Global cryptocurrency taxation rules differ from country to country, with certain jurisdictions reportedly coming up with difficult cryptocurrency taxation policies for its citizens. As per a study conducted by cryptocurrency analytics firm Coincub, Belgium is considered to be the worst country in terms of cryptocurrency taxation for resident, in respect of in-house rankings covering taxation aspects such as taxes on cryptocurrency income or cryptocurrency capital gains, as reported by Cointelegraph.
According to Cointelegraph, Belgium has implemented a 33% taxation policy on capital gains for cryptocurrency transactions, and also has a 50% taxation scheme from professional income on cryptocurrency trades. Previously, Belgium adopted cryptocurrency taxation policies in 2017. Coincub’s taxation rankings mentioned countries such as Iceland, Israel, Philippines and Japan, as the less favourable locations for cryptocurrency investors.
On the basis of information by Cointelegraph, in Iceland, any cryptocurrency gains beyond $7,000 are subjected to under 40% taxation, while bigger gains will incur 46%. Under Israel’s taxation regime, cryptocurrency sales is subjected to capital gains tax of up to 33%. In Phillipines, investors are exempted from cryptocurrency income under $4,500, but are subjected to a 35% tax beyond it. Japan has a taxation policy system for income considered miscellaneous, which varies from five percent to 45%, based on the total amount of total profits. Coincub’s research also mentioned countries such as India, Austria, United States, Norway, Denmark and France.
Moreover, Cointelegraph noted that Coincub emphasised on tax havens or countries which provide foreign businesses and individuals minimal to no tax liability, for their financial deposits, where cryptocurrency is considered as an exception. Among those countries, the study includes Bahamas, Bermuda, Belarus, United Arab Emirates, Central African Republic, Lichtenstein, among others. The firm also stated that cryptocurrency taxation is evolving as new regulations are taking place, with increase in the number of countries that apply tax rates on individuals for simplifying tax take.
(With insights from Cointelegraph)