Bitcoin, Crypto currency, Blockchain

Azerbaijan: “Cryptocurrency-profits are now taxable income”

94d3818253dfe9af75c240496f21e178 - Azerbaijan: "Cryptocurrency-profits are now taxable income"

After the impressive price rises in the last year, many governments are now working on the regulation of this new industry. Among these laws, the profits from the trade of crypto-currencies as a verse to view tax income. A little over a week, Azerbaijan has declared that it will join countries such as the United States and the income from Cryptocurrencies is taxed.

In an official report by the Trend news Agency in the country this announcement during the second annual Finance and investment forum (FIF 2018) in Baku was made. Nijat Imanov, Deputy Director-General of the Department of tax policy and strategic research of the Ministry of taxes of Azerbaijan, it was that the news at 5. May brought.

“This will be formalized as a profit tax for legal entities and income tax for individuals,” said Imanov. “If someone has bought a crypto-currency and then sold after the price is increased, is recorded this amount as income and should be taxed.”

This decision came as a response to the growing crypto-currency trading to the East-Asian Nation. Similar to the astronomical rate of growth of the global crypto-currency market from may until December 2017, has been observed in Azerbaijan during this period, a rapid growth of the crypto currency trading activities.

According to Heydar Aliyev Foundation Leyla Aliyeva Guliyev, the Director and founder of the Crypto Consulting Company, was able to even reach the average Joe make a profit by investing during this Golden hour is only 10 dollars in crypto-currencies.

“Such a Situation, we have not, however, so often. Currently, the best Option is Bitcoin to buy and to a price increase for the sale to wait. This still works, however, it is not clear how long this will work.“

Azerbaijan is the first country that taxed crypto-currencies.

Among the countries that have enacted various laws for crypto currencies, the USA, South Korea and India.

Last December, US President, Donald Trump signed a new draft law, providing for the first major tax reform in the United States for almost 30 years. This draft law also ordered all the citizens, their crypto-currency gains as taxable income from 1. To declare January 2018. Whether it is capital gains for long-term stocks or income taxes from day trading, all the profits from crypto-currencies are ripe for a tax.

While in Asia, the actual taxation until 2019 will begin has been decided by the South Korean Ministry of strategy and Finance, to develop, by the end of June 2018, a tax framework.

India, by contrast, has always maintained an ambiguous attitude towards crypto-currencies, including rumors that the Reserve Bank of India (RBI) is going against Bitcoin, what turned out later to be wrong. The tax authority, however, has brought plans for the collection of taxes from crypto-currency traders in India.

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