Iranian crypto miners will be eligible for tax exemption if they agree to repatriate their overseas earnings.

According to the Iranian National Tax Administration (INTA), cryptocurrency miners in Iran will be eligible for tax exemption if they agree to repatriate their overseas earnings.

According to a report by the local daily "Financial Tribune," INTA has introduced a tax exemption similar to what non-oil exporting countries offer for repatriation. INTA considers cryptocurrency mining to be a taxable activity, similar to any other industrial activity, and believes it should follow the requirements set by the Central Bank of Iran for repatriating overseas income.

However, Iranian miners feel that the government's concern about capital flight is disproportionate. They claim that 70-80% of their mining activity income will re-enter the country's production cycle, as reported.

Cheap Domestic Electricity

In recent years, cryptocurrency mining in Iran has become a lucrative business due to extremely low domestic electricity prices. The cost per kilowatt-hour is only $0.05, compared to an average of $0.12 in the United States and up to $0.33 in certain states.

We reported on June 25 that electricity consumption for mining in Iran was increasing, and at that time, the government did not support crypto mining. However, according to a report, after months of speculation about the fate of cryptocurrency mining in Iran, the government now views it as a legitimate industrial activity. However, a few days later, the Iranian government enacted a new law that does not recognize crypto as legal tender or acknowledge domestic transactions using cryptocurrency.

Related Reading: Iran's electricity consumption is rising, domestic miners may face power cuts

Data Analysis

According to a survey conducted by analysis company Gate Trade, out of 1,650 Iranian Bitcoin holders surveyed by the Persian Telegram group, 25% earn between $500 and $3,000 per month from using cryptocurrency.

Over a third of respondents (35%) earn income through mining, while 58% earn income through trading, whether on trading platforms or through local currency exchange merchants providing liquidity for the Iranian rial.

The survey shows strong growth in domestic mining, with 70% of respondents expressing interest in learning more about local mining operations.

The Iranian crypto market is shifting its focus from global trading platforms to local exchanges and miners, as most centralized exchanges with KYC compliance do not include Iranians. About 83% of respondents believe the community needs stronger communication channels to achieve growth.

As Bitcoin developer and educator Jimmy Song said:

"The demand for Bitcoin is more pronounced in economically distressed economies than in first-world economies, which is to be expected as they feel the effects of currency inflation more."

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