Kazakhstan Won’t Tax Crypto Mining Until Mined Crypto Is Exchanged for Fiat

The lawmakers of Kazakhstan won’t be taxing cryptocurrency mining until the mined crypto is exchanged for fiat money.

On Dec. 4 local business publication Kursiv reported that a legislative analyst at a local blockchain association said that cryptocurrency mining will not be treated as an entrepreneurial activity but rather a “purely technological progress.”

The legislative analyst, Madi Saken, reportedly announced the news at a local blockchain event “Blockchain Day” on Dec. 4. Saken is an analyst at the National Association for the Development of the Blockchain and the Industry of Data Centers of the Republic of Kazakhstan (NABDC).

The lawmakers of Kazakhstan has reportedly finalized a draft law on crypto taxation. The bill is currently under consideration and would be sent to the Mazhilis, the lower house of the bicameral Parliament of Kazakhstan, in December 2019.

The proposed law will establish the legal status of crypto mining as well as rules for its taxation.

“Tax Liabilities Only Apply To Income Made In Real Money”

Saken says that digital assets and cryptos won’t be considered as subject to taxation because tax liabilities only apply to the income made in “real money.”

Therefore, taxes will only be applicable when cryptocurrency is exchanged for fiat money. Saken further said:

“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.”

However, crypto mining will be deemed entrepreneurial activity in cases when entities offer services to use their crypto mining hardware. Mining farms would reportedly be taxed by analogy with typical data centers.

The government of Kazakhstan has taken a positive stance towards crypto and blockchain so far.

Source: cointelegraph | Image: http://mfa.gov.kz/en/zagreb/

#Legislation #CryptoMining #government #kazakhstan #cryptocurrency #fiat

0 comments