President of Belarus Alexander Lukashenko signed a decree on the development of the digital economy. The document creates unprecedented conditions for the residents of the High-Tech Park and gives serious competitive advantages to the country in the creation of the digital economy of the 21st century. It was developed in accordance with the instruction of the head of state by the administration of the Park of High Technologies together with the residents of the HTP, IT community, leading legal and consulting firms of Belarus, as well as foreign experts. What exactly does the decree provide?
"The decree developed by the President's instruction really turns Belarus into one of the most comfortable places in the world for conducting IT business, and not only the IT sphere, but the whole economy of the country, and every Belarusian citizen will also feel a powerful positive effect of the decree," said director of the Park of High Technologies Vsevolod Yanchevsky.
The new decree has extended the special tax-legal regime of HTP until 2049. The extraterritorial principle of registration has been preserved, and the basic conditions of management for the residents of the High Technology Park have also remained unchanged.
New activities of HTP residents
New activities of the park residents will include the development of biotechnology, medical, aviation and space technologies, e-sports. Also, the decree provides for the possibility for HTP residents not only to develop, but also to produce high-tech science-intensive products.
The possibilities of the park's residents to commercialize the software products developed by them are expanded, including through the provision of advertising and marketing services, business process outsourcing, and others. The new decree does not have any previous restrictions on the amount of revenue from additional activities (consulting, testing, ).
Legalization of ICO, crypto and smart contracts
The new decree legalizes ICO, crypto-currencies and smart contracts. Thanks to the adoption of this document, Belarus becomes the first jurisdiction in the world with comprehensive legal regulation of businesses based on blockbuster technology.
The decree does not imply any restrictions and special requirements for operations on creation, placement, storage, alienation, exchange of tokens, as well as the activities of crypto-exchanges and crypto platforms. Activities on mining, acquisition, alienation of tokens, carried out by individuals, are not entrepreneurial activities, and tokens are not subject to declaration. At the same time, until 2023, activities related to mining, creation, acquisition and alienation of tokens are not taxed.
Introducing a smart contract into the legal field of the Belarusian legislation and granting the right to carry out through its execution and (or) execution of transactions, Belarus becomes the first country in the world to legalize smart contracts at the country level. A smart contract is a program code created and used in a blockchain for the purpose of automated execution and (or) execution of transactions or the performance of other legally significant actions.
Successful development of this technology can solve a fundamental problem - how to ensure strict implementation of contracts (ie, real performance in the life of what people have agreed on paper). In this case, the automatic system is performed by the computer system, excluding the subjective human factor.
Creating conditions for the development of product IT companies
The document provides for simplification of the procedure for concluding foreign economic transactions using the Internet - the possibility of their conclusion in electronic form.
Now it will be possible to make out primary accounting documents using global approaches, including unilaterally (without having to obtain a signature from the counterparty when it is technically impossible). For example, the invoice from the Appstore does not contain a signature and a seal. The park resident will be able to log into his or her account in the personal section of Appstore, print out and sign the report (invoice), which will be considered the primary accounting document.
The decree also provides for the determination of the deadlines for the completion of foreign trade operations in accordance with agreements concluded by residents of the HTP, securing the right of the park's residents to commercialize the software products developed by them without restrictions on the forms (types) of deals being concluded, taking into account the constantly expanding methods of monetization (including through advertising revenue inside the applications developed by residents).
Maximum simplification of the activities of HTP residents
Residents have the right to conduct transactions with electronic money without a number of restrictions, without the permission of the National Bank to open accounts with foreign banks and other financial institutions, receive money on them, conduct foreign exchange transactions related to the movement of capital in accordance with the approval of the National Bank.
Legislation on the procedure for conducting and monitoring foreign trade operations for transactions involving HTP residents does not apply.
Using the Institutes of English Law
The Decree "On the Development of the Digital Economy" also introduces separate institutions of English law, in particular, a convertible loan, an option and an option agreement, an agreement on non-competition and prohibition of luring, compensation for property losses.
The introduction of these instruments in Belarus will create a favorable environment for the development of the venture ecosystem, provide potential investors with tools that are understandable to them and are widely used in international practice, and reduce their risks when investing in Belarusian goods companies.
Support for IT education and training for the industry
Residents of HTPs are allowed to engage in educational activities in the field of information and communication technologies, according to curricula approved by the administration of the Park of High Technologies.
It is planned to create a sectoral council of qualifications in the field of information technologies on the basis of the HTT administration, develop professional and qualification standards on the basis of which, in conjunction with the park's residents, create modern training programs for the training and advanced training of specialists in the field of information technology.
To provide financial support for the education system, the decree provides for the right of HTP residents to sponsor educational institutions for any purposes that the parties agree on (including grants for students, teachers, etc.).
In addition, a set of measures to attract high-level specialists in the IT field has been fixed. In particular, HTP residents are not required to obtain permits related to the employment of foreigners. Such foreigners are granted a temporary residence permit in Belarus in a simplified procedure. For foreign employees and founders of HTP residents, visas have been canceled.
What will the decree finally give?
In the complex implementation of the provisions of the decree will solve three strategic tasks:
- create favorable conditions for the development of domestic goods IT companies, as well as open up Belarus for investment from foreign IT capital;
- create conditions for the gradual transformation of Belarus into a regional leader in Eastern Europe in building a digital economy;
- receive unique knowledge and experience in the use of blocking technology, the turnover of crypto-currencies. Practically all the norms of the decree will come into force 3 months after its official publication.
Source: BelTA