The draft law “On Amending the Tax Code” has been submitted by the Ministry of Economy of Kyrgyzstan, providing introductions of crypto mining taxation.
Specifically, the taxation law aims at increasing the state budget revenues and to contribute to the principle of fair taxation in the Kyrgyz Republic, according to the local news outlet Kabar. The emergence of technologies has urged the Ministry to recognize the contribution of crypto mining to the economy
Two options were brought into discussion to implement crypto mining taxation. One option would be income tax, the second one would be taxing expenses incurred during cryptocurrency mining.
Per the report, the author also noted that Kyrgyz government will earn approximately 300 million som ($4.2 million). This amount is considered significant in a country whose annual budget stands at around $1 billion.
Earlier, the tax department of New Zealand has reportedly listed cryptocurrency as one of the legally authorized means to receive salary, and has issued detailed instructions regarding its taxing process.