Cryptocurrency is relatively new in the investment market compared to stocks and bonds, and commodities. Yet it has the highest jump in value the world has ever known; from zero to over 50,000 US dollars in just twelve years, that is just for 1 cryptocurrency, the Bitcoin.
And there are several thousand cryptocurrencies around the world; there could be more in the coming years, for all we know. It has attracted a lot of attention all over the world and many are concerned as to what this just might become in the future.
That is why the Treasury Department of the USA has taken steps to augment its tax collection with the inclusion of cryptocurrency in its list. That may equate to a step more complicated in tax filing for the American taxpayers which would also add more chores the whole year.
Countries With Tax-free Cryptocurrency
That is for the Americans but there are countries that do tax cryptocurrency in another manner than just capital gains. There are also countries that do not recognize cryptocurrency as asset, commodity or property.
Further, there are also countries that do not put any kind of influence whatsoever with regards to taxation on cryptocurrency. To make a common denominator in all of these situations, we will mention those countries that do not tax capital gains on cryptocurrency.
In 2017, the President of this Eastern European country had declared tax free on trading and mining activities of cryptocurrencies including capital gains for a period of five years which would terminate by the first day of January 2023.
Along with that incentive, the same President also has made cryptocurrencies legal in all of the country.
This is a country that does not see cryptos as stock or commodity but as private money. The sale of cryptos if held for at least a year or more are tax exempt. If less than a year but less than 600 euros in gains, is also tax free. Less than a year of holding and more than 600 euros is taxable.
Mid-term and long-term investors in Germany are the favorite children of the motherland.
In a glimmer of light, this country has expressly not taxed any capital gains from cryptocurrency for individuals but businesses that are involved in bitcoins, or the likes, will be taxed as well as crypto mining.
Crypto holding period is not mentioned, however, so this is a gray area.
Malaysia, Hong Kong, Mauritius, New Zealand
The three countries mentioned above have publicly declared their stand on cryptocurrency while the four mentioned in this paragraph may well be considered of the same wavelength as the first three though they have not stated any official statement on taxing cryptocurrency just yet.
These four countries do not put taxes on cryptos for capital gains for now.
When filing of your tax returns for the previous year, especially with cryptocurrency added making your task a little more extended, try the help of a more experienced hand in that field, Liberty Tax. You can depend your returns will be faultless in their care.