[분석] Guidelines for Taxation of Cryptocurrency in 10 Major Countries

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Since 2020, as the interest of investment institutions in cryptocurrency has increased and the number of cryptocurrency users has increased rapidly, cryptocurrency has become an important regulatory target for governments around the world, and more and more governments are joining the ranks of introducing cryptocurrency-related taxation. .

Initial cryptocurrency taxation guidelines prevailed in classifying cryptocurrency as’property’, but from 2014 onwards, the cryptocurrency taxation policy was inevitably complicated. This is because, with the increase of various types of new coins such as Tether, stablecoins, and DeFi, it has become difficult to define all cryptocurrencies only with the normal’property’ classification. Regulatory agencies in each country are also taking a cautious view of the cryptocurrency taxation policy and are constantly revising the cryptocurrency taxation guidelines.

Currently, the taxation form of cryptocurrency varies from country to country. Some countries consider cryptocurrency as a commodity or investment asset and apply relevant laws for tax purposes. In some countries, cryptocurrencies are neither considered personal financial assets nor are they taxed. In some countries, mining or operation using cryptocurrency is prohibited, and coin issuance or establishment of a company for cryptocurrency distribution is also prohibited. Some countries have not made an official decision on cryptocurrency regulation. On March 15th, 8btc reported a summary of the guidelines for taxation of cryptocurrencies in 10 major countries to date.

# Korea

Korea announced that it plans to collect taxes on digital currency transactions from 2017 and impose a capital gains tax on the cryptocurrency transaction process.

In March 2020, Korea passed an amendment to the’Act on Reporting and Utilization of Specific Financial Transaction Information (Special Law)’ to define cryptocurrency, and to define the cryptocurrency exchange accreditation system, to verify the real name of the bank’s cryptocurrency exchange account, FATF. The guidelines for implementing the anti-money laundering obligations recommended by the Financial Services Commission and the Financial Information Analysis Institute (FIU) established by the Financial Services Commission. Clarified.

The Ministry of Strategy and Finance announced the ‘2020 Tax Law Amendment’ in July 2020, which includes a cryptocurrency taxation plan. According to the data, on virtual assets traded after January 1, 2022, the government imposes a capital gains tax of 20% (additional 2% local tax, total 22%). On the’income type’ that has been controversial in the industry so far, the government plans to classify the income from the transfer of cryptocurrency as’other income’ and tax it.

The Ministry of Strategy and Finance said, “The income tax law and corporate tax law do not include income from virtual assets transactions of individuals (residents, non-residents) and foreign corporations. “In order to ensure fairness, judging by the practice of major countries and the taxation situation on other income (stocks, derivatives), the government needs to impose taxes on this portion of income.”

In consideration of the situation in which investors avoid tax using overseas exchanges, the amendment stipulated that investors’ overseas transaction income should be included in the scope of tax reporting, otherwise a maximum of 60% of unreported exaggeration may be imposed. In addition, there are currently no direct laws or regulations related to DeFi, stablecoins, and P2P, and related transactions are difficult to trace.

# United States of America

In 2014, the U.S. Internal Revenue Service (IRS) issued cryptocurrency tax guidelines that included how to deal with tax issues related to activities such as cryptocurrency trading, payments and mining. According to the guidelines, when cryptocurrency is traded in currencies such as the US dollar, it is regarded as subject to taxation. Cryptocurrency mining is also subject to taxation because it is considered a form of income. On the other hand, P2P transmission, small gift, and cryptocurrency purchases are not subject to tax.

In October 2019, the U.S. Internal Revenue Service issued a new guideline on tax payments for cryptocurrency holdings. The guide included taxation for cryptocurrency hard forks, how to evaluate cryptocurrency as income, and how to calculate taxable income for cryptocurrency sales. At the end of December, the IRS added two new FAQs to discuss the responsibilities of charities when receiving cryptocurrency donations.

In August 2020, the U.S. Internal Revenue Service issued a draft No. 1040’U.S. Personal Income Tax Return’. In the report, there are questions about cryptocurrency. Whether taxpayers bought or issued cryptocurrencies in 2020, bought or sold cryptocurrencies, and received interest through them. Previous similar questions appear in the attached table.

In December 2020, the U.S. Internal Revenue Service issued a draft guideline for revision 1040 and clarified what the term virtual currency applies to. The IRS used the term virtualcurrency to describe the various types of convertible cryptocurrencies used as a medium of exchange, such as digital currency and cryptocurrency. In addition, no matter which term is used, if a specific asset has the characteristics of a virtual currency, it is considered as a virtual currency. The updated draft should indicate yes in the cryptocurrency item on the first page if Americans bought cryptocurrency in 2020. However, even if such a mark is made, it is not necessarily subject to tax.

According to the Cryptocurrency FAQ (Q5) updated by the U.S. Revenue Service on March 2, 2021, cryptocurrency purchases made in fiat currency are not subject to any form of U.S. IRS tax reporting obligations.

# Singapore

In 2019, the Singapore Tax Administration (IRAS) published a draft on how to impose Goods and Services Tax (GST) on cryptocurrency payments (DPT) transactions. This draft stipulates which cryptocurrencies are exempt from payment of goods and services tax in what manner.

