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Romania Imposes 10% Tax on Cryptocurrency Earnings

January 22, 2019 |

Romania Imposes 10% Tax on Cryptocurrency Earnings

Romania has amended its tax laws, allowing it to start taxing gains from bitcoin investments at a rate of 10 percent. The improved fiscal code legislation categorizes earnings generated from buying and selling cryptocurrencies as “income from other sources” and therefore subject to income tax, local media reports.

Also read: Falcon Private Bank Launches Crypto Wallet With Support for Direct BTC and BCH Transfers

Only Gains From Crypto Investments to Be Taxed

Romanian daily financial newspaper Ziarul Financiar quoted Adrian Benta, a local tax consultant, as saying: “Now, the earnings from bitcoin are taxed and declared in the annual income statement. Only the earnings [or gains, as opposed to revenues] are taxed.”

Romania Imposes 10% Tax on Cryptocurrency Earnings

Gains from any single transaction which are below 200 Romanian ron (about $ 50) will not be taxed, the article said. However, investors will pay the 10 percent income tax on crypto earnings that exceed a cumulative 600 ron in a year.

Benta told the Bucharest-based publication that the cryptocurrency tax thresholds, according to the new legislation, were “fair”. He stated:

Before this, we had a more cumbersome procedure in which one had to register as freelancer if he was trading repeatedly. It is now treated as an extraordinary income from other sources.

It is not clear how government will enforce compliance of the self-declared crypto income tax.

Growing Crypto Taxation Trend

The east European country’s nascent bitcoin market was recently rocked by news of the arrest and impending extraditiin of Vlad Nistor, founder and chief executive officer of Coinflux, to the U.S. Nistor, who heads one of Romania’s biggest digital asset exchanges, is facing charges of money laundering, allegedly committed through his trading platform. Coinflux has traded the equivalent of $ 229 million worth of crypto since it was founded in 2015 and reported turnover of $ 3.4 million last year.

Romania Imposes 10% Tax on Cryptocurrency Earnings

Cryptocurrency has become a prime target for governments throughout the world seeking to help themselves to profits from a technology built to resist their control. Romania joins a growing list of governments to roll out crypto tax legislation. Chile announced this week that it will start taxing bitcoin profits in April and that it will monitor individual investors to ensure they are paying the crypto tax at the right level. In Spain, government has drafted a law that seeks to compel investors to declare their crypto asset holdings, partly as a measure to prevent tax evasion.

Spain’s Ministry of the Treasury has since identified 15,000 cryptocurrency investors it is monitoring to prevent tax evasion and money laundering. The ministry has vowed to ensure that the investors pay taxes on capital gains from digital currency transactions and that they declare any other benefits accrued from trading.

What do you think about the growing trend by world governments to tax cryptocurrency? Let us know in the comments section below.


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The post Romania Imposes 10% Tax on Cryptocurrency Earnings appeared first on Bitcoin News.

Bitcoin News

Chile to Start Taxing Cryptocurrency Earnings in Second Quarter of 2019

January 19, 2019 |

Chile to Start Taxing Cryptocurrency Earnings in Second Quarter of 2019

Chile is to start taxing cryptocurrencies in April, when taxpayers pay their yearly income taxes, but it’s unclear at what rate. According to local media reports, the country’s revenue authority has included crypto assets in the Annual Income Tax Returns form, which will be declared as “other own income and/or third-party income from companies that declare their effective income.”

Also read: Report From Within Shut Down Zimbabwe: A Government That’s Crippled Its Own Economy

Investors to Pay Tax on Crypto Earnings

Chile exempted cryptocurrencies from Value Added Tax laws in 2018, labeling them “intangible assets” but investors will now be required to pay tax on earnings generated from crypto-related investments, Diario Bitcoin reported, quoting the country’s tax collector, Internal Revenue Service.

It is not clear at what rate the crypto tax will be levied, but individual income tax thresholds in the country averaged 39.38 percent during the 15 years to 2018, according to research website Tradingeconomics. Today, the rate stands at 35 percent.

Chile to Start Taxing Cryptocurrency Earnings in Second Quarter of 2019

Fernando Barraza, director of the revenue authority, said citizens who buy, sell or trade virtual currencies will have to register their enterprises by completing what are known as “tax-exempt invoices.” These invoices allow the Internal Revenue Service to monitor their operations. The article stated that the Chilean government had become interested in tracking cryptocurrency activities following a sharp rise in their use as “valid currencies to trade products and services.”

Legitimizing Cryptocurrencies

The move by the revenue collector to tax crypto assets is widely regarded by observers as a major step towards legitimizing the trade and use of virtual currencies in the south American country. Until now, the legal status of cryptocurrency in Chile has remained a matter of conjecture. The country does not recognize virtual currencies such as bitcoin as legal tender, but they are not banned either.

However, Chilean crypto exchanges have in the last year had running battles with commercial banks, who closed their accounts without explanation. A landmark ruling by the Supreme Court of Chile in December means banks can now close such accounts legally. In a case pitting state-owned Bancoestado against digital asset trading platform Orionx, the court ruled the bank was justified in closing the exchange’s accounts.

Chile to Start Taxing Cryptocurrency Earnings in Second Quarter of 2019

Judges said the bank acted in compliance with laws on money laundering and terrorist financing, a threat allegedly posed by censorship-resistant decentralized cryptocurrencies. The Supreme Court claimed that digital assets lack “physical manifestation” and “have no intrinsic value.” It also took issue with the fact that they are not controlled or issued by governments or companies.

