These Countries Have the Best Crypto Tax Legislation: Research

These Countries Have the Best Crypto Tax Legislation: Research

Digital asset exchange aggregator Coincub has conducted a study to find out which countries offer the most friendly cryptocurrency tax policies for their citizens. Germany ranked first in the list of cryptocurrency taxes in the world, while Italy and Switzerland ranked second and third, respectively.

Taking a look at the opposite angle, Belgium is the country with the worst taxation of cryptocurrencies, followed by Iceland and Israel. Interestingly, India (where the government applies a 30% tax rate to income generated from digital asset activities) did not find a place among the top five in that statistic.

Germany leads the group

The leading economy in the European Union – Germany – has been in the spotlight on the cryptocurrency scene recently. A few months ago, the country’s Ministry of Finance said that the sale of Bitcoin and Ether would not be taxed if individuals held the assets for more than one year.

Coincub estimated Politics, along with many other factors, put Germany in the first place when talking about countries implementing crypto-friendly tax legislation on residents.

Germany has a surprisingly progressive view of the cryptocurrency tax. In general, it has embraced and formalized the tax status of digital currencies more than most of the leading countries. The entity said that having a very generous tax on winnings if your cryptocurrency is held for more than a year is perfectly in line with a country whose residents have a long tradition of saving rather than spending.”

The second place belongs to Italy, where residents do not have to pay taxes if their earnings from crypto activities do not exceed $51,000.

Third, Switzerland, where tax policies are different in each canton. However, residents of most areas are tax-exempt. Singapore and Slovenia combine the top five.

Coincub also revealed the worst countries taxing cryptocurrencies for residents. Belgium, where citizens are criticized for 33% of their income generated from digital asset transactions, is the first. Furthermore, cryptocurrency earnings that are considered professional income can be taxed up to 50%. Iceland, Israel, the Philippines and Japan are the other four countries on that list.

In April this year, the Indian authorities duty 30% tax rate on locals generating any income from cryptocurrency operations. Despite this legislation, the second most populous country in the world has not yet been ranked among the worst tax areas for cryptocurrency.

Germany emerges as a crypto hub

Earlier this year, Coincub conducted another research, estimating that Germany was the most crypto-friendly country worldwide in the first quarter of 2022. Its leading position was the result of the country’s “acceptance of cryptocurrencies and the pioneering decision” to embrace investments in the space, the organization explained. blockchain.

An example of Germany’s pro-crypto stance is Sparkasse (the largest domestic financial group) and its determination to do so provide Digital asset services to nearly 50 million clients.

The previous leader – Singapore – came in second place, while the most powerful economy – the United States of America – took third place. Australia and Switzerland ranked fourth and fifth, respectively.

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