Congratulations, Tax On Your Cryptocurrency is Low in These Countries
Apr 15, 2018 Posted / 1565 Views
The parity still remains! While some government are hell bent on regulating the cryptocurrencies and charge tax on them heavily, some are there to boost it well into the economy to integrate well within the system and hence charge low tax on them!
There is not one, but many countries which have exempted tax for these cryptocurrencies! Let’s know about them more in detail.
Germany is the prime hub of the economy of Europe and enjoys a higher running status. Here, in this country, the crypto is not only not regulated but is tax exempted too!
Just last month, the Federal Ministry of Finance of Germany came out in support of cryptocurrencies and issued a notice which treats bitcoin as a currency. This was a step ahead especially at a time when all or at least majority of the countries are trying to resists it in the market.
According to Bundesrepublik, when cryptos are liquidated into Euros they will not be charged or taxed for that matter, and the transaction will be tax-free. However, any and all purchases which are made using the bitcoin have to pay the Value Added Tax or VAT, just like any other product or service. No tax will be imposed, however, on long-term investments in cryptocurrency. So basically, If a trader tries to sell a bitcoin more than a year after its purchase, the profit is and will be exempted from any taxation and the same will apply if the profit is less than €600.
In Slovenia, the capital gains using cryptocurrencies are not taxed! And the best part is that all residents who are dealing with them are independent of it and are not required to report them on their income tax returns.
However, this does not hold for all the income modes. If there are any private individuals who receive their income in cryptocurrency, then they are obliged to declare their total income and its source of the digital money and pay regular income tax, just like they would on their normal savings account. The country uses a progressive scale and rates vary from 16% on incomes of less than €8,000 a year to 50% on incomes exceeding €70,000.
Denmark too is a step ahead. The tax department there has fintech companies are required to pay normal taxes and nothing exclusive because of the nature of their operations.
While if you are an individual investor in crypto, you are not required to pay any tax on the profit made!
Belarus is not lesser than any of the above! The country has created a friendly and understanding environment for all the crypto investors, both corporate and private. This allows them to participate actively and seek help when and if needed. Not only this, but a certain high-level crypto activities like mining, issuing, and trading coins were legalized in March. A presidential decree introduced tax exemptions for crypto incomes and revenues for a period of five years.
Not just Europe, but countries like South Korea are too leading by an example when they have made sure that any gain made from cryptocurrencies will be made tax free, enabling people to trade in them easily.
It is because of these relaxed rules of the governments that the people of these countries are able to work so well and contribute so actively in the economy of the country, even if it is in small parts. It is high time that countries like USA and China, which are considered to be the leading economies of the world now take a step back and legalise these virtual currencies!
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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