The upcoming Kazakhstan crypto taxes will aim to regulate the country’s burgeoning crypto mining industry. The authorities plan to impose 15 percent taxes in an effort to shore up reserves in the fight against COVID-19 pandemic.
Approximately 6 percent of the worldwide BTC mining hashrate comes from Kazakhstan, making it a significant player in the global arena. Kazakh BTC miners have long enjoyed an uninterrupted reign of high-profit margins on the back of low electricity charges and an unregulated crypto market. All this is set to change as Kazakhstan crypto taxes are set to kick in with the government working to raise money for Coronavirus recovery.
Kazakhstan crypto taxes to help in the fight against COVID-19
Interestingly, Kazakhstan is second only to China when it comes to BTC mining hashrate share globally. The year 2020 saw authorities in many countries draft crypto-related regulations and even impose taxes on cryptocurrency mining operations.
As per local media reports, Kazakhstan crypto taxes would be capped at 15 percent. The proposed draft aims to include crypto mining activities in the present tax filing forms and procedures. The official document mentions the crypto taxpayer must register himself by filing a registration application at the place of registration and subsequently file the appropriate taxes as calculated.
The plan has been drafted by the Kazakhstan Ministry of Economy. What makes the draft unique is the registration clause. The taxpayer would register as a crypto miner, provide all the relevant information to the tax authorities by applying, set the tax rate while filing the form STI-025, and receive a copy of the registration card. The crypto taxpayer is differentiated right at the beginning of tax filing.
Kazakhstan aiming to regulate the burgeoning crypto market
Besides the upcoming Kazakhstan crypto taxes, the country’s authorities are also planning to regulate the crypto mining as per the latest electricity tariff rules. This will ensure that mining farms do not exploit electricity production.
Kazakhstan crypto taxes are part of the country’s efforts to fight against the Coronavirus. The revenues so generated will help the country build infrastructure to face the raging pandemic. The new tax regulations also point towards a much more regulated crypto industry in the Asian nation.