EU crypto taxation proposal will target firms all over the world

zasad@

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Quote from: avikz on December 09, 2022, 02:54:41 PM

Quote from: zasad@ on December 09, 2022, 09:17:05 AM

https://www.theblock.co/post/193234/eu-crypto-taxation-proposal-firms-global
Companies offering EU residents crypto services will need to report on transactions to tax authorities.
The European Commission aims for the new rules to be enforced on Jan 1. 2026.
“Tax authorities currently lack the necessary information to monitor proceeds obtained by using crypto-assets, which are easily traded across borders,” the European Commission wrote in a statement. “This severely limits their ability to ensure that taxes are effectively paid, which means European citizens lose important tax revenues.”

Very difficult to enforce! EU legislation can only target EU companies and EU residents. But they can't enforce their decisions and make companies operating outside the EU to follow their law. This kind of legal provision works in good faith. If a company wants, they can willingly do so, but it's their call whether to do it or not! EU has no power to force a company to follow it if they don't have a physical footprint in EU.

Also, it's a proposal and not a law yet. I don't see much impact even if it is signed as a law in EU. It seems ECB and EU parliament is doing everything they can do to bring down the importance and circulation of cryptos in EU.

All these requirements will comply with SEC standards, and all large companies in the world are subject to SEC standards.
Of course, that some Asian company will not comply with these requirements, then it will be closed to the European and American markets.

dansus021

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Quote from: NeuroticFish on December 09, 2022, 01:17:59 PM

~SNIP~

I don't say that taxation won't happen, the governments are always hungry for money. (I wish that we'll get someday to the point only active traders will get taxed, and that on the gains; but let's ignore the wishful thinking).
What I say is that really tight taxation won't happen too soon.

Hey that is what is the government do Grin

need more money believe in my country everything is taxed including high tax on alcohol and cigarette and liquid for your e-cigarette Cheesy

I know its bad for healthy that is why the have big tax on it.

and of course they already managed how to tax the trader from regular trading Grin

so, scalper, might little bit hurt if trade heavily. But the positive things about tax is government approved crypto to trade on our country legally as asset and freely to do that because there is government agency to take over this

darkangel11

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Quote from: zasad@ on December 09, 2022, 09:17:05 AM

“Tax authorities currently lack the necessary information to monitor proceeds obtained by using crypto-assets, which are easily traded across borders,” the European Commission wrote in a statement.

This isn't true. You can hide the payments you receive in cryptocurrencies but you can't hide the fiat money obtained by converting them on exchanges and most merchants use automated processors to do it.

I don't know why they're trying so hard to make companies report crypto transactions when it's so hard to enforce and tracking profits is much easier. They're going to waste millions to make a law that won't be possible to enforce and small business owners will ignore anyway.

Quote from: Poker Player on December 11, 2022, 01:41:17 AM

Add to this Lagarde's statements on the Euro CBDC and we can see where this is heading: towards total population control.

She's one of those NWO folk who organize WEF meetings each year. The goal is to make it possible to manipulate you through your money. One day they make a new tax and you wake up with less money on your account because you happen to have 1 car above the limit for a single citizen, or your car is not electric.

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Quote from: avikz on December 09, 2022, 02:54:41 PM

Also, it's a proposal and not a law yet. I don't see much impact even if it is signed as a law in EU. It seems ECB and EU parliament is doing everything they can do to bring down the importance and circulation of cryptos in EU.

Surprised? There are places where they have implemented favorable legislation for innovation in the crypto world and instead the EU basically wants to turn that world into a kind of banking transactions, where everything is controlled by KYC.

Seeing the drift that the EU has I am not surprised. Add to this Lagarde's statements on the Euro CBDC and we can see where this is heading: towards total population control.

I do think it's going to have quite an impact with a gambling analogy. EU countries are the ones with the strictest regulations on gambling, requiring in most cases a country specific license to offer gambling services. It's not a 100% working thing but it works to a large extent, and I think with cryptocurrency regulation the same thing will happen.

The only good thing is that if these bureaucrats foresee it by 2026, it will probably take longer.

SFR10

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Quote from: avikz on December 09, 2022, 02:54:41 PM

Very difficult to enforce! EU legislation can only target EU companies and EU residents.

I agree, but perhaps there's a way to monitor cross-border activities in the same manner that the US does ^{[in general]} for its citizens:
^{- I do know it'd be impossible to monitor everything, but they could definitely make the gap smaller (having said that, this will also force certain users to move their operations into decentralized routes or rather platforms).}

Quote from: avikz on December 09, 2022, 02:54:41 PM
It seems ECB and EU parliament is doing everything they can do to bring down the importance and circulation of cryptos in EU.
The way I see it, they just want a piece of the pie in a different form.

avikz

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Quote from: zasad@ on December 09, 2022, 09:17:05 AM

https://www.theblock.co/post/193234/eu-crypto-taxation-proposal-firms-global
Companies offering EU residents crypto services will need to report on transactions to tax authorities.
The European Commission aims for the new rules to be enforced on Jan 1. 2026.
“Tax authorities currently lack the necessary information to monitor proceeds obtained by using crypto-assets, which are easily traded across borders,” the European Commission wrote in a statement. “This severely limits their ability to ensure that taxes are effectively paid, which means European citizens lose important tax revenues.”

Very difficult to enforce! EU legislation can only target EU companies and EU residents. But they can't enforce their decisions and make companies operating outside the EU to follow their law. This kind of legal provision works in good faith. If a company wants, they can willingly do so, but it's their call whether to do it or not! EU has no power to force a company to follow it if they don't have a physical footprint in EU.

Also, it's a proposal and not a law yet. I don't see much impact even if it is signed as a law in EU. It seems ECB and EU parliament is doing everything they can do to bring down the importance and circulation of cryptos in EU.

NeuroticFish

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Quote from: zasad@ on December 09, 2022, 09:17:05 AM

The European Commission aims for the new rules to be enforced on Jan 1. 2026.

It won't be easy. This is only a proposal. This may change greatly in the future while all the possible (and impossible) aspects are negotiated between all the parts and parties.
Then this has become part of the national laws in all the member countries. Here it will change again, in some countries will become stronger and in others weaker.
And I will add that some European countries do better and others do (much) worse at collecting the taxes and the taxation related information.

So, depending on the country, this will become reality (or maybe it already is) and in the case of other countries it's more a "wishful thinking".

I don't say that taxation won't happen, the governments are always hungry for money. (I wish that we'll get someday to the point only active traders will get taxed, and that on the gains; but let's ignore the wishful thinking).
What I say is that really tight taxation won't happen too soon.

zasad@

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https://www.theblock.co/post/193234/eu-crypto-taxation-proposal-firms-global
Companies offering EU residents crypto services will need to report on transactions to tax authorities.
The European Commission aims for the new rules to be enforced on Jan 1. 2026.
“Tax authorities currently lack the necessary information to monitor proceeds obtained by using crypto-assets, which are easily traded across borders,” the European Commission wrote in a statement. “This severely limits their ability to ensure that taxes are effectively paid, which means European citizens lose important tax revenues.”

Topic: EU crypto taxation proposal will target firms all over the world (Read 150 times)