As governments all around the world are clamoring for a levy on Bitcoin profits and transactions, few countries allow investors and traders to make transactions without taxes imposed on them. Although motives may vary, the major reason that some governments around the world choose not to impose taxes on the crypto industry is that they use the profits in the economy. Here are eight countries that are pro-BTC and do not impose tax duties on crypto trades.
The government of the European nation waived all tax duties, including value-added tax and capital gains tax on crypto trading and investments across the country. Speaking on the move, the Portugal Tax Authority said, “an exchange of cryptocurrency for ‘real’ currency constitutes an on-demand, VAT-free exercise of services.” The PTA further stated that while traders are no longer under any obligations to pay tax whatsoever on crypto, they said crypto firms who accept cash for digital services would pay tax.
If you are a holder of Bitcoin for about a year or more in Germany, all tax duties required of you would be waived. No matter the amount you gain from selling Bitcoin, you would be excused from paying capital gains tax as long as you have held the assets for up to 12 months. The biggest countries in Europe look to Bitcoin as private money other than looking at it as equity-like other less developed countries. Germany law states that private sales that do not exceed $654 would be tax-free, while businesses will pay taxes on Bitcoin as a result of their income generation.
Individuals and firms that hold Bitcoin in the long term are exempted from paying taxes on Bitcoin because capital gains taxes have been removed in the city-state. Furthermore, businesses that deal with crypto as core businesses and people who receive Bitcoin as a means of payment would pay income tax. Singapore taxes businesses on only profits generated.
Malaysia mirrors its neighboring Singapore in the act when it comes to the exclusion of capital gains tax. All crypto to cash and crypto to crypto transactions are not taxed and might probably change in the coming months as they are on the verge of making crypto a legal tender.
Belarus made a law in 2018 that absolved individuals and firms of the responsibility of paying taxes on the trading of crypto across the country and would run course till 2023. Mining, as well as buying and selling of crypto, are seen as personal investments in the country hence, exempted from tax duties. Major high-class businesses involved in crypto exchanges and trading are also exempted from tax whatsoever.
Slovenia runs a different kind of taxation system for individuals and firms trading cryptos. Individuals are not asked to pay capital gains tax but are expected to pay income tax. However, companies are asked to pay a corporate business tax for trading in crypto.
Malta excludes individuals and firms from paying both the income tax and value-added tax while day trading in crypto is charged with the same business income tax of 35%. Malta is famed as the headquarters of blockchain with several companies across the country. Crypto was legalized as a means of exchange and a store of value in Malta.
Individuals that are involved in the personal buying and selling of crypto are not asked to pay tax on capital gains while individuals in mining, which is considered a source of employment, are asked to pay tax. Corporate business trades in crypto are asked to pay tax too.