Legislators in Kazakhstan will not tax the extraction of cryptographic currency until the extracted cryptographic currency is exchanged for fiat money. According to a legislative analyst from the local blockbuster association, crypto-currency mining will not be treated as an economic activity, but rather as "purely technological progress," Kursiv reports in a local business publication on December 4.
Madi Saken, legislative analyst at the National Association for the Development of Blockchain and Data Center Industry of the Republic of Kazakhstan (NABDC), reportedly announced the news at the local network event "Blockchain Day" on December 4.
Tax liabilities concern only the income in "real money".
According to the report, Kazakh lawmakers have finalised the draft law on cryptographic taxation. The bill is currently being considered by the presidential administration. The bill is to be sent to Mazhilis, the lower house of the bicameral parliament of Kazakhstan, in December 2019.
In particular, the proposed law will specify the legal status of cryptographic mining and the rules for its taxation. According to Saken, digital assets and cryptoses will not be considered taxable, as tax liabilities apply only to income earned in "real money". As such, taxes will only apply if the cryptographic currency is exchanged for fiat money.
Mining households would be taxed analogously to data centres.
However, cryptographic mining will continue to be considered an economic activity in cases where entities offer services for the use of cryptographic mining equipment, as reported by the executive authorities. Mining farms would be taxed analogously to typical data centres.
