For German residents, any cryptocurrency held for over a year is tax-exempt, regardless of the amount. If the assets are held for less than a year, capital gains tax doesn’t accrue on a sale, as long as the amount does not exceed 600 euros ($692).
However, for businesses it’s a different matter; a startup incorporated in Germany still needs to pay corporate income taxes on cryptocurrency gains, just as it would with any other asset.
– HONG KONG
It isn’t a country per se, but a Special Administrative Region of China, with theoretical autonomy over its own affairs. And Hong Kong’s tax legislation on cryptocurrencies is a broad brush affair, even after new guidance was issued in 2020.
– EL SALVADOR
Bitcoin is their legal tender lol
In Malaysia, cryptocurrency transactions are currently tax-free, and cryptocurrencies don’t qualify for capital gains tax, because digital currencies are not considered assets or legal tender by the authorities.
The government of the so-called “Blockchain Island” recognizes Bitcoin “as a unit of account, medium of exchange, or a store of value.”
Malta doesn’t apply capital gains tax to long-held digital currencies like Bitcoin, but crypto trades are considered similar to day trading in stocks or shares, and attract business income tax at the rate of 35%. However, this can be mitigated to between five percent and zero, through “structuring options” available under the Maltese system.
Portugal has one of the most crypto-friendly tax regimes in the world.
Proceeds from the sale of cryptocurrencies by individuals have been tax-exempt since 2018, and cryptocurrency trading is not considered investment income (which is normally subject to a 28% tax rate.)
However, businesses that accept digital currencies as payment for goods and services are liable to income tax.
Capital gains tax does not exist in Singapore, so neither individuals nor corporations holding cryptocurrency are liable.
Slovenia is another country that treats individuals and businesses separately under its cryptocurrency tax system.