The government of Belarus, which several years ago began to regulate retail Forex brokerages in the country by way of issuing licenses from its Central Bank, has just announced amendments to its tax code that will not require retail FX traders to pay taxes on any profits earned from online OTC trading.
The presidential decree N503 also states that the exemption will be in place indefinitely. This is great news for traders who have accounts with Belarus registered brokers and the initiative is likely to boost interest in Forex trading among Belarus residents as an alternative to other financial investments.
This initiative along with the regulations set forth several years ago governing the OTC FX market in Belarus provide a great example of balanced rules and guidelines by which brokers and traders must transact and brings together some of the best practices already in use in other, major jurisdictions, such as the UK. Likewise, the Belarus regulations prescribe common-sense leverage limits of 100:1, which can be increased to 200:1.
Although the trading conditions for retail FX customers in Belarus are attractive, it remains to be seen if working in Belarus is viable for brokers, as there are still some restrictions with respect to capital and revenue outflows from the country for companies who operate in Belarus via a subsidiary or affiliate company.