Kazakh officials have found several companies casting digital currencies that take advantage of tax cuts that they allegedly couldn’t benefit from. Auditors said cryptocurrency companies would register as “innovative companies” and receive millions of dollars in tax incentives.
Five Kazakhstan Mining Organizations Get $ 18 Million Tax Exemption
Kazakhstan auditors have identified cryptocurrency mining companies that have been able to enjoy the tax incentives normally offered to companies engaged in innovation development. According to a representative of the national accounting committee that oversees budget spending, this indicates that the “Digital Kazakhstan” program is not being implemented properly.
According to the Inbusiness.kz portal, Akylbay Ibraev is a company Astana Hub And when this wasn’t the main purpose of TechPark, we received support for investment projects in the field of cryptocurrency mining.
Ibraev revealed that five mining farms were given tax incentives of 8.5 billion tenge ($ 18 million) in the third quarter of 2021. “The task of the hub is to attract and implement investment projects in IT technology,” he pointed out.
However, it turns out that the miners are doing nothing that goes against current law. The Accounting Committee is currently proposing amendments to avoid such situations in the future. “Based on the results of our audit, a recommendation was made to the government to improve the law in this area,” Ibraev added.
In addition, according to Askar Zhambakin, Deputy Minister of Digital Development, Innovation and Aerospace Industry in Kazakhstan, the crypto business cannot blame damages or losses to the national budget.
“These mining firms, as well as other entities and IT companies, have the right to register. [at the tech park].. We are currently modifying the registration rules to address this issue. ” He revealed that any Astana Hub resident can rely on tax cuts, affordable office space, and other support.
Kazakhstan, which became a mining hotspot last year after China launched an attack on the industry, has also cracked down on the sector in the past few weeks.Miners have been accused of expanding the country’s electricity shortage, and in February President Kassym-Jomart Tokaev Ordered A national financial oversight body to identify all mining entities and check their tax and customs documents.
Mining companies Power outage Power shortage already during the winter Forced Some companies move to other countries like the United States. Authorities in mid-March close Over 100 coin casting facilities throughout Kazakhstan, including legally operated Bitcoin farms.
Do you think Kazakhstan will allow crypto miners to continue to benefit from the tax exemptions offered to tech companies? Share your thoughts on this subject in the comments section below.
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