Belarus legalises cryptocurrencies, tax exempt until 2023
Belarus launches a five year tax exemption scheme for almost any activities related to cryptocurrency.
As of 28 March Belarus will be something of a cryptocurrency haven, according to the "On the development of the digital economy" decree signed by President Alexander Lukashenko. Not only will it legalise smart cryptocurrencies, initial coin offerings and smart contracts, but it also deems a range of cryptocurrency activities to be tax-free until the year 2023.
"Until 2023, activities related to mining, the creation, acquisition and alienation of tokens are not taxed," explained an administrative body in Belarus.
The legalisation of cryptocurrencies and related activities is becoming a major issue. Attempts to crack down on cryptocurrencies have met with mixed success so far, but the declaration of complete tax exemption is unusual. Very few other countries allow for tax free cryptocurrency earnings.
Most countries are trying to find ways of effectively taxing cryptocurrencies. In Australia the ATO has built a crypto task force targeting tax evasion.
Belarus' reputation as a business destination is mixed. The GAN Business Anti-Corruption portal has said Belarus is a country where "officials engage in corruption with impunity, the public administration is opaque, and consequently rent-seeking... some argue that high-level corruption is a method of governance in Belarus."