Belarus President Signs Cryptocurrencies Decree Including 5-Year Tax-Free Provision
Belarus government has recently embraced the legalization of cryptocurrencies and a tax-free provision to entice more business investors and opportunities in the country.
In fact, President Alexander Lukashenko signed a new law which legalizes the use of cryptocurrencies, smart contracts, and initial coin offerings (ICOs) to pave the way in establishing better global IT competencies and attract IT companies to extend their operations.
Belarus open its country to use the cryptocurrencies to promote the development of the government’s private sector and fascinate more foreign investors, businesses and IT companies to invest.
The new bill, “On the Development of Digital Economy”, covers the exclusion of exchange and platforms associated with crypto operations and transactions. This includes mining, sale and purchase of digital tokens. On top of this, cryptocurrency income, profits and digital tokens will no longer be needed to declare from operations and other transactions until the year 2023.
The provision of the new law, summarized by Viktor Prokopenya, states:
“Turnovers, profits (income, proceeds) from various operations with tokens are not recognised as taxable items until January 2023.”
One of the major beneficiary of this decree is the High-Tech Park (HTP) which serves as an IT-specialized economic zone and the only place in Belarus that offers tax benefits like exemption for paying income tax, value-added tax (VAT), and 9% reduction in HTP resident’s income tax.
President Lukashenko stated the goal of signing the decree is to transform Belarus into a “tech nation” as he declared the flourishing tech industry as an opportunity to make the country defined as a regional center in Blockchain technology.
Despite the fall of Bitcoin value, many countries still embrace cryptocurrency. In fact, according to an article from Cryptocurrency, a draft law has already been proposed last week in Ukraine’s Parliament to legalize the use of cryptocurrency, as well as, the transactions related to it.
“Belarus will become the first government in the world that opens wide opportunities for the use of Blockchain technology.”