Cryptocurrency taxes in the world

In Russia, individuals pay an income tax of 13% or 15% on the difference between the amount of purchase and sale of cryptocurrencies. For legal entities, the income tax rate is 20%. And in other states, citizens are exempt from taxes on cryptocurrency.

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We tell you where it is allowed to pay with cryptocurrency and what taxes investors pay.

The cryptosystem allows you to receive and send payments online anonymously to anyone. Banks, tax, judicial and government authorities cannot control transactions with cryptocurrency.

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The state may prohibit cryptocurrency or accept it as money, asset, property or security.

In 2013, the USA, Singapore, Switzerland, Germany became the first countries to think about the legal regulation of cryptocurrencies and taxation issues.

To regulate cryptocurrency payments and investments, each country needs special laws. But the lack of legislation on cryptocurrencies does not always mean that they are illegal in the country. In this case, taxes are calculated on the basis of applicable tax regulations or taking into account the instructions of the tax authorities.

A broader term for virtual payment systems is crypto assets. These include:

Electronic money is a digital alternative to cash. For example, electronic money is paid through Alipay, a payment system that is part of the Alibaba Group. In addition to the company’s services, Russian Railways, Rive Gauche, Ile De Bute, Azbuka Vuka, GUM, TSUM, Sportster, Burger King and other organizations are connected to Alipay in Russia.
Unsecured cryptocurrencies – “electronic cash” – are used as a means of payment. In addition to bitcoin, about a thousand types of cryptocurrencies are known. They apply to payments within the country, if permitted by law.
Stable coins. To stabilize the exchange rate, their quotes are tied to national currencies or exchange commodities – gold, oil. Stable coins are used for payments or as an analogue of a money market fund or other property complex.
Tokenized assets are crypto assets used to secure certain rights to their owner, which can be divided into analogues of debt securities and shares.
Some states issue digital money – an analogue of the national currency for online payments. Such money does not belong to crypto-currencies. For the first time, a digital analogue of the national currency appeared in the Caribbean. Dash is the electronic version of the Caribbean dollar.

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Cryptocurrency can be used to pay now in the Caribbean and Vanuatu, Sweden, Australia, the USA, Japan and other countries.

Ranking of countries according to the cryptocurrency adoption index

The attitude towards cryptocurrencies in the countries of the world varies, and you can not use them everywhere. In Romania, Taiwan, Vietnam, Algeria, Egypt, Morocco and Bangladesh, cryptocurrencies are prohibited. Iceland has restrictions on buying coins on exchanges.

In 2021, experts from the blockchain data collection company Chain lysis conducted a study and ranked 154 countries on the cryptocurrency adoption index. The researchers took into account the amount of cryptocurrency transactions, the number of cryptocurrency deposits and the volume of P2P (peer-to-peer) trading.

For example, in Japan, Singapore, Belarus, Germany, Estonia and other countries, cryptocurrency is regulated at the legislative level and is a legal means of payment. Cryptocurrency exchanges are allowed to trade in the US, Japan and Malta. Bidders submit tax returns.

Taxes and regulation of cryptocurrencies in Russia, Belarus and Ukraine

In Russia, operations with cryptocurrency are in the process of legalization.

The current law “On Digital Financial Assets” does not regulate the issues of taxation of cryptocurrency.

In 2018, the Ministry of Finance clarified the procedure for paying taxes in Letter No. 03-04-07/33234 dated May 17, 2018.  At the same time, a tax rate of 13% is applied, and from income over 5 million rubles – 15%. The tax is paid on the difference between the income from the sale of cryptocurrencies and the costs of the purchase.

13%
income tax up to 5 million rubles from the sale of cryptocurrency
For unintentional non-payment of tax on cryptocurrencies, Article 122 of the Tax Code of the Russian Federation provides for liability in the amount of 20% of the amount of unpaid tax. For non-payment of tax with intent – 40%.

If the personal income tax debt for three financial years exceeds 2.7 million rubles, the citizen is held criminally liable up to imprisonment for up to a year. If the unpaid amount for three financial years exceeds 13 million rubles, this threatens with imprisonment for up to three years.

All transactions with crypto-currencies are offered to be carried out through bank accounts to make it easier to identify investors.

According to the project, citizens are required to undergo online testing before acquiring cryptocurrency. For the first time in the world, cryptocurrency legislation has been singled out as a separate industry.

Operational income is tax-free until January 1, 2023. Perhaps the preferential tax regime will be extended.

Regulated cryptocurrency exchangers operate in Belarus – for example, the instant exchange service from the FREE2EX crypto exchange and the Whiteboard exchanger. All of them are residents of the Hi-Tech Park and fully comply with the requirements of Decree No. 8 “On the Development of Digital Technologies”.