Report: Coincub Announces Global Crypto Tax Rankings for 2022

• Coincub Partners with Crypto Tax Specialist ACCOINTING for Crypto Tax Ranking
• Belgium worst traditional economy for taxing crypto income
• Germany best mainstream economy for long term crypto investors
• Bahamian, Bermudaand Belarus top list of crypto havens

DUBLIN, September 8, 2022 /PRNewswire/ — The demands and expectations of cryptocurrency are constantly changing, and governments are continually adapting their fiscal strategy accordingly. Crypto tax specialist Accointing sees ever-increasing demand for crypto investing and is right behind Coincub’s efforts to provide ever greater clarity on the global crypto industry.

One of the consistent findings from Coincub’s quarterly rankings of the world’s leading crypto economies is that many countries are still evolving the regulatory requirements imposed on their citizens investing in crypto assets. Crypto earnings can fall under a multitude of reporting requirements and each country has its own tax rules. In some countries, crypto earnings are part of standard income tax reporting requirements in others, they require special treatment subject to additional criteria.

Germany – a traditional economy with generous crypto tax concessions

In the classification of traditional “tax” savings, Germany tops the list as the best place for cryptocurrency investors – anyone holding their cryptocurrency for at least a year will incur no capital gains tax on the sale or conversion of its cryptocurrency. This tax-efficient incentive rewards its own citizens and not just non-doms and foreign investors as is the norm in classic tax havens. After the top five dominant economies that have the most favorable tax policies for their citizens are Italy, Swiss, Singaporeand Slovenia.

Countries with the highest tax demand

The Coincub.com ranking also shows the least favorable locations for crypto investors (these countries have the highest negative scores on the full ranking list). Belgium tops the top five countries for the least accommodating tax policies towards crypto with taxable earnings of 33%, plus progressive tax rates of up to 50% for professional traders. The next four spots in the top five are Iceland, Israel, The Philippinesand Japan all with above-average income tax on crypto earnings.

Nb – we make a point about Indiawhich ranks sixth, as the country recently imposed a highly controversial (at least for crypto investors) crypto transaction tax of 1% on crypto transactions exceeding INR 50,000 (about $600) over the course of a financial year – a fairly low threshold for regular investors. There is also a 30% flat tax on all cryptocurrency profits or income to boot. Many countries, The Philippines among them are watching to see if it is stifling the cryptocurrency industry.

Tax havens still going strong

In terms of classic tax havens, as opposed to traditional “tax-based” economies, we see the usual suspects emerge. In the world’s top five tax havens where tax benefits are generously applied to foreign investors, crypto is no exception. Topping our top three – with few to choose from – are The Bahamian, Bermudaand Belarus. At number four is the United Arab Emirates with zero taxes in the country’s so-called “free zones”. A newcomer to this ranking is The Central African Republic which recently listed bitcoin as legal tender and also has big plans to promote itself as a crypto hotspot with highly favorable tax concessions on crypto earnings for foreign investors to boost its economy.

The Evolution of Crypto Tax Laws

Perversely, tax laws are clearer and better defined in known tax havens that cater primarily to specialized foreign investors. In traditional “tax-based” economies, the result can often be a lack of understanding among casual or even professional investors who are uncertain or perhaps careless about their tax situation.

The first step, for ACCOINTING.com, is to help demystify this apparent confusion, especially with the demand for crypto tax planning expected to grow as crypto assets increasingly become part of mainstream investment options.

According to ACCOINTING’s Marketing Director, Rodrigue Mayen:

“Our goal is to Europe and North America where tax regulations and crypto adoption are already in place. However, there is still a lack of guidance for tackling more complex topics like NFTs, staking, and metaverse. Transactions such as swapping, lending and borrowing, yield farming, and other transactions in the DeFi space are among the issues to be addressed. We can’t all live in Lichtenstein”

Coincub has been releasing quarterly rankings based on a wide range of criteria for a few years and is now one of the leading crypto ranking sites. Taxation is only one of its classification categories, but one of its most important.

See the full crypto tax ranking HERE.

Contact

Serge Hamza – Coincub CEO
[email protected]
(+353) 871756897
5th floor, 40 Mescal Road, Dublin 4, Dublin D04C2N4, Ireland

Photo: https://mma.prnewswire.com/media/1893691/Coincub_crypto_tax_ranking_2022.jpg

SOURCE Coincub.com