Tax

  • Singapore Considers Tax Waiver on Cryptocurrency Purchases

    Singapore’s Inland Revenue Authority (IRAS) recently put forward a proposal to waive sales tax on goods or services paid for in cryptocurrency or similar digital assets. The proposal intends to help spur development within the local blockchain and cryptocurrency industry. Existing tax laws have historically resulted in Singaporean residents being excluded from initial coin offerings (ICO’s) launched in the country. Singapore’s goods and services tax (GST) means residents wanting to get involved in ICO’s have to pay seven percent tax on their purchases. “The IRAS recognizes that taxing cryptocurrencies which function as a medium of exchange results in two tax points – once on the purchase of the cryptocurrency and again on its use as payment for goods and services subject to GST,” stated a draft e-tax guide from the IRAS. Singapore has long been seen as a highly crypto-positive nation for its favorable laws regarding cryptocurrency but still lags behind competing regions like Japan and Hong Kong. If the new tax policy is implemented, it will align the Asian financial hub with other progressive crypto nations and boost blockchain innovation on home soil….

    Aug 7, 2019
  • Brazilian Tax Authorities Impose New Requirements on Crypto Trading

    Crypto traders in Brazil now have to report their transactions to the National Treasury. The Department of Federal Revenue of Brazil published guidance regarding cryptocurrencies in May stating transactions in excess of $30,000 Brazilian real ($7,600) must be reported to tax authorities. The ruling is widely seen as a means for the government to increase tax revenues. It targets both private investors as well as companies that deal in crypto. Brazil sees some of the highest cryptocurrency trading volumes in Latin America, topping nearly 100,000 BTC in April. Additionally, the total value of the crypto market exceeded $8 billion reals in 2018, according to the National Treasury. Information related to the purchase, sale, or donation of crypto funds will be submitted to the National Collection, through the Virtual Service Center (e-CAC), by the last working day of the month. Failure to comply may result in sanctions. Complete omissions may see fines from 100 to 1000 reais, while incomplete or inaccurate filings may be garnished 1.5 to 3 percent of the total value of the transactions. Another Brazilian media outlet reported the measures were introduced to prevent…

    Aug 5, 2019
  • PwC: Proposed Crypto Tax Cut in Singapore to Help Crypto Business

    Singapore’s plans to exempt certain digital currencies from the Goods and Services Tax (GST) would benefit cryptocurrency-related businesses, according to a partner in PwC Hong Kong’s corporate tax practice. As reported by Hong Kong’s English language newspaper South China Morning Post on July 29, Gwenda Ho argued that the Singapore government’s proposal to drop the seven per cent GST for cryptocurrencies when using them to pay for goods and services would have a positive impact on crypto exchanges, asset managers and blockchain entrepreneurs. Per Ho, the adoption of the proposed law would also put Singapore’s sales tax regime on an equal footing with those of other jurisdictions such as Hong Kong, Australia, Japan, Switzerland, and the European Union. Ho stated that, as long as the token has the features of a digital payment token as defined by the rules, such proceeds from initial coin offerings could also be exempted from GST. Ho continued: “While this proposal would improve Singapore’s competitiveness in its GST treatment on cryptocurrencies, Hong Kong in comparison is completely free of any sales tax so there is one less tax issue to be concerned about for cryptocurrency industry…

    Jul 30, 2019
  • Brazilian Trade Official Says Tax Reform Will Lead to Evasion Via Crypto

    The head of a major Brazilian trade association, the Federation of Industries of the State of São Paulo (FIESP), said that Brazilians could start using crypto to evade taxes. Paulo Skaf, the president of the FIESP, expressed concern over the recent tax reform proposal by Brazilian President Jair Bolsonaro, Cointelegraph Brazil reports on July 25. He reportedly warned that the new tax system could force citizens to use crypto such as Bitcoin (BTC) for tax evasion purposes. In a recent interview with local newspaper Folha de São Paulo, Skaf criticized the upcoming tax reform, calling it a mistake that would be an invitation to evade taxes and lead to unfeasible situations in various sectors. Skaf said: “This would naturally lead to a migration to other forms of payment, such as cryptocurrencies. It’s going to be unfair: those who trade in cryptocurrency don’t pay, and those who trade in reals will pay.” Government wants to simplify tax system Pres. Bolsonaro recently said that the government has been seeking to simplify federal taxes by combining a number of existing taxes into one single tax. According to local English language publication The…

