Digital asset exchange aggregator Coincub conducted a study to determine which countries offer the most cryptocurrency-friendly tax policies for their citizens. Germany ranked as the global crypto tax haven, while Italy and Switzerland ranked second and third respectively.
Looking in the opposite corner, Belgium is the worst country for crypto taxes, followed by Iceland and Israel. Interestingly, India (where the government levies a 30% tax rate on income generated from digital asset activities) did not find a place in the top 5 for this statistic.
Germany lead the group
The main economy of the European Union, Germany, has recently been in the spotlight on the cryptocurrency scene. A few months ago, the country’s finance ministry said the sale of Bitcoin and Ether would not be taxed if people held the assets for more than a year.
Coincub Estimate this policy, combined with many other factors, has placed Germany at the forefront of nations applying cryptocurrency-friendly tax laws to residents.
“Germany has a surprisingly progressive view of the cryptocurrency tax. It has generally embraced the crypto tax situation and formalized it more than most major countries. Having a very generous profit tax if your crypto is held for more than a year seems perfectly in keeping with a country whose population has a long tradition of saving rather than spending,” the entity said.
The second position belongs to Italy, where residents do not have to pay taxes if their income from cryptocurrency activities did not exceed $51,000.
Third, Switzerland, where tax policies vary from canton to canton. However, residents of most regions are exempt from paying taxes. Singapore and Slovenia complete the top five.
Coincub also revealed which are the worst countries for resident cryptocurrency taxes. Belgium, where citizens receive 33% of their income generated by digital asset transactions, is the first. Additionally, crypto income considered professional income could be taxed up to 50%. Iceland, Israel, the Philippines and Japan are the other four nations on this list.
In April this year, the Indian authorities strength a 30% tax rate for premises that generate income from cryptocurrency operations. Despite this legislation, the second most populous country in the world does not rank among the worst regions with crypto taxes.
Germany is becoming a crypto center
Earlier this year, Coincub conducted another survey and found Germany to be the world’s most crypto-friendly nation for the first quarter of 2022. Its leadership position was the result of “crypto acceptance”. -currencies and innovative decision” of the country. embrace investments in the blockchain space, the organization explained.
An example of Germany’s stance on cryptocurrency is Sparkasse (the largest national financial group) and its intention to to bring digital asset services to its nearly 50 million customers.
Former leader Singapore was second, while the strongest economy, the United States, was third. Australia and Switzerland were fourth and fifth respectively.
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These Countries Have the Best Cryptocurrency Tax Legislation: Research
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