Against the backdrop of news about the cancellation of tax for crypto companies in the USA, I wanted to understand what is happening with taxes in Europe, particularly for individuals.
I watched 🤯
Cryptocurrency taxes in Europe exist or are planned in almost all countries. They are traditionally high. For example, in Denmark, it is 37% on personal capital. 😳
What is taxable?
In each country, it's different; I will list the most popular:
Tax on cryptocurrency purchases. For example, in Germany, when buying from 600 euros. What is this? 😮 I already paid taxes when I earned that 600 euros.
Capital gains tax. This is when you bought BTC for 80, and now it's 100. Each currency can be taxed separately. How is this? 😳 The overall portfolio can be losing, but you still have to pay tax because something has grown?
Exchanging cryptocurrency for another cryptocurrency. It is considered that during the exchange, an intermediate sale occurs and tax must be paid. What is this? 😳 and how do you even calculate this if there can be many transactions? And why?
Payment for goods and services. Wait, don't I pay VAT when paying for goods and services? 🤨 Why is there another tax?
Mining. Overall, I agree, but here you need to deduct expenses.
Gifts. Even if it is a reward for a referral program. There seems to be a lot of double taxation. I received a salary (paid tax), bought crypto (paid tax), transferred to a friend (paid tax), and now my friend pays tax on the gift 😡
Payment for conversion to fiat currency.
Receiving crypto as payment for goods.
Receiving salary in cryptocurrency.
I agree with the last three points - these are standard taxes. Moreover, the tax for converting to fiat currency should only be applied to the difference between the invested and withdrawn money. This would be fair.
In my opinion, as long as the money is not transferred, lying in my wallet or on an exchange - there should be no taxes. This asset is very unreliable; today there is 1000 dollars, and tomorrow it's already 1 dollar. Touch wood.
What do you think?
PS: if the USA cancels the corporate crypto tax, we will rejoice for XRP and HBAR.