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.
Minister of Economy and Finance of Korea Mr.Hong Nam-ki revealed the plan to the crypto industry in line with the global trend to tax the crypto assets. Also with respect to the present ban in the country, the Minister responded they are working on new policy and set up a task force such as National Tax Service. The country also plans to build its own “blockchain island” in the Jeju Island Resort.
Ohio might be the first US states to accept bitcoin for business tax payment purposes. A report from The Wall Street Journal confirmed that Bitcoin is to be accepted for business tax payments from this week and highlighted that bitcoins could be used to pay 23 taxes such as sales tax and withholdings taxes.
A local press has reported that approximately 15,000 cryptocurrency holders and taxpayers in Spain will be probed by the country’s Finance Ministry to combat tax fraud parallel with annual tax control plan by the Agencia Estatal de Administración Tributaria (AEAT). Previously, the Spanish government has demanded the cryptocurrency investors to reveal their cryptocurrency holding for tax purposes.
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.