Belarus Government Cuts Taxes For Blockchain Businesses

The Government of Belarus has issued new regulations aimed partially at empowering the development of organizations around digital currencies and blockchain technology.

As per the state-owned media organization BelTA, on December 22 the President of the nation, Alexander Lukashenko signed a virtual economy development order that legally manifests the utilization of advanced technologies like blockchain, while also providing notable tax incentives in an offer to attract business activity.

The order, as condensed by a domestic IT company that advocated for the enactment, helps development of the nation’s High-Tech Park, a SEZ the government wants to serve as a hub for tech and financial startups.

One component of the law gives a legal basis for organizations dealing with smart contract development, token issue, digital currency trading and mining – all these will be exempted from income taxes for the following five years.

The law states,

“Turnovers, profits (income, proceeds) from various operations with tokens are not recognized as taxable items until January 2023.”

In a report published on 22 December, apex bank head Pavel Kallaur noted the push for the High-Tech Park to serve as an incubator for startups working around cryptocurrencies.

He stated,

“As for cryptocurrencies, the Digital Economy Development Ordinance allows resident companies of the Hi-Tech Park to use cryptocurrencies for international deals. We are okay with that,”

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