In a digital era of the 21st century, cryptocurrencies such as bitcoin, ethereum, ripple or litecoin, have become a newborn alternative and universal currency without the need of attachment to any particular state. It caught countries throughout the world by surprise and since there is no universal regulatory response, the states themselves started to legalise and regulate it with often very different approach.
In this article, we bring you a brief update of 3+5, i.e. 3 countries with no taxation and 5 countries with a low taxation of cryptocurrencies. We do hope you will find it informative and enjoy reading it. Please contact us for more detailed information or any questions you may have.
Malaysia
It has no capital gains tax on cryptocurrencies and, in general, the trades and other activities involving cryptocurrencies are not subject to any tax (e.g. VAT, income tax) presently.
Portugal
It has no taxes (e.g. VAT or capital gains) on cryptocurrencies and their transactions per se, i.e. neither companies, nor individuals have to pay income tax when trading cryptocurrencies for regular currencies. However, outside of such trading, the companies that receive payments for their goods or services via cryptocurrencies have to pay VAT and income tax.
Belarus
The trades and all other related activities involving cryptocurrencies are not subject to any tax (e.g. VAT, income tax). The mining, buying and selling of cryptocurrencies is considered a personal investment and therefore are not subject to tax. Moreover, companies that have set up in Minsk’s High Technologies Park SEZ to trade, mine or develop ICOs do not have to pay tax on their activities.
Singapore
Interestingly, Singapore applies one, no-tax approach for individuals and very different, tax approach for companies: individuals holding cryptocurrencies are not subject to taxation on such holdings, however, a company in the country that trades in cryptocurrencies is subject to income tax.
Switzerland
In Switzerland any cryptocurrency held, sold or bought by individuals for their own private wealth is not subject to any tax. However, mining cryptocurrencies is regarded for a form of employment, hence an income tax is paid on their proceeds.
Malta
In Malta, any long-term investment in cryptocurrencies is tax-free. However, any trading in the short term is taxed.
Germany
In Germany considers cryptocurrencies as private money and not as currencies, commodities or stocks. Thus, currently any cryptocurrency sale valued under 600 Euros is not taxed. Moreover, if investors hold their cryptocurrencies in the long-term, i.e. for more than 1 year, then any proceeds (capital gains) made from such holdings are not subject to tax.
Slovenia
In Slovenia, individuals are not liable to pay a capital gains tax on cryptocurrencies, however income tax must be paid if it is a part of their business (trading, mining). Companies involved in the trading and mining of cryptocurrencies are subject to a corporation tax.
Information Source: TaxLinked
