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If someone lives in Thailand for up to 180 days, they will need to pay income tax on assets from other countries, including cryptocurrency.

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Thailand’s Revenue Department is planning to start taxing the foreign income of people who live in Thailand for more than 180 days, including money made from trading cryptocurrencies.

Starting from January 1, 2024, this new rule will come into effect, and the first tax forms, which include reporting overseas income, will be due in 2025.

Before this change, only income earned abroad and brought into Thailand in the same year was taxed. With the new rule, individuals will need to report any income earned overseas, even if they don’t plan to use it in the local economy.

A Finance Ministry official clarified the reasoning behind this change to reporters: “The basic rule of taxation is that you have to pay taxes on income earned from overseas, regardless of how it was earned and regardless of the tax year in which you earned the money.”

According to other sources at the Bangkok Post, this policy is primarily aimed at residents who trade in foreign stock markets using foreign brokers, people who trade cryptocurrencies, and Thai individuals with offshore bank accounts.

Thailand’s Crypto Regulations May Change Under New Prime Minister

In July, Thailand’s SEC mandated that digital asset service providers must provide clear warnings about the risks of cryptocurrency trading and banned crypto lending services.

However, there might be a shift towards a more crypto-friendly approach with the election of the new prime minister, Srettha Thavisin, who is involved in a crypto-friendly investment firm called XSpring Capital. He also issued his own token through XSpring in 2022.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

#CryptoNews #cryptomarket #Thailand #CryptoTax

CryptosHeadlines.com - The Leading Crypto Research Network

New regulations will make brokers provide more info about digital asset sales and exchanges. These rules are expected to start in 2025. Right now, people have to report their digital asset profits on their taxes.

When the pandemic was at its worst, more people started investing in digital assets. Some used the money they got from pandemic aid to buy cryptocurrencies like Bitcoin, which quickly became more valuable.

People also spent money on other digital things, like non-fungible tokens (NFTs). NFTs are digital files that show who owns something, like art, a picture, a song, or other things.

Even though the interest in digital assets has gone down a bit in the past few years, the global crypto market is still worth around $1 trillion right now, according to CoinMarketCap. The NFT market was worth about $2.9 billion in the second quarter of 2023, according to DaapRadar.

Now, the IRS and the U.S. Treasury Department are paying close attention to the digital asset market. The government has suggested new tax rules for digital assets, and these rules will probably affect people who pay taxes and the companies that help with investments.

Details of the Proposed Crypto Regulations

Right now, if you invest in cryptocurrency or buy and sell digital stuff, you have to tell the IRS about it. You also need to figure out how much money you made or lost.

But, the IRS and Treasury Department want to change things. They want online companies where you trade digital things to also tell the IRS about your sales and exchanges.

These new rules don’t just affect regular brokers. They also say that places where you buy and sell digital things, whether they’re big companies or not, have to follow these rules. This includes online crypto markets, trading websites, crypto payment companies, and digital wallets.

All these companies will have to fill out a special form called 1099-DA. They’ll send this form to people who use their services and to the IRS. This will help people figure out how much tax they need to pay.

If these rules get approved, they will start in 2026. This means that all the digital things people buy and sell in 2025 will be included in the 1099-DA form.

The Treasury Department is taking feedback from the public until the end of October. After that, they will make the final rules in early November.

Implications of Crypto Reporting Rules on Your Taxes

The U.S. government is making big changes to how it regulates digital assets like cryptocurrencies. They want to treat them more like stocks and bonds when it comes to paying taxes.

The government thinks that if these new rules are put into action, they will be able to collect more taxes and stop people from not paying taxes on digital assets.

The Treasury Department said this is part of their plan to close the gap in taxes, deal with the risk of people not paying taxes on digital assets, and make sure everyone follows the same rules.

So, in the next few years, you might have to give more details about your cryptocurrency. This could mean you have to pay more taxes than before. But if you get a Form 1099-DA, it will help you know how much you owe.

But even before these changes, you should still report your digital assets and pay taxes on any money you make from selling them. These new rules are just a way to make sure people are following the law.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

#Blockchain #Bitcoin #CryptoNews #cryptomarket #CryptoTax

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On August 25, 2023, the U.S. Treasury Department introduced a significant new rule. This rule mandates that cryptocurrency brokers, encompassing exchanges and payment processors, must report user data – including cryptocurrency sales, purchases, and asset exchanges – to the IRS.

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The purpose is to tackle potential tax evasion within the cryptocurrency domain. This rule brings forth a fresh tax reporting form, named Form 1099-DA, which simplifies cryptocurrency and Non-fungible token tax calculations for taxpayers.

The rule broadens the “broker” definition to include both centralized and decentralized digital asset trading platforms, crypto payment processors, and specific online wallets storing digital assets. These brokers will be required to send these new tax forms to both the IRS and digital asset holders, streamlining tax preparation.

These obligations stem from the 2021 Infrastructure Investment and Jobs Act, which aimed to enhance tax reporting standards for digital asset brokers. The legislation also extended reporting necessities for significant cash transactions involving digital assets. The Treasury Department estimates these regulations could yield around $28 billion in tax revenue over a decade.

Proposed Crypto Tax Rules: Effective 2025 for Brokers, Mixed Industry Response

The U.S. Treasury Department plans to roll out new rules for brokers in 2025, impacting the 2026 tax season. This initiative is part of a broader strategy to enhance tax compliance, curb evasion linked to digital assets, and ensure fairness for taxpayers.

The crypto industry’s reaction to the proposal varies. Some see potential benefits in accurate tax law adherence. However, critics argue that the approach might not simplify tax filing, particularly considering the complexities of decentralized finance (DeFi).

