Tax exemptions for firms and people legally working with cryptos in Belarus will remain active up to January 1, 2025. The latest reports indicate that a new presidential decree extends the tax cuts introduced in 2018 when the executive power in Minsk legalized crypto activities like trading and mining.
Belarus To Maintain Crypto-Friendly Tax Regime For 2 Years
President of Belarus Alexander Lukashenko has already approved the extension of the tax preferences offered to crypto firms registered in the nation and people involved in the sector. On March 28, the Belarusian leader signed Decree No. 80 “On Certain Issues of Taxation.”
The document prolongs these tax break breaks that got introduced with Lukashenko’s Decree No. 8 “On the Development of the Digital Economy” of December 21, 2017. The letter legalized several crypto-related activities in the nation when it went into effect on March 28, 2018.
These regulations, including the tax benefits, apply just to residents of the Belarus High-Tech Park (HTP). Its special legal regime authorizes the issuance and circulation of cryptos and tokens and the Belarusian authorities now aim to guarantee its development.
In Lukashenko’s latest decree, the profit and turnover of these entities will not be subjected to profit tax and value-added tax (VAT) until January 1, 2025. People will also be relieved from income tax in the same period, for the income received from acquisition, mining, crypto exchange, or sale of crypto assets for fiat currencies.
The president has also ordered the HTP Administration to produce a concept for the further development of the crypto space in Belarus by July 2024, working with interested parties. The decree comes into force with its publication but covers the first months of the year as well, since the tax exemptions expired on January 1, 2023.
Buy Bitcoin NowWhile supporting the regulated crypto businesses, the Belarusian government has been going after illegal undertakings. In August 2022, law enforcement officials in Minsk issued an international arrest warrant for the owner of the nation’s biggest unlicensed crypto exchanger, Bitok.me. In January 2023, a Belarusian citizen was fined $1 million for engaging in illegal crypto trading activities.
