One of the reasons why the issue of crypto taxation is so complicated is that you may be liable for at least two types of taxation – Capital Gains and Income Tax.
As mentioned above, if your country of residence classifies crypto as property it will be subject to Capital Gains. This simply means that if you sell something regarded as property for more than you bought it – subject to exemptions – the taxman will want a cut.
Your regular source of income – usually your job – is subject to tax. Any other activity that is also considered to be a source of Income, may also be liable for tax; this includes crypto, given that it now offers a huge range of services providing a regular return.
Within each category – Capital Gains & Income Tax – you’ll need to be aware of the relevant ‘taxable events’.
This might sound like it should have something to do with the Olympics, but a taxable event is any activity which your tax authority expects you to record, and subject to small print, report in your annual submission and pay the required tax.
We’re going to list the main taxable crypto events, but as there is no one consistent approach, we’ll country-by-country outlines below but you should consult your local tax authority or a tax accountant to understand the full details.
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