As a new thing, cryptocurrency has not been recognized by many countries. Therefore, the specific scheme of how cryptocurrency is taxed is far from the ground, but many countries have already had the incentive to levy taxes on cryptocurrencies.
However, some countries have directly implemented tax exemption for cryptocurrencies.
Forbes recently summed up a list of countries that are exempt from cryptocurrencies . Let us follow this list and walk into the "paradise" of these cryptocurrencies.
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Just the end of the annual tax season (the characteristics of the United States, up to the US president, down to the ordinary people must complete their personal income tax declaration).
Many people find that this year's tax season is very different from previous years. Most tax authorities have begun to seduce cryptocurrency transactions this year, and tax authorities are doing everything they can to get rid of those who evade taxes.
In stark contrast to the United States, some countries are exempt from cryptocurrencies under certain conditions (or even unconditionally) , whether they are buying, holding or selling cryptocurrencies. These countries are exempt from tax on cryptocurrencies when they are fully legal and approved by the government .
So some people refer to these countries as " the paradise of cryptocurrency ." In this article, I summarize the list of countries that are exempt from cryptocurrencies, sort out the conditions for travel and residence in these countries, and the livability scores of these countries.
Germany has waived the value-added tax on bitcoin transactions. Since German law clearly states that bitcoin is not a currency, the tax exemption policy for assets held for more than one year also applies to bitcoin.
In other words, this means that if you hold Bitcoin for more than a year (other cryptocurrencies are also the same), you don't need to tax Bitcoin income as income (because Germany does not recognize cryptocurrency as money) .
And because of the exemption of assets, you don't need to pay Bitcoin income as capital gains . However, for enterprises, the income from investing in cryptocurrency still needs to pay corporate income tax.
Tax residence: Tax residence refers to the country where you need to pay taxes. Usually, tax residents only need to pay taxes to a tax residence. For the right to apply for residence, if you are an EU citizen, you can move to Germany freely. And lived down.
If you are not an EU citizen but you are from the United States, Canada, you can live after applying for a residence permit. Whether you can be a tax resident in Germany depends on whether you live in Germany and whether your actual stay in Germany is more than 6 months.
If you have a dispute over a tax residence between two countries, Germany's tax residence policy defaults to your “country with more benefits (personal and financial)” as your tax residence.
Livability score : The livability of the German capital Berlin is as high as 4.31 points. This is because Berlin has a fast Internet access speed, sufficient security, rich nightlife, freedom of speech, high acceptance of English, and the advantages of minority-friendly infrastructure such as LGBT.
Berlin's livability score
If a Singaporean company buys and sells cryptocurrencies in its operations, the proceeds from the cryptocurrency will be taxed in the same way as ordinary income. However, Singaporean companies and individuals holding cryptocurrencies for long-term investment purposes do not need to pay taxes because the Singapore government does not impose capital gains tax (CGT).
Tax residence : In Singapore, the tax residence of a company depends on where the business is doing, and an individual who stays in Singapore for more than 183 days will be considered a tax resident in Singapore, while the Singapore government provides entry visas and permits for foreign entrepreneurs. This makes it possible for applicants who meet the conditions to live in Singapore relatively easily.
Livability score: Singapore’s livability score has been stable at around 3.51, although there are concerns about life costs and freedom of speech in Singapore.
But it is undeniable that Singapore's Internet access is very fast, the city is very safe and has good walkability (Walkability, most streets have the possibility of walking, the streets are not wide, cars can pass slowly, and pedestrians have Friendly relationship with high quality pedestrian network and public space).
Singapore's livability score
According to the Portuguese law, which was just revised in 2018, the Portuguese government exempts the value-added tax and personal income tax from cryptocurrencies, but companies still need to pay taxes on the proceeds from cryptocurrency investments.
Tax residence: If you own a home in Portugal or stay in the country for more than 183 days, you will be treated as a tax resident in Portugal. EU citizens can move to Portugal but need to apply for registration with the Portuguese government to stay for more than three months. Citizens of all other countries must hold a visa in order to apply for permanent residency.
Livability score: The livability of Lisbon, the capital of Portugal, scored as high as 3.69, thanks to Lisbon's low cost of living, good walking and traffic safety, and excellent co-working/cafe.
Lisbon's livability score
Just as the Maltese government exempts long-term bonds from taxation, there is no need to pay taxes on other long-term cryptocurrencies in Malaysia. However, if you trade in cryptocurrency (day trade, which means that the position is short and does not leave the overnight position), then the same as the intraday trading of stocks and other financial products, the proceeds from trading your cryptocurrency will also be used as Tax on business income.
