Tax NewsFlash - April 2024

Dear Readers,

The Ministry of Finance approved¹ new Rules for Determining and Publishing the Value of Digital Assets, thereby repealing the previously effective rules approved last year.

In addition to definitions of digital assets, digital asset exchanges, and digital mining pools provided in the old rules, the new rules introduced the following concepts:

• Price from information sources - The price obtained from officially recognized sources of information, including exchange quotations from other sources;
• CoinMarketCup - a crypto website publishing real-time prices of digital assets, market data on the capitalization of digital assets, and the volume of digital asset transactions.

According to the new rules, the value of digital assets is calculated as the weighted average value on the day's end data from the CoinMarketCup website. On non-working days, the value is derived from the preceding working day's assessment.

The list of types of digital assets subject to publication remains unchanged and includes Bitcoin, BitcoinCash, Dash, Dogecoin, EthereumClassic, Horrizen, Litecoin, Monero, Siacoin, Thronix, Zcash. The State Revenues Committee may supplement the list based on an application from a digital mining pool.

For taxation of income from digital mining activities, digital mining pools, and digital asset exchanges, the value of digital assets is determined as of the date of their receipt. Digital assets with a fixed value in foreign currency are converted into tenge using the exchange rate approved by the National Bank as of the date of receipt.

The value of digital assets will be published monthly on the websites of entities contracted by the tax authorities. The tax authorities will provide links to these internet resources on their official website kgd.gov.kz.

The new rules come into effect on 15 April 2024.