Iranian Crypto Miners Tax Exempt If They Repatriate Offshore Earnings
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 costs 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 rates 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 it 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.