Widely Passed Resolution To Harmonize Crypto Taxation Across The EU – CryptoActu

The European Parliament has just voted by an overwhelming majority for a resolution aimed at harmonize the rules for taxing “crypto-assets” within the European Unionand to use “blockchain” more widely to fight tax evasion. On the menu, clear definition and identification of taxable events.

End the disorderly taxation of cryptos in the European Union

The European Union is a real patchwork when it comes to the taxation of cryptos. While some countries, such as France, tax individuals who have made capital gains on cryptocurrencies at 30%, others are less greedy, such as Estonia (20%), Poland, Greece (15%), Romania, Bulgaria (10%). Still others do not levy any tax: Germany (after one year of detention), Belgium (without speculative management), Italy (no legislation yet), Portugal (moratorium), Denmark, Cyprus…

Also to limit the tax-shopping“, the idea of ​​establishing a harmonized framework for the taxation of cryptos is not new. It had moreover crossed the borders of the EU when, from 2018, the Organization for Economic Co-operation and Development (OECD) had launched a call to homogenize the tax framework of cryptos within the major powers. To this end, it drew up a report which it sent to finance ministers and central bank regulators of the G20 member countries. The declared goal: to give them a tool to better fight against tax evasion.

A report that has not remained a dead letter. We find in the resolution drafted by MP Lidia Pereira, member of the center-right European People’s Party, some of his proposals.

“Fair, transparent and efficient” taxation

This is the starting presupposition stated in the Press release which follows the plenary session which saw the resolution be broadly approved with 566 votes for, 7 votes against and 47 abstentions.

After requesting a simplified tax treatment for occasional taxpayers and small transactions as recommended by the OECD, the resolution passes very quickly to the things which annoy. Indeed, it calls foridentification of the different national policies put in place to combat tax evasion in the crypto field. She also invites use blockchain technology for greater efficiency.

Blockchain’s unique features could offer a new way to automate tax collection, limit corruption, and better identify ownership of tangible and intangible assets to better tax mobile taxpayers.

Press release on the adopted resolution

Emphasis is placed on the need for Member States to reform their tax administrations, by modernizing their infrastructure, to meet the challenges.

Main axes: define the legal nature of cryptos and identify taxable events

Issues including first task is to define the nature of digital assets because if the tax treatment is very variable from one jurisdiction to another, it is because each of them qualifies them differently. For example, if France considers them as “intangible assets”, in Belgium, Italy, Poland or Germany, they fall rather under the currency category. This all-important debate that will largely shape the future of cryptocurrencies, also agitates the US regulatory scene which is torn around the financial title nomenclature (security) / merchandise (commodities).

The resolution also attempts to identify the chargeable event. If the crypto to euro (or fiat currency) conversion seems the most viable option, it considers other possible taxable events. The OECD, for example, proposes to also tax passive income linked to staking, an idea that will certainly gain ground…

After the “when?” » taxation also intervenes the « where? due to the borderless nature of cryptos, information that appears necessary in the resolution, but whose objective remains unclear.

Finally, the resolution suggests amending the directive on administrative cooperation in tax matters in order toinclude crypto assets as part of the information exchange.

Small remark at the end of the course: there is no hope that the zero taxation of certain European countries will be the norm. The second part of the title of the press release is very explicit in this sense: “ end non-taxation of crypto assets“.

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Widely Passed Resolution To Harmonize Crypto Taxation Across The EU – CryptoActu


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