With Imposing Brutal Crypto taxes in India by the Indian Government, Let’s see how many fellow Indian ministers think about crypto tax and what they suggest in the middle of the parliament. Meanwhile, If you are unaware of what taxes and how much taxes then do check our latest article on Crypto Tax in India.
Further now, Let’s see what our minister of parliament wants to say regarding a 30% tax on crypto.
One of the parliament ministers suggested and advised in front of LokSabha that Japan has over 55% of tax, the USA has 37% tax, and India is still imposing only 30%; therefore, India should set a lot higher around flat 50% tax on crypto having said that a lot of other countries have imposed a lot higher tariffs & taxes.
Let’s decode what the minister said and find out whether these countries are charging this particular amount of taxes on crypto gains or not?
Crypto Tax in India Breakdown:
Before we go further and compare our tax with other foreign countries, let’s figure out two very crucial things/concepts to know:
1) Income Tax:
Income or profits generated from these sources comes under this category ( Income Tax ).
2) Capital gains Tax:
Income or profits generated from these sources comes under this category ( Capital gains Tax ).
There are further two more sub-categories under Capital gains tax which are:
1) Short-term capital gains tax ( STCG ):
Assets or investment which are held for less than a year comes under STCG, Time period differs from country to country but we are generalizing with 1 year of duration.
2) Long-term capital gains tax ( LTCG )
Assets or investment which are held for more than a year comes under LTCG, Time period differs from country to country but we are generalizing with 1 year of duration. Here, Tax slabs vary significantly.
Crypto Tax in Singapore
Singapore considers Crypto as Intangible property and charges tax accordingly. If you are getting any capital gains whether from short-term or long-term via crypto then you are paying literally Zero taxes! Yes, There is no Crypto tax in any of the Capital gains.
But But But…
There are Fixed income taxes if you earn from staking, mining, and such more streams then there are taxes from 0-22% depending on what tax slab you fall under.
Registered traders are also bound to pay 0-22% of taxes again according to their tax slab. So, That’s how Singapore is charging crypto tax in their nation.
Crypto Tax in Germany
Well, here Germany has interesting crypto & tax policies. Crypto in Germany is considered as Private Assets and charges tax accordingly.
If you have sold any crypto assets and investments under 1 year the time period you have to pay 0- 45% as per which tax slab you fall under.
Also, If you earned anything from Mining, Staking, or airdrop and cashed out under 1 year then you have to pay taxes ( 0-45% ).
Tax-free relaxation to those if you are annually crypto income is below 600 Euros.
There are literally Zero taxes whether capital gains tax or income tax when you keep and hold crypto assets for more than a year! Well, Germany knows the true value in HODLING!
Crypto Tax in Portugal
Here comes Portugal!
- In Portugal, There are no Crypto taxes on Capitals gains whether short-term to long term
- Zero taxes on income tax from mining, staking, or any other sources.
- No taxes on gains made from crypto trading until and unless you are a registered professional crypto trader.
Also, the Portugal government is very clear about Not to impose any crypto taxes as there are numerous crypt tax bills that have been rejected by parliament.
Crypto Tax in Japan
In Japan, Crypto is considered a property. Here Japanese citizens are liable to pay 10 – 55% of Taxes on Capital gains tax which is based on which tax slab you fall under unlike any flat tax by the Indian government.
Another mention is that If you have generated an income of 2,000,000 Japanese Yens Yearly then you are free to ignore any taxes on your income tax legally.
Also, No Set-off allowed for crypto gains against other assets.
Crypto Tax in America ( USA )
In USA Crypto is considered a Digital asset.
- 0- 20% Tax is liable on Long term capital gains depending on what tax slab you fall under.
- up to 37% Tax on Short term capital gains depending on what tax slab you fall under.
- Crypto losses can be set off against other assets.
- or it may be carried forward to the future years.
if you are a USA citizen and have an annual income of less than $40,000 then you are eligible for big tax relaxation on any crypto capital gains tax.
In addition, if there is any income from staking, mining or airdrops then you are liable to pay 0-37% taxes depending on your tax slab.
The Bottom Line
Enough information regarding Crypto Tax in India vs other countries where crypto is regulated as digital assets or property whereas Indian crypto is considered as Gambling or any betting game or company which disappoints a lot and doubt on how crypto and blockchain is being treated.
There are few countries that charge taxes like 37% or up to 55% but with a proper tax slab not like India which just introduced a flat 30% tax all over the nation! That’s what I wanted to brief you guys.
Comment down and let me know your view and perspective on Crypto Tax in India and how it should be modified to make all citizens satisfied with current laws.
Read more Articles based on Crypto Tax only at CryptoSharX.com.