The virtual currency tax policy is coming. Do you have to pay a tax?

Virtual currencies, led by Bitcoin, are regarded as speculative commodities in many countries.

Moreover, because of the decentralized nature of cryptocurrency, it has got rid of the supervision of conventional channels, making tax evasion and tax evasion in cryptocurrency very common. Individuals and companies may convert their assets into cryptocurrencies to avoid taxation. problem.

The virtual currency tax policy is coming. Do you have to pay a tax?

For a country, taxation is a very important means to maintain stability and long-term development.

Therefore, in other countries that recognize the existence of cryptocurrencies, making crypto assets more transparent and traceable, and thus taxing cryptocurrencies has become an obvious trend.

(Looking down, my country’s relevant policies are at the end)

South Korea

The Ministry of Economy and Finance of South Korea proposed an amendment to the tax law on July 22, and plans to include the profit of cryptocurrency in taxation starting in October next year, which includes a 20% income tax and a 2% local tax. Exchanges must submit transaction information to the government quarterly to collect taxes.

Tax collection standard: more than 2,000 US dollars will be drawn.

Overseas virtual assets cannot be escaped. South Korea’s Ministry of Information and Technology will report all overseas exchange accounts to the IRS, and incorporate virtual assets into international tax laws.

South Africa

According to news on August 10, the South African Revenue Service (SARS) intends to tighten the country’s cryptocurrency taxation policy, with a tax rate of up to 45%. It has now begun to audit taxpayers’ cryptocurrency holdings and trading activities, and request information on platform users and transactions from the exchange.

Israel

In the draft “Arrangement Law”, the Israeli Ministry of Finance requires investors to report to the tax authorities over 200,000 Israeli new shekels (approximately US$61,000) in cryptocurrency holdings. However, the specific tax rate has not yet been clearly disclosed.

Iran

According to news on August 12, Iran’s National Tax Administration (INTA) has proposed a proposal to levy taxes on digital asset exchanges operating in the country. The proposal is for three tax systems for crypto trading platforms, including capital gains tax, fixed base tax and occupational tax.

Japan

Japan is the first country in the world to levy taxes on digital currency gains. It has established a taxation mechanism for cryptocurrency transactions. Individuals with annual salary income exceeding 20 million yen or non-salary income exceeding 200,000 yen need to declare their cryptocurrency The tax rate of trading profit income ranges from 15% to 55%, and Japanese people need to file tax returns in March each year. The annual income of the investment exceeds 40 million yen (equivalent to 360,000 US dollars), and the excess will be subject to a maximum tax rate of 55%.

Russia

The Russian State Duma has passed new legislation on the taxation of cryptocurrency. The bill proposes to recognize cryptocurrency as tax property. Cryptocurrency users will be required to declare more than 600,000 rubles ($8184) in cryptocurrency income each year. Those who fail to declare will be fined 10% or more of the undeclared amount, and those who fail to pay on time will face imprisonment and heavy fines.

India

Previously, from April 1st, companies engaged in cryptocurrency transactions must disclose information such as cryptocurrencies they hold in their financial statements. It should still be considered to levy taxes on cryptocurrency income, and there is currently no clear related tax policy.

The latest news shows that India’s tax authorities are currently analyzing whether to apply a balanced tax to digital assets purchased from overseas exchanges.

U.S

In the United States, even gangs must pay taxes on time. The Internal Revenue Service is an independent organization.

The latest news shows that the White House hopes to raise $28 billion from crypto investors by applying new information reporting requirements to crypto exchanges and other parties, but it is not clear how long the funds will be obtained.

Although the new US foundation bill has not yet been implemented, it can bring a lot of tax revenue to the US government through the cryptocurrency market.

UK

It is understood that speculative investors need to pay capital gains tax when selling tokens, while those who profit from mining, transaction fees or airdrops need to pay income tax and national insurance premiums.

Bulgaria

According to the definition of the Bulgarian Internal Revenue Service, any profit from the sale of cryptocurrencies will be considered income. Currently, the Internal Revenue Service imposes a uniform 10% income tax on cryptocurrency income.

France

France is the first country to lower the cryptocurrency tax rate. The cryptocurrency tax rate has been reduced from 45% to 19%. However, the profits generated during the mining process are subject to the previous tax standards, and the new regulations only apply to investment income.

Romania

Romania’s newly amended “Financial Law” stipulates that the income generated from the buying and selling of cryptocurrency should be classified as “other source income” and subject to a 10% income tax. However, a single cryptocurrency transaction income of less than 200 Romanian crowns (equivalent to 50 US dollars) will not be taxed. Investors who have accumulated cryptocurrency transactions of 600 Romanian crowns (equivalent to 150 US dollars) in one year are required to pay 10% income tax.

For my country, strict measures are currently being taken to prohibit cryptocurrency exchanges, issuance of cryptocurrencies, financial institution services, mining and currency speculation, thus greatly reducing tax evasion and tax evasion by enterprises and individuals through cryptocurrency. Although the tax authority has not issued relevant tax policies, it is said that you can go to the tax bureau of your district to file tax returns on the 15th of each month.

Some netizens said before that they had learned some information from the local tax bureau, and the answer they got was that they could take the initiative to declare:

The virtual currency tax policy is coming. Do you have to pay a tax?

The virtual currency market is now a big piece of cake. The current cryptocurrency trading volume reaches 16 trillion US dollars, which has surpassed the 12 trillion US dollars in the public stock market of the five major technology giants Facebook, Apple, Amazon, Netflix and Google.

Although various countries have introduced policies to levy taxes on cryptocurrencies, due to the anonymity of cryptocurrencies, cryptocurrency investors seldom disclose the benefits of their cryptocurrency to the outside world, and taxation of cryptocurrencies will be a huge challenge.

Finally, I hope that in addition to formulating corresponding tax policies, these countries will focus on preventing various hidden risks brought by virtual currencies.

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/the-virtual-currency-tax-policy-is-coming-do-you-have-to-pay-a-tax/
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