Specifically, exchanging fiat currency or other digital payment tokens for digital payment tokens is exempt from the goods and services tax if the use of digital payment tokens for payment of goods or services does not induce the supply of taxable tokens. The draft mentions that examples of DPT include Bitcoin, Ethereum, Litecoin, Dash, Monero, Ripple and Zcash. have.

In April 2020, Singapore’s Tax Bureau announced a deal dealing with the transactional income tax treatment of digital tokens and ICOs. This guide focuses on three types of digital tokens: payable tokens, utility tokens, and security tokens, and further explores how to tax money for receiving tokens in an unusual (e.g. via airdrop or hard fork) way. I made it clear.

According to the guidelines, transactions in settlement tokens are considered barter transactions. Payable token recipients are taxed according to the value of the basic goods or services provided. In the case of an ICO, tax revenue is levied according to the rights and functions of the issued token. At the same time, there is no need to pay taxes because the return on issuance of security tokens is similar to the return on issuance of shares or capital. However, general income tax and withholding obligations apply to dividends or interest paid to token holders.

# England

In December 2018, the UK’s first digital currency guidelines were released. The British Revenue Service (HMRC) regards digital currency as an asset and is subject to a capital gains tax whenever digital currency is bought or sold. However, there is no need to pay capital gains tax when using digital currency for charitable donations. In addition, even if the employer pays for cash as digital assets or generates income from mining activities and airdrops, the current income tax and national insurance contribution laws must pay taxes.

In January 2021, the UK Financial Conduct Authority (FCA) banned the sale of cryptocurrency derivatives and traded securities (ETNs) to general consumers. FCA believes that derivatives are not suitable for retail investors because they can harm the general consumer.

# India

In April 2018, the Central Bank of India forced all banks in India to stop trading with cryptocurrency exchanges. However, after that, the law was revised and the following recommendations were made.

Buying or selling cryptocurrency is considered a service. The value of a cryptocurrency can be determined by the transaction value of Rs or a freely convertible foreign currency equivalent. If both the buyer and seller are in India, the transaction is considered a software transaction. Goods and services tax (GST) applies to transactions other than India and is considered an import or export of goods.

According to a December 2020 report, the Indian government is considering imposing an 18% goods and services tax on bitcoin transactions, which is estimated to result in an annual tax of approximately Rs 4 billion ($53.4 million). . The Central Economic Intelligence Agency (CEIB) under the Ministry of Finance submitted the proposal to the CBIC/Central Commission for Indirect Taxes and Customs. According to sources from the Ministry of Finance, the Central Economic Intelligence Agency has proposed to classify Bitcoin into the’intangible assets’ category.

# Swiss

The Swiss government plans to control the cryptocurrency business, but does not impose taxes on the cryptocurrency business. In Switzerland, there is no need to buy and sell cryptocurrencies for personal gain or pay taxes on capital gains incurred by individuals who qualify to hold cryptocurrencies. However, mining income is regarded as self-employed income and is subject to income tax. Corporate tax is applied to commercial cryptocurrency transactions conducted by qualified professionals, and income tax must also be reported on wages paid in bitcoin.

In the future, Switzerland is likely to introduce the following regulations. Since cryptocurrency is considered a valuable asset, it can be reflected in the tax return and tax based on its value. If the cryptocurrency is eligible as private property (i.e., it is not used for commercial purposes), according to the current tax regulations, a method of taxing only the revenue resulting from the price increase may be applied.

# China

Currently, China bans cryptocurrency transactions and ICOs, so there are no additional measures for taxation on cryptocurrencies or crypto assets. In December 2013, the People’s Bank of China banned Chinese financial companies from conducting bitcoin businesses. At the same time, individuals are free to participate in Internet transactions at their own risk. Cryptocurrencies are considered commodities, not cash. Since Hong Kong does not ban cryptocurrency trading, Chinese cryptocurrency traders often use Hong Kong’s exchanges to monetize their digital assets and there is no capital gains tax. With the development and improvement of cryptocurrency and the digital economy, taxation on crypto assets may be included on the agenda.

# Australia

Cryptocurrency transactions conducted in Australia for personal use are exempt from tax under the following circumstances: When Bitcoin is used as a means of payment for goods or services for personal use, the transaction amount does not exceed A$10,000. Activities such as mining and exchanges are considered stock trading and are therefore subject to tax.

# Japan

Japan announced an exemption from consumption tax on the sale of bitcoins in 2017. In Japan, cryptocurrencies such as bitcoin can be regarded as an asset value and can be transferred digitally or used for payment. Profits from Bitcoin are considered business income. Therefore, owners are required to pay both income tax and capital gains tax.

# Germany

Since 2013, Bitcoin has been officially recognized as private property in Germany. Bitcoin owners are required to pay capital gains tax, but tax is only imposed if they generate profits within one year of the purchase of bitcoins. If cryptocurrency is held for more than 1 year, cryptocurrency owners do not need to pay capital gains tax. However, all purchases and transactions using cryptocurrency must be reported.