Kazakhstan has proposed legislation that would see a 15% tax imposed on Bitcoin mining firms

Kazakhstan proposed a bill imposing a 15% tax on Bitcoin mining. This is part of an effort to raise money to help fight the COVID-19 pandemic.

kazakhstan-has-proposed-legislation-that-would-see-a-15-tax-imposed-on-bitcoin-mining-firms

Kazakhstan has proposed legislation that would see a 15% tax imposed on Bitcoin mining firms

This bill was proposed by the Ministry of Economy of the country itself. In particular, the new tax increase plan requires Bitcoin miners first to apply to register to operate with the authorities. Then, taxpayers are required to indicate a tax rate of 15 percent in their annual tax calculations.

The report emphasizes the following:

“The terms of registration make the bill unique … taxpayers working with cryptocurrencies are different from the very start of their tax returns.”

The proceeds from the draft tax will go into the construction of the infrastructure needed to fight COVID-19, giving the economy a boost. According to official data, this pandemic has killed nearly 1,300 Kazakhs, with more than 100,000 infected.

Cryptocurrency research firm Bitooda said Kazakhstan, a former Soviet Union country in Central Asia, accounts for about 8% of the total global Bitcoin hashrate. Along with Iran and Russia, it boasts the world’s third-largest cryptocurrency mining industry.

Miners are often attracted to Kazakhstan’s cheap electricity supply, averaging 3 cents per kilowatt-hour.

In June, Kazakhstan’s Minister of Digital Development, Innovation and Aerospace Industry, Askar Zhumagaliyev, revealed that there are a total of 14 Bitcoin mining companies operating in the north of the country.

Over the next three years, the country is targeting up to $ 738 million in investments from crypto-related activities, especially mining. Accordingly, the Kazakh government is also planning to enact laws to regulate the cryptocurrency industry. The new laws are expected to set new electricity tariffs for the cryptocurrency mining sector.

Read more:

Follow us on Telegram

Follow us on Twitter

Follow us on Facebook

You might also like

LATEST NEWS

LASTEST NEWS