Lukashenka signs 'breakthrough decree' on digital economy

Meeting with business circles On 22 December in Minsk President Alexander Lukashenka said that he had just signed a decree "On developing the digital economy". According to the president, "Belarus will become the first government in the world that opens wide opportunities for the use of blockchain technology."

The text of the decree is yet to be officially published but the tut.by portal has already retrieved its key provisions. The Decree "Concerning the development of the digital economy" significantly expands the list of activities, which make companies qualify to become a resident of the Minsk-based High-Tech Park. There is a total of 38 commercial activities, including cryptocurrency exchanges, cryptocurrency exchange operators and mining.

The document also envisages de-bureaucratization of the High-Tech Park (HTP) and simplifies conditions for the operation of its residents. HTP will enjoy a 9% income tax, and tax exempts for profit and VAT taxes. Instead, the residents will pay 1% of the gross revenue to the park's administration. New benefits have been introduced to allow to run a product-based business model from Belarus (e.g. to buy advertising on Facebook or Google).

The decree grants tax exemptions in regard to activities connected with digital tokens and cryptocurrencies.

Special norms will be introduced into local IT legislation: English law institutes for startups to 0% corporate tax, VAT-free, reduced personal income tax and other perks for IT companies until 2049..

Under the decree, the Belarusian High-Tech Park (HTP) resident-companies will have the possibility to attract specialists from abroad without limitation.

Moreover, any company can register in the HTP and will not be obliged to obtain work permits for foreign employees. They will be able to enter Belarus visa-free.