Which countries have crypto taxes?

For individuals the maximum transaction without taxes is 12,300 pounds. Taxes applied to the profit after sale. Tax rates for amounts of more than 12,300 pounds range from 20% to 45% of your gain. You can also balance profits and losses to reduce your tax liablity. There are cases when you can uses cryptocurrency not as a day trader, but as an investor, that is, buys and holds. Then, if you make a profit from the sale, it is subject to sales tax ranging from 10% to 28%. Each transaction is considered by the tax authorities separately.

Cryptocurrencies in Germany are not state centralized currencies. They are considered a separate asset class and are not subject to capital gains taxation laws. There is no value added tax when exchanging or trading crypto currencies. Bitcoin is also not an investment like stocks, which are taxes at source at a rate of 25%. If bitcoins have been sold after a holding period of more than one year, the trading profits are not subject to fees. Crypto currency taxes are levied when investors hold crypto for just a few months and then sell it for a profit. It bears a progressive income tax of 0 to 45%.

Tax on the sale of crypto currencies related to capital gains is levied at a flat rate of 30%, including social security contributions. There are two exceptions to this rate: a) exemption from taxation of crypto currencies of not more than 305 euros with the provision of a tax return, and b) the rate increases to 33 or 34% if the taxpayer receives an exceptionally high income - over 250,000 euros for an individual. Capital gains tax is 30% to 34%.

When profit is earned from selling, trading, swapping, or otherwise disposing of an asset in exchange for crypto or fiat, it is considered a capital gain (savings taxable income). Capital gains are taxed at a progressive rate that ranges from 19% on a 6000 euro capital gain to 26% on a gain of over 200,000 euros.

When crypto is mined or received as payment for a good or service it is considered as general taxable income and subject to a higher tax rate than capital gains (19% to 47%).

Every citizen who is a tax resident of India and makes money in crypto – whether they are a trader, miner, yield farmer or airdrop recipient – must declare their assets and pay a tax under the new Finance Bill of 2022.

Moreover, India has not yet decided if crypto currencies are generally legal or not. So tax is levied on the exchange of crypto currency for any fiat, trading in crypto-currency, including stable coins and payment for goods and services with a virtual digital asset. However, losses are not recognized by law, which means that you cannot offset capital gains with losses or business expenses. The new legislation has killed trading in India: in fact, every trade now has to pay a tax of 1% of the trader's capital.

Due to the weakness of the local lira, the Turks actively use crypto currency. The daily transaction volume in Turkey has recently exceeded $1 billion and more than 5 million people have become crypto investors. According to Chainalysis, the volume of crypto currency transactions ranked 29th out of 154 countries in the world. The lack of regulation and taxation has also made crypto currency a popular choice. Businesses such as crypto currency exchanges and custodial businesses that deal in crypto currencies are required to pay 20% corporate tax. The country does not regulate the taxation of crypto currencies for individuals.

Starting from May 1st 2022, Indonesia levies value added tax (VAT) on crypto currency transactions and capital gains at a rate of 0.1%. The capital gains tax of 0.1% is in line with the rate that Indonesian investors are charged on shares. Crypto currency trading in Indonesia is regulated by the Commodity Futures Trading Regulatory Agency. Crypto assets are considered a commodity in the country, not a currency.

In the UAE, more specifically in Dubai, there is a personal income tax at a rate of 0%. This means that if you are a Dubai tax resident, no matter how much profit you make, you will not have to pay a single dollar of tax on it. Crypto currencies have been exempt from taxation in its free zones since September 2021. This applies to any crypto currency transaction: selling, staking, high-frequency or algorithmic trading, Defi or farming, mining or selling NFTs. But you have to stay in Dubai at least 180 days a year.

According to the country’s 2023 budget plan, gains made from holding digital assets for less than one year will be taxed at a rate of 28%, while crypto currencies held longer will be tax-exempt. The authorities will also consider profits from the issuance of crypto currencies and mining as taxable income. The new policy will effectively end Portugal's status as a crypto currency tax haven in Europe. The country deserved this distinction mainly because it previously had no tax laws for crypto space.