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After Glenn Weiss won the Emmy for outstanding directing of a variety special for his work on the Oscars, he used his acceptance speech time to propose marriage right there on stage, CBS News reports. Weiss noted the bittersweet nature of his win because his mom died two weeks ago,…
Cryptocurrencies are becoming more prevalent to residents living in South Africa and over the past year bitcoin interest stemming from the region has grown exponentially. Furthermore, just recently the South African Treasury has proposed a few amendments that apply to the country’s Taxation Laws Amendment Bill (TLAB) and how cryptocurrencies are taxed. According to regional reports, if the proposals are accepted, bitcoin trades could be exempt from value-added tax (VAT) in South Africa.
South African Treasury Proposals Could Make Bitcoin Trades Exempt from Value-Added Tax Laws
Interest in bitcoin and other digital assets within South Africa has been rising steadily over the past few years. Back in April, the South African Revenue Service (SARS) revealed its latest guidelines towards cryptocurrency taxation and explained that taxpayers must declare profits and losses if the funds stem from digital asset transactions. SARS details that taxpayers who are uncertain about their tax filings involving cryptocurrencies may reach out to the tax entity for guidance.
“The onus is on taxpayers to declare all cryptocurrency-related taxable income in the tax year. Failure to do so could result in interest and penalties,” said SARS on April 6, 2018.
Now the members of the South African Treasury have proposed new guidelines that could make trading bitcoin and other virtual currencies exempt from VAT. Regional reports detail that the proposals aim to change the definition that digital assets are deemed taxable financial instruments, the clarity within the country’s VAT Act, as well as loss provisions of the Income Tax Act. A senior tax consultant from Mazars, Tertius Troost, explains to regional publications that the proposals will make things much clearer for individual cryptocurrency tax filings and how they apply to the VAT Act.
“The clarification of the VAT treatment will be well received, especially on the basis that the issue, acquisition, collection, buying or selling or transfer of ownership of any cryptocurrency will be included under the definition of financial services in terms of section 2 of the VAT Act,” Troost said in an interview.
If accepted, all dealings in cryptocurrencies will be exempt from VAT. This means there will be no VAT input claims on the acquisition of cryptocurrencies, and no VAT output being levied on the disposal of cryptocurrencies.
Cryptocurrency Interest Continues to Trend Higher in South Africa
Troost also says that VAT costs associated with mining might not have to be claimed within tax filing associated with the VAT. However, the tax consultant says “the good news seems to end there.” Troost emphasizes that the Treasury has proposed the acquisition or disposal of any cryptocurrency under the ring-fencing of assessed loss provisions which is sometimes called ‘suspect trades.’ This means some cryptocurrency sales may not be able to offset losses in certain instances. “In other words, these losses are ring-fenced to be used only against future profits earned from cryptocurrencies,” Troost concludes.
Digital currencies have been very popular within the South African region which has caused tax officials to scrutinize cryptocurrency dealings. Additionally, Localbitcoins and Paxful volumes in South Africa have been increasing steadily over the past few weeks. Interest in bitcoin is higher than every global region. As Google Trends reports, South Africa is the number one area in the world searching for ‘bitcoin-related’ queries.
Moreover, cryptocurrency automated teller machines (ATMs) have become more prevalent in the daily lives of South Africans. There are now ATMs in Johannesburg, Nelspruit, Cape Town, and Midrand.
What do you think about the South African Treasury’s proposals? Let us know what you think about this subject in the comment section below.
Images via Shutterstock, Mybroadband.co.za, and Pixabay.
The post Officials in South Africa Propose VAT-Exemption for Bitcoin Trades appeared first on Bitcoin News.
This week four Bitcoin Cash (BCH) researchers and developers proposed a different transaction sorting process for the BCH protocol called ‘canonical transaction ordering.’ The proposed method would sort transactions against their identifiers, rather than the current topological transaction ordering rule, making it easier to for the network to process very large blocks.
A New Transaction Ordering Rule Proposed for Bitcoin Cash
Joannes Vermorel (Lokad), Amaury Séchet (Bitcoin ABC), Shammah Chancellor (Bitcoin ABC), and Tomas van der Wansem (Bitcrust) have published a new paper that proposes to change the current topological transaction ordering rule within the BCH network. The paper called ‘Canonical Transaction Ordering for Bitcoin’ argues that a canonical ordering process would be more efficient and allow for better scaling. Currently, consensus rules process transactions in a list form where remote peers forward transactions to their neighbors. The way it works right now the list must be topologically sorted, but if the rule was changed to a canonical method that works with blocks as a set, as opposed to a list, it enables BCH to process very large blocks.
The researchers state that the change makes for some “compelling” use cases.
“First, it allows to produce compact proofs of transaction inclusion/exclusion, making chainless apps more capable,” explains the paper.
Second, it gives a newer degree of control to Bitcoin participants to localize their transaction within blocks.
