Cryptocurrency tax in the EU, USA, Russia and other countries.

Decentralization is one of the most important concepts in relation to cryptocurrencies. This indicates that the powers will be distributed among all owners of cryptocurrencies, and not between centralized websites such as banks and governments. Thus, according to some cryptocurrency users, bitcoin is in contradiction with the fundamental principles of decentralization, financial independence and Web 3.0. Since blockchain and cryptocurrency technologies are still in their infancy, there is no single method of regulation yet. However, the general idea is to pay taxes as you earn money, with the difference arising from the acquisition and disposal of digital assets.

Russian taxes on cryptocurrency.

On January 1, 2021, the Federal Law of Russia No. 259-FZ “On Digital Financial Assets, Digital Currency” came into force. A digital asset is recognized as property in accordance with the Federal Law CFA. In this situation, taxes are levied on the profits from the sale of cryptocurrencies.

According to the legislative proposal of the State Duma, both individuals and corporations will have to prove their income from cryptocurrencies by 2022.

Anyone with a transaction volume exceeding 600,000 rubles per year is subject to submitting applications for mandatory disclosure of information to the Tax Inspectorate of RUSSIA. People are required to disclose their income from digital assets.

Payment for the storage of Russian cryptocurrency.

The annual profit of individuals has reached 5,000,000 rubles, they are required to report their income and make payments in the amount of 13% or 15%.

Taxation of cryptocurrencies: 1) The cost of cain at the time of purchase is deducted from the proceeds received. 2) The amount received is multiplied by the individual income tax rate. 3) Each financial year, the declaration is submitted before April 30. 4) Taxes paid before the deadline of July 15 of the current year.

Cryptocurrency tax in the EU.

The EU taxes cryptocurrency. Cryptocurrency owners may experience capital gains or losses when exchanging or selling their assets. Even when delivered in the form of cryptocurrency, the resulting profit and income tax are subject to taxation.

Although bitcoin is not considered legal cash, the Court of Justice of the European Union (CJEY) ruled in 2015 that it can be used as a form of payment and as a medium of exchange.

Value Added tax (VAT) is a US directive according to which the supply of goods and services to a person in an EU member state is subject to VAT.

Bitcoins are used as a payment method when trading bitcoins, and these transactions are not subject to VAT.

German taxes on cryptocurrency.

The decision of the European Court that the exchange of bitcoins (and other tokens intended exclusively for payment) for paper money is not subject to VAT was supplemented by the German Federal Ministry of Finance. In addition, they argued that accepting bitcoins as payment is exempt from VAT, since in this situation bitcoin is used only as a substitute for fiat money.

Bitcoin miners are still required to pay both mining and income tax. Only if you keep your bitcoin for more than a year, an exception occurs. Profit or loss in this situation is not tested.

American taxes on cryptocurrency.

The US Internal Revenue Service (IRS) argues that digital money should be treated as property. Cryptocurrency is subject to similar tax reporting requirements as any other type of property, including stocks and bonds.

Bitcoin is classified by IS as a convertible cryptocurrency because, in addition to being exchangeable for other currencies online, it can also be converted into paper money.

The sale, exchange or use of cryptocurrencies in the United States as payment for goods and services is considered taxable income.

The latest crackdown by the American government, which takes taxes seriously, is aimed at stopping tax evasion. According to their legislation, taxpayers must submit their cryptography reports for the previous three decades in addition to the most recent tax year.

If you don’t pay taxes on cryptocurrencies, what will happen?

You should be familiar with these three small letters: KYC (Know Your Customer) (Know Your Customer).

It means “Know your customer”. According to the KYC rules, exchanges and wallet providers are required to collect data about the user’s identity. This means that the government can force exchanges and wallet companies to disclose user data if they believe that investors are evading taxes.

Governments and law enforcement organizations initially had no idea what to do with cryptocurrencies. However, in order to catch tax evaders, they are now creating blockchain analysis tools.

If you like to read such articles and want to support the author, then you can subscribe to our telegram channel and recommend us to your friends, this will help a lot to support our project! Telegram: CRYPTO WIKIES | Bitcoin & Altcoins Mining
Be the first to know all the news, read more about cryptocurrencies and mining at CRYPTO-MINING.BLOG.