We are pleased to inform You that Belarus has adopted unique legal regulation in IT sphere.
21 December 2017 President signed Decree On the Development of the Digital Economy fixing progressive and unique regulation in the IT sphere on a global scale.
Please see a brief overview of the innovations that will come into force on 27 March 2018.
Blockchain, cryptocurrencies, and ICO
The Decree devotes special attention to the development of blockchain technologies and cryptocurrency payments.
Tokens are recognised as a legitimate object of legal relations. Tax privileges are introduced to operations with tokens, including trade in cryptocurrencies and ICO. Until 2023 individual revenues from mining and operations with tokens are not subject to declaration and taxation depending on the categories of the subject: a resident of the Belarus High-Tech Park (HTP), an individual, or another entity.
Additionally, special status of a cryptographic platform operator and cryptocurrency exchange is introduced. The Decree sets for them a minimum security value to be stored at Belarusian banks: not less than equivalent of USD 500,000 and USD 100,000, respectively
HTP was established in 2005 in Belarus to create favourable conditions for software development and the ICT progress. HTP resident may actually be located outside the territory of the Park. Having successfully operated for over 10 years, the HTP regime is now extended until 2049.
At present, 192 companies are already registered as residents of HTP, 6 of them are included in the rating of The 2017 Global Outsourcing
Privileges and benefits for HTP residents
Simplified rules of company document control: for example, local legislation on control of foreign trade operations is not applied, and simplified unilateral invoices may be used by HTP residents with foreign parties. Exemption from corporate taxes (VAT, income tax); there is a 1% company's income fee instead. HTP residents in relations between themselves and third parties will be able to use the following legal instruments borrowed from UK law, thus far not available to other companies in Belarus:
- non-compete and non-solicitation agreements;
- convertible loan;
- option agreement;
- indemnification agreement;
- investment partnership agreement;
- irrevocable power of attorney.
Simplified system for foreign founders and employees: foreign employees and founders of HTP resident companies are entitled to visa-free entry to Belarus, the maximum period of their temporary stay is extended to 180 days. Residents of HTP do not need to receive a special permit for hiring foreign employees.
Types of activity in the HTP
HTP residents can perform the following types of activity:
- operations based on blockchain, as well as with smart contracts, cryptocurrencies and tokens (including ICO);
- develop and apply software;
- business processes outsourcing;
- create audio-visual, music, and video materials;
- activity in the sphere of cybersport etc.
How to become a HTP resident?
- Register a company in Belarus.
- Prepare a business plan according to HTP’s guidelines.
- Conduct one or several types of activity stipulated by law on HTP.
- Obtain resident status from HTP Administration based on an application and the above mentioned business plan.