Analysis of Kazakhstan's Digital Asset Taxation and Regulatory Policies

1. National Overview

The Republic of Kazakhstan is located at the crossroads of Europe and Asia, and is the largest landlocked country in the world. After gaining independence in 1991, the country has experienced relatively rapid economic development and stable political situation in the Central Asian region. It is noteworthy that Kazakhstan has excelled in the field of Bitcoin mining, ranking third globally in mining power by 2021. As of March 2025, the number of officially registered mining companies in the country has reached 75.

2. Definition of digital asset

According to Kazakhstan law, digital assets are properties created in electronic digital form, with specific digital codes, registered and protected through distributed data platform technology. These assets can serve as a medium of exchange, a unit of account, or a means of savings, but are not issued or guaranteed by any government.

3. Tax Policy

Kazakhstan imposes multiple taxes on digital assets:

1. Mining Electricity Tax: Starting from 2024, the uniform tax rate will be 2 tenge/kilowatt-hour. When using renewable energy, the tax rate will be 1 tenge/kilowatt-hour.

2. Corporate Income Tax: Digital asset companies are required to pay a corporate income tax of 20%. The actual income from the sale of digital assets is not included in the annual total revenue, but the taxable income is calculated by multiplying the quantity of digital assets by the officially published price.

3. Personal income tax: The income generated from the sale of digital assets is subject to personal income tax. The tax rate for residents is 10%, while for non-residents it is generally 20%.

4. Value-added tax: Digital asset mining activities and sales are exempt from value-added tax.

4. Regulatory Policies

Kazakhstan takes an open and supportive attitude towards digital assets, with the main regulatory measures including:

1. Establish the Astana International Financial Center (AIFC) as a special area for digital asset trading and regulation.

2. Establish the Astana Financial Services Authority (AFSA) to regulate financial activities within the AIFC.

3. In 2023, the "Digital Asset Law" was enacted to provide a legal basis for the issuance, circulation, and mining activities of digital assets.

4. Promote the digital asset project and explore the application of national digital currency.

5. Plan to establish a "CryptoCity" pilot area, allowing the use of digital assets to purchase goods and services.

6. Launch the "Crypto Card" project to integrate digital assets with traditional payment systems.

5. Latest Updates

1. The central bank is formulating new legislative amendments to lay a legal foundation for the circulation of digital assets.

2. Plan to introduce digital financial assets (DFA) and promote asset tokenization.

3. Establish a digital asset regulatory sandbox to allow market participants to test innovative services and technologies.

4. Promote multiple pilot projects, including the issuance of stablecoins, asset tokenization, and the storage of digital assets.

5. Strengthen tax audits, with an additional collection of 4.9 billion tenge in taxes in 2024, including taxes on digital asset mining and corporate income tax.

Through these measures, Kazakhstan is actively building a digital financial center in Central Asia, enhancing its position in the global digital economy.