In a recent report on August 3, 2023, highlighted Democratic Senators urging swift publication of cryptocurrency tax guidelines. They’re concerned about potential annual losses of up to $50 billion due to crypto tax evasion, posing risks to the government’s financial stability. Urgent calls for stricter regulations are being emphasized.

Presently, crypto users must report digital asset activities on their tax returns, even without gains. Users need to calculate this data, as trading platforms don’t furnish the IRS with such information. Feedback on the proposal is welcome until October 30, with public hearings scheduled for November 7-8.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

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Despite the government introducing a hefty 30% tax as well as 1% TDS on cryptocurrency last year, almost a negligible proportion of investors in India declared and paid tax on crypto last year.

According to a research report by Swedish tech company Divly, just 0.07% of investors in India declared and paid tax on cryptocurrency in 2022. But this trend is not restricted to India, as the numbers are not much higher globally as well.

Globally, "just 0.53% of cryptocurrency investors declared their cryptocurrency activity to their local tax authorities in 2022," according to the study released by Divly, which operates a platform to help crypto holders calculate their taxes. The compliance rate ranged from the lowest of 0.03% in the Philippines to the highest of 4.09% in Finland, it said.

The research report took a novel approach to estimating the tax payment rate: instead of surveying a limited number of respondents, it used a combination of official government figures, search volume data, and global crypto ownership statistics.

The highest rate was recorded in Finland, where more than 4% of crypto investors declared their holdings and accordingly paid tax. Australia ranked second, with 3.65% of investors doing so. The U.S., which boasts the world’s largest number of cryptocurrency users, saw a crypto tax payment rate of just 1.62%. It ranked just below Canada, where 1.65% of investors paid their crypto tax.

5 Countries With Highest % Of Investors Paying Crypto Tax

1.Finland-4.09%

2.Austrlia-3.65%

3.Austria-2.75%

4.Germany-2.63%

5.United Kingdom-2.61%

5 Countries With Lowest % Of Investors Paying Crypto Tax

1.Turkey-0.18%

2.Brazil-0.10%

3.India-0.07%

4.Indonesia-0.04%

5.0.03%

Why Such Low Rate Of Crypto Tax Payers?

Such a low rate of cryptocurrency tax payments around the world likely results from multiple factors. Firstly, the research report's firm, Divly, argues that public awareness of cryptocurrency reporting requirements varies amongst countries and is often too unclear for most users.

It also noted that the higher rates recorded in Japan and Germany could be a result of increased government enforcement. Increased enforcement led to a higher availability of tax calculators and other tax services, making tax payments more accessible to users. Last year, Germany was also ranked as the most crypto friendly nation.

As per the CryptoSlate report, an ongoing global push to introduce clearer tax regulations could lead to a significant increase in crypto tax payments in 2023. The EU proposed changes to its Directive on Administrative Cooperation (DAC) in December 2022, which would require exchanges to share user data with local governments. If the changes are adopted, local tax authorities in the EU would be able to enforce tax payments on cryptocurrency traders and investors.

The U.K. is looking to mandate the declaration of crypto holdings in self-assessment tax return forms starting next year. #CryptoTaxIndia #bitcoinTax #CryptoTax #Cryptoved #BTC

On the other hand, the U.S. could also see an increase in cryptocurrency taxes this year. The report mentioned that US President Joe Biden is set to propose changes to crypto taxation in a new budget blueprint for 2024, which would specifically target wash trading and introduce a new tax on electricity for Bitcoin mining. And the increased government oversight of the industry could push more investors to declare their crypto holdings in the coming months and years.

CryptosHeadlines.com - The Leading Crypto Research Network

In a significant move, European Parliament lawmakers have voted overwhelmingly in favor of a continent-wide tax-reporting rule for cryptocurrency transactions.

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With nearly 90% of votes supporting the measure, this decision underscores Europe’s commitment to combating fraud in the growing crypto market.

During a plenary session held in Strasbourg, France, on September 13, European legislators expressed their strong support for imposing strict tax reporting requirements on cryptocurrency exchanges. These rules, set to take effect in 2026, will equip tax authorities in Europe with the tools needed to closely monitor crypto-asset trading and income, reducing the chances of tax evasion.

European Parliament Approves Crypto Tax Reporting Rule

The European Parliament has given its overwhelming support to a continent-wide tax-reporting rule for cryptocurrency transactions. The proposal, introduced by the European Commission in December 2022, positions crypto-asset service providers to report transactions made by their European clients. This marks the third significant discussion on the framework, with the Commission finalizing its approach in May during the Economic and Financial Affairs Council meeting.

The Commission plans to modify the Directive on Administrative Cooperation (DAC) to enhance the sharing of tax-related information, emphasizing Europe’s commitment to transparency in the crypto sector.

Europe Advances Crypto Regulation with Tax Reporting Rule

The European Parliament’s endorsement of a tax-reporting rule for cryptocurrency transactions aligns with the EU’s ongoing efforts to regulate crypto assets. The Markets in Crypto-Assets (MiCA) legislation, introduced earlier this year, aims to close tax avoidance loopholes and provide a secure and transparent environment for crypto transactions in the EU.

Additionally, Europe’s launch of its first spot Bitcoin exchange-traded fund (ETF) further emphasizes its commitment to a comprehensive and secure crypto market. Named the Jacobi FT Wilshire Bitcoin ETF (BCOIN), it operates under the regulatory authority of the Guernsey Financial Services Commission (GFSC).

These developments showcase Europe’s proactive approach to ensuring crypto market integrity, fostering innovation, and boosting investor confidence. The strong support for the crypto tax reporting rule reflects the region’s commitment to staying at the forefront of the evolving digital asset landscape.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

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