Iranian Cryptocurrency Miners Can Claim A Tax Holiday If They Repatriate Their Earnings

Iran has brought a new scheme to lure its cryptocurrency miners. The miners will be eligible for a 100% tax exemption if they repatriate their overseas income like non-oil exporters of the country.

According to Financial Tribune, this has been announced by Iran’s National Tax Administration (INTA) yesterday. But we couldn’t find an official source confirming this on INTA’s website.

Crypto mining is considered an industrial activity in Iran. As a result, the miners are subject to the taxation laws of the country. The activity was legalized by Iranian government months ago, which gave a shot in the arm of crypto miners.

Crypto mining pools from around the world were already flocking to Iran due to its cheap electricity pricing, and the legalization of mining gave them another reason to do so. As a result, cryptocurrency mining has become a thriving industry in Iran. 

Now can this tax holiday give another boost to crypto miners of the country? If we analyze their reactions to the announcement, it doesn’t seem so.

Mixed reactions from miners

But crypto miners are not very pleased with this latest announcement. Their reactions are mixed, and they’re saying that the concerns of government about capital outflow are disproportionate.

About 70% – 80% of their revenue is reinvested in mining activities.

However, in our opinion, the miners should not be too concerned about this rule. At least the Iranian government is allowing them to operate legally, unlike India and China where they are not allowed to operate despite cheap electricity. So they should simply take advantage of this tax holiday if they can by repatriating their earnings.

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via LuvCrypto