• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Idelto

Cryptocurrency news website

  • About
  • Monthly analysis
    • August 2019
    • July 2019
    • June 2019
  • Bitcoin/Ethereum
  • How to invest in cryptocurrencies
  • News

crypto taxation

Portuguese Parliament Rejects Crypto Tax Proposals During Budget Debate

26/05/2022 by Idelto Editor

Portuguese Parliament Rejects Crypto Tax Proposals During Budget Debate

Two proposals to tax crypto assets have failed to gain support from Portuguese lawmakers who are now discussing the state budget. The bids came from minority left-wing parties, while the ruling majority is yet to put forward its own draft to regulate the matter.

Portuguese Lawmakers Stop Motions to Tax Crypto Gains

Members of the Assembly of the Republic, Portugal’s legislature, have rejected two separate proposals to tax profits from crypto investments. They came from the leftist parties Bloco de Esquerda (Left Bloc) and Livre, and were turned down by the majority of the ruling Socialist Party.

The attempts to adopt rules for the taxation of capital gains from crypto assets were made during the ongoing discussions on the country’s 2022 budget, Eco reported. The Portuguese news portal has been following the parliamentary debate.

The development comes after a recent statement by Finance Minister Fernando Medina, who revealed that the government is working on a legal framework allowing the taxation of crypto-related income. He indicated that it’s unacceptable to have tax loopholes for any capital gains, signaling Portugal is preparing to change its tax policy regarding cryptocurrencies.

Portugal established itself as a crypto-friendly destination by maintaining a zero-percent tax rate on profits from private crypto investments. When these gains are not resulting from professional activities, they are not subject to income tax.

Livre’s proposal envisages taxing capital gains from crypto exceeding a threshold of €5,000 ($5,400). The eco-socialist party insisted that the executive power in Lisbon should take the necessary steps to introduce an obligation to declare crypto assets for the purpose of their taxation.

Portugal’s favorable crypto tax regime and relatively affordable costs of living have turned the country into a hub for tech innovations, attracting digital nomads and bitcoin enthusiasts from around the world, including Ukrainians working in the crypto space more recently.

What’s your explanation for Portugal’s decision to change its crypto taxation policy? Tell us in the comments section below.

Filed Under: Bids, capital gains, crypto, crypto gains, crypto taxation, Cryptocurrencies, cryptocurrency, English, Gains, income, lawmakers, motions, News Bitcoin, parliament, parties, Portugal, Portuguese, Profit, Proposals, Tax, Taxation, Taxes

Germany Declares Crypto Gains Tax-Free After 1 Year — Even if Used for Staking, Lending

14/05/2022 by Idelto Editor

Germany Declares Crypto Gains Officially Tax-Free After Holding for 1 Year — Even if Used for Staking, Lending

The German Ministry of Finance has published a letter officially confirming that the sale of crypto assets is tax-free after one year even if the coins are used for staking and lending.

How Crypto Gains Are Taxed in Germany

The German Ministry of Finance announced Wednesday that it has published a letter on the income taxation of cryptocurrency, stating:

This is the first time that there is a nationwide uniform administrative instruction on the subject.

The finance ministry detailed that in a hearing that took place last year, one of the most intensely discussed questions was whether the tax-free holding period for crypto lending and staking should be a minimum of 10 years.

The ministry noted that in coordination with federated states:

The letter now states that the so-called 10-year period does not apply to virtual currencies.

In Germany, cryptocurrency is viewed as “a private asset,” which means “it attracts an individual income tax rather than a capital gains tax,” crypto tax firm Koinly explained, emphasizing that Germany “only taxes crypto if it’s sold within the same year it was bought.”

Koinly further detailed:

As a ‘private sale’ in Germany, crypto gains are completely tax-exempt after a holding period of one year.

“In addition, profits on crypto sales up to €600 per calendar year remain tax-free,” the firm added, noting that previously, “When it comes to cashing in on staked crypto, that tax-free holding period is a minimum of 10 years.”

Citing the letter published by the Ministry of Finance, crypto advisor Patrick Hansen explained on Twitter:

The sale of acquired crypto assets will remain tax-free after one year, even if used for staking/lending.

Parliamentary State Secretary Katja Hessel commented: “For individuals, the sale of acquired bitcoin and ether is tax-free after one year. The period is not extended to 10 years even if, for example, bitcoin was previously used for lending or the taxpayer provided ether as a stake for someone else.”

What do you think about this German tax law? Let us know in the comments section below.

