Iran

In Iran, cryptocurrencies are officially recognized as digital assets, not legal tender. The country operates under a regulated framework, which includes licensing requirements for mining operations and mandatory Know-Your-Customer (KYC) checks for cryptocurrency exchanges overseen by the Central Bank of Iran (CBI). The Iranian National Tax Administration (INTA) is the primary authority responsible for governing crypto taxation. Cryptocurrencies are treated as assets for tax purposes, falling under existing general income and capital gains tax laws. For individuals, profits from cryptocurrency sales are subject to capital gains tax rates ranging from 10% to 25%. Income derived from activities such as mining, staking, or general trading is taxed as ordinary or business income under a progressive individual income tax system, with rates from 10% up to 35%. Corporate entities involved in registered crypto businesses are subject to a 25% corporate tax rate on their profits. Importantly, there are no reduced tax rates or exemptions for holding cryptocurrencies long-term, and crypto transactions are exempt from Value Added Tax (VAT). Converting crypto to fiat currency, or exchanging one cryptocurrency for another, both trigger taxable capital events. Specific crypto activities also have clear tax treatments. Staking rewards and earnings from Decentralized Finance (DeFi) activities like yield farming and liquidity pools are taxed as ordinary or business income, potentially up to 35%. Cryptocurrency mining is legalized and licensed, rewards are taxed as business income, and licensed miners can deduct operational costs like equipment and energy. Non-fungible tokens (NFTs) are subject to capital gains tax at 10-25% upon their profitable sale. The Iranian National Tax Administration continues to push for further regulatory clarity, particularly advocating for a comprehensive legal framework for taxing cryptocurrency exchanges. Simultaneously, the Central Bank of Iran is enhancing its supervision by closing unauthorized gateways and enforcing greater transparency in the crypto market.