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How do different countries tax cryptocurrencies?
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The IRS treats cryptocurrencies as property. This means that when you sell, trade, or spend cryptocurrencies, you are subject to capital gains tax, with the specific tax rate depending on how long you held the cryptocurrency
Canada considers cryptocurrencies as commodities, tax rules depend on how they are used
The UK considers cryptocurrencies as property and imposes capital gains tax based on individual income levels
BTW, some countries are completely tax-free for cryptocurrencies. The UAE does not tax personal cryptocurrency income or capital gains. However, cryptocurrency-related businesses may be subject to a 9% corporate income tax. The UAE has positioned itself as a cryptocurrency-friendly hub, attracting many blockchain enthusiasts and businesses to settle in.
Japan’s cryptocurrency tax rate is one of the highest in the world. The government classifies cryptocurrency gains as miscellaneous income and the specific rules are as follows: The tax rate fluctuates between 15% and 55% depending on the income level. Losses from cryptocurrency cannot be used to reduce other taxable income.
So different