Filed Under: Bitcoin, crypto, Crypto tax, crypto taxation, cryptocurrency, English, german law, Germany, News Bitcoin, Taxes

Finance Committee Approves Legislation Delaying Crypto Tax in South Korea

30/11/2021 by Idelto Editor

Finance Committee Approves Legislation Delaying Crypto Tax in South Korea

Changes meant to postpone the introduction of a tax on virtual assets such as cryptocurrencies in South Korea have been approved by an important parliamentary committee. The draft legislation seeks to delay Seoul’s plan to impose a 20-percent levy on gains from crypto transactions.

Ahead of Election, Major Parties Support Tax Break for Crypto Investors in South Korea

South Korean parliament is taking steps to suspend a planned tax on profits from digital asset investments for another year. The move has been supported by the ruling Democratic Party, despite disagreements with the government itself, as well as the leading opposition People Power Party.

The amendments, which also envisage the increase of an exemption on capital gains tax for real estate sales amid rising property prices, are viewed by Korean politicians as a popular proposition ahead of the upcoming presidential election in March next year, the Korea Joongang Daily noted in a report.

The Strategy and Finance Committee at the National Assembly passed the changes to the respective provisions during a meeting on Tuesday. The voting followed the approval of the revisions by its subcommittee on taxation during a session on Monday.

Authorities Need More Time to Set Up Taxation System for Crypto Assets

The two Korean parties have agreed to postpone the adoption of a 20% tax on annual profits from virtual asset investments exceeding 2.5 million won ($2,102). The government planned to introduce the tax on Jan. 1, 2022, but the recent voting indicates the tax is likely to be suspended until 2023.

The Democratic Party has been pushing for the delay as investments in cryptocurrencies have become quite popular with young voters who also find it very hard to save enough money for a home amid skyrocketing property prices. The party also hopes that the raising of the capital gains tax exemption for single residence owners who sell from a price of 900 million to 1.2 billion won ($1 million), will help to increase the availability of homes on the market.

DP representatives have argued that Korean tax authorities need more time to establish a proper tax system for virtual asset investing. However, Finance Minister Hong Nam-ki opposed the delay, stating that “The government is ready to immediately tax virtual assets.” He nevertheless noted that the executive power will comply with any decision by the parliament, which is expected to vote on the amendments in early December.

Do you think South Korean lawmakers will support the proposed amendments concerning crypto taxation? Tell us in the comments section below.

Filed Under: amendments, capital gains, Changes, crypto, crypto assets, crypto investment, Crypto tax, crypto taxation, Cryptocurrencies, cryptocurrency, English, Exemption, Government, increase, korea, korean, Legislation, News Bitcoin, parliament, profits, property, Real estate, South Korea, south korean, Tax, tax break, Taxation, Taxes, virtual assets

Treasury Secretary Yellen Privately Lobbies Against Tax Amendment Crypto Industry Wants: Report

07/08/2021 by Idelto Editor

Treasury Secretary Yellen Privately Lobbies Against Tax Amendment Crypto Industry Wants: Report

U.S. Treasury Secretary Janet Yellen has reportedly raised objections to lawmakers about the cryptocurrency tax amendment to the $1 trillion infrastructure bill that is supported by the crypto community. The White House subsequently announced its support for a competing amendment.

Yellen Exerting Influence on Lawmakers Regarding Crypto Taxation

The new crypto tax proposal in the $1 trillion infrastructure bill has become a topic of intense controversy over the past week.

Two amendments have been put forward so far: one sponsored by Senators Mark Warner, Rob Portman, and Kyrsten Sinema. The other, which has gained the support of the crypto community, is sponsored by Senators Ron Wyden, Cynthia Lummis, and Pat Toomey.

According to Washington Post reporter Jeff Stein, Treasury Secretary Janet Yellen spoke with lawmakers Thursday to raise objections to the amendment sponsored by Senators Toomey, Wyden, and Lummis. He tweeted Friday, citing sources familiar with the matter:

Treasury Secretary Janet Yellen has been privately lobbying lawmakers against Wyden-Lummis-Toomey crypto amendment, as White House seeks to fend off push to limit new regulatory authorities.

The cryptocurrency tax proposal in the infrastructure bill comprises two key parts. The first requires payments worth more than $10,000 to be reported to the Internal Revenue Service (IRS). The second requires crypto “brokers” to file a type of 1099 form for certain kinds of crypto transactions.

The definition of what a crypto broker is in the original proposal includes miners and software developers. This has caused an uproar in the crypto community as miners and software developers do not know who their users are, making it impossible to report to the IRS. Some lawmakers have slammed the original proposal, including Senator Pat Toomey, who said the plan was “unworkable.” The two amendments aim to clarify the definition of a broker.

