Crypto tax Financial News

The Australian Taxation Office (ATO) released new guidance on November 9, stating that capital gains tax (CGT) applies to certain decentralized finance (DeFi) transactions. The tax agency has failed to clarify key aspects of these rules, however, leaving Australian crypto investors confused about how to comply.

A group of United States lawmakers have led an effort for a change in the proposed cryptocurrency tax regime announced by the Treasury Department.

A consortium of 47 countries, including the US, the UK, and Australia, have adopted a new framework for the automatic exchange of information between tax authorities.

South Korea has joined a group of 48 nations, calling for the promotion of an international framework for cryptocurrency reporting.

The imposition of a one percent tax-deducted-at-source (TDS) on the trading of cryptocurrencies in India has led to a massive shift of millions of users to offshore crypto exchanges, according to a recent report published by the Esya Centre.

Blockpit, an Austria-based crypto tax service provider, has acquired its rival platform Accointing from the crypto data company Glassnode. This acquisition positions Blockpit to align with the upcoming EU tax regulations, known as the Eighth Directive on Administrative Cooperation (DAC8).

Kraken will provide user data to the IRS after a legal battle over crypto tax reporting. Image by Michael O’Keene, Adobe Stock.Major U.S. cryptocurrency exchange Kraken will provide limited user information to the Internal Revenue Service (IRS) next month following a court order received in June. The data concerns specific Kraken users who conducted transactions over $20,000 between 2016 and 2020.

Turkish government intends to establish a regulatory framework for crypto assets, including plans to tax these digital assets, starting 2024.

India’s Central Board of Direct Taxes (CBDT) has collected more than 100 crore INR ($12 million) from one percent TDS (Tax Deducted at Source) on crypto transactions in this financial year.  

Thailand would soon tax foreign earnings from crypto traders, a tighter measure to close the loophole, which allowed overseas income into the country tax-free.

The US Department of the Treasury and Internal Revenue Service (IRS) on Friday released new proposed regulations that would require the brokers of digital assets to report certain sales and exchanges in an effort to crack down on tax cheats, as well as to assist law-abiding taxpayers know how much they owe.

ITR) in India approaches (July 31), it is crucial to address specific concerns around taxation on investments in crypto and other virtual digital assets (VDA), including NFTs. Navigating the tax landscape can look complex but with the right knowledge and guidance, you can ensure a smooth and compliant filing process.Gist of crypto taxation VDA transactions, including sales, are subject to a 30% capital gains tax in India. A capital loss in one VDA can’t be offset against profit in another– essentially, you pay 30% capital gains on profitable assets of that financial year. Additionally, a 1% Tax Deducted at Source (TDS) is also charged on VDA sale/transfer between assets. These are deposited to your PAN number by compliant Indian exchanges which you can use to reduce your tax liability or get a refund via your ITR filing.Key pointersTo help you in this tax filing season, we enlist some additional pointers for preparing your ITR.

crypto investors will be filing their taxes on gains and claiming TDS refunds, where applicable. The process will give regulators greater visibility into the fast-growing Indian crypto market, and help establish trust and transparency in the ecosystem. For a taxpayer, there are new schedules to be filled.

cryptocurrency transactions and holdings. As the popularity and use of cryptocurrencies continue to grow, countries around the world are grappling with how to regulate and tax these digital assets. Some countries have adopted favourable tax policies towards cryptocurrencies, while others have implemented strict regulations. In this article, we will examine the crypto tax policies of several nations and see how they handle this evolving asset class.United States of America In the United States, cryptocurrencies are treated as property for tax purposes, similar to property taxes. Transactions involving cryptos, such as selling for fiat currency, token airdrops, mining, or staking, are all taxable with rates ranging from 0-37% for capital gains and income tax. However, holding crypto for the long term or buying with fiat currency is not taxable. Taxpayers can choose to calculate their crypto taxes using either the FIFO (first in, first out) or LIFO (last in, first out) method. Capital gains and losses, cost basis, and keeping records of transactions is important to keep in mind for tax reporting.

Crypto investors in India expect a more friendly tax regime for digital assets and parity with other assets and regulations when finance minister Nirmala Sitharaman tables the budget for FY24 in less than two months.

Indian crypto exchanges are cheering the new tax reporting framework released by the Organization for Economic Co-operation and Development (OECD) amid a sharp decline in trading volumes on crypto markets.

The Organization for Economic Co-operation and Development (OECD) released Crypto-Asset Reporting Framework (CARF) on October 11 designed to help tax authorities achieve greater visibility on crypto transactions and the users behind them.

In India, where cryptocurrency is still at an evolving stage, crypto tax calculation is not something that comes easy.

crypto investor base witnessed explosive growth over the last 2 years, with recent estimates suggesting over 20 million crypto investors in India. India’s decision in February 2022, to explicitly identify crypto and other virtual digital assets (VDA) for taxation led to initial panic in the industry.India was to start taxing gains on VDA investment activities at a flat 30 per cent rate from 1st April 2022.

WazirX and Zebpay, citing their Trader Sentiment Survey. The survey included about 9,500 respondents throughout the country. The domestic exchanges collectively conducted the survey and included only those traders who were active from the beginning of the year till April 15. The survey aims to highlight the mood of crypto traders over higher taxation. According to the results, 83 per cent of traders believed that the recent tax implementation deterred their trading frequency. 29 per cent of the respondents said that they traded less than the pre-tax period.

The industry has been actively lobbying for positive regulations. Budget 2022 did not directly provide any indication of regulatory clarity. However, it did introduce a new scheme of taxation on crypto. Section 115BBH was introduced to tax all gains from the transfer of virtual digital assets (VDAs) at 30% without allowing any deduction for expenses nor setoff of any loss. Further, Section 194S was introduced to deduct TDS at 1% on all transfers of VDAs with an intention to widen the tax base. These provisions are applicable from the financial year 2022-23 (FY23).