TAXATION AROUND THE GLOBE
USA
- The system of financial boarding of the United States of America sees cryptocurrency as a form of capital asset.
- Tax will be placed on the gains which are achieved from buying or selling cryptocurrency.
- When you have held the security for more than a year you will have to pay long-term capital gain tax for crypto assets.
- If the position is less than 1 year, you have to pay short-term taxes.
- Simple buying of cryptocurrency requires no form of tax. If you explain it in theoretical terms, you can hold on to your cryptocurrency for an entire lifetime without having to pay any tax on it. When you are selling on exchanging cryptocurrency, you will be taxed quite severely.
- The tax percentage on Bitcoin gains varies between the ranges of 0%-37%. The tax rate is substantially low when the person is involved with his or her spouse in the total expenditure.
- If you are facing any kind of loss in the market in terms of income tax, you have to offset the values quite regularly. This is considered up to the value of $3,000 overall.
Canada
- You cannot view cryptocurrency as a normal form of expenditure in Canada.
- It is rather viewed as a certain form of commodity or capital asset.
- You might think of it as a rental property as well and it will be taxed in case you considered it as an income.
- The best thing about taxation in Canada is that you will be placed with capital gain taxes only if you have profited while selling the crypto asset in the market.
- The range of tax will vary from 15 to 33%.
- This will be within the range of income tax as well.
- The Canadian revenue agency will be able to track the investments made in the crypto assets.
- They often work in coordination with the crypto investors to make sure that no kind of illegal activity is committed with the help of these digital assets.
- As you can guess, the crypto assets are monitored quite closely by the Canadian government.
United Kingdom
- In the United Kingdom, there is no particular crypto taxation.
- These are placed under the field of capital gains and income tax.
- The crypto taxes which are placed under the special form of the transaction can be used in the world of financing.
- There are times when you will make your income with the help of cryptocurrencies.
- This will be placed under income taxes. In other cases, you will be subjected to capital gains.
- There are no kinds of short-term and long-term capital gains systems.
- These are all placed under a similar rate and the amount of capital gains tax will be based solely on what you are earning.
- A 10 or 20% of tax will be placed on the crypto gains.
- This will be irrespective of the taxable income or size of profit that you might be gaining from this field.
Australia
- The Australian Taxation Office or ATO is responsible for the taxing system in the past financial year.
- There are no forms of total crypto taxes in the form of Income Tax returns.
- There are data-sharing programs of ATO with the Australian exchanges.
- The KYC information of ATO is quite old and is related to the wallets of the exchange.
- The taxation is entirely dependent on the type of income that you are gaining from this system.
- You have to pay less tax when you are holding the assets for more than one year.
Netherlands
- When your total assets which are inclusive of crypto value are worth more than 50000 in the Netherlands you will be subjected to a 31% tax on the crypto asset only.
Conclusion
It has been announced that the clipper assets of India will be taxed at a 30% rate in terms of investing values. The Reserve Bank of India is still monitoring the situation to understand the implications for 2022.