As an effort in encouraging the development of blockchain technology, South Korea has recently announced its new initiative which offers tax incentives for blockchain development purposes. A report that was published have explained that the updated tax law introduced by the Ministry of Strategy and Finance in the country will be effective from this February.
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.”
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.”
Bitfinex has ordered its customers to submit their tax details with the exchange and it is most likely to share the data with the authorities. The digital asset trading platform didn’t enforce the basic KYC requirements for its users up a few months ago, and the Bitfinex users also exclaimed their desire to boycott the platform.
In response to US sanctions towards Russian economy, Russian seems to figure out a way to pass the financial barriers using crypto. Recently, the Russian State Duma, Anatoly Aksakov response positive regarding the idea to establish Crimea as a crypto tax haven and said, “Here, there are all conditions for it. In addition, local companies need investments, and attracting them through tokens is a good option.”
U.S Tax filing deadline is fixed on 17th April and only small fractions of cryptocurrency holders in America have submitted their investments report. A data released by Credit Karma showed that less than 100 people out of 250,000 disclosed their crypto investments and crypto gains under the capital gain tax.
The South African Revenue Service (SARS) announced that the bitcoins are attracted to the tax ambit. It affirmed that cryptocurrencies, though not recognized as a legal tender, people have to pay tax on them. The entities that support crypto payments have to disclose such income in their accounts and the crypto investors will have to meet capital gain tax.
A research conducted by Fundstrat Global Advisers have revealed approximately cryptocurrency owners in the U.S have owed $25 billion in tax. The high numbers were reported leaving cryptocurrency owners under pressure to sell off their digital assets and cryptocurrency exchanges such as Coinbase reported to have the net profit for more than $1 billion in 2017.
Michael Williams and Joshua McKoon, the senators in Georgia, proposed a bill that would entitle citizens to meet tax obligations through bitcoin and other cryptocurrencies. “The commissioner shall accept as valid payment for taxes and license fees any cryptocurrency, including but not limited to Bitcoin, that uses an electronic peer-to-peer system,” the bill expressed.
The new bill which will entitle people to meet their tax liabilities by using bitcoin and other cryptocurrencies was submitted to the Arizona Senate. The bill detailed, “The Department will convert cryptocurrency payments to United States dollars at the prevailing rate within twenty-four hours after receipt and shall credit the taxpayer’s account with the converted dollar amount”.