How much tax is imposed on cryptocurrency in different countries worldwide?
As India's Finance Minister Nirmala Sitharaman imposed a tax of 30 per cent on virtual assets, here is how much tax is levied on cryptocurrency all across the globe:
United States crypto tax
Buying and selling crypto in the United States is taxable because the Internal Revenue Service (IRS) identifies crypto as property, not currency. It imposed a tax between 0 to 37 per cent.
In Britain, the capital gains tax rates for disposing cryptocurrencies are 20 per cent for higher and additional rate taxpayers and 10 per cent for basic rate taxpayers (but this depends on your overall taxable income, the size of the gain, and your deducted allowances, as you’ll pay 20 per cent on any amount above the basic tax rate). The tax-free allowance for capital gains tax is $16,610.
Netherlands crypto tax
In the Netherlands, individuals’ income is taxed at various rates and using various methods, depending on the type of income concerned. The country has imposed 31 per cent tax on cryptocurrency.
Italy crypto tax
In Italy, only the part of the gain realized on the sale of cryptocurrencies for an amount greater than $58,232 (51,645 euros), equal to the old one hundred million lire, is owed to the tax authorities.
Australia crypto tax
In Australia, crypto kept for more than 12 months qualifies for the 50 per cent capital gains tax deduction. Capital gains tax (CGT) event occurs when you dispose of your cryptocurrency (i.e. trade, exchange, sell, gift, use to buy goods or services)
Canada crypto tax
In Canada, if the income comes from a business, the entire amount is taxed, however, capital gains are only taxed 50 per cent of the time.
Germany crypto tax
At a personal level, profits regarding cryptocurrencies are tax-free if the total profit generated from private sales transactions in the calendar year was less than 600 Euros ($676) and sales of cryptocurrencies held over a year are tax exempt in Germany.