CRYPTOCURRENCIES AND TAXES

We are in the digital age, where sometimes we inadvertently find ourselves immersed in a technological environment that leads us to develop new forms of management in business administration and the taxes that arise in them. Trading in platforms like ImmediateProfit, is not exception also.

The introduction of cryptocurrencies in people’s economic and financial operations and their excessive increase in use and commercialization has activated the alarms of tax agents.

It is necessary to create an equitable approach regarding the tax contribution by cryptocurrencies, where their collection represents another income for the stability of world economies.

A digital environment that asks for legalization

The challenges generated by the digital market for both corporations and individuals are dominated by excessive use in daily activities, where commercial operations and market capitalization of crypto assets are increasingly common.

When the taxpayer, for not having a legal basis, takes advantage of the diversion of capital to avoid declaring that income for negotiations with cryptocurrencies, the main affected party is the National Treasury of each country.

Currently, several countries are studying and evaluating various ways in which cryptocurrency operations are allowed to be taxed to control cryptographic transactions, at least from a fiscal perspective.

The lack of a legal framework regulating cryptocurrencies makes them complex and challenging to control under a traditional legal environment.

Cryptocurrencies, being digital financial instruments, require their exchange to have technological equipment that is up to the task and with sufficient capacity to store the data of each operation carried out, in addition to adapting the administrative and billing systems not only to the traditional currency but also to cryptocurrencies.

On the other hand, there is the academic and digital preparation of the professionals who will be in charge of monitoring and achieving compliance with tax obligations by taxpayers, but this time in digital currencies.

Simple, transparent, adaptable, and applicable tax legislation is intended from the point of view that the tax and administrative burden is not excessive and much less expensive for the parties involved.

What taxes are cryptocurrencies subject to?

This type of digital assets represents a monetary value, and that is why they are accounted for in the owner’s assets, which makes them responsible for declaring their possession.

Once the possession of crypto assets has been declared, it must be compared with the values ​​that are estimated as taxable and proceed to the relevant declarations; among some of the taxes are:

  • Wealth Tax strictly refers to having cryptocurrencies and that these form part of the taxpayer’s enrichment.
  • Tax on the income of individuals, focused on profits obtained during a fiscal year through cryptocurrencies.
  • Tax on inheritance and donations strictly refers to legacies or donations received in cryptocurrencies.
  • All these taxes are subject to the annual fiscal calendar presented by the tax regulatory entities of each country.

Challenges of cryptocurrencies before taxes

Mainly, cryptocurrencies must have legal support to become taxable, although their use and management have increased, if they do not have the necessary legal basis, it will be difficult to control them, in addition to giving the tax treatment that corresponds to them due to their complex and changing nature.

Create regulations that also protect consumers or users dedicated to advertising crypto assets.

On the other hand, there is the creation of a scale of values ​​that allows uniformity to the taxes of cryptocurrencies, which considers their volatility and the adequate documentation that supports them as financial assets.

Advances in Blockchain technology can lead to modifications from time to time of the legal bases, representing a constant update on the subject.

Added to all these challenges is the constant warning that the use of crypto assets lends itself to illegal activities such as money laundering, fraud, or tax evasion, to name a few cases.

Conclusion

In the incessant search for the legalization of cryptocurrencies as a financial tool, an endless number of parameters arise that must be established during a cryptocurrency tax regulation for both consumers and future taxpayers.

Cryptocurrencies generate high income, and it is where government entities want to establish controls and measures that benefit the States from these revenues to execute social improvement plans for their countries.

However, it is essential to mention that the final tax quota to be paid will depend directly on the patrimonial situation of the taxpayers.

Smitty
Smitty
If Life is just a game and luck is for losers - Then I am winning the game

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected
41,936FansLike
5,684FollowersFollow
865FollowersFollow

Read On

Latest