Thanks. I wanted a standard answer before going with legal help, so I know scope of work.
Thanks for all helpful opinions.
Topic: Can fiat investment in a start-up crypto company, attract tax or complications? (Read 170 times)
December 10, 2018, 10:21:22 PM
December 10, 2018, 09:49:18 AM
Go and ask a professional, not a bunch of randoms on the internet.
And if you're planning on doing something related to fiat exchange, the UK is a truly hopeless to do it. Unless you're Coinbase you won't be able to retain a bank account. Every bank will reject you.
And if you're planning on doing something related to fiat exchange, the UK is a truly hopeless to do it. Unless you're Coinbase you won't be able to retain a bank account. Every bank will reject you.
December 10, 2018, 09:27:11 AM
Any transaction, business or personal, are going to end up needing some form of compliance from the financial institution - bank or exchange, and 100% so in your case. Even if you do send Bitcoin only, you're going to have to liquidate it anyway to run your operations, so you might as well declare all that funding.
Best person to ask is your accounting. Don't think of the Bitcoin implication yet, think of the business implication. Identify the jurisdiction you owe taxes to (seems obviously the UK where your business is incorporated), and then work from there.
How the funds are taxed would be dependent on your budgeting. Will those funds be treated as working capital? Income? Credit loan? Ask HMRC I guess. This forum's not likely to home in on the accurate answer.
Best person to ask is your accounting. Don't think of the Bitcoin implication yet, think of the business implication. Identify the jurisdiction you owe taxes to (seems obviously the UK where your business is incorporated), and then work from there.
How the funds are taxed would be dependent on your budgeting. Will those funds be treated as working capital? Income? Credit loan? Ask HMRC I guess. This forum's not likely to home in on the accurate answer.
December 10, 2018, 06:54:00 AM
If you are talking about large sums of money as well as opening a crypto exchange of your own then why not bother spending a few dollars on a professional legal help, I'm pretty sure as well that you need lawyers in order to help you setup your crypto-company in the future. They can give you more straight answers compared to us members here who have laws different in your country. Asking for legal help is much better than asking for an opinion here in the forum as you will definitely get different answers on every posts here and still not get any clear answers from the questions you have.
December 10, 2018, 05:49:56 AM
It will definitely attract tax and this is the objectives of the government to put use of its revenue from the market cap volume of the cryptocurrency. ANyway, there is nothing about being tax as long as it contribute to secure the cryptocurrency system in return and should have someone to be charge as liable in every failure for a specific project.
December 10, 2018, 02:38:39 AM
Hi,
This is not exactly a blockchain question, for more of a financial question.
We have registered our company in London and it is a cryptocurrency product (upcoming exchange). Founder is in India. One of the investor is interested to invest. If deal is finalized, he would like to transfer a good amount to us. We do no have any such account yet. My questions are -
1- Should we open an account in London or in any country ?
2- If yes, what kind of account ?
3- If a large sum will be transferred, I assume Bank will be informing to Govt. or tax authority (or whoever is related department). Will there be any tax applied on that amount
4- How can we show that amount legally, if we were asked for any explanation ?
I am sure, many of members here might have gone though this stage or may have learned about this stage, so expecting an initial guidance.
Thanks in advance.
This is not exactly a blockchain question, for more of a financial question.
We have registered our company in London and it is a cryptocurrency product (upcoming exchange). Founder is in India. One of the investor is interested to invest. If deal is finalized, he would like to transfer a good amount to us. We do no have any such account yet. My questions are -
1- Should we open an account in London or in any country ?
2- If yes, what kind of account ?
3- If a large sum will be transferred, I assume Bank will be informing to Govt. or tax authority (or whoever is related department). Will there be any tax applied on that amount
4- How can we show that amount legally, if we were asked for any explanation ?
I am sure, many of members here might have gone though this stage or may have learned about this stage, so expecting an initial guidance.
Thanks in advance.
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