March 28, 2024

Comparison of taxation of cryptocurrencies in different countries of the world

Comparison of taxation of cryptocurrencies in different countries of the world

The large consulting company PricewaterhouseCoopers (PwC) said that increased interest in crypto-assets withThe tax and other regulators show that this asset class has begun to be taken seriously.

«Our research shows thatThe recommendations of many tax authorities are already outdated. Yes, it's important for people to know how to account for the trading tax on Bitcoin and other cryptocurrencies, but it's actually Cryptocurrency Tax 101»PwC Hong Kong tax partner Peter Bruin said.

He stressed that in almost all jurisdictions, the crypto industry still lacks guidelines that would be appropriate for the new decentralized economy.

PwC's first annual global report onCryptocurrency taxes state that single jurisdictions or almost no one has issued guidelines on cryptocurrency borrowing and lending, decentralized finance, non-fungible tokens, tokenized assets, and staking income.

«PwC survey shows that the mostA common approach is to consider cryptoassets as a type of property. This often means that spending it on goods and services results in paying sales tax. This will continue to be a major obstacle to the mass acceptance of many cryptoassets as a means of payment», - stated in the company.

In addition, the company has published an annuala cryptocurrency taxation index, in which jurisdictions are ranked based on how comprehensive their advice on cryptocurrency taxes is. Liechtenstein tops the ranking this year.

Comparison of taxation of cryptocurrencies in different countries of the world

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&#171;Having specific guidelines for cryptocurrency taxes is an important building block for the continued institutionalization of the cryptocurrency ecosystem&#187;, - concluded the head of the global cryptology department of PwC Anri Arslanyan.

Meanwhile, the IRS is tighteningcontrol over the payment of taxes on crypto transactions. Specifically, the plan is to change the standard 1040 form by posting on the front page the question: Did you sell, receive, send, exchange or otherwise acquire any virtual financial asset during 2020? The taxpayer must check “Yes” or “No”.

Comparison of taxation of cryptocurrencies in different countries of the world

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