A Landmark Year for Crypto Taxation

Governments around the world have published updated guidance, changed crypto tax rules, and used crypto tax benefits to attract high-net individuals, while some even banned crypto completely.

Looking at the crypto tax legislation worldwide in 2019, one thing is apparent: No one can deny crypto tax anymore.

Not all is clear in the U.S. crypto tax territory: Like-kind exchange, which basically means tax exemption on exchanging one crypto to another, was formally forbidden by the IRS back in 2018, but issues regarding 2017 reports are yet to be cleared.

France: No crypto to crypto taxIt seems like France's minister of economy and finance, Bruno Le Maire, is a reasonable voice of crypto taxation.

In many cases, tax calculation of crypto-to-crypto transactions will lead to double taxation, especially when using calculation methods such as first in, first out, or FIFO.Denmark: Seeking profits and losses for 2016-2018Taking a leaf out of the guidance of the U.S. IRS, the Danish tax agency, Skattestyrelsen, has begun sending letters to crypto traders requesting them to provide a full background of all their crypto transactions.

In January 2019, the country's tax council authorized Skattestyrelsen to obtain information on all crypto trades across the three domestic crypto exchanges in the country.

New Zealand: Paying salaries with cryptoThe national tax authority of New Zealand, the Inland Revenue Department, has published guidance for salaries and bonuses paid in crypto in August 2019.While publishing a crypto salary-related ruling may appear as if New Zealand is trying to establish itself as a crypto-friendly country, IRD Commissioner Naomi Ferguson is making it clear that the New Zealand government does not consider crypto to be a currency.

Currently, there is no specific rule for crypto taxation in China, but this court's attention to crypto as an asset may trigger the Chinese tax authority to announce a crypto tax policy.

Singapore: No value-added tax for crypto and a welcome VAT exemptionStarting January 2020, Goods and Services Tax, or GST, which is Singapore's equivalent to value-added tax, will not apply to crypto transactions in the city-state.

EurasiaGeorgia: No value-added tax and prohibition on crypto paymentsThe government of Georgia is joining the list of countries that choose to exempt crypto from VAT. In June 2019, Georgia's Finance Minister Nodar Khaduri signed a bill aimed at regulating the taxation of entities that trade or mine cryptocurrency.