Tax residence: Other tax resident status of the horse depends on the regular place of residence: EU/EEA/Swiss citizens are free to move to Malta, but non-EU/EEA/Swiss citizens will have to migrate with the Global Residence Programme Horse other.
Applying for a global residency program means that you either buy a property worth at least €275,000 (approximately RMB 2.15 million) or pay an annual rent of up to €9,600 (approximately RMB 75,000). This is not all, the application for a global residency program The person is required to pay 15% of the income, and the minimum annual tax amount is 15,000 euros (about 120,000 yuan).
Livability score: Malta's Lima's livability score is only 2.41 points. This poor score is dragged down by the high cost of living, general medical conditions and nightlife, but it is undeniable that the city of Sliema, Malta, is flying fast. Net speed, good walkability and safety are its plus points.
Sliema's livability score
Like the neighboring Singapore, the Malaysian government does not impose a capital gains tax. Although there are rumors that the Malaysian government will begin to impose capital gains tax in the future, there is no corresponding proposal in the latest 2019 government budget. For now, Malaysia's cryptocurrency transactions are tax-free.
Tax residence: Generally, individuals who have stayed in Malaysia for more than 182 days will be considered tax residents in Malaysia. There are five ways to obtain permanent residency in Malaysia, corresponding to at least $2 million worth of high net worth individuals, experts, professionals, Malaysian spouses, or applicants who meet the conditions for points.
Livability score: The livability of Kuala Lumpur, Malaysia, scored 3.52 points. Kuala Lumpur is a city with extremely low cost of living. It has a great working environment, but the disadvantage is that nightlife is very general and there are very few startups.
Kuala Lumpur's livability score
In March 2018, Belarus legalized a cryptocurrency campaign through a new law and gave the cryptocurrency many tax exemptions. Under this law, both cryptocurrency mining and cryptocurrency investments are considered personal investment behavior and are tax-free at least until 2023.
Tax residence: Individuals who stay in Belarus for more than 183 days a year are considered tax residents of Belarus. In addition, Belarusian citizens who reside outside and foreign citizens who have a residence permit in Belarus are also considered tax residents of Belarus if they are not considered tax residents by any other country. If you are not a Belarusian citizen, you will need to obtain a residence permit from Belarus if you want to live in Belarus for more than 90 days.
Livability score: The livability of the Belarusian capital Minsk is 3.5, and such a high score is mainly attributed to the relatively low cost of living, a great working environment and a friendly atmosphere for foreigners.
Minsk's livability score
Switzerland is world-famous for its cryptographic currency-friendly, so much that Switzerland is the Silicon Valley in the world of encryption, referred to as " Crypto Valley." The Libra Association, a member of the Ethereum Foundation and now the hottest Facebook cryptocurrency Libra, has its headquarters in Switzerland.
Switzerland's tax treatment of cryptocurrency is very interesting, where the mining income of cryptocurrency is usually treated as income from individual operators (and taxed through personal income tax). If you are recognized by the government as a professional cryptocurrency trader, then the proceeds from trading your cryptocurrency are subject to business tax; and if you are identified by the government as an individual investing in and transacting cryptocurrencies, then the proceeds of the cryptocurrency will be considered tax-free. Capital gains . If your employer pays you in the form of a cryptocurrency, you will be subject to personal income tax.
It should be noted that different administrative regions in Switzerland have different tax rates and will be subject to an annual property tax based on the total amount of your cryptocurrency and the total value of the remaining assets.
Tax residence: Swiss tax residents need to pay taxes on their wealth and income worldwide. Individuals who want to settle in Switzerland, find a job in Switzerland and stay for 30 days, or stay in Switzerland for 90 days in a row are considered tax residents of Switzerland. The Swiss government has different residence permit categories and requirements for EU citizens and non-EU citizens.
Livability score: Zurich's livability score is 3.09, which is mainly due to the high cost of living, but Zurich is doing a good job in terms of safety, working environment and freedom of speech.
Zurich's livability score
How about, look at these countries, presumably you have a general understanding of the global taxation of cryptocurrency.
However, even in tax-free countries, the battalion commander still reminds everyone that buying coins is risky and investment needs to be cautious.
Source | Forbes
Compilation | Guoxi
Editor | Aholiab
Produced | Blockchain Base Camp (blockchain_camp)