Category "Altcoins"

Of the 74 countries surveyed by the Statista Global Consumer Survey, Nigeria found that citizens had a higher rate of using or owning cryptocurrencies.
Specifically, 1/3 of the respondents answered positively.

According to Bitcoin.com it is the high cost of sending money across borders in the conventional way that has led many to turn to cryptocurrency trading.
Nigerians also often use their phones to send money to each other or to pay in stores.

Recently, many companies in the country are adding crypto plugins to their payment options.
The second and third highest percentages of citizens using and / or possessing cryptocurrencies are found in research in Vietnam and the Philippines, respectively.

Again, remittance payments are an important factor for citizens to choose cryptocurrencies.
According to bitcoin.com, the Central Bank of the Philippines has approved the operation of cryptocurrency transfer companies and the government has begun to engage in cryptocurrencies, in cooperation with Unionbank for the distribution of government bonds while Unionbank has also set up a Bitcoin ATM. in Makati, a city in Metropolitan Manila.

Aside from cryptocurrency users in Africa and Southeast Asia, another area that shows a fairly significant preference on them is Latin America.
Peru is the first among these countries with 16% of respondents stating that they use / possess cryptocurrencies while in Brazil, Colombia, Argentina, Mexico and Chile a double-digit percentage is also recorded.

Switzerland and Greece are among the European countries that also record a high percentage, 11%.

Japan again has one of the lowest rates along with Denmark.

Source: https://www.bankingnews.gr/kriptonomismata/articles/548208/poies-xores-xrisimopoioyn-perissotero-kryptonomismata-sto-11-to-pososto-stin-ellada?fbclid=IwAR38q3trycgC4pR5Kn9vbNdyTBi1LxFrzYwGNTeRQE9asX02DoMJc98KRAo

Three years ago, we published an article on the taxation of cryptocurrencies (bitcoin, xrp, ethereum, etc.). At that time, cryptocurrencies (better known as bitcoin) had appeared. Already today, three years later, this issue has come to the fore, as more and more people are involved in the purchase and sale of cryptocurrencies, which makes it imperative for the Administration to provide clarifications on how to tax revenue from cryptocurrencies. As the number of questions we receive daily about cryptocurrencies increases, in this article we will record our estimate of how this income is taxed.

Basic features

Cryptocurrency is a digital currency without physical form. Today it is produced privately on a computer of modern technology and is distributed through an internet system of advanced technology, the so-called blockchain. In short, everyone can produce their own cryptocurrency, as long as they have the funds, know-how and what is required for the production process. It follows from the above that production is not controlled, is anonymous and independent of Governments and Banks, there are no legal rules and therefore there is no legal protection or guarantee and of course there is a high risk of fraud. In this context, the price of cryptocurrencies fluctuates widely.

As a digital currency, it was established to carry out transactions with simplified procedures in the circulation of money, with greater flexibility, greater speed, lower costs and anonymity in transactions. But in the process it turned out to be an investment product to make a profit from the goodwill (if positive) that is created between the purchase and sale of the currency.

Tax treatment

There are two categories of cryptocurrency income:

A) of this producer who does the mining and the income constitutes income from commercial enterprises and the profits that will arise after deducting the operating expenses will be taxed according to the general provisions and the applicable tax rates.

B) Holders of cryptocurrencies

B1) the holder (investor) of cryptocurrencies. Goodwill that may arise (positive difference between purchase and sale) will be taxed under the general provisions if the holders are legal entities.

B2) If the holders are natural persons, ordinary investors believe that according to article 42 of the CFA they will be taxed at a rate of 15% as income from capital gains. Potential loss can be offset by future gains from the same source within the next 5 years.

 

The taxable value of the cryptocurrency is the goodwill offered by its holder who sells it. Goodwill means the difference between the acquisition price paid by the taxpayer and the sale price received. According to article 42 par. 3, “… any expenses directly related to the purchase or sale of securities are included in the acquisition price and the sale price.”. The tax rate is 15% on the goodwill earned and it is worth mentioning that the income from it is subject to a solidarity contribution.

Taking into account the assumption we made above, that is, that the cryptocurrency is considered an investment-speculative product, the amount allocated for the purchase of cryptocurrencies should be declared in code 743 of table 5 of the tax return (expenditure paid for the purchase of companies, corporations shares and securities in general) of the tax return in order to be included in the calculation of the presumptions. Respectively, the capital from the sale of the cryptocurrencies should be listed in code 781 of table 6 (amounts coming from the disposal of assets and in particular as a return on capital).

In the event that goodwill arose during the sale of the cryptocurrencies, then it should be entered in code 865 of table 4 E (profit from transfer of foreign securities) in order to calculate a 15% tax.

Given the enormous size of the cryptocurrency transaction and its use as an investment derivative, we are confident that there will be a unified international approach to how this investment will be handled by the tax authorities, according to the latest statements of its President. European Central Bank.

Regarding VAT, there is an EU decision which exempts transactions from VAT and on the manner of occurrence of transactions with cryptocurrencies by companies, the 104 / 27.2.2018 opinion of SLOT has been issued for the accounting monitoring of cryptocurrencies to which they approach issue and give directions, but because its implementation is moving in uncharted waters it is logical and expected that many issues will arise for discussion and resolution, and the entire scientific community is waiting for the legislative interventions of the state.

Furthermore, we should point out that the payment of Greek and foreign suppliers in order to recognize the expenses should be paid exclusively through the banking system, therefore the payment in cryptocurrencies is not considered a recognized way of payment for the deduction of expenses.

Finally, due to the structural nature of cryptocurrencies which has been based on encryption, in combination with the anonymity it offers, it has been in several cases to date a transaction of persons associated with illegal-criminal activities and persons who wanted to evade taxes. Identifying the owner by the tax authorities is extremely difficult considering the means required and the know-how needed to detect such activities. Recently, on January 7, with Law 4734/20 on money laundering, the European Directive on the establishment of a register in the Hellenic Capital Market Commission, providers of services for virtual and digital wallets, was incorporated into Greek law.

In closing this article we would like to point out that what we have recorded is our own approach to which we hold every reservation until the issue is finally resolved and of course we should all be cautious until there is a regulatory framework that gives definitive answers to how everything is handled. issues around cryptocurrencies.

* Mr. George Dalianis is the CEO of Artion SA & founder of the Artion Group, Economist – Tax Specialist.

** Mr. Giannis Artsitas is a Senior Accountant – Taxation of Natural Persons of Artion.

The above text is informative and in no way replaces the specialized consulting services.

Source: https://www.capital.gr/arthra/3521757/kruptonomismata-kai-forologia?fbclid=IwAR3rUKT3O6VSLmEAdWDxSEZCM3V4Hce6vMH6CPOnNloQzxYulKYHRFsZNdw