Introduction
In this guide, our spotlight is on the personalized tax reports we've designed, catering to the distinct regulations of each country. Furthermore, for countries without a specific report, we present a comprehensive general report.
Overview of Our Customized Tax Reports
Our suite of customized Tax Reports currently encompasses Austria, Germany, the UK, the US, Italy, Belgium, New Zealand, India, Denmark, Finland, Spain, and Canada. We are committed to continually expanding this list with the addition of new reports over time.
Unique Aspects of Individual Tax Reports
Austria: Drawing a clear distinction from the previous system in place prior to March 2022, when cryptocurrencies were regarded as a form of income and qualified for tax exemption following a year of ownership. The updated regime specifies that any transactions carried out using cryptocurrencies, without the involvement of fiat currency exchanges, are now eligible for tax exemptions. However, when cryptocurrencies are sold or converted to fiat currency, they fall under the category of capital gains, aligning with the taxation framework applicable to activities like margin trading, derivatives, and futures.
- More detail here -
Germany: In Germany, gains from cryptocurrencies are liable for personal income tax. Tokens held for more than a year become exempt from taxation. Margin, derivative, and futures trades are treated under capital gains taxation. All types of income, including cryptocurrency, are categorized as "Other Income". - More detail here -
UK: In the UK, profits are categorized as capital gains, and both gains and losses are treated separately for tax purposes. The UK operates under its unique accounting method known as HMRC. All forms of income are classified as miscellaneous income under the tax regulations. - More detail here -
US: In the United States, transactions related to the sale of cryptocurrencies are classified as either long-term or short-term capital gains, depending on the holding period. Income obtained through regular activities is typically labeled as other income. Additionally, engaging in trading with margin, derivatives, and futures is also subject to capital gains taxation. - More detail here -
Italy: Before 2023, Italians had a unique regulation in place, where taxes only applied if the portfolio value exceeded €51,645.69 for 7+ days in the fiscal year. The LIFO method is employed. All types of income falling under the personal income tax rate and gains made from trading crypto, margin, derivatives, and futures are subject to capital gains tax. After 2023, changes in the tax law meant that transactions involving the same type of digital asset, such as crypto-to-crypto, stablecoin-to-stablecoin, or NFT-to-NFT, are considered tax-free. However, trades between different types of digital assets, such as crypto to stablecoin or crypto to NFT, are not tax-free.
Belgium: The sale of cryptocurrencies and NFTs for fiat currency falls under the scope of the capital gains tax act. If an asset is held for several years, it may be classified as a long-term holding and thus become tax-exempt. However, there is no specific guidance on when assets qualify as long-term, requiring consultation with a tax advisor for clarity. Income is subject to a progressive tax rate ranging between 25% and 50%.
- More detail here -
New Zealand: In New Zealand, gains from trading cryptocurrency, NFTs, and derivatives, as well as income from various crypto-related activities like staking and mining, are subject to a progressive income tax rate ranging from 10.5% to 39%. The taxable income is determined by the value of the assets at the time of receipt. Losses from cryptocurrency sales can be used to offset taxable income for the year. - More detail here -
India: Gains from diverse crypto trading are taxed under the Virtual Digital Assets (VDA’s). Losses can only offset gains within the same crypto asset. 'Other income' under the Income Tax Act is taxed at 30%, plus surcharge and 4% health/education cess. Staking, lending, mining, interest, dividends, airdrops, and rewards fall here. Valuation is based on market value at receipt. Fees are not allowed to take into account. - More detail here -
Denmark: Denmark's taxation is similar to Belgium's. This encompasses gains from trading derivatives, converting crypto to fiat, or swapping between cryptocurrencies. Taxation aligns with personal income tax rates. Individuals enjoy a tax-free allowance of 46,700 DKK. All other income, including crypto, follows personal income tax rates up to 52%. - More detail here -
Finland: Gains derived from trading cryptocurrency to fiat or between cryptocurrencies are subject to the capital gains tax. The deemed acquisition rule permits participants to deduct 20% up to 40% of their gains as acquisition costs. Margin is distinguished from derivatives and futures. All forms of income are taxed at the personal income tax rate, except for mining and crypto payments, which fall under the capital gains tax category.
- More detail here -
Spain: In Spain, the tax on gains and losses from cryptocurrency and NFT trading follows AEAT rules, with rates gradually increasing from 19% to 26%. Losses can balance out gains. NFT and derivatives gains are treated similarly. Income from crypto activities like mining and lending is privately taxed based on the taxpayer's rate. Taxable income is valued at inflow market price. When giving crypto gifts, it's treated like a sale. Moreover, any overall loss can be carried forward. - More detail here -
Canada: Cryptocurrency trading is classified as trading goods or commodities in Canada. Profits from crypto sales are taxed at the income tax rate, with investors taxed on 50% of their gains and day-traders on the full amount. The Canadian Revenue Agency (CRA) calculates income tax using the Adjusted Cost Basis (ACB) method. 100% of income are subject to the income tax. A "superficial loss" rule prevents loss harvesting. Individuals who own cryptocurrency on a foreign broker, valued at over CAD 100,000, need to submit a foreign investment verification (T1135 form) to the CRA. - More detail here -
Not mentioned countries
All countries not listed in the latest section do not have individual tax reports. To address this, we've introduced the General Report, empowering users to customize settings as required. If your country isn't included yet, stay tuned as we're actively working to expand coverage.