🇰🇪Kenya Revenue Authority upgrades system, cryptocurrency transactions will be nowhere to hide!

The Kenya Revenue Authority (KRA) is going big! They are going to replace a new tax system to monitor cryptocurrency transactions in real time. Yes, the kind that can record the date, time, type and value of transactions.

Imagine that this new system is like a superhero in the tax world, able to capture every trace of transactions and ensure that every penny can be traced, making tax evasion more difficult.

According to reports, this system will be launched before the end of the year. It will work closely with cryptocurrency exchanges and record detailed information about each transaction.

This is no small matter, because there are nearly 4 million cryptocurrency players in Kenya, and the transaction volume last year reached 18.6 billion US dollars. This market is so big that people have to pay attention to it.

Although the cryptocurrency market in Kenya is still relatively free, KRA official Nickson Omondi said that they already have some tax laws, but they were mainly aimed at companies that did not have a physical office in Kenya.

However, they updated the tax law last September to make it clear to cryptocurrency investors that they need to pay taxes on the income from these transactions.

Omondi also mentioned that according to the current law, cryptocurrency exchanges have to pay 3% of the transaction amount to the government. This also means that Kenya needs to bring cryptocurrency transactions into the formal tax system.

At the same time, KRA will also use artificial intelligence (AI) and machine learning to analyze data to find people who evade taxes, making tax work more efficient, accurate and compliant.

The government also plans to use M-PESA payroll and cash register numbers as electronic tax registers starting December 25, 2024. To expand the tax base and combat tax evasion.

At the same time, there is a tax evasion case involving a cryptocurrency exchange in Nigeria that is still under trial. The company did not register for taxes, violating local tax laws, and Binance became the only defendant in the case.

In terms of cryptocurrency taxation, African countries are getting serious. Kenyan cryptocurrency experts will have to consider tax issues when trading cryptocurrencies in the future.

#肯尼亚税务新动作 #加密货币监管 #加密货币税收

📣 Attention everyone! The IRS is going to impose a major regulation on the taxation of cryptocurrency profits, and new rules will be implemented starting in 2025!

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Friends, 👋 Today we are going to talk about the new actions of the IRS, which may be related to everyone who trades in cryptocurrencies!

The IRS said that by 2024, US users can still file their own taxes, but starting in 2025, they will have to change the rules. 🔄 For example, local exchanges like Coinbase will have to start recording the token costs of each investor, and arbitrage actions must also be recorded. According to reports, these new rules will officially start in 2026!

In the past! For US users who earned money from cryptocurrencies, filing taxes was like a buffet, and they could file as much as they wanted. But after 2025 and 2026, this good life will change!

Speaking of filing taxes, I know that many users have mixed feelings. 😣 According to reports, the tax rate for this income ranges from 20% to 30%. For users who trade short-term, the tax on short-term income is as high as 30%; for long-term holding (more than one year), the tax is 20%. Who wouldn't feel heartbroken when seeing such a high tax? But I personally think that paying taxes is a matter of course and there is nothing much to say.

Moreover, having a transparent tax plan is definitely a good thing for our precious cryptocurrency in the long run. 🌟 We can't let the cryptocurrency market be hidden forever, right? If we want it to become a global hard currency, transparent regulations are a must!

The implementation of the US tax supervision strategy also reminds global investors, including Chinese community users, that cryptocurrency investment and use are no longer unregulated areas, and compliance and transparency are becoming a global trend.

#加密货币税收 #美国国税局 #投资新时代 #合规透明

🤔 IRS: Rewards generated from cryptocurrency staking should be taxed at market value

The IRS recently clarified that rewards generated from cryptocurrency staking need to be taxed once received. This means that every token earned through staking counts as income and must be taxed at market value.

Imagine that when you lock your cryptocurrency in a network to assist in its normal operation, you subsequently receive some staking rewards. The IRS believes that these rewards do not represent a new category of property and therefore cannot wait until they are sold or exchanged to pay taxes.

This position is related to a legal dispute involving a couple, Joshua and Jessica Jarrett. They staked on the Tezos network and argued that their staking rewards should not be taxed until they are sold or exchanged, similar to a farmer's crops or a writer's books. However, the IRS holds the opposite view, asserting that once these staking rewards are received, they constitute taxable income and must be taxed.

If you are new to cryptocurrency staking, it essentially involves locking your currency in the blockchain network to help validate transactions, after which you can receive some returns. This is typically related to Proof of Stake (PoS), which allows you to earn some passive income through the staked assets you hold, similar to interest in a bank.

The IRS stated in its 2023 guidance that block rewards (including those obtained through staking) should be counted as income when they are generated. Therefore, when you earn token rewards, you need to track their value as this affects how much tax you will owe.

In 2021, the Jarretts sued the IRS over the taxation of the 8,876 XTZ tokens they received in 2019, but the court dismissed the case on the grounds that the IRS had already issued a refund. In 2024, they filed another lawsuit seeking a refund of additional taxes, which is currently under consideration.

Previously, an individual was sentenced to two years in prison for failing to report capital gains from cryptocurrency sales between 2017 and 2019.

💬 What do you think about the IRS's new stance on cryptocurrency staking? What do you believe this means for cryptocurrency investors?

#IRS #加密货币税收 #质押奖励 #法律纠纷