Companies and individuals working with cryptocurrencies in Belarus will keep their tax exemptions until the start of 2025. A presidential decree has extended the deductions that were first introduced in 2018 when Minsk approved crypto activities such as mining and trading.
Tax Exemptions for Crypto Companies in Belarus to Last Another 2 Years
Alexander Lukashenko, the President of Belarus, has ratified the extension of tax cuts provided to crypto businesses and individuals operating in the country. The decree, titled No. 80 “On Certain Issues of Taxation,” was signed by the Belarusian leader on Tuesday.
The move extends the incentives that were first introduced with Lukashenko’s Decree No. 8 “On the Development of the Digital Economy” of Dec. 21, 2017. The regulations went into effect in March 2018 and legalized a range of crypto-related activities in the country.
The tax breaks apply solely to entities registered in the Belarus High-Tech Park (HTP). The special legal regime in the jurisdiction permits the issuance and circulation of cryptocurrencies and tokens and the Belarusian authorities have been taking steps to ensure its further development.
Under the new decree, turnover and profits of those entities will be exempt from value-added tax (VAT) and profit tax until Jan. 1, 2025. Furthermore, individuals will not be required to pay income tax during that period for income received from mining, acquisition, exchange, or sale of crypto assets for fiat currencies.
Lukashenko also mandated the Administration of the HTP to prepare a concept for the further development of the crypto sphere in Belarus by July 2024, in collaboration with interested organizations. The decree is already in effect but it covers the first months of the year as well, as the tax exemptions were due to expire on Jan. 1, 2023.
While the Belarusian government endorses regulated crypto businesses, it is actively pursuing unauthorized undertakings. For example, in August 2022, law enforcement officials in Minsk issued an international arrest warrant for the owner of the country’s largest unlicensed crypto exchanger, Bitok.me. And in January of this year, a Belarusian citizen was fined $1 million for illegal crypto trading.
Do you think Belarus will keep the tax exemptions beyond 2025? Share your predictions in the comments section below.
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