Tax lawyer Patrício Bravo, representing the non-profit Bitcoin Chile, commented that the new crypto tax was an attempt by the Internal Revenue Service “to expand the tax structure as much as possible to cover all types of crypto assets.”  Bravo, who was speaking to local news outlet Crypto Notidies, also noted that the tax may have been “due to the current lack in Chilean legislation of figures specifically designed for this type of instruments, which makes it difficult to generate more specific items.”

What do you think about Chile’s cryptocurrency tax? Let us know in the comments section below.


Images courtesy of Shutterstock.


Express yourself freely at Bitcoin.com’s user forums. We don’t censor on political grounds. Check forum.Bitcoin.com

The post Chile to Start Taxing Cryptocurrency Earnings in Second Quarter of 2019 appeared first on Bitcoin News.

Bitcoin News

Big bank earnings signal caution as revenues miss expectations

January 16, 2019 |

Two of the nation’s largest banks on Tuesday reported mixed earnings results for the end of last year, a potential caution sign on the state of the economy heading into 2019.

Wells Fargo & Co. and JPMorgan Chase & Co. both missed expectations on revenue for the October-through-December period….


L.A. Times – Business

Slow Earnings Growth, Dim Forecasts Weigh on Stocks

January 14, 2019 |

America’s biggest public companies are warning that their earnings may not be as strong as they hoped this year, intensifying pressure on a bull market that has struggled to regain its footing.
WSJ.com: US Business

Israel Tax Authority Launches Offensive on Undisclosed Crypto Earnings

December 10, 2018 |

Israel Tax Authority Launches Offensive on Undisclosed Crypto Earnings

Local reports have asserted that the Israel Tax Authority has launched a renewed crackdown on unreported cryptocurrency earnings. The Israeli tax regulator has opened hundreds of tax accounts and sent letters of notice to Israeli citizens suspected of failing to disclose earnings derived from cryptocurrency-relate activities.

Also Read: $ 1 Million BTC Options Position Set to Expire on Dec. 28

Israel Tax Authority Targets Undisclosed Cryptocurrency Earnings

Israel Tax Authority Launches Offensive on Undisclosed Crypto EarningsThe Israel Tax Authority has launched an offensive designed to crack down on cryptocurrency earnings not reported by Israeli citizens, reportedly resulting in the opening of hundreds of tax accounts.

Citing an anonymous “Israeli official familiar with the matter,” local media outlet Calcalistech has reported that the Israel’s tax regulator has sent letters to citizens suspected of failing to report crypto income, as well as individuals who frequently travel overseas without possessing the required funds on paper and individuals who own more than three apartments.

Eran Yaakov, the head of the Israel Tax Authority, stated that the regulator will continue to actively target withheld cryptocurrency earnings moving forward.

Crackdown Expands on Previous Action Taken by Israel Tax Authority in May

Israel Tax Authority Launches Offensive on Undisclosed Crypto EarningsIn February, the Israel Tax Authority announced that it would mandate the taxation of cryptocurrency as an asset, resulting in the introduction of a 25 percent capital gains tax for private investors and a 47 percent marginal rate for businesses. Additionally, individuals mining or trading cryptocurrencies through a business were made liable for Israel’s 17 percent value-added tax.

Soon thereafter, the Israel Tax Authority sought to crack down on undisclosed cryptocurrency earnings and holdings, issuing letters to citizens suspected of failing to divulge pertinent cryptocurrency-related activities in May of this year.

At the time, news.Bitcoin.com reported on rumors that undercover agents of the Israeli tax regulator were monitoring local groups for the peer-to-peer trade of cryptocurrencies on major social media platforms including Facebook, Whatsapp, and Telegram.

What do you think of Israel’s tax regime for cryptocurrency earnings? Share your thoughts in the comments section below!


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The post Israel Tax Authority Launches Offensive on Undisclosed Crypto Earnings appeared first on Bitcoin News.

Bitcoin News

Stocks rise, helped by solid corporate earnings

October 30, 2018 |

Stocks turned mostly higher on Wall Street Tuesday morning as investors were encouraged by some solid earnings reports from several big U.S. companies.

Oreo maker Mondelez rose and athletic gear maker Under Armour soared after reporting their latest quarterly results. Banks rose along with interest…


L.A. Times – Business

NexPoint Residential Trust Inc.: 3Q Earnings Snapshot

October 30, 2018 |

DALLAS (AP) _ NexPoint Residential Trust Inc. (NXRT) on Tuesday reported a key measure of profitability in its third quarter.
FOX News

Tesla shares jump after earnings report fulfills Elon Musk’s profit and cash-flow promises

October 25, 2018 |

Tesla Inc. stock jumped Thursday morning after an upbeat report showed booming sales for the electric-car maker’s Model 3 and fulfillment of Chief Executive Elon Musk’s promises that Tesla would turn a profit and improve its cash flow.

The stock surged as much as 11% in after-hours trading Wednesday…


L.A. Times – Business

Snap Inc. announces two big hires ahead of its critical third-quarter earnings report

October 25, 2018 |

Snap Inc. announced Wednesday that it is hiring two new executives to take on the responsibilities of former chief strategy officer Imran Khan — including a major hire from Amazon that could help the struggling social media company expand its user base and turn toward profitability.

The hires came…


L.A. Times – Business

Hasbro, trying to find footing, posts weak quarterly earnings

October 22, 2018 |

Hasbro Inc., wrestling with the demise of Toys R Us and elusive shoppers spending a lot more on high-tech gadgets, posted third-quarter results Monday that fell well short of expectations.

The Pawtucket, R.I., toy maker will absorb charges of as much as $ 60 million next quarter as it cuts jobs.


L.A. Times – Business