Crypto taxation is an important issue in the crypto industry. In fact, there are firms that analyse the crypto taxation trends in various countries. Naturally, different countries have varied taxation rules. Therefore, there is no common global crypto taxation rule. In fact, there are countries that have created crypto tax policies that are really tough. While there are also nations that have devised loose taxation rules for the citizens.
Since crypto taxation rules vary from one country to another, there is a need to analyse these rules. This analysis is essential to find out the worst nations with regard to their crypto taxation policies. If you wish to know about the top five nations, which have devised the worst taxation policies, then this article is a perfect stop for you. Keep reading this article to know of the top five nations with the worst crypto taxation policies.
Top 5 Nations with Worst Crypto Taxation Policies
Coincub, a crypto analytics firm, has recently conducted a study. In that study, the firm looked at those nations that have the worst possible crypto taxation policies. According to the study, Belgium tops the list. This means that Belgium has the worst possible crypto taxation rules for its citizens. This study considered the taxation aspects like crypto capital gains and taxes on crypto income.
In fact, Belgium records a towering 33% tax on capital gains on crypto transactions. In addition, the nation also withholds up to 50% in taxes on professional income from the trading of crypto coins. Therefore, Belgium has strict taxation rules for crypto. In fact, back in 2017, the nation adopted this strict rule.
The particular study by Coincub also includes the nations like Israel, Iceland, Japan and the Philippines. As per the study, the Philippines does not levy taxes on crypto incomes below $4,500. However, after that limit, the taxation rate climbs up to 35%. In fact, the authorities in the country are also planning for new taxes by 2024.
On the other hand, in Iceland, you will have to pay a 40% crypto tax for gains up to $7,000. Beyond that the rate increases to 46%. Similarly in Israel, there is a tax of up to 33% on crypto gains. However, in the case of crypto trading involving business income tax, then the rate sharply climbs up to 50%.
Japan comes fifth in the Coincub list. The nation follows a progressive taxation system for miscellaneous income. Depending on the profit amount, the rate of taxes varies between 5% and 45%. India, the United States, Austria, Denmark, France and Norway are other nations having strict crypto taxation rates.
Concluding Lines
The Coincub study also notes the nations having favourable crypto taxation policies. In this list, Germany comes at the top. This nation imposes zero capital gains tax if you hold cryptocurrency for a minimum of a year. Switzerland, Slovenia, Italy and Singapore are other nations on the list.
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