Belarus makes a leap forward: legalises cryptocurrency and provides incentives for related income

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Belarus makes a leap forward: legalises cryptocurrency and provides incentives for related income

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On December 21 2017, the President of Belarus signed the Law on 'The Development of a Digital Economy' (Law). After its entry into force on March 22 2018, businesses based on blockchain technology will become legally regulated in Belarus.

The Law defines the key terms of the cryptocurrency business, explaining the meaning of the terms cryptocurrency, virtual wallet, mining, token and other basic concepts that the business entails. Bitcoin is recognised as a digital currency (token), used in international circulation as a universal means of exchange. Among other terms, the Law permits individuals and legal entities to possess tokens, to buy and exchange tokens, and to conduct other related activities, subject to their registration in a virtual high-tech park in Belarus – High-Tech Park (HTP).

It is worth noting that the Law grants various tax exemptions for individuals and legal entities resident at the HTP dealing with mining and other activities using tokens. Namely, income from operations with tokens will not be considered as taxable for the purposes of personal income tax (PIT)/corporate income tax (CIT) and VAT until January 2023. Worth noting is also the fact that resident companies of the HTP are exempt from all corporate taxes, including VAT and profit tax, as well as customs duties.

By adopting this law, the Republic of Belarus has become the most advanced country in eastern Europe in terms of regulating cryptocurrencies. Coupled with the incentives available, it is also one of the most favourable jurisdictions for cryptocurrency-related businesses.

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Alena Malaya

Oleksandra

Lazebnyk

Alena Malaya (alena.malaya@eurofast.eu) and Oleksandra Lazebnyk (oleksandra.lazebnyk@eurofast.eu)

Eurofast

Tel: +38 044 279 55 66 and +38 044 278 12 66

Website: www.eurofast.eu

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