The President of Kazakhstan signed a law on increasing the tax burden for cryptomineers
President of Kazakhstan Kassym-Jomart Tokayev signed a law on amendments to the country's Tax Code, providing for an increase in tax rates for cryptocurrency miners. The fee will depend on the amount and average price of electricity used to mine digital currencies such as bitcoin. Cryptocurrency Miners in Kazakhstan will Pay Higher Taxes
President of Kazakhstan Tokayev signed a new legislative act amending the country's law "On Taxes and other mandatory payments to the budget", as well as an additional law expanding the application of the Tax Code. The amendments introduce differentiated tax rates on cryptocurrency mining.
The exact fees will be determined based on the average price of electricity consumed for coinage during a certain tax period. They start from 1 Kazakhstani tenge (about 0.002 US dollars at the time of writing) per kilowatt-hour (kWh), when the miner pays 25 tenge or more (0.053 US dollars) per kWh, and can reach 10 tenge if the electricity tariff was in the range of 5-10 tenge (0.011 - 0.021 US dollar).
Crypto farms using electricity generated from renewable sources will pay the lowest tax rate of 1 tenge per kWh, regardless of its cost. This surcharge was introduced on January 1, 2022, after a growing shortage of electricity was observed in this Central Asian country over the past year. The shortage is blamed on the influx of crypto miners following China's decision to crack down on the industry in May 2021.
The government says that the new tax rates will reduce the load on the country's energy system
Kazakhstan has also tried to restrict cryptocurrency mining by imposing restrictions on electricity supply during the cold winter months and closing coin minting factories in its regions. These measures have forced some companies to move to other mining locations or take a significant part of their equipment out of the country.
In February, President Tokayev instructed the relevant authorities to identify all cryptocurrency miners working in Kazakhstan and raise their taxes. In April, state auditors prosecuted mining companies that allegedly used tax breaks that they should not have used.
In the same month, the government of Nur Sultan announced that it was preparing to increase the tax burden on miners, and one of the initial proposals was to link the new rate to the value of the mined cryptocurrency. According to official statements, it is expected that the new tax rules will even out the load on the energy system and will prevent the consumption of domestic electricity for mining.
https://coin-signal.com/cryptonews/the-president-of-kazakhstan-signed-a-law-on-increasing-the-tax-burden-for-cryptomineers/
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