Germany through the Federal Ministry of that country, published a document specifying the treatment of taxes for transactions or transactions with deeponion or other cryptocurrencies.
The financial institution, ruled what will be the legal treatment of cryptocurrencies that was disseminated through the official website. What is established in the document is the conclusion of some discussions with financial entities from several European countries.
In principle the document states that purchases of goods or services with cryptocurrencies like other cryptocurrencies, are not subject to taxes while the use of this as a means of payment, since it would be used in the same way as a course currency legal.
The German financial institution specifies in the document that the decision to exempt from taxes the aforementioned type of operations with cryptocurrencies, is based on the fact that it is a contractual form of payment that is not controllable.
The Federal Ministry of Finance added that cryptocurrencies facilitate the use of conventional payment methods. Because the payment rates are established by those who provide the service (miners) corresponds to a calculation equivalent to the value of the currency of the State where the service is provided at the current time in which the transaction occurs.
The exchange of cryptocurrencies to fiduciary money and vice versa will be subject to taxes; this according to the document. This will also depend on whether it is an intermediary that makes the change in your name, in which case it is exempt from taxes; or if it is a platform or market that operates commercially, where you must pay taxes.
Transactions related to mining will not be subject to taxes, because they are "non-taxable transactions". This is because the transaction fee charged by the miners is paid voluntarily.
Also, the document mentions which other operations with cryptocurrencies would be subject to taxes. The fees of purse or wallet providers will also be taxed because such services require the payment of fees. Finally, the document indicated that these rules do not apply to virtual money of online games or video games.
In parallel, these fiscal specifications are related to a ruling of the European Court of Justice of 2015 on value-added taxes. Specifications that seem to be in line with the statements of the Vice President of the European Commission, Valdis Dombrovskis, said today that Europe must accept cryptocurrencies to remain competitive.
On the other hand, prior to the decision of the German entity, the Central Bank of the country declared that for the regulatory measures to be successful, they must be global in nature.
On the other hand, in Ukraine a bill has been submitted to the Ukrainian parliament to amend the country's tax code in order to exempt the tax on cryptocurrencies and tax profits, including purchases, sales, transactions and taxation. mining.
The bill seeks to amend the tax code of Ukraine to exempt the profits from the purchase and sale of cryptocurrencies and their derivatives, as well as income from cryptocurrency and mining operations. According to the note that accompanies the bill submitted to parliament:
"To create an effective mechanism with the aim of stimulating the cryptocurrency market in Ukraine, the logical step is the exemption of taxes on the profits of the companies. Income from cryptocurrency operations should not be included in the calculation of total annual monthly taxable income. And transactions with digital currencies and mining cryptography are classified as transactions that are not subject to taxes. "
This new bill is the third presented to parliament for the legal framework of cryptocurrencies and proposes to consider digital assets as a property that can be exchanged for other goods and services.
The second proposed law was under the name "On stimulating the market of cryptocurrencies and their derivatives in Ukraine", the bill proposes treating cryptocurrencies as financial assets.
This third bill intends to be a follow-up to the second and provides provisions for cryptocurrencies.
Therefore, it is observed that every time more countries join the exoneration of taxes on cryptocurrencies, which generates a formidable environment to increase the demand for them and therefore the monetary value of them.
