speaking of which, south korea just passed a new tax on crypto trading income. it's actually pretty favorable compared to many other countries at 20%---slightly lower than the existing tax on stock trading income, and equal to the upper tier long term capital gains rate in the USA.
https://cointelegraph.com/news/south-korea-finalizes-cryptocurrency-income-tax-of-20i was surprised to see folks bitching and moaning about it, considering how bad taxes are in parts of europe, japan, etc. 20% is usually the
minimum rate i pay on capital gains, and my average rate is definitely higher.
Most places have 20% ours is STILL 20% the 45% was just a proposition. Although it'd probably make more sense to increase stamp duty (paid on stock and property purchases) instead - actually they reduced stamp duty on properties.
I think that Japan has a tax of up to 55% for those who have the most income, but as I once commented in the past, I think that everything over 25% is too much, and you should not agree to pay as much as 45% no matter what the situation - those stories to be in solidarity and give half of our profit to the state with me personally will never pass, even at the cost of having to move elsewhere.
Ours is around 45% for highest earners (earning more than ~£200k $240k) - below that the top tax bracket is 50% but obviously if you earn £120k then only 20% is charged at the full 50% tax rate so it is more like 36%...
For legal reasons the EU considers the UK, Ireland and Switzerland as tax havens - which seems weird considering our tax rates are high for everything but corporations tax (but our 19% is still high - I think a lot of the rest of Europe is a mere percent higher).
Fortunately, I can still buy/sell crypto (up to a certain limit) without any tax and KYC because such laws are still in force in my country, but for those who want to file a tax it is about 20% (depending on the region where the taxpayer lives). Also, as in Germany which has the law "no tax after 1 year of holding", I have the option not to pay tax after 2 years from the purchase.
But such laws are changeable, and it can happen that someone moves to a country that has very favorable tax laws, and they literally become very unfavorable overnight.
I think there might also be a chance you have to pay the same tax in two countries if one charges tax based on disposing and one charges on accumulation.
If we look only at the EU, each country has its own attitude towards cryptocurrencies, and there are really few in which there are people in government structures who understand what Bitcoin is and how to apply taxes when trading the same. If a central bank says that Bitcoin is nothing (literally), then how will the tax administration collect tax on something like that? Therefore, in some EU member states, despite the new AMLD5 directive, Bitcoin is still under the radar and uses legal loopholes to avoid taxation - which will surely changed when someone realizes that there is room for taxation.
As long as it has a measurable value they will want to tax it. It doesn't need a legal definition as long as it's not explicitly illegal.
I find the radically different rules in each EU country kinda weird. You'd think by this point they would've started to harmonise it.
Also if you don't declare it and they have a type of tax for capital gains on currency, you're probably still going to be expected to pay it - the European court of justice has stated they view cryptocurrency as currency and such you're going to have to follow those taxation laws.
