crypto-currency tagged posts

Seoul Wants Income Tax on Bitcoin

December 7, 2017 Taxation in South Korea

cryptocurrencySEOUL – Korean taxpayers love cryptocurrencies, and the government is hoping to cash in with an income tax on digital coins.

During the National Tax Administration Forum in Korea earlier this week, Kim Byung-il, a professor of the economics and taxation department at Kangnam University, called on the government to create a comprehensive framework for the taxation of cryptocurrencies.

Korea is currently one of the hotbeds of cryptocurrencies, with many coins trading at a significant premium on local exchanges.

The government was called on to thoroughly research and implement a tax on incomes garnered by Korean taxpayers on the sale of cryptocurrencies.

Systems would also need to be implemented to ensure that taxpayers are not able to avoid their income tax obligations by obfuscating the...

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Switzerland Accepting BitCoin for Taxes

September 11, 2017 Taxation in Switzerland

tax payments via bitcoinGENEVA – Two local governments in Switzerland now accepts tax payments via BitCoin.

Last week the Swiss municipality of Chiasso announced that next year it will begin accepting tax payments via BitCoin.

From January 2019 onward, tax bills of up to CHF 250 will be payable with cryptocurrency.

If the initial trial for the payment proves to be successful, the system will be expanded to accept larger amounts.

The move to accept cryptocurrency comes as an effort to compensate for the tax revenues being lost due to the diminishing local banking sector, and also in order to solidify the local cryptocurrency industry.

The local government has reputedly made significant efforts to establish the region as a prime location to base a cryptocurrency start-up.

Chiasso is not the first part of Switzerlan...

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IRS Already Tracking Bitcoin

August 25, 2017 Taxation in USA

bitcoin taxWASHINGTON D.C. – The IRS has spent years keeping track of Bitcoin movements to build a chain of evidence to catch money launderers.

New information released by the Inland Revenue Service through a Freedom of Information Act request has revealed that the tax authority has been tracking the seemingly anonymous use of Bitcoins since as early as 2017.

The information released shows that nearly 2 years ago the IRS paid for software which is able to analyse and track the movement of Bitcoins from one “wallet” to another.

The tracking allows the IRS to build a detailed history of transfers between various Bitcoin holders.

The information itself cannot be used to identify a Bitcoin holder directly.

However, when the Bitcoins are accepted by an entity which is bound by AML and KYC regulations...

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Russia Will Tax Cryptocurrencies

May 31, 2017 Taxation in Russia

Cryptocurrency taxMOSCOW – Russia hopes to get a tighter hold of cryptocurrencies by treating them as regulated digital goods.

In a statement made by the deputy chairwoman of the Central Bank of Russia, Olga Skorobogatova, it was revealed that the national government is looking at legislation to formalize the treatment and taxation of cryptocurrencies like Bitcoin.

The new rules would see all cryptocurrencies classified as digital goods, and taxed as such.

Along with taxing the currencies, the new legislation will allow the government to monitor and, to a certain extent, control the creation and distribution of cryptocurrencies.

The chairwoman explained that the need for the new taxation and regulation of cryptocurrencies is due to the fact that the currency is not backed by any reserves, a situation whic...

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Israel Slaps Capital Tax on Bitcoins

January 16, 2017 Taxation in Israel

Cryptocurency in IsraelTEL AVIV – Transactions involving Bitcoins in Israel could be treated as barter transactions, and profits from coin sales could be charged a capital gains tax.

Late last week the Israeli Tax Authority issued a circular detailing the authority’s stance on the taxation of cryptocurrencies, saying that the Bitcoins and other cryptocurrencies shall be treated as assets when sold.

Cryptocurrencies are often considered to fall into a legal grey area for the purposes of taxation, with some countries classifying them as financial instruments, or currency, or an equivalent of a currency, or an asset.

The ITA has now decided that any cryptocurrency sold in Israel shall be regarded as the sale of an asset, and, subsequently, will carry a potential capital gains tax obligation.

The profits made fr...

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