Cryptocurrencies and taxation in different countries

Trading cryptocurrencies are common in now-a-days in many countries. People have shown their interest in cryptocurrencies at the same time they are very much interested in investing in them. Bitcoin touches lifetime high $60K whereas Ethereum officially crossed $3K mark. Dogecoin increased 18K% in 12 months. 

Financial institutions and countries changed their initial opinion on crypto and moved towards a global acceptance of crypto. In most countries, including the United States, cryptocurrencies like Bitcoin, Ethereum and others are treated as property for tax purposes but not as currency. 

Investing in cryptocurrencies seems like investing in online trading in the stock market for tax purposes. There is a lot of variation on considering trading cryptocurrency as tax in some countries and some have not been considered into the tax bracket. Crypo tax is becoming a common topic of the digital currency world. Few countries that still refuse to introduce a law specifically for the digital currencies.

 
Japan

Taxes on cryptocurrencies are highest in Japan where 55% of tax is levied on crypto capital gain. The people in the country started using cryptocurrencies as an alternate payment method.

Belgium

Belgium is the second highest tax imposed on crypro gains with 33%. The tax is not considered in income tax of the assessee. It is purely crypto tax.  

South Korea

South Korea imposed 24% of tax on cryptocurrencies. Every crypto transaction above a certain price range will require the individual to disclose their identity through an ID card in South Korea.

There are some nations where the governments have not charged tax on returns of cryptocurrencies.

Germany

Germany doesn’t consider cryptocurrencies as commodities or stocks. There is no tax in Germany even if you hold cryptocurrencies for more than a year. Bitcoins and other crypto are considered as private money in Germany. Even if you earn more profit by selling cryptocurrencies, you need not pay taxes on capital gains for one year.

Portugal

Portuguese tax authorities have considered that exchange of cryptocurrencies as VAT free exercises of services. Any gains made from purchase and sale of cryptocurrencies have not been taxed in Portugal.

Belarus

A new law made in the country made an exemption from different taxes in Belarus. Under this new law, investment in crypto and mining are considered as personal investments and exempted from taxes till 2023.