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Disclaimer: The information provided in this course is general in nature and does not constitute tax, accounting or legal advice. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on any such information, you should evaluate the relevance of such information to your own objectives, financial situation and needs and seek professional advice.

As cryptocurrencies continue to gain traction globally, governments face the challenge of adapting their fiscal and regulatory frameworks to account for these digital assets. Cryptocurrency taxation, a complex and rapidly changing area, varies significantly from jurisdiction to jurisdiction.

In this comprehensive guide, we take a look at the various approaches to crypto taxation around the world, focusing on important regions such as the United States, Europe, and Southeast Asia. We will dissect the tax implications of an array of crypto transactions, encompassing trading, staking, airdrops, community sales, NFTs, and non-taxable events. Additionally, this article will offer valuable insights to help crypto taxpayers effectively navigate the complexities of the international cryptocurrency tax landscape.

I. United States

In the United States, the taxation of cryptocurrencies is governed by the Internal Revenue Service (IRS). Looking at the table below, we can see the different tax implications for the following activity:

Crypto trading: Any time you dispose of a cryptocurrency (whether in exchange for another crypto or fiat), it is subject to capital gains tax.

Staking Rewards: In the United States, staking rewards are treated as ordinary income. Staking rewards must be reported as income on your tax return at the value on the day they are received.

Airdrops: In the US, airdrops are treated as ordinary income (exactly the same as the tax treatment of staking rewards).

Token sales: The sale or exchange of tokens is subject to capital gains tax.

NFT: In the United States, the tax treatment of NFTs will depend on whether they are collectibles or whether you are the creator of an NFT project. If they are considered collectibles, they will be subject to capital gains tax when sold. If you create or trade NFTs in a professional capacity, they will be subject to income tax.

II. Europe

Cryptocurrency tax laws in Europe tend to differ to some extent, with some countries having particularly unique policies. Well split that into 2 tables.

France, Germany and Spain

Some important points to note:

In France, capital gains are taxed at the following rates:

Occasional traders – 30% flat taxProfessional traders – 45% BIC taxCryptominers – 45% BNC tax

In Germany, if you hold your cryptocurrency for more than a year, it is tax exempt!

In Spain they refer to capital gains tax as income savings tax

Crypto trading: In all 3 countries, trading crypto for fiat is subject to capital gains tax. However, crypto-to-crypto trading is not taxable in France (only in Spain and Germany).

Staking rewards: In France, staking rewards are not taxable. In Germany, it’s considered an income tax, while in Spain, it’s still a gray area (better to discuss with a tax specialist).

Airdrops: In Germany, airdrops are zero-rated! Meanwhile, France and Spain have provided no clear guidance on the tax treatment of airdrops.

Token sales: If you sell your tokens for fiat, this is subject to capital gains tax in all 3 countries. If you sell your tokens in exchange for crypto, it is only taxable (subject to capital gains) in Spain and Germany.

NFT: Spain and Germany did not provide any clear guidance on the tax treatment of NFT. Meanwhile, the sale of NFT is tax exempt in France UNLESS you sell your NFT in exchange for fiat.

Swiss

Switzerland has a unique tax system where if you qualify as a private investor (and not an independent trader) you will not be subject to capital gains tax. Nevertheless, all taxpayers in Switzerland remain liable for income tax, in addition to possibly being subject to wealth tax.

Crypto trading: Trading crypto for fiat or another crypto is subject to capital gains tax. Remember that if you are a private investor, you are not subject to capital gains tax.

Staking Rewards: These are taxed as income at the market value of your coins received at the time of the transaction.

NOTE: If you decide to dispose of the tokens you received by airdrop at a later date, it is likely that you will also have to pay capital gains tax on those tokens, the cost base being the value of the token when you received it. This will not apply if you are a private investor.

Airdrops: In Switzerland, these have the exact same tax treatment as staking rewards.

Token sales: The Swedish tax authorities have given no guidance on how token sales should be treated from a tax perspective. So it’s best to talk to a tax professional about this if you’ve been involved in token sales.

NFT: Trading NFT is subject to capital gains tax, however, if you are a creator selling NFT for a living, it falls under income tax.

