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Kazakhstan president signs law increasing crypto miners’ tax burden

Kazakhstan president signs law increasing crypto miners' tax burden

Tax rates for cryptocurrency miners have been raised after President Kassym-Jomart Tokayev’s signing of a measure modifying Kazakhstan’s Tax Code. The fee will be calculated on the basis of the amount of power used to mine digital currencies like bitcoin.

Higher Taxes for Kazakhstan’s Cryptocurrency Miners

Kazakhstan’s President Tokayev has signed a new piece of legislation that amends the country’s statute “On Taxes and Other Mandatory Payments to the Budget” and a supplemental law that enhances the execution of the Tax Code. As a result of the changes, bitcoin miners will now pay a separate rate of tax.

New Tax Rates for the Nation’s Power Grid to Reduce the Load The government claims

Aside from placing limitations on energy supplies and shutting down coin minting operations, Kazakhstan also sought to curtail cryptocurrency mining. In response to the restrictions, several enterprises had to relocate or transfer a large amount of their equipment out of the nation…

In February, President Tokayev instructed officials to identify and levy taxes on all cryptocurrency miners operating in Kazakhstan. State auditors went after mining companies in April for allegedly taking advantage of tax breaks they weren’t entitled to.

A rise in mining tax burden was declared by the Government of Nur-Sultan that month, and one of the early recommendations was to link the new rate with cryptocurrency minting value.

In official declarations, new tax laws are anticipated to equalise the demand on the power system and discourage the use of locally generated energy for mining.

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