What taxes are being paid from crypto world?

The subject of taxation of cryptocurrencies in Poland returned with the publication of the amendment to the Act concerning, inter alia, this topic. Below we decided to show you what taxes on digital currency the world is paying.

Cryptocurrencies such as bitcoins must bother legislators. They are something new in the economy, hence the inclusion in the legal framework may pose some problems. So let’s look at how a few sample countries coped with this problem.

Bulgaria

In Bulgaria, income from trading in cryptocurrencies is taxed with 10% income tax. The digital currencies themselves are in this case treated as financial instruments.

Finland

In Finland, cryptocurrencies, regardless of the operations they perform, are taxable only when making profits. However, this is understood as a change to real items, services or fiat money. Digital capital gains tax is levied on the income from digital currency trading. Entrepreneurs pay income tax for their activities on general terms.

However, the taxpayer’s situation is complicated when buying financial instruments using cryptocurrency. It is then possible that the situation of double taxation is possible, because the values ​​purchased in eg bitcoins of shares or bonds are given in euro. What is it actually about? When shares bought for bitcoins are sold for more bitcoins (through a floating rate), the profit on the value of the shares is taxed first, and then the profit on converting bitcoin into real currency is taxed.

Income tax is also subject to income from mining defined as “other income”.

The Finnish tax administration perceives the turnover of cryptocurrencies as well as the conversion of currency exchange rate (CFD) contracts, which, due to the law there, is associated with the lack of the right to deduct the loss from the tax base.

Japan

From April 1, 2017, Japan recognized BTC as a means of payment. Today, work is underway to change these provisions, which would result in an increased chance of creating futures based on the main cryptogram.

In Japan, the sale of digital currencies is subject to income tax on a progressive scale of 5% to 45%. You can not deduct the loss.

Hungary

In Hungary, income tax on profit on sales is treated as “other income”. Entrepreneurs pay income tax due to their activity on general terms.

As you can see now, the proposed changes in Poland do not differ far from the standards from other countries. Currently, the Act is still being processed. We are waiting for its final shape, which will appear in the Sejm.

 

photo : PixaBay.com

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