Cryptocurrency Taxation - Confusing Interest Rates

Do I have to pay taxes on cryptocurrencies? How do you manage taxation?

In recent years, the issue of fiscal cryptocurrency has gained the attention of the industry.

With the growth of the cryptocurrency market and the steady growth of users, the industry has attracted elites from all over the world, regulatory rules have formed a backdrop, and many countries have joined the ranks of crypto taxes. currencies.

For some, the taxation of cryptocurrencies can be seen as a new way to increase the country's income, which also means that the government is more involved and involved in the process of managing cryptocurrencies.

As an example of the EU, statistics show that EU countries can collect millions of dollars in tax revenue from taxable income from cryptocurrencies.

In 2020 alone, Bitcoin investments in EU countries will reach 3.6 billion euros, with a tax value of around 850 million euros.

Advances in the taxation of cryptocurrencies in many countries

The topic of fiscal cryptocurrency has been hot since the start of this year, the main reason in the United States.

On November 5, US time in the region, the US House restricted passage of the "Infrastructure Investment and Jobs Act," which was drafted by the Vice President Biden, a government investment plan of homeowners and protesters.

Funding for this project amounts to US $ 1 trillion, including major investments in roads, bridges, railways and broadband Internet.

What garnered a lot of attention was that he also announced the plan.taxation of crypto-currenciesTo get part of your investment.

Of course, the United States alone cannot create a global cryptocurrency tax boom. By 2021, countries in Asia, North America, Europe and beyond will take action to tax cryptocurrencies.

Below is a short list of important documents from different countries that you can use.

asian side

1. Indonesia

Indonesia, East Asia's largest trading nation, has shown interest in levying taxes on cryptocurrencies.

Indonesia's domestic encryption contact users with rapidity, NFT, GAMFI has been activated in this area.

Currently, Indonesian authorities prohibit the use of cryptocurrencies as a means of payment, but allow trade in goods.

An IRS spokesperson said the government is considering taxing the cryptocurrency industry because cryptocurrencies have become more popular in domestic capital markets.

However, the idea is still under discussion and it is not known when it will be implemented.

2, Japan

As Asia's second-largest economy, Japan has taken on a new role in the taxation of cryptocurrencies.

It was announced that the Japanese government has established a tax watchdog committee to present its plans to change cryptocurrency tax regulations before 2022.

According to the relevant data, the purpose of Japan's cryptocurrency exchange tax policy is not to directly reduce the tax rate of the cryptocurrency market, but to comply with tax justice and law enforcement. internationalization in relation to the competitiveness of the Japanese cryptocurrency market compared to foreign markets. .if this

Japanese law now divides the cryptocurrency industry's income into "other or other sources of income" with tax rates of up to 55%.

3. Kazakhstan

Separately, Kazakhstan in Central Asia is discussing a way to tax 0.05% of a cryptocurrency market, and is considering imposing a tax on farms that legally sell cryptocurrency exchanges.

The Kazakh government has announced its intention to allow two banks to open cryptocurrency exchanges as a driving force.

sab Europe

According to Bloomberg News, Austria plans to impose a 27.5% tax rebate on cryptocurrencies such as Bitcoin and Ethereum as part of its national tax plan by March of next year.

In March of this year, the United Kingdom's Securities and Exchange Commission also released information about a new cryptocurrency tax that includes businesses or companies that buy and sell tokens, trade tokens, mine and provide goods or services in exchange for trading tokens. pay taxes.

Concretely, it will include at least part of income tax, professional tax, corporate income, tax revenue, income, land insurance premiums, code, stamp duty and additional taxes. .

Opposition to the cryptocurrency tax

As the dynamics above show,Many countries have adopted the practice of taxing cryptocurrency.

However, there have been numerous economic and political protests, notably in Silicon Valley in the United States, which have sent a signal of discontent, and some key officials have criticized the taxes on cryptocurrencies.

Tesla CEO Musk, a specialist in the cryptocurrency market, said: “The cryptocurrency tax is not an opportunity for US lawmakers to pick winners and losers in tech. .

Twitter CEO Jack Dorsey also thinks:Cryptocurrency taxation"Stop technological innovation in America".

Senator Ted Cruz said the Biden government's infrastructure development plan comes with "risks" that could undermine cryptocurrency and blockchain innovation.

Senator Tu Mi also referred to the cryptocurrency tax: “The White House has acknowledged that there are issues with the new cryptocurrency tax, but the Second Amendment selects winners and losers as still-in-use assets. New construction. It’s terrible.

Anne Frey, COO of Oasis, also believes that "this will eliminate new developments and create value for American companies".

There are a few protesters, but you can see that most of them are their own favorites.

In addition to opposition from the United States, there has been a change in the taxation of cryptocurrencies in South Korea in Asia.

It is known that the Korean government has decided to postpone the taxation of the cryptocurrency industry for one year from January 1, 2022. Korea is the first to be scheduled to pay a tax of 20% of the currency. obtained from cryptocurrency.

Advantages and Disadvantages of Taxing Cryptocurrencies

Many people are very concerned that taxing cryptocurrencies will have too much of an impact.

foughtWhile it may appear that the taxation of cryptocurrencies is "swept across the globe", the countries in which it is used are still very few., and the use is not straightforward, there is still a long way to go and it is unlikely to have a major impact, at least temporarily.

At the same time, these countries tax cryptocurrencies, so you have to think about it to know the economy, and corporate governance and tax incentives are important to know about legal cryptocurrency trading in the region. inside..

For the cryptocurrency market, this doesn't have to be a bad thing.

At the same time, the interests of the circle's investors must be better protected and the real priorities must be better recognized and supported.

Of course, there are countries where the growth of the cryptocurrency industry is not mature enough, but it is not certain that the desired goal can be achieved if the policies put in place are too quick. and not enough. .

In addition, as it will affect the local cryptocurrency business environment and the interests of users, it is necessary to pay attention to whether it can be effective and prevent most people's favorite.

Generally speaking, don't worry too much about taxing cryptocurrencies. Short term effects are limited and there are no strict controls for the average user.

Does China Tax Cryptocurrency Transactions?

Under current law,Individuals are free to hold cryptocurrencies, but the government has a good governance attitude towards commerce..

In December 2013, the People's Bank of China banned Chinese companies from trading in the Bitcoin market, and in September 2021, the People's Bank of China and more. is announced, making it clear that Bitcoin, Ethereum, and TEDA coins are illegal payments and should not be used as cash in the store.

In other words, virtual currency trading and IC0 activities are restricted in China, and cryptocurrency is viewed as a commodity, not a currency.

It is the base against the law to organize all the advertising and marketing of cryptocurrency in the country.

So whether China will tax cryptocurrencies under current regulations is only a hypothetical one.

I think many of you are wondering if the attitude of the Chinese government will change to support the legalization of the cryptocurrency industry in the future.

If completed, the taxation of cryptocurrencies will still be ongoing as part of the administration and taxation.

before that,The so-called taxation of cryptocurrencies is certainly not happening in China.