Tax breaks for companies and individuals legally working with cryptocurrencies in Belarus will remain in effect until January 1, 2025. A new presidential decree expands on tax cuts introduced in 2018 when the Minsk executive branch legalized crypto activities, such as mining and trade.
Belarus will keep its cryptocurrency-friendly tax regime for another 2 years
Belarusian President Alexander Lukashenko has approved the extension of tax preferences provided to crypto companies registered in the country and individuals involved in the industry. On Tuesday, the Belarusian leader signed Decree No. 80 “On Certain Tax Issues”.
The document extends the tax breaks that were introduced with Lukashenko’s Decree No. 8 “On the development of the digital economy” of December 21, 2017. The latter legalized a number of cryptocurrency-related activities in the country when it entered into effective March 28, 2018.
Regulations, including tax benefits, apply only to residents of the Belarusian High-Tech Park (HTP). Its special legal regime allows for the issuance and circulation of cryptocurrencies and tokens, and the Belarusian authorities are now seeking to ensure its development.
Under the latest from Lukashenko decreethe turnover and profits of such entities will not be subject to value added tax (VAT) or income tax until January 1, 2025. Individuals will also be exempt from income tax during the same period, for the income received from mining, acquiring, exchanging or selling crypto assets for fiat currencies.
The president also directed the HTP Administration to produce a concept for further development of the crypto sphere in Belarus by July 2024, working with stakeholders. The decree enters into force with its publication but also covers the first months of the year, since the tax exemptions expired on January 1, 2023.
While supporting regulated crypto companies, the Belarusian government has been going after unauthorized companies. In August 2022, law enforcement officials in Minsk issued an international arrest warrant for the owner of the country’s largest unlicensed cryptocurrency exchanger, Bitok.me. And in January of this year, a Belarusian citizen was fined $1 million for illegal cryptocurrency trading.
Do you think Belarus will extend tax breaks again in 2025? Share your expectations in the comments section below.
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