crypto-currency tagged posts

Israel Clarifies That Cryptocurrency is Not a Currency

February 20, 2018 Taxation in Israel

bitcoin taxTEL AVIV – Cryptocurrency will be taxed as an asset in Israel, meaning that miners will now be considered to be factories.

The Tax Authority of Israel has issued new guidelines on the taxation of cryptocurrency, confirming that profits made from coins will be subject to VAT and capital gains tax.

It was confirmed that cryptocurrency will be regarded as an asset and not a currency for the purposes of taxation.

Due to the consideration, any profits made from the use of cryptocurrency will fall under the scope of capital gains tax, levied at a rate of 20 percent to 25 percent.

Businesses involved in the sale of cryptocurrency or carrying out transactions with cryptocurrency will also face VAT on the transaction, however, that will not extend to private investors.

As cryptocurrency is to b...

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American Crypto Investors Hiding from IRS

February 14, 2018 Taxation in USA

Cryptocurrency incomeWASHINGTON D.C. – Americans who have already submitted their tax returns either have not invested in cryptocurrencies or are lying about the incomes the cryptocurrency have helped them realize.

The tax preparation business Credit Karma has released new information which indicates that taxpayers in America may be hiding their taxable incomes from cryptocurrency investments.

The business revealed that of the 250 000 individual taxpayers who have already filed their annual obligations, only 100 made any specific mention of gains from cryptocurrency.

It is estimated that approximately 7 percent of Americans hold investments in Bitcoin.

Also, a previous survey by Credit Karma indicated that as many as 57 percent of respondents have realised gains from cryptocurrency.

Based on the available inf...

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India Comes After Bitcoin Investors

February 8, 2018 Taxation in India

bitcoin taxNEW DELHI – India’s government is taking steps to ensure that investors in Bitcoin and other cryptocurrency do not shirk their tax obligations.

In a news release issued on February 6th it was disclosed that the Direct Tax Department of India has sent out over 100 000 letters to national taxpayers who may have made an income from trading cryptocurrency without declaring it for the purpose of taxation.

It was stated that many taxpayers who have invested in cryptocurrencies do not know how to properly file their incomes on the coins, and that there may not be enough clarity regarding the tax treatment of the currency.

The government and tax departments of India are yet to issue any official guidelines on the tax treatment of such investments.

The government is establishing a committee which...

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S.Korea Launches Tax on Cryto Exchanges

January 23, 2018 Taxation in South Korea

Cryptocurrency tax South KoreaSEOUL – Cryptocurrency exchanges in South Korea are about to feel a tax sting, as the government steps up to control the country’s rampant coin market.

Earlier this week the government of South Korea announced that cryptocurrency exchanges in the country will have to pay income taxes, and, also, that the income taxes will apply retroactively to previous profits.

Cryptocurrency exchanges will face a 22 percent tax on corporate profits and an additional 2.2 percent local income tax.

However, the tax will only apply if the exchange saw an annual income exceeding KRW 20 billion.

The taxes will not only apply to future profits but also to those profits garnered over the last year.

The corporate income tax will need to be paid by March this year, while the local income tax will be due in April...

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Australia Sets Up Crypto-Tax Task Force

January 11, 2018 Taxation in Australia

LitecoinCANBERRA – Dodging taxes using cryptocurrencies will soon be harder in Australia.

The government of Australia has announced the formation of a new task force aimed at ensuring that taxpayers who make profits from cryptocurrencies are not able to hide their incomes.

The new task force will be comprised of a group of expert in banking, tax law, and technology, and they are scheduled to meet for the first time in February to begin work on their task.

The main goal of the group will be to create strategies and mechanisms which will allow the government to track the flow of cryptocurrencies, and to accurately detect whether Australian taxpayers are paying taxes on profits made from cryptocurrency.

Currently, cryptocurrencies in Australia are considered to be an asset, and any profit made fro...

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