Cryptocurrency miners in Iran will be eligible for a tax exemption if they agree to repatriate their overseas earnings.
Cryptocurrency miners in Iran will be eligible for a tax exemption if they agree to repatriate their overseas earnings, according to Iran’s National Tax Administration (INTA).
Per a report by local English-lanuage news daily Financial Tribune, INTA introduced a repatriation tax exemption similar to the one it offers non-oil exporters.
INTA considers cryptocurrency mining a taxable business, like any other industrial activity, and as such, believes it should follow the requirements set by the Central Bank of Iran in repatriating their overseas earnings.
Per the Financial Tribune, Iranian miners think that the government’s concerns over the possibility of capital flight is disproportionate. They reportedly claim that 70–80% of the revenue from their activities goes back into the production cycle.
Cheap electricity in Iran
Cryptocurrency mining has become a lucrative business in Iran in recent years due to extremely low electricity prices. Each kilowatt-hour costs only $0.05 cents, while one kilowatt-hour in the United States cost an average of $0.12, and in some states $0.33.
Electricity prices for crypto miners however, will now be set based on average power export rate in rials.
Iranian government authorizes crypto mining as industrial activity
As Cointelegraph previously reported at the end of July, the Iranian government, after months of speculation over the fate of mining cryptocurrencies in Iran, recognized crypto mining as legal industrial activity. However, just days later, the Iranian government instituted a new bill that does not accept crypto as legal tender or recognize domestic transactions carried out with cryptocurrencies.
Source: , CoinTelegraph
Articles listed with Cash Tech News as the author are either general information, or may have been imported from another website, to bring our readers a rich media experience that encompasses articles that we find interesting, as well as those curated by others.
The views and opinions expressed here are for informational purposes only, and should not be confused with professional financial advice. These opinions are solely those of the author and do not necessarily reflect the views of CashTechNews.com. Every investment and trade involves risk. You should conduct your own research, and contact your professional financial advisor before making any investment.
Corrections, feedback, and ideas should be submitted through the website contact form.