Tax liability is a major source of concern for anyone invested in Bitcoin and other digital assets. In sum, some have described it as nothing short of a nightmare.
But while some countries are putting pressure on investors and levying taxes on income and capital gains from Bitcoin transactions, many are taking a different approach—often with the aim of promoting better adoption and innovation within the crypto industry. They’ve implemented friendlier legislation, and allow investors to buy, sell, or hold digital assets with no tax liability.
Here’s our list of the nine most crypto-friendly tax jurisdictions.
- Belarus 🇧🇾
Belarus is taking an experimental approach to cryptocurrencies. In March 2018, a new law legalized cryptocurrency activities in the East European state, exempting individuals and businesses involved in them from taxes until 2023 (when it will come up for review.)
Under the law, mining and investing in cryptocurrencies are deemed personal investments, and so exempt from income tax and capital gains.
The liberal laws aim to boost the development of a digital economy, and technological innovation. The country was recently ranked third in Eastern Europe and 19th globally in levels of P2P crypto trading.
- Germany 🇩🇪
Germany offers a unique take on taxing digital currencies such as Bitcoin. Unlike most other states, Europe’s biggest economy regards Bitcoin as private money, as opposed to a currency, commodity, or stock.
For German residents, any cryptocurrency held for over a year is tax-exempt, regardless of the amount. If the assets are held for less than a year, capital gains tax doesn’t accrue on a sale, as long as the amount does not exceed 600 euros ($692).
However, for businesses it’s a different matter; a startup incorporated in Germany still needs to pay corporate income taxes on cryptocurrency gains, just as it would with any other asset.
- Hong Kong 🇭🇰
Hong Kong’s tax legislation on cryptocurrencies is a broad brush affair, even after new guidance was issued earlier this year.
Essentially, whether cryptocurrencies are taxed or not depends on their use, according to Henri Arslanian, a global crypto leader at PwC.
“If digital assets are bought for long-term investment purposes, any profits from disposal would not be chargeable to profits tax,” he wrote in March when the directive was introduced. But he added that this doesn’t apply to corporations—their Hong-Kong sourced profits from cryptocurrency business activities are taxable.
- Malaysia 🇲🇾
In Malaysia, cryptocurrency transactions are currently tax-free, and cryptocurrencies don’t qualify for capital gains tax, because digital currencies are not considered assets or legal tender by the authorities.
But the law is currently fluid; it only applies to individual taxpayers, and businesses involved in cryptocurrency are subject to Malaysian income tax.
And things may soon change. Mohamad Fauzi Saat, director of Malaysia’s tax department said in 2018 that Malaysia was committed to working towards issuing comprehensive guidelines on the tax treatment of cryptocurrency by the end of 2020.
- Malta 🇲🇹
The government of the so-called “Blockchain Island” recognizes Bitcoin “as a unit of account, medium of exchange, or a store of value.”
Malta doesn’t apply capital gains tax to long-held digital currencies like Bitcoin, but crypto trades are considered similar to day trading in stocks or shares, and attract business income tax at the rate of 35%. However, this can be mitigated to between five percent and zero, through “structuring options” available under the Maltese system.
Malta’s fiscal guidelines, published in 2018, also discriminate between Bitcoin and so-called “financial tokens,” equivalent to dividends, interest or premiums. The latter are treated as income and taxed at the applicable rate.
- Portugal 🇵🇹
Portugal has one of the most crypto-friendly tax regimes in the world.
Proceeds from the sale of cryptocurrencies by individuals have been tax-exempt since 2018, and cryptocurrency trading is not considered investment income (which is normally subject to a 28% tax rate.)
However, businesses that accept digital currencies as payment for goods and services are liable to income tax.
- Singapore 🇸🇬
Capital gains tax does not exist in Singapore, so neither individuals nor corporations holding cryptocurrency are liable.
But companies based in Singapore are liable to income tax, if their core business is cryptocurrency trading, or if they accept cryptocurrency as payment.
The authorities consider payment tokens such as Bitcoin to be “intangible property” rather than legal tender, and payment in the cryptocurrency constitutes a “barter trade” where the goods and services are taxed, but not the payment token itself.
- Slovenia 🇸🇮
Slovenia is another country that treats individuals and businesses separately under its cryptocurrency tax system.
No capital gains tax is levied on individuals when they sell Bitcoin, and gains are not considered income. However, companies that receive payment in cryptocurrencies, or through mining, are required to pay tax at the corporate rate.
Notably, the Mediterranean country doesn’t permit business operations in cryptocurrency alone (such as only accepting Bitcoin as payment.)
- Switzerland 🇨🇭
It’s no surprise that Switzerland, home to the innovation hub known as “Crypto Valley”, has one of the most forward-thinking tax policies too.
Cryptocurrency profits made by a qualified individual through investing and trading are treated as tax-exempt capital gains.
For the complete link to the written article - click here
Edit: hey thanks for the award, that was so awesome. Have a nice day everyone.
Cryptocurrency exchanges in Malaysia are allowed by SC to trade only Bitcoin, Ethereum, and XRP for now. Do note that at the time of writing (April 2020), only Luno, Sinery, and Tokenize has fully complied with SC’s requirements and has received SC’s full approval to commence operations. Cryptocurrency Trading in Malaysia(Bitcoin Exchanges) Cryptocurrency Trading(Bitcoin Exchange) Tips. Trading Bitcoins is very much similar with any other forms of trading. You need to be careful when you are trading Bitcoins as a little greed can go a long way. The idea behind this is to ensure that you have your safety nets before jumping off the cliff. Use this link to open a new trading ... Buy with Bank transfer Malaysia by everyday2. Read the the terms of the trade and make sure you can comply with them. Use this form to send in a trade request with the sum you wish to trade. What App Can I Buy Bitcoin within Malaysia? Luno is one of the best exchanges and has its own app allowing the buying, selling and trading of Bitcoin. Luno’s app is aesthetically pleasing and makes it easy for you to trade Bitcoin on the go. Of the exchanges mentioned above, they are the only one with an app for iOS and Android. Buy Bitcoin Read Review. Luno is a Bitcoin exchange with a presence in South Africa, Singapore, Nigeria, Malaysia and Indonesia. It offers 0% fees for market makers, meaning you can avoid fees if you place a buy order then wait for a seller to take it.
Tutorial Cara Trading Bitcoin & Cryptocurrency di Binance ... How to Buy Bitcoins (BTC) in Malaysia Using Remitano - Duration: 16:24. Pixel Nex 4,616 views. 16:24. $100 A Day Trading On Binance ... UPDATED How to Buy Bitcoin Ethereum with COINHAKO in Singapore Malaysia Exchange Part 1 - Duration: 15:02. BitCoin Hextra Coin And Everything Crypto 1,982 views 15:02 Umur 16 tahun sudah income rm6000 sebulan melalui Bitcoin Malaysia 2017 - Duration: 9:18. Product Terhangat 45,516 views. 9:18 ... CARA TRADE & JUAL BELI BITCOIN DI LUNO - Duration: 2:35. Am ... The Secret Code Of Successful MACD Trading (Strategies Included) - Duration: 11:31. ... Bitcoin & Blockchain di Malaysia: Ini Yang Korang Patut Tahu - Duration: 25:06. Budiey Channel 10,320 views ... Quick Step-By-Step Intro Guide to Buying/Selling Bitcoin & Ethereum for Malaysian, Indonesian & Singaporean via your local bank. Learn how to use the exchang...