Which countries have the highest crypto taxes?

[DanWalker]

Those huge crypto tax they impose is so ridiculous since its like they are really discouraging people to use it because it has high tax and like they are saying their fiat is better since they offer less taxes with it.

This has nothing to do with fiat because both Japan and Denmark have only legalized cryptocurrencies as an investment, financial market, they are not legal currencies that can compete with fiat.

In addition, they also apply very high taxes to other financial investment areas, not just crypto. Japan also imposes a fairly high tax on the stock market of up to 20%, while Denmark imposes a tax of up to 42% on stocks.
Although cryptocurrencies are still taxed at a higher rate, but it can be seen they are quite harsh and strict countries towards the financial sector in general.

[justdimin]

Gifting crypto is viewed exactly the same as selling it, so it's a taxable event and you'll need to pay Miscellaneous Income Tax. The proceeds would be the fair market value of the crypto in JPY on the date when the gift was given.

Gifting is synonymous to donation, so yes, if you donate or gift crypto in Japan, you are going to pay tax on the gains you have made holding those coins before you donated or gifted it, but it is tax-deductible if you are sending this donation to a registered charity.

Gifting part makes no sense to me, but at the same time I understand. It makes no sense because if you really want to gift someone bitcoin then it will be taxed which makes no sense, but I do understand because if it was free to gift people then we all would say it's gift and not pay a tax here too, so I am sure most Japanese would do the same thing. The clear trouble is that we are not going to really get that much of a good result if we are not careful, and because of this we should be avoiding it as much as we can.

Japanese government probably knows what they are doing, at least better than I do, so I am not going to argue that the yare making a mistake with these high taxes, but I would appreciate if they found a way to make it easier for people.

[allthebitandbobs]

I think it's more of their government trying to discourage their population to not used crypto at all that's why the high tax. And then a couple of news about their local exchanges being hacked? The image of crypto is not good in India.

Japan is one of the highest if not the highest crypto taxes so far. Yes, they have adopted it many years ago, but at the same time, it also reflect how their government is very strict on it as compare to other countries wherein there are exemptions when you hold crypto for long term at least > one year.

My nation also charges a high level of tax too, same amount nearly, so it is not really that shocking that the whole world is seeing this as something that is a good way to make more money for the governments. Governments always need more taxes, because that is how they are run, they use that money, and if they can tax more then they will tax more. That is the critical reason why crypto profits are taxed this high.

I have seen as high as 50% on the profit, so basically government is partnering up with me on my profits, but not looking at what I lose. So if I make a 100 dollar bet, and make 100 dollars and then lose that 100 dollars, that means I am back to where I started, and yet I have to pay half of that to the nation, makes no sense.

[SATWAT]

My nation also charges a high level of tax too, same amount nearly, so it is not really that shocking that the whole world is seeing this as something that is a good way to make more money for the governments. Governments always need more taxes, because that is how they are run, they use that money, and if they can tax more then they will tax more. That is the critical reason why crypto profits are taxed this high.

I have seen as high as 50% on the profit, so basically government is partnering up with me on my profits, but not looking at what I lose. So if I make a 100 dollar bet, and make 100 dollars and then lose that 100 dollars, that means I am back to where I started, and yet I have to pay half of that to the nation, makes no sense.

Bitcoin and crypto is going to be most talked thing in coming days with many countries are doing their best for having legal tender because now few are realizing it's going to be a good way of having more investment and taxes for them.
In our country right now work is going on which is good sign because they are bringing many soft policies which will encourage peoples to have their share in this which is surely as investment good for them because this will give them good profit while as saving is also good need to read all before doing any decision.
Currently, no taxes are applied on us because peoples are doing without any legal tender but surely in near future things are going to take changes which are surely interesting because here government can collect good funds and also its good way of bringing good investments.

[bitLeap]

But I'm curious to know which countries have the highest taxes? And do you think there's a chance they will lower them in the future?

To begin with, cryptocurrency should be tax-free if the government were fair. But they want to tax everything because they are greedy and will not care if anyone loses their investment in that same cryptocurrency.

However it doesn't work that way, and it's not possible to be tax-free. Let's say you hold around $1,000 in fiat currency and use it to trade crypto, successfully turning $1,000 into $10,000. That means when you withdraw from crypto back to fiat currency, there is a capital gain of $9,000. If there is automatic tax exemption, your country loses potential revenue. Unless you're prepared for hyperinflation, no matter how large the profit, it's like there's no tangible result when you convert back to fiat.

[Abiky]

Japan and Denmark numbers are ridiculously high. Governments can't seriously believe they'll generate more revenue by imposing high taxes on crypto-currencies. This will only push people toward alternative methods. I think the real goal of governments that impose high taxes is to limit people's usage instead of a direct ban. But in today's global world, people have many different ways to avoid taxes. No one can stop this.

No one can stop it. But if you're caught, then good luck with that. Most people won't even dare to use crypto under the scope of the government just to avoid fines or jail time. You'd need to be extremely-careful not to leave any trace that would quickly identify you as a "crypto tax evader". Bitcoin has a transparent Blockchain ledger, so it's easy enough to detect tax evasion.

I'm sure there are loopholes to Japan and Denmark's tax laws. As long as everything is done according to the law, there should be nothing to worry about. Who's to say people will begin using privacy coins in mass (eg: Monero and Grin) to continue enjoying crypto "behind the scenes"?

[WhoYouCantKill]

It is not bad to want to know a thing, this is where one's presumptuous thoughts deserves checking. Let's take a look at this research:

Nations with highest crypto Tax Rate
* Japan, with up to 55%, as one he steepest rates in the world.
* Denmark, taxed lie income which is around 42-53%, which depends on your specifics.
* Spain, 47% for high-income personnel's
* India is flat at 30% with additional 1% TDS on every transaction, to mention but a few.
Whether this will go down depends on political pressure from crypto, inter-national regulatory force, economical approach to problems.

Lots to say but I guess with these little already said there are some reasonable points form it.

[boyptc]

I have seen as high as 50% on the profit, so basically government is partnering up with me on my profits, but not looking at what I lose. So if I make a 100 dollar bet, and make 100 dollars and then lose that 100 dollars, that means I am back to where I started, and yet I have to pay half of that to the nation, makes no sense.

They don't care about how much we lose and even if we're just trying to recover and break even, there's already the taxes from those.

Well, that's better to say that they're partnered with us because in every thing that we do and every profit that we make, they're there. Ready to slash the taxes that will be sent to them.

It really makes no sense when we've just won back our capital and yet there's the government awaits for their cut, tax.