Aleksandra Bal • September 07, • 3 comments How to tax Bitcoin? Bitcoin, a decentralized cryptocurrency with no government or central bank, grabbed the public attention as its value skyrocketed at the beginning of Aleksandra Bal, in Handbook of Digital Currency, Concept of taxable income. Income tax is levied on persons who have earned taxable income for the relevant tax period. Whether an individual generating or trading in bitcoins can be regarded as having taxable income depends on the income definition of a particular country. Jan 01, · The letter also mentioned that taxpayers earning their profits in bitcoins are subject to the general income tax rules and bitcoin transactions are governed by the general VAT rules. In April , the Canada Revenue Agency (CRA) reportedly announced that bitcoin users have to pay tax on transactions in this digital currency.
How to tax bitcoin aleksandra balHow to tax Bitcoin? - Leiden Law Blog
In view of the different national responses, a question arises whether the status and tax treatment at least for VAT purposes of virtual currencies should be clarified at the EU level. The provision of guidance by tax authorities is a positive development. It promotes compliance among taxpayers who want to report their transactions in virtual currency properly and reduces the risk that users of virtual currency will be confronted with tax consequences that they did not anticipate.
It also demonstrates that tax authorities are able and willing to respond to innovations in the digital marketplace.
A study from the European Central Bank suggests that the use of virtual currencies is expected to grow in the future. If the future of electronic commerce entails an increasing use of virtual currencies, it is critical that our economic, political, and legal institutions are prepared to deal with them and to incorporate them into the existing legal framework.
On 10 April Luxembourg announced that it will end its banking secrecy as of 1 January But what are the tax effects of this decision? Have you ever invested on crypto exchanges? Whether the answer is yes or no, it is worth following their development and learning from the unfolding dramas of their failures. Faced with the unknown terrain of the crypto world, insolvency rules are tested.
All blog articles. How to tax Bitcoin? This blog explains how the trendy concept of Big Data is used in the context of taxation. There's a general perception that the more data companies reveal, the more difficult it will be for them to shift profits using sophisticated tax planning strategies.
This note outlines some problems in the practical application of the VAT rules that will enter into force on 1 January One of the biggest challenges for suppliers of electronic services will be to identify the location of their customers.
Bitcoin, a decentralized cryptocurrency with no government or central bank, grabbed the public attention as its value skyrocketed at the beginning of