Business & FinanceSpotlight

Iran Exempts Tax on Crypto Miners But There’s One Condition

Iran’s National Tax Administration has announced that crypto miners in the country will be exempted from tax the country imposed recently after a series of power surges caused by overuse of electricity. But there is one condition and that is if they agree to repatriate their overseas earnings back to Iran. Financial Tribune, an Iranian newspaper released the report saying that INTA (Iranian National Tax Administration), is planning to give the crypto miners the same tax exception like the one it offers to other non-oil exporters in the country.

Iran recently considered crypto mining income as taxable when the industry came in the spotlight after a series of power surges across the country. All the industries in Iran are subjected to tax and the Central bank has guidelines asking these industries to repatriate their overseas earnings to get tax exemptions.

The report by the Financial Tribune says that crypto miners in Iran have said that the government’s concern is invalid as the miners don’t send their earnings overseas and almost 70-80% of the profits are thrown back into the production cycle by miners across the country.

Bitcoin mining is of utmost importance process for the bitcoin network. Transactions details are stored on every node in the bitcoin network. To verify transactions so that new blocks can be added to the existing blockchain, the process of mining comes into action.

As miners verify the transactions, there is no need for a central authority to supervise any of the transactions. That is why bitcoin is truly secured very much decentralized. In return, miners get awarded for verifying and processing the transactions on the bitcoin network. At the moment, the miners get 12.5 bitcoin for successfully adding a block to the network.

READ ALSO: Mine Bitcoin to Save Economy: Iran Finally Issuing Crypto Mining Licences

Iran’s Cheap Electricity

In July, Iranian Ministry of Energy suspended all crypto mining operations in the country and the import of mining equipment was banned. The ban was a result of a sudden surge in electricity consumption, that caused massive blackouts across Iran. The ministry resumed the operations once the energy prices were revised on 21st July.

READ ALSO: Bitcoin Fever Grips Iran Due to Crumbling Economy

The finalized prices were applicable to all crypto miners and later in July, the crypto mining industry was also officially recognized by the Iranian government bringing it into the tax bracket. The induction of crypto industry into the Iranian chamber of commerce and industry introduced taxes onto the crypto mining industry and it was long rumored that the cryptos might get the tax exemptions, previously awarded to non-oil exporters. The speculations were confirmed this week by the INTA.

READ ALSO: Regulate Crypto Miners to Minimize Human Trafficking

The new prices for the energy sector were highlighted by the Iranian government on 21st July. At the moment, the price rate for miners is 2 cents per kilowatt-hour (kWh) but soon the government will revise this rate. It was revealed that the rate after rising up by a few cents will be around 7 cents per kWh. Iran also gave a heads up to the miners saying that the country will not provide them legal cover for their endeavors on an international platform.

READ ALSO: U.S. Crypto Traders Ecstatic – Binance Accepting BTC, LTC & ETH Very Soon

Tags

Shahzaib Zafar

Electrical Engineer, Crypto enthusiast, a tech nerd and a developer with a keen interest in blockchain, writes daily articles about bitcoin and cryptocurrencies for blockpublisher.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.