Tax Guide On Bitcoin And Cryptocurrencies

Tax Guide On Bitcoin And Cryptocurrencies

If you are reading this guide, I assume you entered the world of Cryptocurrencies, congratulations on that!

I also assume that now at the time of tax filing you have the classic tax doubts, so we wrote this guide to help you.

Did you sell Bitcoin, Ether, or another crypto at a higher value, swap or trade cryptocurrencies? Did you make any remittances? o Did you dedicate yourself to trading? If so, you may owe taxes to the state where you have your tax residence.

What Is Bitcoin and How Does It Work?

We do not want to disappoint you, but the tax world is very complex, and it has so many variants that it is very difficult to consider each individual case. We put together this guide for informational purposes only and therefore does not constitute formal tax advice or recommendation. We recommend that you consult a tax planning professional regarding your particular circumstances (a lawyer or accountant friend).

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Do I have to pay taxes for using Bitcoin or another cryptocurrency?

Cryptocurrencies are not a revolution for the future, but a reality that is part of today’s economy.

For this reason, the tax collection agencies or organizations of each country are called upon to define how they understand cryptocurrencies with respect to their accounting and tax nature. It is important to know the pronouncements of the official entities of each country in which Buda.com operates in order to know what is the criterion that applies in each country (and according to that, what rules apply to you).

Also keep in mind that your tax obligations will depend on many variables, such as: your total taxable income received during the year, if you are a natural or legal person (company or company), responsible or not for VAT, if you are obliged to carry full accounting, and other specific conditions.

The importance of knowing what type of asset cryptocurrencies are considered in each country lies in the fact that, depending on their nature, the obligations and tax effects derive from their use and disposal.

In past tax payment exercises, we received many questions from experienced users and beginners. We understand that knowing whether to declare and / or pay taxes or not can be confusing, and although we cannot provide tax advice, we want to encourage kelab711 cryptocurrencies to be easier to buy, use and sell, and that implies understanding what their tax treatment is .

This guide is a small contribution to help you understand your tax obligations against income tax, for the purchase, use or sale of cryptocurrencies.

Determine if you owe taxes (that you are not exempt)

Even if you do not make transactions, your crypto is part of the heritage, like any other asset, so you should review the obligations derived from your heritage, such as the payment of presumptive income, if there is one in your country.

Calculate if you had profits or losses

Now that you have a complete view of your activity in the year, you must calculate if you had profits or losses in the total of your transactions. This means that you will need to review each transaction and determine its initial cost to see https://www.kelab711.com/my/en-us/ if it is a gain or a loss.

Consult a professional

This guide is merely for reference and given the complexity of the matter and the diversity of situations in which our clients may find themselves, it is only a humble effort to address their concerns and does not constitute legal, accounting or tax advice. That is why we recommend that you consult a qualified tax professional.