Introduction of digital mining fees

The Law of the Republic of Kazakhstan "On Amendments and Additions to the Code of the Republic of Kazakhstan" On Taxes and Other Mandatory Payments to the Budget "(Tax Code) and the Law of the Republic of Kazakhstan" On the Enactment of the Code of the Republic of Kazakhstan "On Taxes and Other Mandatory Payments to the Budget" ( Tax Code) "dated June 24, 2021 No. 53-VII, new articles 606-1-606-5 of the Tax Code are provided, which come into force on January 1, 2022. Payers of fees for digital mining will be legal entities and individuals engaged in digital mining (mining of cryptocurrency). The object of payment is the amount of electricity consumed during digital mining (mining of cryptocurrency). The amount of the fee is calculated by the payers of the fee based on the actual volumes of electrical energy consumed in the implementation of digital mining and the established fee rate. The rate of payment for digital mining will be 1 tenge per 1 kilowatt of electricity power consumed in the implementation of digital mining (mining of cryptocurrency). Payers of the fee pay the current amount of the fee to the budget on a quarterly basis no later than the 20th day of the month following the reporting quarter The tax period for calculating fees for digital mining is a quarter, tax reporting is not provided. Payers will inform the authorized body for mining, which is the Committee for Information Security of the Ministry of Digital Development, Innovation and Aerospace Industry of the Republic of Kazakhstan (ICRiAP), about the results of their activities. The authorized body in the field of information security (ICRiAP) quarterly, no later than the 15th day of the second month following the reporting quarter, submits information about the payers to the authorized body. The authorized body in the field of ensuring information security submits to the authorized body information only on payers of the fee (quarterly). Currently, proposals are under consideration and approval for the introduction of the following information from January 1, 2022, transmitted by ICRiAP: - about objects of taxation; - about the location of the specified objects; - about the amount of electricity. The effect: • improving tax administration of payers for digital mining; • calculation of fees by state revenue authorities for digital mining based on information provided by ICRiAP; • improving control over the completeness and timeliness of payment of fees; • reduction of uncontrolled electricity consumption by mining farms.