Tag Archives: Taxation

According to a study conducted by the Swedish tax firm Divly, only 0.53% of cryptocurrency investors globally paid taxes on their trades last year.  The average share of people abiding by the rules varies in different countries. For example, over 4% of Finnish investors have paid taxes, while only 0.03% of those in the Philippines have done so. The Trends Across the Globe Divly explored 24 nations to determine what chunk of people in each area declared their cryptocurrency...

Indian tax authorities collected Rs 158 crore (approx. $19 million) in TDS on the transfer of virtual digital assets (VDA) till March 20, Minister of State for Finance Pankaj Chaudhary told the Parliament on Tuesday.  Given that the financial year ended on March 31, it can be taken as the final figure for the entire 2022-23 fiscal. 1% TDS at $125 Threshold  The Indian government brought crypto transactions under a new tax regime through the budget for 2022-23. It provided for...

The Supreme Court of Denmark ruled that people should be subject to taxation when generating profits by selling bitcoin. The legislation will apply to both investors and miners.  The Court’s Decision Højesteret – the third and final instance in all civil and criminal cases in the Kingdom of Denmark – announced on March 30 that investors who made any profits when selling bitcoin holdings will have to pay taxes.  The magistrates claimed that people buy BTC, hoping to sell it at...

In a significant development that indicates that the Indian government may not fully chime with the central bank’s overly hostile stance against cryptocurrencies, a junior minister explained that such activities are fine as long as they follow existing laws.  This is in sharp contrast to the Reserve Bank of India’s (RBI) ban on crypto in 2018 and not fully opening up to the sector even when the Supreme Court scrapped the RBI order in 2022, calling it illegal.   Crypto Is...

While Indian crypto exchanges lost a significant portion of their trading volume after new taxes for the sector came into force, the losses, so far, were referred to in percentage terms, with most estimates quoting them to be above 90%, compared to the previous year. Now, a new study has quantified the value of cumulative trading that shifted from Indian to foreign crypto exchanges after the new taxes kicked in. CryptoPotato reported earlier that Indian traders are flocking...

A junior finance minister told the Indian parliament on Tuesday that the government has collected about $7.4 million in TDS on crypto transfers since July 1.  Given the low numbers, the government may consider the local crypto industry’s demand to reduce the tax to a reasonable level – in the range of 0.01% to 0.05%. Low TDS Collection In a written reply in the upper house of the Indian Parliament, Minister of State for Finance Pankaj Chaudhary informed that the Indian...

The Japanese government greenlighted a bill to exempt local cryptocurrency issuers from paying corporate tax on their holdings. The ruling body currently requires such firms to pay 30% on their ownings even if they haven’t gained profits through a sale. Japan’s ruling political party – The Liberal Democratic Party – aims to ease corporate tax legislation for domestic crypto issuers and thus stimulate such entities to operate in their homeland. Akihisa Shiozaki – an LDP...

A prominent Indian cryptocurrency trade body – Bharat Web3 Association (BWA) – has red-flagged the high taxes and regulatory uncertainty in its draft of concerns and recommendations submitted to the Indian Finance Ministry, which is holding consultations in the run-up to the budget for 2023-24. A meeting between the BWA representatives and the Indian finance ministry officials, particularly with officials of the Central Board of Direct Taxes (CBDT), is expected to take place...

The government of Italy is reportedly looking to enforce strict rules on the local crypto space by imposing a 26% tax on profits generated from digital asset trading.  However, residents who earn less than €2,000 ($2,090) per year from dealing with bitcoin or altcoins will be excluded from the possible upcoming legislation. Italy’s Next Crypto Step A recent coverage by Bloomberg informed that the Italian authorities are working on a crypto bill that could be implemented as of...

Binance CEO Changpeng Zhao (CZ) has all but given up on India. Pointing out the 1% transaction tax that came into force on 1 July 2022, CZ said it makes crypto trading unviable in India. Speaking at the TechCrunch Session: Crypto 2022 on November 17 in Miami, CZ further pointed out that Binance is engaged with blockchain associations and influential persons in India to present the industry’s stance before the policymakers, a TechCrunch report said. CZ Red Flags 1% Transaction...