These Countries Have the Best Crypto Tax Laws: Research

Digital asset exchange aggregator Coincub has conducted a study to find out which countries offer the most friendly cryptocurrency tax policies for their citizens. Germany is ranked as the world’s cryptocurrency tax haven, while Italy and Switzerland are ranked second and third, respectively.

Looking at the opposite angle, Belgium is the country with the worst taxation of cryptocurrencies, followed by Iceland and Israel. Interestingly, India (where the government applies a 30% tax rate on income from digital asset activities) did not find a place in the top five in that statistic.

Germany tops the group

The leading economy in the European Union – Germany – has been in the spotlight on the cryptocurrency scene recently. A few months ago, the country’s Ministry of Finance said that the sale of Bitcoin and Ether would not be taxed if individuals held the assets for more than a year.

Coincub estimated that politics, along with many other factors, made Germany the number one country to implement crypto-friendly tax laws for residents.

Germany has a surprisingly progressive view of the crypto tax. In general, it has embraced and formalized the tax status of digital currencies more than most of the leading countries. The entity said that having a very generous tax on profits if your cryptocurrency is held for more than a year appears to be quite in line with a country whose residents have a long tradition of saving rather than spending.

The second place belongs to Italy, where residents do not have to pay taxes if their earnings from crypto activities do not exceed $51,000.

Third, Switzerland, where the tax policy is different in each canton. However, residents of most areas are tax-exempt. Singapore and Slovenia come out in the top five.

Coincub also revealed the worst countries taxing cryptocurrencies for residents. Belgium, where citizens dispose of 33% of their profits from digital asset transactions, is the first. Additionally, cryptocurrency earnings that are considered professional income can be taxed at up to 50%. Iceland, Israel, the Philippines and Japan are the other four countries on that list.

In April of this year, the Indian authorities imposed a 30% tax rate on local residents who generate income from cryptocurrency activities. Despite this legislation, the world’s second most populous country was not among the worst tax areas for cryptocurrency.

Germany is emerging as a hub for cryptocurrency

Earlier this year, Coincub conducted another survey that estimated Germany as the most crypto-friendly country worldwide for the first quarter of 2022. Its leading position was the result of the country’s “acceptance of cryptocurrencies and the pioneering decision” to embrace investments in the blockchain space, the organization explained. .

An example of Germany’s pro-crypto stance is Sparkasse (the largest domestic financial group) and its intention to provide digital asset services to its nearly 50 million clients.

The previous leader – Singapore – came in second place, while the strongest economy – the United States – came in third place. Australia and Switzerland ranked fourth and fifth, respectively.

The post These Countries Have the Best Crypto Tax Laws: The research appeared first on CryptoPotato.

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