PRESS RELEASE. June 2021, leading Crypto service comparison site – Cryptowisser, attempts to dissipate the cloud of confusion surrounding tax regulations on crypto currencies around the world. As the tax season comes to a close and a record amount of crypto traders are holding, how do you legally save your crypto?
It is no surprise that as the recent surges and as alt coins continue flooding the market, more and more people are seeing it as a potential way of making money. And the once fabled mysterious currency, is well, becoming more regulated. Like anything else, regulatory boards are catching on and impicating tax laws.
As the Cryptowisser tax essentials report states, the majority of crypto tax either comes from Income Tax or Capital Gains tax.
Tax free crypto conditions still exist –
The report clarifies Geo advantageous spots for crypto traders- Malaysia for example, does not tax crypto trading unless it is a registered business. Other crypto transactions such as donations and “gift sums” are tax free depending on the amount and location.
The report also clarifies that the simplest way to avoid crypto tax is to keep transactions Fiat free. For the most part actually buying crypto has no tax, you can buy as much as you want, only to pay the fees on whatever crypto exchange you decide to use. Wallet to wallet crypto transfers also avoid tax.
Capital Gains Tax on Crypto –
Any investment gain made from crypto currency will be looked at the same as any other investment- and tax will be paid unless in a capital gain tax free country such as New Zealand, Sri Lanka, Singapore etc. In most countries however, that is not that case. Cryptowisser reported on the countries with the highest crypto capital gains tax here. The report also explains taxed crypto transactions such as selling crypto holdings, exchanges and online shopping.
Crypto Income Tax
With the increase of remote based companies, with employees often in other countries, crypto has become a popular payment option. However, any earnings you do make from your employment, crypto or not, has to be declared and paid. Even if you are making gains with mining crypto, tax will be paid.
The future of crypto tax is bittersweet, the more accepted and adopted it is, the more regulation there will inevitably be. Countries with more favourable crypto conditions will attract investors and likely stabilize crypto currency as legal tender leading to a more crypto positive future.
Cryptowisser is a cryptocurrency services comparison site with the world’s largest, most frequently updated and most trusted lists of cryptocurrency exchanges, wallets, debit cards and merchants. With more than 1,000 reviews of the various exchanges, debit cards, wallets and merchants, they help you make all of your purchasing decisions and service choices in the crypto world.
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