News about Taxation in Crypto Market
A blockchain-powered accounting company have pressurized the Internal Revenue Service (IRS) to update its existing guidelines on crypt0-taxation policy. The guidelines on cryptocurrency-related industry issued by IRS on 2014 were incomplete. The CEO of Libra, Jake Benson have asked the IRS to clarify the methodology used by the organization in determining the eligibility for a tax refund.
A bill that proposed the usage of cryptocurrencies for tax payments purposes has been introduced in Indiana and New Hampshire. The bill requires approval from the state government before being fully implemented. The authorities also require to set-up a framework to allow the usage of digital currencies for tax and fee payments by July 1st 2020.
According to the report, the cryptocurrency-related taxes will be effective in April for Chile’s residents confirmed by Chile’s Internal Revenue Service. In a document prepared by the SII explained, “purchase and sale of bitcoins, or any other virtual or digital assets must be declared on the Form No. 22, on the Annual Income Tax Return.”
A decree which demands the cryptocurrency operators in the country to pay tax in cryptocurrency has been published by the Venezuelan government. Dinero publication commented, “The government of President Nicolás Maduro published a decree that will require taxpayers who carry out operations in foreign currencies or cryptocurrencies to pay their taxes in that same currency and not in bolivars.”
The authorities in Poland will begin treating the cryptocurrency trades similarly to revenues from the stock market starting this year. The Director of the Blockchain Technology Centre in Warsaw commented, “What we don’t have is any research on the scale of taxation of profits from the sale of cryptocurrencies. It would be very interesting to observe how this phenomenon changes.”
A cryptocurrency firm based in the US, Overstock.com have announced that the firm will be paying part of its business tax using bitcoin. Its CEO, Patrick Byrne then explained, “The governmental adoption of emerging technologies such as cryptocurrencies is the best way to ensure the U.S. does not lose our place at the ever-advancing global economy.”
A policy paper has been released by Her Majesty’s Revenue and Customs (HMRC) of the United Kingdom which explains in details regarding the cryptocurrency tax guidelines for individuals; no new punitive tax measures applied to the cryptocurrency industry since it will be categorized under the existing taxation schemes, with a given tax rate according to some income.
The Australian Tax Office (ATO) has warned the cryptocurrency traders in the country to declare their trading gains. The ATO spokesperson commented, “While there is no specific label on the capital gains schedule or income tax return to identify how many people have invested in cryptocurrency we are still looking at lodgement activity this year to determine any significant impact of cryptocurrencies.”
The National Parliament of France have recently rejected the proposal received in early November to lower the tax charged on cryptocurrency and left the cryptocurrency traders to shed some percentage of profit as tax. Currently, bitcoin gains are taxed at a rate of 36.2 percent while other forms of capital gains are taxed at a flat 30 percent.”
The Israel Tax Authority (ITA) has taken strong measures to curb unreported gains made from crypto assets and trading. Notice had been sent by the authority to all those who are under suspension of disclosed earnings through crypto. It also added pay 25% in capital gains tax every time they disposed of their holdings and 17% value-added tax for exchanges.
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