While Indian crypto exchanges lost a significant portion of their trading volume after new taxes for the sector came into force, the losses, so far, were referred to in percentage terms, with most estimates quoting them to be above 90%, compared to the previous year. Now, a new study has quantified the value of cumulative...Read More
A junior finance minister told the Indian parliament on Tuesday that the government has collected about $7.4 million in TDS on crypto transfers since July 1. Given the low numbers, the government may consider the local crypto industry’s demand to reduce the tax to a reasonable level – in the range of 0.01% to 0.05%....Read More
The Japanese government greenlighted a bill to exempt local cryptocurrency issuers from paying corporate tax on their holdings. The ruling body currently requires such firms to pay 30% on their ownings even if they haven’t gained profits through a sale. Japan’s ruling political party – The Liberal Democratic Party – aims to ease corporate tax...Read More
A prominent Indian cryptocurrency trade body – Bharat Web3 Association (BWA) – has red-flagged the high taxes and regulatory uncertainty in its draft of concerns and recommendations submitted to the Indian Finance Ministry, which is holding consultations in the run-up to the budget for 2023-24. A meeting between the BWA representatives and the Indian finance...Read More
The government of Italy is reportedly looking to enforce strict rules on the local crypto space by imposing a 26% tax on profits generated from digital asset trading. However, residents who earn less than €2,000 ($2,090) per year from dealing with bitcoin or altcoins will be excluded from the possible upcoming legislation. Italy’s Next Crypto...Read More
Binance CEO Changpeng Zhao (CZ) has all but given up on India. Pointing out the 1% transaction tax that came into force on 1 July 2022, CZ said it makes crypto trading unviable in India. Speaking at the TechCrunch Session: Crypto 2022 on November 17 in Miami, CZ further pointed out that Binance is engaged...Read More
Hundreds of crypto-related cases are piling up at the Internal Revenue Service (IRS)’s Criminal Investigation division. According to division chief Jim Lee, many of these cases will be made public soon, of which are largely related to tax. Evading Taxes With Crypto As reported by Bloomberg Tax, some of his division’s most common cases are...Read More
The US Internal Revenue Service is ramping up its efforts to collect taxes from crypto traders regardless of a 70% market slump. The tax department has obtained a court order authorizing summons for records of US taxpayers that failed to report transactions and pay taxes on crypto profits. Specifically, the IRS will issue what is...Read More
South Korean law enforcement officers have reportedly confiscated around 260 billion won ($183 million) worth of cryptocurrencies from local individuals and businesses in two years as they were not abiding by local taxation laws. Not long ago, the authorities targeted the notorious leader of Terraform Labs – Do Kwon. He was accused of gifting tokens...Read More
The authorities of Colorado announced that state residents can now pay their taxes in cryptocurrencies instead of fiat. Among the supported digital assets are the two biggest by market capitalization – Bitcoin (BTC) and Ether (ETH). Still, Colorado’s Revenue Department is not allowed to accept direct crypto payments, which is why it partnered with PayPal,...Read More
A Bloomberg report on Wednesday claimed that Binance app downloads in India jumped to 429,000 in August, the highest this year. This comes just months after the country implemented stringent taxation on local exchanges. Binance’s India Gains Binance is the only one among the major exchanges whose app downloads had seen an increase in August...Read More
The digital asset exchange aggregator – Coincub – conducted a study to find out which countries offer the friendliest cryptocurrency tax policies to their citizens. Germany ranked as the world’s crypto tax heaven, while Italy and Switzerland were respectively second and third. Taking a look at the opposite corner, Belgium is the worst nation for...Read More
The Ministry of Strategy and Finance of the South Korean government has said that virtual asset airdrops are subject to gift tax as per existing tax laws. Gift tax has to be paid when free virtual assets with economic value are paid out, media reports said. Gift Tax on Airdrops Recently, the South Korean finance...Read More
Some of the leading banks in Portugal, including Banco Comercial Portugues and Banco Santander, have reportedly shut down all of CriptoLoja’s accounts last week. The company is the first cryptocurrency exchange that received a license to operate in the country. Prior to that, Portugal’s authorities have displayed a predominantly crypto-friendly stance, rejecting two tax proposals...Read More
Cryptocurrency lobbying groups in Japan reportedly intend to ask lawmakers to reduce the tax rates on the local digital asset sector. Thus, talents in the industry will be more likely to stay in their home country instead of trying their luck in a nation where taxation policies are less stringent. The Crypto Brain Drain Should...Read More
