Kazakhstan

Kazakhstan classifies cryptocurrencies as virtual digital assets, specifically unsecured digital assets, under the Law on Digital Assets which became effective on April 1, 2023. The country has a regulated environment for digital assets, characterized by a dedicated legal framework, mandatory licensing for mining and exchange operations, and specific tax provisions. While the general issuance and circulation of digital assets are prohibited outside the Astana International Financial Centre (AIFC), licensed exchanges and mining operations are recognized exceptions. The State Revenue Committee of the Republic of Kazakhstan (SRC) is the primary authority governing crypto taxation. This framework is established through the Law on Digital Assets and subsequent Tax Code amendments, with the Digital Asset Administration Department responsible for overseeing digital asset taxation. For individual investors, residents are taxed at a flat rate of 10%, while non-residents face a 20% rate on income derived from within Kazakhstan. This applies to all forms of digital asset income, including capital gains from selling cryptocurrency and income generated from digital assets. There is no distinction based on holding periods, gains are taxed at the same flat rates regardless of how long an asset was held. Both converting crypto to fiat currency and swapping one cryptocurrency for another are considered taxable events, with gains calculated based on values published by the tax authority or AIFC. Corporate entities are subject to a 20% corporate income tax on their global income, but critically, expenses related to cryptocurrency mining are not deductible for income tax purposes. Revenue from the sale of digital assets, including distributions from mining pools, is exempt from Value Added Tax (VAT), meaning a 0% rate applies. Staking rewards are taxed as ordinary income at 10% for residents and 20% for non-residents upon receipt. However, official guidance on the precise timing of this taxation (at receipt versus sale) is not officially clarified. Mining operations are subject to a special electricity tax of 2 tenge per kilowatt-hour, introduced in 2024. Additionally, corporate entities engaged in mining are subject to the 20% corporate tax, and mining-related expenses are not deductible. Decentralized Finance (DeFi) activities, such as yield farming or liquidity provision, are generally treated as digital asset income subject to standard tax rates, with each transaction potentially constituting a taxable event. However, a specific regulatory framework for DeFi is currently absent. Non-Fungible Tokens (NFTs) are also subject to standard digital asset taxation at 10% or 20%, though dedicated guidance specifically for NFTs has not been provided. Recent legislative amendments signal an expansion of licensing and regulatory oversight for cryptocurrency exchange operators. These operators are now placed under the direct supervision of the National Bank, extending regulatory reach beyond the previous Astana International Financial Centre framework.