The cryptocurrency industry is still at a very early stage of its development, so there are no single international rules yet. The governments of individual countries independently try to regulate digital assets. The tax on the cryptocurrency varies in different countries. Within the framework of this article, we will try to touch on how this situation is in the countries with the leading economy in the world.
It is quite an expected fact that the legislative base in this country is better developed than anywhere on the planet. Since the distant 2014, Bitcoin is considered a property in the United States. On the first day of 2018, the revenue service changed the rules somehow: henceforth no total capital increase is imposed on the tax, but literally every operation is.
If giving specific figures, the payment of taxes on the cryptocurrency in the US is as follows:
- income tax is from 10% to 37%, such a plug depends directly on the specific income that was received as a result of the growth of the asset;
- the possession of a cryptocurrency for over 12 months is additionally taxed at 24%, based on a long-term tax.
It is noteworthy that in some states taxes can be paid through the coins themselves.
In the first quarter of 2018, a rather “raw” bill was submitted to the State Duma, which had not even been considered by the deputies. So, at the moment the taxation of digital assets has not yet been formed in Russia. Another “white spot” of this draft law is the lack of tracking of miners. For this reason, it is not entirely clear how the state will monitor the fulfillment of tax obligations.
In Germany, the issue of taxation of digital coins was first raised in 2013. Then digital coins in this country were recognized as one of the varieties of financial assets. The profit is subject to an income tax of 25%, but it is paid only if this profit was received within 12 months from the date of purchase of the coins. That is, if you sell assets in more than a year, then this operation will be treated solely as a private transaction.
From the second quarter of 2017 Bitcoin and other digital coins in the country of the Rising Sun have been regarded as a full legal tender. For this reason, the state does not oblige its citizens to pay taxes for any operations with them.
The government drew attention to the issue of taxation of the cryptocurrency from the preliminary filing of one of the market players. The fact is that in 2014 representatives of the company Coin Republic independently sent a request to the tax agency so that the latter settled this issue. If a taxpayer has an investment cryptocurrency portfolio as a secondary income, then, in this case, he is not subject to an additional tax. But if the investment is the main or the only way to earn money, then corporate income tax is applied to profits. A little lifehack: if a company that is registered on the territory of Singapore conducts cryptocurrency transactions through exchanges of other countries, then such transactions are not taxed.
In 2017, there were battles in this country about the recognition of cryptocurrency in general. The issue of a complete ban on digital coins was on the agenda. But the bullish trend of last year and the ability of the state to raise additional funds to the treasury played a role. There is no specific legislative base yet, this issue is still under consideration.
Digital coins have received the status of physical goods in Israel. Any activity (mining or trading on the stock exchange) is considered a business, the profit of which is taxed. If you buy anything for the cryptocurrency, then it is considered as barter. Sales of cryptocurrency are taxed to increase the total capital.
This field is a rather complicated situation in this state. The conduct of the ICO is prohibited, and the legislative base on tax issues is only at the stage of discussion.
In this country, the tax agency collects taxes both on income in digital currency and for each transaction with it. One of the not so pleasant features of Australia was the presence of double taxation in the exchange for fiat and back, but relatively recently it was removed.
In Canada, digital coins are considered a product. Any acquisitions that have been made through cryptocurrency are barter. The tax is levied only on capital gains.
In general, in the euro-zone, cryptocurrencies are regarded as full-fledged currencies. And there are small branches already within the limits of the separate states of participants.
The governments of the countries listed above quite differently classify such an asset as cryptocurrencies. Each country has its own legislative base, which taxpayers must consider with.
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