Global cryptocurrency tax rules vary from country to country. Some countries have implemented extreme crypto tax policies that put a lot of strain on their citizens.
According to research by crypto analytics firm Coincub, Belgium is the worst country in terms of crypto taxation for residents. This ranking was created taking into account taxes on crypto income or value increases.
Belgium is known for its huge 33 percent capitalization tax it imposes on crypto transactions. In addition, the country applies up to 50 percent cargo to professional income from crypto transactions. Belgium enacted strict crypto tax laws in 2017 laid.
Thursday of Coincub released according to tax order; Iceland, Israel, the Philippines, and Japan are also not very attractive countries for crypto investors.
In Iceland, all crypto valuations up to $7,000 are subject to a 40% tax. Increases above this amount are subject to a 46% tax. According to Israel’s tax laws, crypto sales mostly fall within the scope of capitalization tax, while a 33 percent tax is applied in this type of tax. On the other hand, if crypto transactions include commercial income tax, the tax applied can reach 50 percent.
There is no tax on crypto income under $4,500 in the Philippines. All income after this level is subject to 35 percent tax. Philippines government plans to introduce new crypto taxes by 2024 while discussing, example of india It is feared that it will monitor it and impose a 30 percent tax on all crypto income.
Japan rounds out Coincub’s list of the five worst countries for crypto taxes. Gradual tax system for income considered as miscellaneous income in the country being implemented. This tax rate also varies between 5 and 45 percent, based on total profits.
Other countries that implement strict crypto tax policies include India, Austria, USA, Norway, Denmark and France. Crypto-friendly countries include Italy, Switzerland, France and Slovenia.