Which Countries is The Cryptocurrency Taxed In?

Cryptocurrency Taxed

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.

USA

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.

Russia

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.

Germany

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.

Japan

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.

Singapore

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.

India

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.

Israel

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.

South Korea

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.

Australia

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.

Canada

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.

EU

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.

Conclusion

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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Chinese Miners are Disconnected From the Grid

According to the CNN, due to tax inspection, Chinese establishment have suspended their work.

The Ministry of Public Safety (China) demand that the mining farms,  which are located in the Chinese provinces of Xinjiang and Guizhou, accept the agreement that they will work in accordance with the new, tough rules. The requirements include the denial of services of unregistered  clients.
During the audit,  mining farms were disconnected from the grid, as a result they lost 1 million yuan daily, about 143 700 dollars.

The Tax Inspectorate has already completed the investigation, but the power supply to mining farms still has not been connected.

It should be reminded, we reported earlier that Chinese Middle School Managers were mining Ethereum.

Administartion of Chinese Secondary School Was Mining Ethereum: Details of Crime

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Trading Bytecoin On Poloniex Requires 2000 Confirmations and 3 Days of Waiting

One of the biggest news outlet media CCN decided to conduct an investigation how much time a person needs to trade Bytecoin on Poloniex, and was abashed by the received results.

The reporter entered the exchange and was willing to use his Bytecoin holdings, thus, he made the deposit complying with all requirements of Poloniex exchange, like using payment ID and paying the transaction fees. After some hours, his assets were converted into pre-fork BCHABC and BCHSV tokens, yet there were still no Bytecoins.

Usually, Bytecoin requires 10 confirmations. The number is high due to unreliable mining network. After 6-10 hours, the reporter began worrying and decided to contact Poloniex support.

He received the following response:


Source:
https://www.ccn.com/

When CCN published this investigation Bytecoin had about 24 blocks in one hour. If 24/hour is a standard rate, then it means a deposit time requires nearly 84 hours – 3 ½ days – to complete all 2000 confirmations.


Source:
https://www.ccn.com/

We remind you

Bytecoin Cryptocurrency: What Rate Should We Expect in 2018?

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Authorities of the Crimea Are Planning to Launch a Blockchain Cluster

According to the Russian news outlet, there might be a blockchain cluster created in the special economic zone in the Crimea. Such a proposal was put out during the Yalta International Economic Forum that took place in Moscow.

As stated by the representative of Crimea, Georgi Muradov:

Last year we started discussing the blockchain technology and planned the creation of a cluster, a blockchain cluster in the form of a cryptocurrency investment fund.

Such a move towards innovative technologies might be an attempt to avoid sanctions from the West and lure in overseas investments.

We remind you:

Rosfinmonitoring Took Control of Cryptocurrency Turnover in the Russian Federation

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Administartion of Chinese Secondary School Was Mining Ethereum: Details of Crime

School seems to be the very place where the laws must be strictly observed, especially in China, a totalitarian country with strict rules, including those related to cryptocurrency and mining. Unfortunately, it is not that simple.

A funny story happened in one of the middle schools in the city of Chenzhou, Hunan. According to local Chinese news outlet HK01, the Principal and Vice Principal were caught mining Ethereum using school assets.

According to the Principal’s words, he first installed the equipment at home, but the electricity bills were too high, so he decided to relocate it to the school dorm, but there was not enough space. He had no choice but to transfer all the servers and equipment to the school.


Source: HK01.com


After some time, namely several months, the teachers of this school began to complain that computers emit a lot of noise and often “slow down”. The teachers decided to find the answer to this issue and found mining rigs.

Principal Lei Hua and Vice Principal Wang Zhipeng have already received their punishment, in the form of dismissal and warning, respectively. Meanwhile, we want to remind you that mining in China is growing and flourishing, thereby threatening the security of the world’s most famous cryptocurrency, Bitcoin.

Bitcoin Is in Danger: Chinese Hegemony Over the Industry

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The Crypto Exchange Huobi Opens a Branch in Russia

The third largest cryptocurrency exchange in terms of trading volumes according to the CoinMarketCap rating, Huobi, keeps on going with its expansion policy. This time a new “department” of the exchange will open up in Russia.

The Russian Huobi will start functioning on the 12 of November. It will provide support and guidance for the blockchain projects and startups in the country.

This important event was supported by a couple of important educational establishments in Russia, including Moscow State Institute of International Relations. Hopefully, this move will popularize cryptocurrencies in Russia or even draw attention of the officials in order to create a good regulatory framework for digital assets.

We remind you:

Huobi Cryptocurrency Exchange to Open Office in the US

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SEC Shuts Down EtherDelta: Is It a New Scam?

The US Securities and Exchange Commission accused the founder of the cryptocurrency exchange EtherDelta Zachary Coburn of running an unregistered, and thus illegal trading platform.

According to the Commission, EtherDelta failed to either register the exchange officially in compliance with SEC’s regulations or apply for an exemption from these regulations. This fact makes all of its trading transactions illegitimate.

Coburn denied all of the accusation, nevertheless, he did pay a huge fine of almost 400 thousand dollars.

Meanwhile, SEC claimed that many more exchanges and trading platforms might follow EtherDelta unless they comply with all the rules. We remind you:

More Than a Dozen Fraud ICOs Were Shut Down by the SEC in 2018

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