Kazakhstan Set to Impose Taxes on Crypto Mining
Bitcoin miners in Kazakhstan will soon be paying taxes to the state as the government looks to raise funds for COVID-19 recovery plans.
Outside China, Kazakhstan controls the third-largest share of the global Bitcoin (BTC) mining hash rate. Recently, governments in West and Central Asia have begun to draft policies targeted at getting the most from their local crypto mining markets.
Bitcoin Miners to Pay 15% Tax in Kazakhstan
According to a report from local news media in the country, the proposed draft seeks to amend the current tax registration and filing procedures to include crypto mining activities. An excerpt from the document reads:
“Thus, a taxpayer intending to pay mining tax is obliged to submit an application for its registration as a payer of mining tax to the tax authority at the place of tax registration.”
If passed, the proposed plan from Kazakhstan’s Ministry of Economy will see crypto miners pay up to 15% in taxes. Furthermore, the new taxation policy requires the country’s tax office to enter information on the crypto miner, set the tax rate during the application stage, fill a FORM STI-025 taxpayer registration card, and provide a copy of said card to the applicant.
Apart from the planned tax rate, mining activities in Kazakhstan will also fall under a new electricity tariff regime. Kazakhstan’s crypto mining taxation plan is reportedly part of the government’s efforts to raise its internally generated revenue in light of the ongoing COVID-19 pandemic.
Central and West Asia Looking Towards Crypto Mining
The news from Kazakhstan is the latest government crypto mining strategy coming out of Central and West Asia. Previously in December 2019, lawmakers in Kazakhstan were reportedly considering implementing a tax exemption for crypto miners in the country.
Earlier in May 2020, Iranian President Hassan Rouhani ordered central bank officials to develop a national cryptocurrency mining strategy. Iran currently has an estimated 4% of the entire Bitcoin hash rate due to the country’s cheap electricity prices.
Rising hash rate for countries like Iran and increasing investments from North American mining firms might see China’s dominance in the arena decline. As previously reported by BeInCrypto, Iran officially legalized crypto mining back in August 2019.
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