Iran Miners to receive tax exemptions for repatriating overseas earnings

The cryptocurrency mining community in Iran stands to benefit from tax exemptions as per recent reports. According to the announcement made by Iran’s National Tax Administration (INTA)., crypto miners in Iran will be eligible for tax exemption if they agree to repatriate their overseas earnings. 

Reported, these exemptions are similar to those offered for non-oil exporters get tax. However, according to the publication, there is a catch. Crypto miners in Iran are required to channel back their earnings from their crypto mining activities into the Iranian economy. 

While basing their decision on the requirements set by the country’s Central Bank, INTA believes miners are supposed to invest their profits in Iran rather than overseas. In addition, the government sees cryptocurrencies as taxable assets.

Mining is not that profitable anymore

Generally, many see cryptocurrency mining as a very lucrative business. However, despite public perception, crypto miners do not earn as much.  The report also indicates that 70-80% of their earnings are injected back into the mining process. 

Reportedly, crypto miners in Iran spend less on their electricity bills compared to other miners in different jurisdictions. Per the records, some states in the US charge as high as $0.33 kilowatt an hour, while in Iran residents only have to part with $0.5 per kilowatt-hour. Notably, for miners in Iran electricity charges are be based on the rate of power imports.

Iran miners still face regulatory challenges

In addition, despite the favourable conditions, crypto mining operations are not so lucrative since the law in the country bans the selling and buying of cryptocurrencies. Authorities in the country have placed a ban on any crypto transactions in the country. Although many Iranians are crypto enthusiasts, most of the mined crypto ends up with crypto users in different locations. 

With the ongoing ban, the likelihood of miners injecting their earning into the country’s economy will prove to be a hard task. As for the crypto community in Iran, there is hope that the government will soon change their stance on cryptocurrency and eventually allow them to transact in crypto. When that day comes, the tax exemption will be a huge deal for the miners.