    Jul 26, 2019
  • G7 Urges Tough Libra Regulation, Agrees to Tax Digital Giants

    Digital currencies such as Facebook’s planned Libra raise serious concerns and must be regulated as tightly as possible to ensure they do not upset the world’s financial system, Group of Seven finance ministers and central bankers said on Thursday. Finance Minister Bruno Le Maire of France, which holds the rotating presidency of the G7 top world economies, told a news conference the group opposed the idea that companies could have the same privilege as nations in creating means of payment – but without the control and obligations that go with it. “We cannot accept private companies issuing their own currencies without democratic control,” Le Maire said. In a summary of the informal G7 talks in Chantilly, north of Paris, the French presidency said the ministers and governors had agreed that “stablecoins and other various new products currently being developed, including projects with global and potentially systemic footprint such as Libra, raise serious regulatory and systemic concerns”. Governments are starting to worry that big tech companies are encroaching on areas that belong to governments, such as issuing currency. Facebook’s June 18…

    Jul 19, 2019
  • First City in Canada to Trial Bitcoin Tax Payments

    Canadian citizens in the city of Richmond Hill will soon have the choice to pay their municipal taxes in bitcoin.  In partnership with Coinberry exchange, Richmond Hill is the first city and the second Canadian municipality to offer the option. Innisfil, a town of 36,000 just outside of Toronto, announced its own year-long trial in March 2019. Building on the momentum of this successful rollout, Coinberry is now outfitting the Richmond Hill government with the tools to accept bitcoin from its 200,000 constituents.  The Richmond Hill city council gave its stamp of approval for the initiative in a July 10, 2019, vote, and Marina Krtinic, a representative of Coinberry, told Bitcoin Magazine that, while the final deal hasn’t been inked, “Coinberry will be the only partner” for the new feature. Like in Innisfil, the government will use Coinberry Pay, the exchange’s fiat rail, to process the bitcoin tax payments into CAD. EXPANDING BITCOIN TAX PAYMENTS This program only applies to the city’s municipal taxes, but a team of city staffers will report back on September 30, 2019, to evaluate whether the option might…

    Jul 16, 2019
  • Singapore’s Inland Revenue Authority Releases New Draft on GST for Crypto

    The Inland Revenue Authority of Singapore (IRAS) recently published a draft guide that detailed the conduct of goods and services tax (GST) towards cryptocurrency transactions, since there has been an increase in the use of cryptocurrencies as a mode of payment. The draft has referred, Bitcoin, Ethereum, Litecoin, Dash, Monero, Ripple(XRP) and Zcash as digital payment tokens. According to the draft, under the new guidance, cryptocurrency users can spend their digital currencies like cash, as cryptocurrencies will no longer be liable to GST and this will come into effect from January 1, 202o. The IRAS revealed that the GST position was reviewed  in order to stay up-to-date with the latest crypto developments and it also recognized that taxing cryptocurrencies would result in two tax points, one during the purchase of cryptocurrency and the other when it is used as a payment method for other goods and services which are subjected to GST. The draft also addressed the other side of the transaction, that involves the merchant to account for the sale. The draft read, “If you are receiving digital payment tokens in return…

    Jul 8, 2019
  • IRS Exam Teams Beginning to Work Cryptocurrency Tax Cases

    The IRS is beginning to audit taxpayers with cryptocurrency assets, an agency official said.

    Jun 24, 2019
  • Congressman Ted Budd Asks for Lower Taxes on Cryptocurrency Transactions

    U.S. Republican Congressman Ted Budd mentioned two crypto specific bills he hopeswould witness unanimous support from the Congress.

    Jun 11, 2019
  • IRS Claims to Prioritize Tax Rules for Crypto Investors but Lacks Urgency

    Cryptocurrency investors may soon have more clarity on how the IRS will tax their holdings now that the agency has said it is making that a priority.

    May 21, 2019
  • Canadian Municipality Set to Accept Bitcoin for Property Tax Payments

    A municipality in Canada is set to accept bitcoin for property tax payments starting April as part of a one-year trial.

    Apr 1, 2019

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