Belarus Extends Tax Benefits For Bitcoin Firms To 2025
Regulated crypto businesses and entities operating in Belarus are exempted from tax till January 1, 2025. Accordingly, the new presidential directives imply that the tax break, introduced in 2018, will be further extended until 2025.
Minsk Approves 2 More Years For Crypto Tax Break
According to reports, the president of Belarus, Alexander Lukashenko, officially approved the extension of the crypto tax break enjoyed by companies and individuals in the digital asset industry. The report added that the Belarusian president signed Decree No. 80 on “Certain Issues of Taxation” that would see the crypto space enjoy more tax benefits in the country.
The eastern European country has one of the friendliest crypto laws in the EU region. The bill signals the extension of the tax breaks introduced by Lukashenko on December 21, 2017, under Decree No.8, the “Development of the Digital Economy” bill.
When the legislation was enacted in March 2018, it officially legalized moat crypto activities in the country, like mining and trading. However, the crypto regulations, including the tax benefits, are limited only to residents of Belarus High-Tech Park (HTP), a specialized legal jurisdiction in the country.
The HTP explicitly established the Belarusian authorities to permit issuing and circulating of crypto assets and tokens. Based on the new decree, proceeds coming from crypto transactions are exempted from valued added tax (VAT) and profit tax until January 2025.
In addition, individuals operating in the sector also get temporary relief from taxation within the same period. These also include incomes from crypto mining, purchases, trade, or exchange of crypto assets for fiats.
The president is reported to have also directed the administrators of HTP to develop a concept for crypto expansion in Belarus by July 2024 through stakeholder collaboration.
Crackdown On Unregistered Crypto Exchanges
Despite its support for crypto firms, the Belarusian government has recently gone hard on unregistered exchanges operating illegally. Last August, law enforcement officials in Minsk issued an international arrest warrant for the founder of the country’s largest unregulated crypto exchange, Bitok.me.
In early January, a Belarusian citizen was fined $1 million by the government for illegally engaging in crypto activities. Elsewhere, the government has imposed new measures to curb tax evasion among crypto businesses in the United Kingdom.
This comes after the California-based Silicon Valley Bank (SVB) collapse that has seen its UK subsidiary bite the dust. During his presentation of the Spring 2023 budget, finance minister Jeremy Hunt revealed that the failure of SVB UK had posed no threat to the British financial sector.
The UK Treasury also calls for the amendment of the country’s self-assessment tax forms to include cryptocurrency and other digital collections. Moreover, the proposed changes will be effective on the tax forms starting from the 2024-25 tax year.
The United Kingdom joins others like the US in proposing tax policies targeted at crypto firms and investors. President Joe Biden’s administration believes the crypto tax loophole will prevent wealthy individuals from exploiting digital assets to evade taxes.
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