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Crypto miners

KAZAKHSTAN’S PRESIDENT  SIGNS LAW AUGMENT CRYPTO MINERS TAX BURDEN 

Kazakhstan’s President Kassym-Jomart Tokayev has signed a bill amending the country’s Tax Code to impose higher tax rates on cryptocurrency miners. The levy will be calculated based on the amount and average cost of electricity used in the extraction of digital currencies. He signed a new piece of legislation amending the country’s law “On Taxes and Other Mandatory Payments to the Budget,” as well as a supplementary law to improve the Tax Code’s implementation. The amendments establish different tax rates for cryptocurrency mining.

The exact levies will be calculated based on the average cost of the electricity used to mint coins during a given tax period. They start at 1 Kazakhstani tenge (approx. $0.002 at the time of writing) per kilowatt-hour (kWh) when a miner paid 25 tenge or more ($0.053) per kWh and can reach 10 tenge if the electricity tariff was in the 5 – 10 tenge ($0.011 – $0.021) range.

RELATED: Oklahoma Offering Tax Breaks For Crypto Miners

Crypto farms that use renewable energy will pay the lowest tax rate of one tenge per kWh, regardless of their cost. The surcharge went into effect on January 1, 2022, following the Central Asian country’s growing power deficit throughout last year. The shortages were attributed to an influx of cryptocurrency miners following China’s decision to crack down on the industry in May 2021.

Kazakhstan attempted to limit cryptocurrency mining as well, imposing electricity supply restrictions during the cold winter months and shutting down coin minting facilities across the country. Some companies were forced to relocate to other mining hotspots or relocate a significant portion of their equipment out of the country as a result of the measures.

About Godwin

Godwin is a multi-faceted writer. He covers the latest and most significant news in the crypto industry for Newsbsc. Aside from his work here, he writes exceptional SEO optimized web contents for other websites in different sectors.

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