In a tax reform introduced on Thursday, the South Korean government proposed to postpone the planned 20% tax on crypto earnings for two years. If accepted, crypto earnings in South Korea will be taxed from 2025. The tax plans for the digital asset sector were originally to kick in from January 2022. But in December...Read More
The United Nations (UN) advised the governments of Kenya and other developing nations to impose comprehensive regulations on their cryptocurrency sectors. Calling for a Clampdown The global organization that maintains international peace and security – the United Nations – seems to have the cryptocurrency industry in its sight. In a recent policy brief, it urged...Read More
In the wake of major Indian exchanges witnessing drastic drops in trading volume since the 30% tax on obtained revenues came into effect on April 1, the industry now encounters additional downward pressure following the introduction of another new tax that kicked in last Friday. Trading volume on large platforms has been down roughly 95%...Read More
Russian lawmakers recently approved a draft law that could possibly exempt digital asset issuers from making value-added tax payments. It has also established new tax rates on income earned through the sale of such assets. Russia’s New Crypto Legislation As reported by Reuters, the draft law was approved following second and third readings by members...Read More
The Albanian authorities have reportedly decided to apply taxes on earnings generated from cryptocurrency trading. The legislation is supposed to come into effect from the beginning of 2023. Albania’s Crypto Environment In 2020, the Balkan country displayed its intentions to regulate the local cryptocurrency sector by passing a law called “Financial markets based on distributed...Read More
The crash of Luna and TerraUSDT and the launch of Luna 2.0 have unleashed a wave of taxation issues for investors in India. While the Terraform Labs team has worked out a recovery plan and launched Luna 2.0 to compensate for the losses, concerns are piling up. Gift Tax on Luna 2.0 Airdrop In a...Read More
The Indian government is planning to issue a set of guidelines before July 1 after making some amendments to the scope and definition of VDAs for effective tax administration of virtual digital assets (VDA). The Central Board of Direct Taxes (CBDT) has been asked to prepare the guidelines, media reports said. “This is an evolving...Read More
Assembleia da República – Portugal’s Congress – dismissed two separate bill proposals focused on the taxation of cryptocurrency transactions. The suggestions were introduced by the left-wing parties – Livre and Bloco de Esquerda. Crypto Transactions in Portugal Remain Nontaxable A few weeks ago, the country’s Finance Minister – Fernando Medina – revealed the government’s plans...Read More
The call for reducing Tax Deduction at Source (TDS) on crypto transactions is intensifying among the crypto ecosystem players in India. A TDS of 1% on virtual digital assets has been approved by the Union budget 2022-23. Terming this too high as it can drive traders away from the market and hurt volumes, industry representatives...Read More
The Australian Taxation Office (ATO) announced Monday that it will focus on digital assets this year as it expects to see more Aussies report capital gains or losses in their tax returns. Aussies Are Engaging With Crypto The tax regulator treats crypto assets as digital property, hence Aussies who sell their digital assets, including non-fungible...Read More
Portugal’s Finance Minister Fernando Medina has confirmed plans to apply capital gains taxes on cryptocurrency profits. Though he has not committed to a specific date, he stressed that there can no longer be gaps within the tax system around transactions involving digital assets. Ending the Tax Haven? Cryptocurrencies are currently subject to very few tax...Read More
Though Bitcoin touched the 30,000 level after days of violent dumps befalling the crypto market, a large portion of investors have since then remained underwater. The recent market selloff led by Terra and its two native cryptocurrencies plummeting in value has at one point wiped out the crypto market’s total gains attained from 2021. But...Read More
As declared by Union Budget 2022-23, Indian cryptocurrency investors will have to pay tax under the new scheme for Taxation of Virtual Digital Assets from April 1. However, the current tax regime is expected to trigger a mass exodus of talent from the country, which faces the risk of missing out on Web 3.0 innovation,...Read More
South Korea’s National Tax Agency’s chairman Kim Dae-Ji held a meeting this week with tax executives from Bulgaria and Britain to discuss the “rise of tax-dodging schemes” through the use of digital assets. As per a report from a local news outlet, the National Tax Agency plans to further cooperate with Bulgaria and Britain to...Read More
Cryptocurrency adoption comes in different forms these days, but it seems that countries and cities are becoming more open to the idea of allowing certain payments to be made using such assets. Brazil’s second-largest city said it wants to become the first within the nation’s borders to accept BTC payments for taxes. The report from...Read More