*Wealth tax: Switzerland also has a wealth tax which applies to your total wealth less debt at the end of the financial year. Your assets include:

Cash, stocks, stocks, bondsPhysical assets (e.g. gold, property)Cryptocurrencies

Wealth tax rates depend on the canton you live in, which you can find here. In general, most cantons have a wealth tax which varies between 0.3% and 1%.

III. Southeast AsiaJapan

In Japan, cryptocurrency is considered property and the Japanese National Tax Association (NTA) taxes it as miscellaneous income.

Also note that income below 200,000 JPY (Japanese yen) is considered non-taxable. Anything above this threshold must be declared and will be taxed.

As shown in the table above, crypto trading, staking rewards, airdrops, token sales, and NFT trading are all subject to various income taxes.

You can calculate your total miscellaneous income by adding up the total profit from all crypto transactions that fall under the miscellaneous income tax column and coming up with a total figure.

To learn more about filing your crypto taxes in Japan as well as tax rates, check out this guide.

Vietnam

Despite having one of the largest GameFi communities and being ranked first in the Chainalysis Global Crypto Adoption Index two years in a row, cryptocurrencies are not taxed in Vietnam. The government has taken note of the growing crypto activity in the country, but even after internal discussions with tax authorities, no progress has been made so far towards the taxation or regulation of digital assets.

hong kong

Luckily for individual crypto investors in Hong Kong, their investments in cryptocurrencies are potentially considered tax-free. However, for businesses or crypto professionals who trade digital assets as part of their daily business activities, they will be subject to income tax.

IV. Countries with Unclear Tax GuidelinesRussia

Current tax rates on income from the sale of digital assets sit at a flat rate of 20% in Russia, but there is no real indication as to the tax implications on types of specific transactions. There was a tax bill that would reduce this rate from 20% to 13% for individuals and could exempt investors from value added tax, although this law has not yet been approved.

Ukraine

Engaging in crypto transactions is considered a business activity in Ukraine and all profits from such activities are subject to tax. This tax is established at a flat rate of 18% personal income tax and 1.5% military tax.

Recently, there was a bill to offer individuals a personal income tax of 5% for 5 years (instead of 18%) and a military tax of 1.5%. Similar to Russia’s recent proposal, this bill also seeks to exempt investors from value-added tax.

At this point, there are no clear guidelines from Ukraine regarding staking rewards, airdrops and other crypto activities, however, Ukrainian President Volodymyr Zelenskyy has stated that he sought to make the nation more crypto-friendly and introduce clear regulatory frameworks. .

Türkiye

In Turkey, the regulation of crypto-related developments is currently unclear as there is no single regulatory body overseeing them. Although President Recep Tayyip Erdogan has said that legislation regarding crypto assets has been prepared to be submitted to the Turkish Parliament, there is no confirmed date for when this will happen.

In conclusion, the taxation of cryptocurrencies varies greatly from country to country, with some not having provided clear guidelines on this yet. Given these disparities, it is crucial to consult local tax advisors to ensure compliance with the tax laws applicable to your specific jurisdiction. This article serves as an informative resource rather than a substitute for professional crypto tax advice tailored to your particular situation.

Need help calculating your crypto taxes?

It can be difficult to manually calculate the taxes resulting from your crypto transactions, as many accountants are inexperienced in this area.

To make the process easier, CryptoTaxCalculator is graciously offering the CoinList community a 20% discount on their crypto tax products by using the code COINLIST20 at checkout.

CryptoTaxCalculator automates the process of collecting data, categorizing your transactions and calculating your capital gains, losses and income; generate them in a tax report in accordance with the country you have selected.

CoinList users can easily use the CryptoTaxCalculator software by uploading their CSV transaction history directly in the user interface or importing transaction data through the API as shown below:

Have you done your crypto taxes yet?

Legal notice:

The information provided in this course is general in nature and does not constitute tax, accounting or legal advice. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on any such information, you should evaluate the information’s relevance to your own objectives, financial situation and needs and seek professional advice. Consult a professional regarding your individual tax or legal situation.

This blog post is distributed by Amalgamated Token Services Inc., dba CoinList, or one of its affiliates. This blog post and use of the CoinList website is subject to certain disclosures, restrictions, and risks, available here.

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