By Prof Sergio Guerrero Rosas, Guerrero y Santana, S.C.
As mentioned in the introduction of this series, in 2008 was created a new form of currency, completely decentralised and open to all, without a central bank to control and manipulate as it happens today, without any group of elite people to make decisions that affect each person who uses his coins. The cryptocurrencies are the invention of technology that we now call “Blockchain” or chain of blocks, and that allows to keep a secure global book of transactions using timestamps, with high power of decentralised computational processing and cryptography.
By Joe McCall, Byrne & McCall
A cryptocurrency is a digital or virtual currency designed to work as a medium of exchange. The European Central Bank (ECB) defines a virtual currency as “a digital representation of value, not issued by a central bank, credit institution or e-money institution, which in some circumstances can be used as an alternative to money.”
By Ashishkumar Bairagra, M L Bhuwania and Co LLP
Just like many other countries around the world, India has not introduced specific tax regulations for levying taxes on income from cryptocurrencies. This situation has left taxpayers with the option to decide the nature of income, based on their perception, and offer the income for tax accordingly. Under the (Indian) Income Tax Act, 1961, incomes fall under multiple categories and are taxed based on them, thereby also allowing for deductions or exemptions available for such divisions.
By Oliver Biernat, Benefitax GmbH Steuerberatungsgesellschaft Wirtschaftsprüfungsgesellschaft
Trading or private activity?
Anyone who trades bitcoins as a private individual often does not suspect that one can exercise a trade with it. In order to avoid unpleasant surprises such as accusations of tax evasion and to limit possible additional payments, interest and penalties, it is necessary to have a tax expert check this in good time and collect receipts. The border between trade and private activity is blurred. Section 15(2) sentence 1 of the Income Tax Act regulates this:
By Seres Baum, WGI – Work Group International
Cryptocurrencies have yet to be regulated in Brazil. While there is no law ruling such topic, chief regulators have created their own rules either to shield themselves or to find tax advantages on it.
By Santiago Lapausa, JC&A Abogados
Back in 2007, Satoshi Nakamoto (a person or entity whose identity is unknown as of today) who introduced a white paper called “Bitcoin: a peer-to-peer electronic cash system” in response to the financial crisis, believed that banks and institutions should not be exclusively relied upon to process transactions.
By Marc Nideröst, Treuhand- und Revisionsgesellschaft Mattig-Suter und Partner
Cryptocurrencies remain popular despite their highly volatile development and the slump in trading prices. There are, therefore, increasing questions about their tax treatment in practice. Although the initial hype around cryptocurrencies like Bitcoin, Ethereum, and Ripple suffered a setback when trading prices fell, the currencies have made significant gains in popularity and companies are increasingly using them as payment and funding instruments.
By Roberto M. Cagnazzo, Studio Tributario Cagnazzo
At this time, cryptocurrencies seem to represent one of the most intriguing elements in the national and international panorama. The vertiginous fluctuations of their value on the non-regulated markets are determining significant rises or drops in the purchasing power of many subjects worldwide.
By Tony Nunes, Kelly + Partners Chartered Accountants
People were never clear what to make of the superhero, Superman. He looked and acted human, but came from another planet, and had these incredible superpowers. Similarly, the Australian Tax Offce (ATO) is split on its treatment of cryptocurrencies and on which tax rules to apply.
By James Debate, US Tax & Financial Services Group Ltd.
Taxation is consistently described as one of the biggest concerns for businesses that are looking to expand into the US. At 35%, the US used to have a corporate tax rate that was among the highest out of the world’s developed economies. Add to that a complex tandem of federal and state regulation, and a system of global taxation on USdomiciled companies, and the result is that setting up a business in the US can be an onerous process.