Crypto-currencies are becoming so popular that countries around the world are looking at their intrinsic regulation. This new form of economy is subject to adapted legislation, including consideration of profits as taxable income. Azerbaijan declared, on May 5, that it would join the governments that tax the revenues generated by the cryptocurrencies.
Nijat Imanov, Deputy Director General of the Department of Tax Policy and Strategic Research for the Ministry of Taxes, said that cryptocurrency gains in Azerbaijan will now be taxed. He made the announcement at the second Finance and Investment Forum (FIF 2018) in Baku on May 5th.
“This is formalized as a profit tax for corporations and personal income tax,” said Imanov. “If someone bought a cryptocurrency and then sold it after their price has gone up, that new amount is recorded as income and therefore should be taxed. “
The entire virtual currency market has spread widely in East Asia. The decision to impose taxation was then imposed in parallel with the astronomical growth rate of the world market for digital currencies, both in Azerbaijan and elsewhere, from May to December 2017.
Elnur Guliyev, director and founder of Crypto Consulting Company, has stated that any individual could make a profit with an investment of just $ 10 in digital currency.
“But this situation is not repeated very often,” he said, “the cheapest option is to buy Bitcoin and wait for the increase in its resale price. This option still works, but it is difficult to decide how long it will last. “
Many countries tend to tax revenues on cryptocurrencies
Several legislation around cryptocurrencies has been promulgated in countries such as the United States, South Korea and India.
US President Donald Trump has signed a bill to reform the tax system over a period of approximately 30 years. It asks citizens to declare their profits in cryptocurrencies as “taxable income”. The law came into force on January 1, 2018.
In South Korea, on the other hand, taxation will only be implemented in 2019. The South Korean Ministry of Strategy and Finance has decided to design a fiscal framework that will apply by the end of June 2018.
As for India, its government position has always been ambiguous . The Reserve Bank of India has reportedly attacked Bitcoin, rumor has it. Against all odds, the tax system taxes professional traders on their income.
What do you think of the taxation of cryptocurrency revenues in Azerbaijan, the United States, South Korea and India? Which country will be the next to follow the movement? Tell us in the comments section below.