[2017-12-22] Belarus Legalizes Cryptocurr. and ICOs – Tax-Free for Five Years

[moriskarlov]

The president of Belarus, Alexander Lukashenko, has signed a decree which legalizes cryptocurrencies, initial coin offerings (ICOs), and smart contracts. All crypto transactions and related income, including from mining, will be tax-free for the next five years.

Legalizing Crypto Transactions and ICOs

President Alexander Lukashenko announced on Friday that the decree “On the Development of Digital Economy” has been signed. He explained, “the main goal of the document is to create such conditions that global IT companies would come to Belarus, open their representative offices, development centers, and create popular products in the world.”

The decree also legalizes cryptocurrencies, ICOs, and smart contracts. Reuters wrote, “Belarus has legalized transactions in cryptocurrencies,” reiterating that it is “part of a drive to foster private sector growth and attract foreign investment by liberalizing parts of its Soviet-style economy.” The news outlet added:

"The decree legalizes initial coin offerings and transactions in cryptocurrencies, including their exchange for traditional currencies on Belarussian exchanges. while all trades will be tax-free for the next five years."

“Individuals will be able to store, change, buy, donate, bequeath, mine, and also exchange cryptocurrencies and tokens for fiat currencies,” Rusbase elaborated. In addition, it is not necessary to declare cryptocurrency profits and income from their operations since they are tax-free until January 1, 2023.

News.Bitcoin.com reported in November on the first Belarusian cryptocurrency exchange gearing up to launch in the spring of next year.

Unprecedented Benefits for HTP Residents

The decree creates unprecedented conditions for residents of the Belarusian High-Tech Park (HTP), which news.Bitcoin.com explained in last month’s article. It allows HTP residents to “become firms that mine and exchange cryptocurrencies,” Sputnik wrote, noting that:

"Belarus has created unique conditions for the world to regulate the sphere of cryptocurrencies, both for ordinary citizens and for companies and investors in this sphere."

Legal entities in HTP can attract investments by issuing their own ICO tokens as well as buying and selling them through crypto exchanges, Rusbase detailed.

Earlier this month, the Ministry of Finance and the National Bank of Belarus said that they do not support the legalization of cryptocurrencies “because it can entail serious risks in the financial market,” Belapan reported. A source in the state administration told the publication, “It is impossible to supervise over cryptocurrencies and trace their movement.”

https://news.bitcoin.com/belarus-legalizes-cryptocurrencies-icos-tax-free/

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[btcton]

While it is not surprising to me that cryptocurrencies and ICOs were legalized in a country officially by its government, what does surprise me is that they will not be collecting taxes on Bitcoin income and gains or losses from trading it. This does not really make sense from my perspective, as in the U.S., Bitcoin has always been completely taxable as an asset and has been subject to capital gains tax (depending on how you report it). I do not know anything about the tax law in Belarus, but it should still be comprehensive enough so as to not throw out all the profit derived from Bitcoin-related operations, since a significant amount of transactions and trades could be made, furthering the prowess of Bitcoin in the country and devaluing the local currency.

[Lucius]

I have to admit that with regard to where this news comes it is surprising for me,that such we may say "no democratic" country gives such privileges to cryptocurrency.Such moves should attract foreign investors but also encourage locals to start jobs related to cryptcurrency,no tax for next five years means an excellent profit for those who know what they are doing.

This is in every case a good move of one government and I believe it will pay off in the end,for investors and for government.I wish we can see something like this in other countries instead of banning cryptocurrency and fight against progress.

[Kemarit]

I think the "No tax policy for five years" was put in the first place to really attract companies to go to Belarus and start there ICO's there. It looks like their aim is to become one of the safe haven for crypto lovers all over the world. This is similar to governments specially third world nation to implement a no tax policy to attract multi nationals to put up a business in their country. But I'm not familiar if there are a lot of people from Belarus are really into crypto, perhaps there are a lot of big personalities involved that why the government decided to legalized it, Tax Free for Five Years. The questions is what happens after 5 years? Anyways, this is the first time I heard such a bold move from a government not only embracing it, but offering options as well. Let's see how it goes. By the way, welcoming news for all of us.

[richardsNY]

I think the "No tax policy for five years" was put in the first place to really attract companies to go to Belarus and start there ICO's there.

Basically that. It's a common way of trying to make yourself look as interesting as possible, all to lift your economy up a notch. I personally would prefer a friendly tax policy over a certain number of tax free years. Important is that these countries aren't exactly those that get much overall trust and believe due to their way of operating/acting. It's like a ping pong country in the way that one year things look all bright, but suddenly the next year will end up affecting businesses negatively. In easy terms, you'll at some point get the surprise, but it won't be something of positive nature.

[darkangel11]

I think it's the second country in Europe after Germany that doesn't impose taxes on profits from cryptocurrency trading. I will have to start doing my research on the cost of property and residency in Belarus because it might be worth it to move there for a while if I ever decide to cash out my coins. Germany is still looking good, but the cost of living is probably much higher than in Belarus, and the political situation seems to be more stable in the Eastern EU. Who would have thought?

[CyberKuro]

I think it's the second country in Europe after Germany that doesn't impose taxes on profits from cryptocurrency trading. I will have to start doing my research on the cost of property and residency in Belarus because it might be worth it to move there for a while if I ever decide to cash out my coins. Germany is still looking good, but the cost of living is probably much higher than in Belarus, and the political situation seems to be more stable in the Eastern EU. Who would have thought?

Such a good thought
Saving bitcoin as much as you can and cash out with zero fees in Belarus and lower cost of living.
Belarus has created a great environment for everyone in the crypto world especially for Companies who want to develop crypto-business.
Cryptocurrencies will flourish in Belarus obviously such as in Japan or even better, it just the matter of time.

[J. Cooper]

I'm not fully informed about the economic situation in Belarus but what is for sure is that (atleast for the next few years) blockchain chased start ups and ico's will be heavily attracted to the legal benefits in Belarus. That could be very beneficial for rather economy in Belarus assuming the interest in blockchain based technology and applications keeps growing exponentially.

[Lucius]

I think it's the second country in Europe after Germany that doesn't impose taxes on profits from cryptocurrency trading. I will have to start doing my research on the cost of property and residency in Belarus because it might be worth it to move there for a while if I ever decide to cash out my coins. Germany is still looking good, but the cost of living is probably much higher than in Belarus, and the political situation seems to be more stable in the Eastern EU. Who would have thought?

I think Germany have some rules regarding tax on cryptocurrency,it is only up to 600 EUR of capital gains and 0% if you sell your cryptocoin one year+  after the purchase.But in that case I think you need to show some proof when you bought coins.

There is also some other countries where you can pay 0% tax on crypto profits,Denmark,Singapore and Slovenia as stated in this article : https://coinsutra.com/tax-free-bitcoin-countries/

If you ask me about paying 0% tax on BTC,I certainly consider some more exotic country then Belarus or Germany if one day I decide to sell my BTC

[Marry Finch]

Who would have thought that it was Belarus that would become the first country in the world to legally exempt from taxation any activity in the crypto currency. This is a very interesting step by Lukashenka. It seems that the miners from China have a place to move to get bitkoyn. The climate is pretty cool, about the same as in Canada, but I do not know about the cost of electricity. Very far-sighted act of Belarus.