Presently, the adoption of cryptocurrency and blockchain is trending. Some of this regulations are known to be stringent, while others are favorable to blockchain start-ups and Crypto traders. Therefore we shall take a look at 10 of the countries that are introducing cryptocurrency and blockchain tax regulations.
Japan is one of the most crypto-investment friendly nations in the world. However, after a series of security breaches in some Crypto exchange in its territory, the nation updated its regulatory framework for Crypto exchanges. Presently, Crypto exchanges are expected to submit the minutes of their board meeting, shareholders’ info and security reports.
The regulatory entity argued that these updates will boost exchanges Operations. In addition, Japan is contemplating on reviewing its tax regime from the progressive rate to the uniform rate. Crypto traders could pay as high as 55% tax rates under current progressive rates.
Ukraine kicks off plans to introduce a regulatory framework. This will strictly tailor to Cryptocurrency. Reports revealed that Ukraine might impose a 5% tax on all Crypto income.
Russia pursued the idea of a framework that will regulate blockchain firms. As a result, Russia consulted blockchain experts and its Crypto community for inputs. However, experts in the Crypto space have argued that the current version of the legislation is flawed. The country’s tax rate on crypto-related income is 13%
Gibraltar has introduced different regulations that would position the nation as a powerhouse in the Crypto industry. As such, the country’s tax regime on Crypto income for individuals and firms are favorable. In addition, Gibraltar’s stock exchange is looking to listing cryptocurrencies.
South Korea aggressively regulated cryptocurrencies last year, the country banned ICOs and imposed stringent tax laws on Crypto exchanges. However, South Korea reviewed the ban on ICOs, while classifying Crypto exchanges as legal entities. As such, policies like to that of Japan expects to introduce by South Korea. Individual Crypto traders are not taxed while exchanges pay 24.2 rate
Switzerland is a Crypto-friendly nation, however, it classifies some Crypto transactions as taxable. While individuals are not taxed on profits made from crypto-related activities, institutions and firms are mandated to pay tax.
South Africa is one of the progressive countries in Africa. As such, the nation is the only African nation with tax rules for trading cryptocurrencies. South Africa classifies Crypto income as a sort of personal income. The country’s percent bad for personal income is presently 18-45 %.
Canada has diligently researched the present Crypto space in order to introduce well-defined regulations for cryptocurrency and blockchain. In addition, Canada collects tax on every profit made from trading cryptocurrencies.
United kingdom’s economy depends on taxes, as such, it particularly interests in the taxation of Crypto trading-related profits.
India is currently working on setting up standard regulations for the taxation of cryptocurrencies. For now, digital tokens have an 18% tax rate.
Image Courtesy- Big law business, Cryptobuzz, Bitcoin magazine