Tuesday, June 22, 2021

Hungary to cut the tax on crypto earnings by 50% from next year.

The Takeaway:

Hungary plans to slash the tax on cryptocurrency earnings by 50% from next year to encourage investors to declare income from trading cryptocurrencies like Bitcoin.

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The Hungarian government said it would lower the tax rate on crypto earnings to 15% from 30.5% starting in 2022, which would bring it in line with capital gains levies on stocks. The impetus appears to be feared among officials that investors are shielding crypto gains from authorities because of the higher tax rate, as reported by Bloomberg. Several other countries are also actively working to regulate cryptocurrencies following bitcoin and other altcoins massive rally. 

 

“Hungarian government expects several million dollars in additional tax revenue from the move.”

Hungary’s Finance Minister Mihaly Varga said in a Facebook video on Tuesday that the government expects to collect “several billion forints,” or several million dollars, in additional tax revenue from the move. He also called it “a significant step” in increasing the visibility of the country’s cryptocurrency market. Governments around the world are grappling with how to regulate the ballooning market for cryptocurrencies, fueled by the meteoric rise of Bitcoin and other tokens. 

 

Indonesian lawmakers propose tax laws on crypto transactions.

Crypto traders in Indonesia may soon have to start paying taxes. According to local reports, the country’s futures regulator is considering taxing all crypto transactions on licensed exchanges. The proposal is currently undergoing review by other regulators. Crypto trading in Indonesia has soared in the past year. According to one industry expert, the Southeast Asian country recorded US$2.8 billion in average monthly trading volume last year. Local crypto exchanges have also recorded a surge in user signups. The government is seeking to ensure it doesn’t miss out on the billions of dollars in annual taxes it could derive from the sector as they implement new crypto tax laws. 

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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