Due to the increasing number of bitcoin ATM fraud cases, the Australian Taxation Office (ATO) has recently published a warning to its citizen to take precaution on scammers who pretend as ATO officials. In the recent warning, the ATO Assistant Commissioner made it clear that they will not ask for its citizen to pay their taxes into ATM machines.
The French government has revealed to reduce the cryptocurrency burden by 6% next year subject to the country’s parliament approval. According to the report, the new tax will prevail as early of January 2019 if approved by the parliament. The intention expressed by the French government seems to indicate that the country has begun to adopt cryptocurrency.
The Department of Federal Revenue of Brazil (RFB) has asked the cryptocurrency exchanges operating in the country to disclose all their operations on a monthly basis. The citizens and legal companies are also mandated to disclose all the transactions entered with foreign crypto exchange above $10,000 Brazilian reals per month. The draft rules also enclose penalty provision for failure.
The Information Reporting Program Advisory Committee (IRPAC) of the U.S. Internal Revenue Service (IRS) called for more clarity on cryptocurrency taxations. A report published by the agency also quoted that the tax liabilities concerning cryptocurrencies in the U.S. amount to $25 million as revealed in a research. The committee recommended ‘the IRS issue further guidance.’
The Ukrainian parliament has recently received a draft bill which proposes a tax break to cryptocurrencies businesses for at least a decade. If the bill drafted has been approved by the Ukrainian parliament, tax breaks on income earned from the cryptocurrency transaction will be granted for the citizen in the country including businesses involved in import and sale of cryptocurrency mining activity.
A bill which mandates the cryptocurrency owners to disclose their digital assets for taxation purposes has been approved. The decision to demand the digital assets declarations is an effort to get the “identification of the holders and the balances contributed by these virtual currencies” and to formalize the emerging industry in the country starting this year.
The Ukraine Ministry of Finance is to establish a working group in order to come up with a legal framework for crypto taxation cryptocurrencies. Reportedly, the consortium would function from the 16th of October. The report by the group is to be submitted before the expert council to prepare the common tax consultations by the end of the year.
The parliament of Ukraine is to introduce a bill exempting cryptocurrency assets from taxation in the country. If approved, the Tax Code of Ukraine will be amended with the new concept and terms defining cryptocurrencies, and tokens. Cryptos are categorized as an intangible digital asset. This indicates a friendly approach towards the emerging industry.
The U.S. lawmakers have approached the Internal Revenue Service (IRS) in order to seek clarity on tax laws covering cryptocurrencies. An open letter was addressed to the IRS commissioner and other officials. The lawmakers stated, “We are concerned that the IRS is seeking to enforce guidance that does not adequately advice taxpayers of their obligations when using virtual currencies.”
The Ukraine parliament would be taxing profits generated from cryptocurrencies by individuals and commercial entities at 5% as per the recent proposal. The bill emphasized that the disclosure of such gains are to be reported separately from the other forms of income. The commercial entities would be taxed at 18% from 2024 on the approval of the bill.