Crypto miners in the Republic of Kazakhstan will now have to pay increased tax rates based on the amount of electricity consumed, as President Kassym-Jomart Tokayev has signed a bill amending the country’s Tax Code into law.
The new tax rate will be determined by the average price of the electricity used to mine coins over a given tax period.
The tax ranges from 1 tenge per kilowatt hour (kWh), if a miner pays over 24 tenges per kWh for electricity, to a tax of 25 tenges per kWh, if a miner pays less than 1 tenge per kWh.
These changes to the “On Taxes and Other Mandatory Budget Payments” law will take effect on January 1.
According to the amendments, crypto miners who use their own electricity will pay 10 tenges per kWh in taxes. In contrast, those who use renewable energy produced by themselves will pay 1 tenge per kWh.
Crypto mining farms that use renewable energy will pay the lowest tax rate of one tenge per kWh, regardless of cost.
Kazakhstan has become a hub of crypto miners since China banned cryptocurrencies last year, resulting in a double-digit increase in the global bitcoin hash rate and an acute power deficit in the country.
The Crypto Times previously covered that Kazakhstan had imposed new reporting requirements on cryptocurrency mining operators, requiring them to register their operations with authorities.
While also attempting to facilitate cooperation between banking institutions and crypto exchanges registered at the Astana International Financial Center (AIFC) in the previous month.
