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In Kyrgyzstan, miners were offered to tax at 15%

The Ministry of Economy of Kyrgyzstan submitted for public discussion amendments to the Tax Code governing the taxation of cryptocurrency mining. The corresponding bill was published on the official website of the government. In particular, it is proposed to establish a tax in the amount of 15% of the volume of electricity costs in the extraction of cryptocurrencies. According to the document, taxpayers are local and foreign organizations operating through a permanent establishment in Kyrgyzstan, and […]

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The Ministry of Economy of Kyrgyzstan submitted for public discussion amendments to the Tax Code governing the taxation of cryptocurrency mining. The corresponding bill was published on the official website of the government.

In particular, it is proposed to establish a tax in the amount of 15% of the volume of electricity costs in the extraction of cryptocurrencies. According to the document, taxpayers are local and foreign organizations operating through a permanent establishment in Kyrgyzstan, as well as individual entrepreneurs.

The ministry expects that the introduction of such a mining tax will increase the state budget by 346.8 million soms (about $ 4.9 million).

It is noteworthy that as an example for calculating the cost of electricity during the extraction of cryptocurrencies, the ASIC miner S9i appears in the document.

It is worth noting that, according to preliminary data, about 80 thousand devices are currently operating in Kyrgyzstan, which allow mining.

In addition to mining taxation, the bill provides for the definition of the terms “cryptocurrency”, “cryptocurrency mining” and “hashing”.

Recall that in July, local authorities discovered a large mining farm that consumed about 7 megawatts of electricity – like several districts of Bishkek.

After that, the press secretary of the Prime Minister of Kyrgyzstan, Adilet Sultanaliev, said that the issue of legalizing mining in the country should be decided not to the detriment of the real sector of the economy and in accordance with the capabilities of local energy.

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