IN PICS | Crypto Tax Rates Compared Between Different Countries

With surging popularity, cryptocurrencies have caught regulators’ eyes globally. Here is how some countries tax crypto assets.

Crypto Tax Rates Comparison Between Different Countries

India – In India, all gains from the sale of VDAs will face a tax of 30 per cent. However, there are no thresholds under which the VDA tax won’t be imposed. This means that even if a taxpayer’s total income is below the threshold limit of Rs 2.5 lakhs, the gains will be taxable. On top of that, a TDS of 1 per cent will be charged on all VDA transactions. [Image Credit: Getty]

US - Cryptocurrencies are considered property for tax purposes in the US and must be reported in tax returns. Selling crypto for fiat, token airdrops, mining or staking crypto, and buying one token with another are all taxable. The rates vary between 0-37 per cent for capital gains and income tax. [Image Credit: Getty]

United Kingdom - Income earned via Crypto or Capital gains are taxed in the UK. Tax rates applied are between 10-20 per cent. Selling crypto to withdraw fiat, trading one token for another, using crypto to pay for real-world assets, and earning compensation in crypto are all taxable. [Image Credit: Getty]

Italy - The country considers cryptocurrency a financial instrument and is subject to capital gains tax. When the crypto portfolio exceeds EUR 2,000, a 26 per cent capital gains tax is applicable. Selling crypto to withdraw fiat, trading one token for another, etc., using crypto to pay for real-world assets, and earning compensation in crypto are all taxable. [Image Credit: Getty]

Germany - Cryptocurrencies are considered private assets and are subject to Income Tax in Germany. An individual’s profits are tax-free as long as they are under EUR 600. Mining and staking income may be taxed as business income. Token airdrops, NFTs, using crypto to buy fiat, other tokens, or real-world assets, earning compensation in Crypto, and DeFi lending are all taxable. Germany’s tax law states that private assets incur income tax. The tax rates are 0-45 percent. [Image Credit: Getty]

Portugal - In Portugal, cryptocurrency qualifies as capital income or self-employment income. Passive income from crypto is taxed at 28 percent. Crypto mining, validation, and issuance of tokens will be taxed between 14.5-53 percent. In addition to capital gains tax, individuals and businesses may also be subject to value-added tax (VAT) on their cryptocurrency transactions. [Image Credit: Getty]

Singapore – In Singapore, cryptocurrency is treated as good and is subject to goods and services tax (GST). Trading crypto, mining crypto, and buying goods and services with crypto are taxable. Income tax is applied at fair market value while capital gains are taxed by subtracting the cost basis of tokens from the selling price. [Image Credit: Getty]