Eight countries that do not tax their Bitcoin earnings
As world governments pass legislation to collect capital gains taxes on bitcoin (BTC) transactions, seeking to earn more than one asset class that disapproves of regulatory oversight, there are still some countries that remain pro-crypto. , allowing investors to buy, sell or hold digital assets at zero tax.
Circumstances vary, but the real motivation leans more towards facilitating further investment within the cryptocurrency industries of the respective jurisdiction, perhaps as the basis for future taxes. For now, that has not yet happened. Here is a list of eight countries, in no order of importance, that can be considered as bitcoin tax havens, states that do not want their investment earnings in BTC.
In Portugal, the tax authorities waived all taxes on trade and cryptocurrency transactions, which means that people do not have to pay capital gains tax or value added tax (VAT) when buying or selling BTC and other digital assets. The Portuguese Tax Authority (PTA) said that “an exchange of cryptocurrencies for” real “currency constitutes an exercise of services on demand and free of VAT”.
While citizens are not required to pay income tax when exchanging cryptocurrencies for fiat money, the PTA, however, indicated that companies that accept digital currencies as payment for goods and services are subject to taxes such as VAT and income tax. Income tax relief makes the Laws of Portugal some of the most favorable in the entire world, given that income tax is a huge expense on the accounts of most cryptocurrency traders
If you keep Bitcoin for a year or more in Germany, you won’t have to pay any taxes. Regardless of how much money you earn by selling your BTC, you do not pay capital gains as long as you have held your coins for longer than 12 months.
The largest economy in Europe considers BTC as private money, contrary to the general opinion in most developed countries, which consider cryptocurrencies as currency, merchandise or capital. In Germany, private sales that do not exceed 600 euros ($ 654) are exempt from tax. However, companies are still required to pay income taxes emanating from bitcoin through corporate income taxes.
Both individuals and companies that own BTC or other digital assets as a long-term investment are not subject to tax in Singapore, simply because the capital gains tax does not exist in the city-state itself.
However, Singapore-based companies are subject to income tax, should they be involved in cryptocurrency trading as a core business. Those who opt for Bitcoin as payment for services rendered, or income, are subject to normal income tax rules. Companies pay taxes on profits generated within Singapore.
As with neighboring Singapore, there is no capital gains tax in Malaysia. Cryptocurrency transactions involving cash or another digital asset are not taxable in the Southeast Asian country. However, this will likely change if BTC is recognized as a legal tender in Malaysia, as has been rumored in the local press in recent months.
In the country of Belarus, Eastern Europe, a new law that went into effect in March 2018 legalized the cryptocurrency, exempting individuals and businesses from any form of taxes for dealing or dealing with digital financial assets in any way, at least until 2023.
Individual activities, such as mining or buying and selling crypto, are considered personal investments and are therefore not subject to tax. Similarly, registered companies operating in the High Technologies Park special economic zone, near the capital Minsk, involved in mining, trading, initial coin offerings or other crypto-related operations are not subject to taxes.
For Slovenia, the tax system for individuals and companies involved with BTC is quite different. While no capital gains are raised from citizens from the sale of bitcoin and other cryptocurrencies, they are still expected to pay income tax regardless of the currency being exchanged. However, companies that receive payments in BTC or from crypto mining must pay taxes at the corporate tax rate.
Corporate taxation “depends on the circumstances of a particular case and the information provided in the statement: status of the recipient of income; type of income. If the profits are recognized as capital gains, then the tax is 19% “Say the experts.
Malta’s famous “blockchain island” does not tax long-standing digital currencies, be it for capital gains or VAT. However, crypto trades executed within the day are considered similar to daily trades in stocks or currencies, generating taxes as business income at a rate of 35%.
Malta is perhaps one of the most crypto-friendly countries in the world, initiating legislation that has legalized a variety of crypto operations in the country. The government recognizes bitcoin “as a unit of account, medium of exchange, or store of value.”
In Switzerland, one of Europe’s crypto havens, qualified individuals who buy, sell, or hold cryptocurrencies for personal gain are not required to pay taxes on their capital gains. However, mining income, considered self-employment income, is taxed through income tax. Profitable crypto trading by qualified professionals is subject to corporate tax, while wages paid in bitcoin must be reported for income tax purposes.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.