The crypto industry believes that the Wyden-Lummis-Toomey amendment adequately clarifies what a broker is.

In contrast, the Warner-Portman-Sinema crypto amendment only exempts proof-of-work mining, causing more concerns that the government is now picking winners and losers in innovation. Nonetheless, this amendment has gained support from the White House.

The initial crypto tax plan was crafted by Senator Portman with the help of Treasury Department officials. It is expected to raise approximately $28 billion over 10 years from crypto transactions to help fund the infrastructure package.

Treasury Secretary Yellen has expressed her concerns several times about cryptocurrencies being used in illicit financing. She warned in February: “To the extent it is used, I fear it’s often for illicit finance. It’s an extremely inefficient way of conducting transactions, and the amount of energy that’s consumed in processing those transactions is staggering.”

What do you think about Treasury Secretary Yellen lobbying against the amendment supported by the crypto community? Let us know in the comments section below.

Filed Under: crypto tax amendment, crypto taxation, cryptocurrency tax, cryptocurrency tax amendment, cynthia lummis, English, infrastructure bill, Janet Yellen, News Bitcoin, Regulation, Treasury Secretary, treasury secretary janet yellen

Foreign Crypto Exchanges Like Paxful, Binance to Pay 1.5% Tax Under Kenya’s New Regulations

16/10/2020 by Idelto Editor

Foreign Crypto Exchanges Like Paxful, Binance to Pay 1.5% Tax Under Kenya's New Regulations

The Kenya Revenue Authority (KRA) has clarified that its planned digital service tax (DST) will be applicable to cryptocurrencies at a rate of 1.5% on gross transaction value, local media reported.

In August, the agency announced new rules for the taxation of what it calls “digital marketplaces.”

However, with oblique definitions on such key terms, it has not been clear who exactly will be taxed under the new regulations that come into force on Jan 1, 2020.

Now, KRA tax expert Nixon Omondi has appeared to set the record straight.

“As the law is, any person who will be offering a digital service – crypto is digital, the platform is digital, the acquisition process is digital, the process of payment is digital – in that respect, DST will be applicable on cryptocurrencies,” he explained, in a report by Bitcoinke.

The clarification means that platforms dealing with virtual currencies will be required to pay the 1.5% tax to the Kenyan government. The situation is rather tricky for foreign peer-to-peer exchanges like Paxful and Binance P2P, which have operations in the East African country – they will have to remit the tax each month.

Kenyan crypto businesses will make similar payments, too. However, local firms “have the option of claiming back their digital service tax at the end of the year since they also pay other taxes within the Kenyan jurisdiction,” said the report.

In its original communication, the Kenya Revenue Authority stated that the digital service tax is to be paid “by a person who derives or accrues income from services through a digital marketplace.” But the term “digital marketplace” proved a source of much consternation because of it being legally and technically ambiguous.

Kenya’s Finance Act offered a rather broad definition of the phrase, describing digital marketplaces “as a platform that enables the direct interaction between buyers and sellers of goods and services through electronic means.” Kenya is Africa’s third-biggest bitcoin market after Nigeria and South Africa.

What do you think about Kenya’s digital service tax? Let us know in the comments section below.

The post Foreign Crypto Exchanges Like Paxful, Binance to Pay 1.5% Tax Under Kenya’s New Regulations appeared first on Bitcoin News.

Filed Under: Africa, Binance, crypto taxation, Digital markeplace, English, Kenya Revenue Authority, Kenya's digital service tax, News Bitcoin, Nigeria, Nixon Omondi, Paxful, Taxes

  • Go to page 1
  • Go to page 2
  • Go to page 3
  • Go to page 4
  • Go to Next Page »

Primary Sidebar

Archives

Recents articles

  • A Day In The Life Of A Bitcoin Core Developer
  • Study: AUM of Crypto Investment Products at Record Lows in June, Trust Products Garner Lowest Total Since December 2020
  • Bitcoin Is A New Paradigm Of Stakeholder Capitalism
  • US Regulator Charges South African MTI and Its Operator With $1.7 Billion Fraud Involving Bitcoin
  • Just As The Harlem Globetrotters Changed Basketball Forever, The Perth Heat Can Change Sports Forever With Bitcoin
  • Crypto Exchange Coincoinx to Launch Crypto to Fiat Payments App in Venezuela
  • Reusing Bitcoin Addresses Can Lead To Private Keys Being Stolen
  • TSX-Listed Voyager Digital ‘Temporarily’ Suspends Trading, Deposits, and Withdrawals

© 2022 · Idelto · Site design ONVA ONLINE

Posting....