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Belarus is the world's first legalized smart contracts, and abolished the income tax for miners
Material posted : Administrator Publication date: 27-12-2017

In the past year in the corridors of power and the Belarusian IT community discussed the main theme: benefits for the high technology Park (HTP) can cancel, or rather, not renew. Critics say that the programmers the highest salaries are several times higher than the average wage in the country. Why give the "fat cats" exemptions from payment of contributions to the Fund of social protection of the population and to provide other tax deductions? The budget and social security Fund lose a lot of money.

But supporters of extending benefits showed the trump card: the HTP was one of the main sources to attract currency into the country: as a result, Belarusian IT companies are well known worldwide. Should not only benefits, but also to expand them to other areas of the business. Moreover, we need to support and enforce IT in all areas of the economy and societybecause it is the future of humanity.

Fortunately, in the collision business and IT-the lobby, the President has chosen the side of IT. Today at the meeting with representatives of the business community, Alexander Lukashenko, announced the signing of "revolutionary" decree "On the development of the digital economy" (the main provisions of the document, the text is not yet published), which first introduces the legal framework of the concepts of mining, the blockchain, smart-contracts, tokens. It introduces tax incentives for mining and the exchange of cryptocurrencies. And most importantly — HTP are exempt from the profit tax and VAT until January 1, 2049.

On the text of the document worked as a consulting and law firm "Aleinikov & Partners", "Vlasova, Mikhel and Partners", "Baker Tilly Bel," and others. Preparation of the decree took about nine months, during which it interviewed representatives of all the HTP resident-companies and IT-companies, which are not included in the HTP. The signing superliberalnaya version of the decree absolute success of its authors and the entire expert community, which participated in the progress of this project.

Alexander Lukashenko is not particularly versed in high technology. On this occasion, he said: "we have sophisticated people who are already thinking about how to do it. I thought so: today it is not, if something is good — plus, if in the negative — I know whom to ask."

Evaluation of the effect of the adopted decree, of the presentation VP Capital

"The President of Belarus supported all the ideas and initiatives of the IT community. Decree before signing in the press has sometimes been called revolutionary. In fact, he really is. In Belarus are creating some of the best conditions for the development of IT, the high-tech overall, businesses based on blockchain technology, and much more. To speak of the decree a lot of it makes no sense — its provisions speak for themselves", — commented on the document the head of the HTP Administration Usevalad Yancheuski.

"A very interesting document. On the one hand, this decree of Belarus took the world institutions of foreign law, on the other hand, thanks to this decision of the President of Belarus became the first country in the world that have implemented smart in the legal field-contract — said the lawyer, senior partner of law firm Aleinikov&Partners Denis Aleinikov. — This mechanism can solve the fundamental problem of humanity — the fulfillment of what was agreed on paper. Automatic execution of conditions of the contract is undertaken by a computer program".

About the technology of blockchain stated in section 6 of the main published regulations. It says that legal persons are entitled to create and place their own tokens in Belarus. You can do it abroad but only through the HTP. You can purchase tokens to dispose of and to make with them other operations through the exchange of cryptocurrency, operators of cryptocurrency exchange.

We should also mention the hashing individuals. According to the document, individuals have the right to possession of the token and committing to them the following operations: mining, storage, exchange, acquire, transfer for Belarusian rubles, foreign currency, electronic money, and the donation and bequest tokens.

It is established that activity in the mining, acquisition, alienation token, carried out by individuals, it is not a business. Moreover, the participants of the relations connected with the use of tokens provided by the tax and other benefits and preferences. The economic subjects are exempted from the taxation of activities related to digital currencies and tokens, including mining, in particular on transactions for the exchange of tokens (cryptocurrency). The exemption is available on income tax, VAT, sales tax at the simplified tax system, income tax on individuals.

Besides all the above, the decree significantly expands the types of activities that allow you to become a resident of HTP and obtain the appropriate tax incentives. A list of 38 activities, including the holding of ICO, bitcoin mining and cryptocurrency exchanges, trading in securities on the tokens, etc.

For residents of the HTP is much easier working conditions: the authorization procedure for opening of accounts with non-resident banks have simplified procedure of calculations using electronic money are allowed to conduct in the notification procedure of foreign exchange operations is allowed to be used as a primary accounting document is coming from a non-resident and executed in the English language document, etc.

"Dear friends, it-schnick! — wrote in Facebook on fresh photos from the Palace of independence Executive Director VP Capital Victor Prokopenya after meeting with the President — the Outcome of today's meeting on the digital economy the President: the decree will be signed before the end of this year – superliberalnaya option with support for all applications of the blockchain, 100% lack of bureaucracy, any business models including grocery, full freedom in hiring foreign professionals, the support of education, institutions of English law and so on. The President supported the idea to significantly improve the quality of English teaching, so each child could speak fluently after school in English. The number of trained it professionals will be increased significantly".

Positive assessment was expressed and General Manager VP, Capital of Belarus Nikolai Markovic:

"The legal environment for the development of IT is unprecedented for the region. This will attract technology companies and highly skilled professionals from neighbouring countries.

If you compare with the conditions for doing business in the United States — we have conditions are more attractive from the point of view of the tax regime. Other questions — certainly not worse. Moreover, given the complex regulation of the technology of the blockchain, we can say that Belarus is becoming one of the best countries in the world for doing it business.

It is important that the adoption of this decree with great attention observed in Ukraine and Russia, our countries are neighbors. In each country the problems which affect the it sector. In Russia sanctions in Ukraine frequent searches of the offices of it companies. With regard to the adoption of the Decree in Belarus are unprecedented for the region conditions. Perhaps it will be a good opportunity to it companies of neighbouring countries. It's possible structuring, when Belarus is the head office and the developers respectively in Russia or Ukraine

Also, given the simplified procedure of hiring experts from other countries is not a problem and relocation of entire teams in our country."


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