More Efficient Block Propagation and the Possibility of Chainless Apps
Ultimately the new process would make block propagation and emissions more efficient, explains the proposal. Software implementations are simplified and proofs of transaction inclusion are improved. The researchers detail that the results allow network participants to utilize their bandwidth capacity more efficiently by “propagating as much information as possible ahead of time prior to the emission of a new block.”
The Canonical Transaction Ordering Rule (CTOR) also allows opt-in locality between participants, and could possibly produce innovative ‘chainless applications.’
“The CTOR offers the possibility for any participant to zoom into a block to identify whether a transaction is found or not without processing the whole block,” the proposal emphasizes.
This property is of high interest because chainless apps gain the possibility to verify flows of transactions without being encumbered by an arbitrarily large blockchain.
The paper published on June 12 mainly discusses the importance of alleviating computational load going forward and CTOR could help the chain process giant sized blocks with ease. Bitcoin Cash supporters on forums and social media seemed to favor the idea, and conversed about whether or not this consensus change would be added to the upcoming hard fork slated for November.
What do you think about the proposed method of canonical transaction ordering? Do you think developers should add this idea to the next upgrade this November? Let us know your thoughts on this subject in the comment section below.
Images via Shutterstock, Lokad.com, and Pixabay.
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The post Bitcoin Cash Researchers Propose a New Transaction Ordering Rule appeared first on Bitcoin News.
Bernie Sanders is working on a plan that would allow the federal government to guarantee a $ 15-per-hour job, plus healthcare benefits, to every worker in the US “who wants or needs one,” per an early draft of the proposal obtained by the Washington Post . The jobs guarantee would encompass projects…
Nearly an hour after her American Airlines flight was scheduled to leave Honolulu International Airport, passenger Lisa Hill heard the pilot announce that a maintenance problem would delay the takeoff.
The pilot gave fliers the option of getting off the plane but Hill, who was flying to Boston…
A coalition of unions that represent workers at the Disneyland Resort is proposing a ballot measure that would force the theme park and other Anaheim employers that receive city subsidies to pay workers a living wage.
The measure, submitted Thursday to the Anaheim City Clerk, would require the…
Residents from the state of Georgia may soon be able to pay their taxes in bitcoin as two senators have introduced a bill that allows digital currency payments for tax obligations and licensure fees.
The State of Georgia May Allow Residents to Pay Taxes in Bitcoin
Two senators from the state of Georgia, Joshua McKoon and Michael Williams, have proposed a change to the Department of Revenue’s statutes for tax collection and licenses. The bill was submitted on February 21, and the goals are similar to recent blockchain-centric bills filed in the state of Arizona — GA SB464 would allow residents from Georgia to pay their tax obligations and licensure fees in bitcoin and other digital currencies.
“The commissioner shall accept as valid payment for taxes and license fees any cryptocurrency, including but not limited to bitcoin, that uses an electronic peer-to-peer system,” the text from GA SB464 reads.
The commissioner shall convert payments made in cryptocurrency to United States dollars at the prevailing rate within 24 hours of his or her receipt of such a payment and shall credit the payor’s account with such converted dollar amount.
Move Over Arizona, Georgia Wants to Be a Digital Currency Hotbed
Just recently news.Bitcoin.com reported on the state of Arizona initiating a tax proposal that also allows bitcoin payments. One of Arizona’s bills has already been passed by the Senate Finance Committee. Arizona Representative Jeff Weninger told the press, “Arizona is going to be the place to be for blockchain and digital currency technology in the future.”
The state of Georgia is following Arizona’s lead likely due to the region having a large digital currency community. Georgia is home to a variety cryptocurrency-based companies such as Bitpay, Bitfury, and over 100 BTMs (bitcoin teller machines). Moreover, the state’s capital and the most populous city now has a Bitcoin Embassy. If the bill passes, it will amend the Department of Revenue’s Code Section 48-2-32.
What do you think about the state of Georgia allowing residents to pay licensure fees and tax obligations in bitcoin? Do you think this is a good thing or do you think this goes against the philosophy of bitcoin? Let us know your thoughts on this subject in the comments below.
Images via Wiki Commons, and Todd Rehm 2013.
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The post Georgia Lawmakers Propose Tax Amendment That Allows Bitcoin Payments appeared first on Bitcoin News.
Danica Patrick is officially single … her 5-year relationship with NASCAR driver Ricky Stenhouse Jr. is over after the guy publicly pumped the brakes when it came to marriage. How do we know? Because Danica shared her frustration about the…
The EU is poised to propose a 30% cut in carbon-dioxide emissions from cars and vans in the decade through 2030, setting the stage for tough negotiations with auto makers fighting for lower targets and environmentalists pushing for greater reductions.
WSJ.com: What’s News Europe
It started with a wedding proposal and ended with a dozen churchgoers up to their armpits in pond water. The Kansas City Star reports Maddie Villareal was supposed to be filming a romantic engagement between her friends Seth Dixon and Ruth Salas Saturday in Kansas City’s Loose Park. Her cellphone…