Crypto Firms Can Run Tax-free Until 2025

Belarus is continuing its bid to woo crypto firms – by extending tax exemptions for token miners and developers until 2025.

Per the Belarusian media outlet AFN, President Aleksander Lukashenko this week signed a decree that will allow miners and other crypto business operators to do business in the country without having to pay value-added tax, income tax, or personal income tax.

The decree supersedes a previous iteration that stipulated crypto firms and their staff need not pay tax until the end of 2023.

The decree dictates that firms involved in the “mining, creation, acquisition, and disposal” of coins for “Belarusian rubles, foreign currency, electronic money and/or through the exchange of other tokens” will be able to enjoy the exemption.

The law also notes that cryptocurrency mining and trading “by natural persons” are not considered a form of business activity. As such, transactions involving coins do not even have to be declared.

The Belarus government first began to target crypto firms in 2017, when it created a special zone in Minsk named the High-Tech Park. The park was designed to house crypto mining firms. And in 2018, the government followed up with a range of measures aimed at bringing overseas crypto firms into the country.

What Are Belarus’ Crypto Plans?

The decree also instructs the High-Tech Park management team to “create a concept” for the “development of the token sphere – including taxation issues.” Lukashenko explained that this concept report should be submitted by July 1, 2024. This seemingly leaves the door open to another possible extension.

In March 2018, the nation introduced a number of crypto-related measures. These included the legalization of initial coin offerings (ICO) and smart contract-related business.

The law also allowed overseas fintech firm owners and employees to enter the country on visa waivers.