Kyrgyzstan proposes to introduce cryptocurrency mining taxation

The Ministry of Economy of Kyrgyzstan submitted a draft law “On Amending the Tax Code” for public discussion, which proposes the introduction of taxation on cryptocurrency mining.

According to the government, the taxation of cryptocurrency mining will increase the state budget revenues by almost $ 5 million per year, and will also contribute to the “principle of justice”, according to which taxation in the country should be universal, regardless of the type of activity carried out.

Now in Kyrgyzstan there are about 80,000 mining devices. According to government estimates, when they work 24 hours a day, their income is $ 436,000 per day. Thus, the introduction of a tax at a rate of 15% of the amount of energy costs will increase the state budget by $ 4,980,560 a year.

In the current situation, there are two possible taxation options for mining: taxation of income earned or taxation of mining expenses. Most likely, the government will adhere to the second option, since it requires control over the costs of electricity consumption, which are easy to calculate.

Recall that, as previously reported, employees of the State Service for Combating Economic Crimes of Kyrgyzstan (GSBEP) identified an illegal mining farm of more than 8,000 devices.