Tax policies for cryptocurrencies in the world
In some nations the tax payment can be 55%, while in others it is 0%. This is how tax policies are for transactions with digital currencies
The cryptocurrency boom reaches practically every corner of the planet. And just as transactions increase, so does the uncertainty regarding the payment of taxes for said operations.
Countries with a more solid crypto market tend to orient their regulatory framework in tax matters towards setting high tariffs for the purchase, sale and sending of remittances in bitcoin, in addition to the rates that apply to natural and legal persons for the possession of digital assets, payment of services, capital income, among others.
Crypto taxes are different for each country. Among the nations with the highest taxes is Japan, where users must pay around 55% due to existing legal regulations. This places it at the top of the list of countries with the highest crypto taxes.
Japan is followed by Belgium, with a tax rate for cryptocurrencies of 33% on earnings in this currency and that the country includes in the “miscellaneous income” section of the tax return. In the case of electronic commerce, income in cryptocurrencies is considered as professional and is taxed as such, with a standard ranging from 25% to 50% (+ communal tax).
For its part, South Korea applies a 20% tax on earnings in cryptographic currencies above 2.5 million won (USD $ 2,000) annually.
0% tax for digital currencies
In opposition to such high tax rates there is another scenario, rather complacent, where the tax payment is 0% for the purchase, sale or possession of cryptocurrencies. An example is Portugal, with the “friendliest tax regulations and policies for bitcoin and other cryptocurrencies investors.” Clients are understood to be exempt from paying capital gains tax or VAT for crypto trading.
Alongside the European country stands Singapore, “the world leader in taxation of cryptocurrencies. Individuals and companies that own cryptocurrencies for long-term investment purposes do not pay taxes in Singapore, simply because the tax on capital gains does not exist.” However, the case of companies based in the Asian nation that are engaged in the purchase and sale of virtual currencies as their main activity is different, which do have a tax obligation on profits.
Another nation with a tax system favorable to trading cryptocurrencies is Germany. Although the government authorities do not consider bitcoin as a currency, transactions in this asset must not pay VAT. Likewise, private sales that do not exceed 600 euros (USD $ 654) are exempt.
Other countries with attractive tax policies regarding cryptocurrencies are Belarus, Malta and Malaysia, where activities such as mining, buying and selling digital assets are favored.
M.Pino
Source: diariobitcoin
