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For new and current investors looking to buy cryptocurrencies, from Bitcoin to Altcoins, it’s important to understand the taxation implications of holding crypto. Understanding the specific rates and rules in different countries is the first port of call for going into the world of cryptocurrencies while staying on the right side of regulation and law.
Here’s what you’d pay in the highest-taxed countries if you’re a cryptocurrency investor.
Canada
Between 15% and 33%.
Cryptocurrency is taxed under the Federal Income Tax and the Provincial Income Tax at a rate between 15% and 33% as under the Canada Revenue Agent Publication No IT479R (now archived, but relevant to the current law). You can get tax breaks on half of your capital gains.
Spain
At a rate between 19% and 28%.
Cryptocurrency is taxed under Income Tax at a rate between 19% and 28%, under the Royal Decree 249/2023. There are tax breaks for low-income earners and short-term gains taxed at progressive rates. Long-term gains are taxed at the same rates.
Austria
At 27.5% for all transactions.
Under the Environmentally Responsible Tax Reform (Ökosoziale Steuerreform), cryptocurrency is taxed at 27.5% for all transactions. Tax breaks are granted for low-income earners and no tax on crypto-to-crypto trades. Legacy holdings are tax-free on sale.
Belgium
25% under general Income Tax.
Under the Belgian General Administration of Taxes, cryptocurrency is considered a taxable asset, but not as legal tender and comprehensive legal infrastructure for crypto is to be introduced. Belgian cryptocurrency investors are subject to general income tax, which sits at 25% with an additional communal tax of up to 9%.
India
A flat rate of 30%.
The taxation policy notes that investors must pay a flat 30% tax on crypto assets. Under Section 115BBH, profits and gains that are made from trading crypto and digital assets are taxed at a rate of 30% (including a 4% cess).
Japan
Up to 45% with additional levies.
Japan’s National Tax Agency charges tax on crypto at a rate depending on earnings and investment, anywhere up to 45%. On top of this, investors and traders also need to pay a municipal tax of 10%. According to the Japanese National Tax Association (NTA), cryptocurrency earned over 200,000 JPY is considered “miscellaneous income” and can reach the highest taxable rates. Tax Answer 1524 indicates that earning cryptocurrency as a salary (trading or receiving crypto for services) is taxed as income.
Global Cryptocurrency Tax
Whether you’re dealing with Canada’s tiered tax system, Spain’s progressive rates, Austria’s flat tax on transactions, Belgium’s general income tax, India’s flat rate, or Japan’s high potential levies, the most important part of investing in cryptocurrency is staying up to date with compliance with tax.
For this, we have a cryptocurrency tax map that shows the regulations of countries across the world.