Belarus makes Forex trading tax exempt | Forex Factory

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Belarus makes Forex trading tax exempt

  • #1
  • First Post: Jan 18, 2020 9:20am Jan 18, 2020 9:20am
At a first glance Belarus seems like an unlikely candidate for being a Forex trading haven, but the country surprisingly turned out to be among the most favourable destinations for over-the-counter (OTC) foreign exchange industry. That seems to apply to it now more than ever, as the Belarusian president moved to make Forex trading in the country tax exempt.

Alexander Lukashenko may have been the only member of the Belarusian parliament to vote against independence from the Soviet Union in 1991 but he recently signed a decree which removes all taxation on Forex trading. (https://theforexreview.com/2020/01/14/belarus-makes-forex-trading-tax-exempt/) To be more specific, individual profit from transactions with OTC financial instruments will not be subjected to an income tax.

Are there other jurisdictions out there that have done so? Because this is the first time I hear of such a thing. Also, how trustworthy is the broker regulation in that jurisdiction? I fear that if it is not particularly reliable a lot of bucketshops will be taking advantage of these laws.
  • #2
  • Jan 18, 2020 9:43am Jan 18, 2020 9:43am
Now the real question is: How to pretend to be a resident of Belarus. lol
  • #3
  • Jan 18, 2020 10:21am Jan 18, 2020 10:21am
Quoting mlawson71
At a first glance Belarus seems like an unlikely candidate for being a Forex trading haven, but the country surprisingly turned out to be among the most favourable destinations for over-the-counter (OTC) foreign exchange industry. That seems to apply to it now more than ever, as the Belarusian president moved to make Forex trading in the country tax exempt. Alexander Lukashenko may have been the only member of the Belarusian parliament to vote against independence from the Soviet Union in 1991 but he recently signed (https://theforexreview.com/2020/01/14/belarus-makes-forex-trading-tax-exempt/)...
Hi, yes there is another country that does this, it's the one you live in mate! the UK, and it's called 'spread betting', ALL PROFITS ARE TAX FREE
stay green.
  • #4
  • Jan 18, 2020 11:53am Jan 18, 2020 11:53am
Quoting chipsngravey
{quote} Hi, yes there is another country that does this, it's the one you live in mate! the UK, and it's called 'spread betting', ALL PROFITS ARE TAX FREE stay green.
Hi,
Not quite. If HMRC thinks your spread betting trading activities constitute your only job and your sole source of income they may classify you as a professional gambler as your occupation and assess you for income tax on your profits, though this is rare. Otherwise, yes, tax free as you pay betting duty rolled up in the spread each time you deal.
  • #5
  • Jan 18, 2020 2:25pm Jan 18, 2020 2:25pm
Quoting OutThere
Now the real question is: How to pretend to be a resident of Belarus. lol
//-----

hey ot..... mingary probably convinced them it was impossible to make money in forex so there would be no loss of tax income.... with a flip side bonus, now there will be no tax deduction for trading losses.....

it's a win win for belarus...... now if he could sell the same thing to trump......h
to trade and code, keep both simple... no call to impress....h
  • #6
  • Jan 18, 2020 3:59pm Jan 18, 2020 3:59pm
Quoting chipsngravey
{quote} Hi, yes there is another country that does this, it's the one you live in mate! the UK, and it's called 'spread betting', ALL PROFITS ARE TAX FREE stay green.
No wonder UK has the most retail traders: https://brokernotes.co/forex-traders-map/
  • #7
  • Edited 11:44pm Jan 18, 2020 4:05pm | Edited 11:44pm
Quoting hayseed
{quote} //----- hey ot..... mingary probably convinced them it was impossible to make money in forex so there would be no loss of tax income.... with a flip side bonus, now there will be no tax deduction for trading losses..... it's a win win for belarus...... now if he could sell the same thing to trump......h


Yes, if loss can't be claimed, it is a win/win for any country's gov. come to think of it.
  • #8
  • Jan 19, 2020 7:53am Jan 19, 2020 7:53am
Quoting chipsngravey
{quote} Hi, yes there is another country that does this, it's the one you live in mate! the UK, and it's called 'spread betting', ALL PROFITS ARE TAX FREE stay green.
Isn't that gambling though?
  • #9
  • Jan 19, 2020 8:15am Jan 19, 2020 8:15am
Quoting mlawson71
{quote} Isn't that gambling though?
If you looked at a spread betting chart side by side with a 'normal' forex chart(or what ever chart it happens to be), you will not see any difference, because they are the same chart!. Still use's MT4 with all the same indicators etc etc, just use's a prefix or suffix to denote what type of trading account it is. If they called it a 'TAX FREE FOREX ACCOUNT' , would that then mean that it is not gambling and ok?, it doesn't matter what they call it, it's all the same.
  • #10
  • Jan 22, 2020 9:04am Jan 22, 2020 9:04am
Quoting mlawson71
{quote} Isn't that gambling though?
Hi,
It is legally and technically gambling in that you are dealing with a financial bookmaker making prices as a counterparty, not directly with the market. But as long as the bookmaker's prices mirror the underlying market prices then it's the same thing as trading in the market to the trader for all intents and purposes, just with a more attractive tax structure. A matter of form over substance.

Whether or not trading is akin to gambling in an underlying conceptual way is a separate question. For me, the answer lies in how you define the terms. I'd say gambling is accepting fixed odds against you, you are bound to lose in the end if you play long enough, e.g. roulette. Trading is speculation where you can affect the odds and potentially tilt them in your favour by judicious application of your skill/experience/knowledge.

So, trading may or may not be gambling, it depends if the trader can sufficiently tilt the odds in their favour. It brings up other interesting questions around what we'd routinely call gambling activities, e.g. are skilled blackjack card counters (who can tilt the odds their way) gamblers or speculative traders? Quite a murky area, all in!
  • #11
  • Jan 23, 2020 9:09am Jan 23, 2020 9:09am
Thank you for the detailed explanation!
  • #12
  • Jan 25, 2020 3:07pm Jan 25, 2020 3:07pm
Quoting mlawson71
At a first glance Belarus seems like an unlikely candidate for being a Forex trading haven, but the country surprisingly turned out to be among the most favourable destinations for over-the-counter (OTC) foreign exchange industry. That seems to apply to it now more than ever, as the Belarusian president moved to make Forex trading in the country tax exempt. Alexander Lukashenko may have been the only member of the Belarusian parliament to vote against independence from the Soviet Union in 1991 but he recently signed (https://theforexreview.com/2020/01/14/belarus-makes-forex-trading-tax-exempt/)...
That's exciting I guess. But the whole purpose of being regulated by CySEC was that it gives you EU wide coverage for both the broker and the trader. Would traders trade with a broker licensed in Belarus?
Risk Management is of utmost importance!
  • #13
  • Last Post: Jan 26, 2020 9:33am Jan 26, 2020 9:33am
I have asked myself that exact same question. Apart from the actual Belarusians, who else will sign up?
But I guess the purpose of this legislation is to make it a more popular destination for a broker license.
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