk issued an international arrest warrant against the owner of Bitok.me, the country’s largest unlicensed crypto exchange. And in January of this year, a Belarusian citizen was fined $1 million for illegal crypto trading.
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