Crypto Tax

Which are the worst countries for crypto taxation?

Global cryptocurrency taxation rules differ significantly between countries. A new study by crypto analytics firm Coincub ranks Belgium as the world’s worst country in terms of crypto taxation for residents.

Belgium is known for its massive 33% tax on capital gains on crypto transactions. As previously reported, Belgium adopted strict crypto taxation rules in 2017.

Coincub’s tax rankings, released on Thursday, also highlight countries such as Iceland, Israel, the Philippines, and Japan as less favorable places for crypto investors.

The report states that any crypto earnings of up to $7,000 in Iceland are taxed below 40%, while larger earnings will rise to 46%. Under Israel’s tax regime, the sale of crypto is generally subject to capital gains tax of up to 33%. On the other hand, if crypto trading includes a business income tax, it can go up to 50%.

In the Philippines, there is no tax on any crypto income below $4,500, but any income after that is taxed up to 35%.

Japan has closed the top 5 worst countries for crypto taxation for residents in the Coincub ranking. The country has a progressive tax rate system for income considered as miscellaneous income. The tax rate varies between 5% and 45%, depending on the amount of the total profit.

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According to the rankings, Germany tops the list as the best place for cryptocurrency investors, as anyone holding cryptocurrency for at least a year will not be subject to capital gains tax when selling or converting their crypto. Other crypto-tax friendly countries include Italy, Switzerland, Singapore and Slovenia.

Also, Coincub mentioned classic tax havens or countries where crypto is no exception, offering foreign businesses and individuals minimal or no tax liability for their financial deposits. Among them, the study ranked the Bahamas, Bermuda, Belarus, the United Arab Emirates, the Central African Republic, Lichtenstein and others.

About Hama Amefiz

Amefiz is a professional blockchain, cryptocurrency and tech journalist, regular contributor to newsbsc.com who is writing analysis about the latest developments in the cryptocurrency and blockchain space.

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