crypto-currency tagged posts

Japan Needs to Drop Bitcoin Tax

March 2, 2016 Taxation in Japan

TOKYO – Japan’s tax treatment of crypto-currencies is forcing consumers to buy digital coins from overseas in order to skip their tax obligations.

Ongoing controversy on the taxation of Bitcoins in Japan has come to a head, with calls being made for the digital currency to be exempt from consumption tax.

Bitcoins, and all other crypto-currencies, currently fall within the scope of the national 8 percent sales tax, if purchased with Yen from a local exchange.

If Japanese consumers purchase coins from overseas dealers, then they are liable to pay tax on the import, however due to the digital nature of the currency the national tax authorities have no means of determining when a purchase is made.

The oversight in the regulations of the sales tax has reputedly forced many Japanese consumers t...

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Bitcoin Exchange Wont Face VAT

October 23, 2015 Taxation in EU

BRUSSELS – Cryptocurrencies have taken an extra step towards wider acceptance in the EU, as a new court ruling places the new currencies on par with standard fiat currency.

In a statement made on October 22nd the European Court of Justice announced that a new ruling has been made that the purchase of Bitcoin and other cryptocurrencies should be exempt from VAT.

The Court ruled that when consumer in EU purchase or sell any cryptocurrencies they will not be subject to VAT, as though they were buying a good, as these new currencies are now to be treated as a traditional fiat currency.

In effect the new ruling means that cryptocurrencies are now regarded as standard currency like notes or coins.

The new ruling does not exclude any profits made from the exchange of cryptocurrencies from the...

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Australia Eyes Bitcoin Tax Transformation

August 5, 2015 Taxation in Australia

CANBERRA – The widespread use of cryptocurrencies has taken one step closer to becoming a reality as a new calls rise for a rethink of taxation of digital coins.

In a recent report the Senate Standing Committees on Economics on Digital Currencies in Australia called for transactions completed in cryptocurrencies to be treated as normal currency for the purposes of consumption tax.

Under current regulations, the Australian Tax Office treats cryptocurrencies as intangible assets, and, as such, eligible for both consumption tax, capital gains tax, and fringe benefit tax.

The previous ruling regarding the taxation of transaction involving cryptocurrencies has reportedly already driven out some businesses from the country, as they relocated to other countries which had friendlier regulations f...

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New Clarification Issued on Crypto Currency

July 17, 2015 International Tax Cooperation

LUXEMBOURG – Users and operators using crypto-currencies have received new tax clarification regarding the sale and purchase of such currencies.

The sale and purchase of Bitcoins and other forms of crypto-currency should be exempt from VAT, according to new information detailed in an opinion document issued on July 16th by the European Union’s Court of Justice Advocate.

The matter was first raised several years ago, after an individual requested clarification from the tax authorities of Sweden regarding the tax implications of the sale and purchase of crypto-currency.

The issue caused controversy between the courts of Sweden and the tax authorities, with the question being raised to a pan-European level.

According to the new information, transactions of crypto-currency should not be l...

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Cryptocurrency Blamed for Profit Shifting in Australia

March 31, 2015 Taxation in Australia

CANBERRA – The tax system in Australia cannot adequately deal with modern cryptocurrencies, and the tax system needs to be updated to take such technologies into account.

In a discussion paper issued on March 30th the Treasury of Australia claimed that Bitcoin and other cryptocurrencies undermine the national tax system and contribute to profit shifting and erosion of the tax base.

In the paper it was specifically pointed out that “…new ways of transacting, including cryptocurrencies such as bitcoin, were not contemplated when the current tax system was designed”, and these ongoing developments may hinder a company’s ability to accurately and appropriately determine its tax obligations in a specific country, opening a significant pathway for profit shifting.

Despite pointing out ...

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