Income for mining or forging of digital currencies or NFT’s (cryptoassets) will not be subject to 5% federal GST/HST
The Canadian Revenue Agency has proposed exempting income received from creating, or ‘mining’, Cryptocurrencies.
This follows EU Cryptocurrency VAT proposals on mining, wallet services and payment tokens.
What are cryptoassets?
The Agency defines cryptoassets (currencies and Non-Fungible Token) as: cryptoassets is a “property (other than prescribed property) that is a digital representation of value and that only exists at a digital address of a publicly distributed ledger.” This covers the use of blockchain technologies
What mining activities are included in the proposed exemption:
Mining is defined by the Agency as an activity in respect of a cryptoasset that is
- validating transactions and adding them to the publicly distributed ledger on which the cryptoasset exists at a digital address;
- maintaining and permitting access to the publicly distributed ledger on which the cryptoasset exists at a digital address; or
- allowing computing resources to be used for the purpose of, or in connection with, performing activities described in paragraph (a) or (b) in respect of the cryptoasset.