Proceeds from crypto to fiduciary transactions will be subject to taxes in Azerbaijan, local news network Trend reported on Saturday, May 5. Nijat Imanov from the country's Ministry of Taxation described the new measures during the second Finance and Investment Forum (FIF 2018) in Baku Saturday.
During the Forum, Imanov stated :
"This is formalized as an income tax for physical legal entities. If someone bought a cryptocurrency and then sold it after its price increased, this amount is recorded as income and, therefore, must be attracted to taxes. "
Trend also reports that the cryptocurrency market in Azerbaijan has experienced significant growth between May and December 2017, with crypto trading becoming an increasingly popular means of revenue.
The trade of crypto to crypto, as well as mining, are recognized as taxable events in most countries, and are included in the income or profit tax laws (known as capital gains).
France, for example, brought the majority of cases of commercial cripto, excluding industrial mining and trade, under capital gains laws, taxed at a fixed rate of 19%, as opposed to tax assessments of the rent that can reach 45%.
The US tax authority, IRS, which treats cryptocurrency as property and the purchase, sale, trade and mining of encryption as taxable events, recently required the largest US crypto database to deliver customer data, after concerns that many merchants do not They managed to file tax returns on their earnings.
I suspect that the debate about crypto currency and taxation will shape up as one of the most significant public debates of the decade. The tax discussion will raise the awareness of fiat currency. The corruption of central banks which tax the public through inflation. It might also make the public awareness of different types of income. Should a change in price between crypto currencies and fiat currencies be taxed as capital-gains or as regular income.
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