Kazakhstan's lawmakers won't be taxing cryptocurrency mining until the mined crypto is exchanged for fiat money.
According to a legislative analyst at a local blockchain association, cryptocurrency mining will not be treated as entrepreneurial activity but rather a "Purely technological progress," local business publication Kursiv reports Dec. 4.
Madi Saken, legislative analyst at the National Association for the Development of the Blockchain and the Industry of Data Centers of the Republic of Kazakhstan, reportedly announced the news at a local blockchain event "Blockchain Day" on Dec. 4.
Tax liabilities only apply to income in "Real money".
Specifically, the proposed law will establish the legal status of crypto mining as well as rules for its taxation.
According to Saken, digital assets and cryptos won't be considered as subject to taxation because tax liabilities only apply to the income made in "Real money." As such, taxes will only be applicable when cryptocurrency is exchanged for fiat money.
"Tax liabilities only emerge when there is an income in the form of real money, particularly when a cryptocurrency is exchanged for real money, which means it is sold on an exchange. Then, this income in the form of classic money will be subject to taxation."
Mining farms would be taxed by analogy with data centersHowever, crypto mining will still be deemed entrepreneurial activity in cases when entities offer services to use their crypto mining hardware, the executive reportedly stated.
Mining farms would reportedly be taxed by analogy with typical data centers, the report notes.
In 2018, the governor of Kazakhstan's main financial hub, the Astana International Financial Center, claimed that crypto and blockchain innovation will be supported despite the need to regulate cryptocurrencies.
Kazakhstan Won't Tax Cryptocurrency Mining: Report
gepubliceerd op Dec 4, 2019
by Cointele | gepubliceerd op Coinage
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