The principle of taxation of cryptocurrencies:
Any cryptocurrency can be a currency or a share, at the choice of the organization that owns this digital asset. Depending on the chosen type (share or currency), the digital asset is taxed. Each company using cryptocurrency is required to notify the regulatory authority of the chosen type of taxation before starting commercial activities. The beginning of commercial activity is any public placement of information about the project on the Internet or in printed publications, booklets, sending any type of commercial offers to customers.
Fundraising laws for startups apply to cryptocurrencies. The amount of investments not exceeding 10 million within one calendar year is subject to taxation on retained earnings at a rate of zero percent. If this amount is exceeded, the type of taxation that was declared before the start of commercial activity comes into effect.
In the case of using digital currencies as a currency, the capital gains tax rate is zero percent. A prerequisite is the observance of a single rule for currencies: fluctuations of the crypto currency against the US dollar cannot exceed 15%.
If this threshold is exceeded, the digital asset is automatically taxed at a rate of 15% on capital gains (except for the $10 million initially taxable at a zero rate). The taxation regime in the form of currency automatically changes to the use of cryptocurrencies as shares (including NFTs).
When a company initially chooses to use digital assets as company shares, that digital asset is subject to a 15% capital gains tax (excluding US$10 million initially at zero rate).
Any applicant can change the taxation to another type once a year. In case of violation of the fifteen percent threshold of fluctuations of your currency against the US dollar, there is an automatic change in the tax regime to taxation by type of shares from the date of violation. Return to the tax regime by type of currency is possible after 12 months from the date of violation.Controlling organizations:
Currency Control - Binance US;
Share control - Coinbase Global;
Project Listing - Huobi Global;
Cryptocurrency emission control - Kris Marszalek;
NFT-based patent, trademark, and copyright protection - Sam Bankman-Fried;
General control - CBDC.
The return of funds to the economy of the previous generation will be carried out through the aething app
, and therefore, in order to avoid double taxation of cryptocurrencies, all national institutions are recommended to unify legislation and remove the taxation of cryptocurrencies from the tax code.
The cryptocurrency community will gratefully pay all the necessary expenses for the unification of legislation and advanced training courses for all participants in the crypto market.
All companies, that used crypto-currency funding during the period 2021-2023, are required to file a notification with the tax authorities of the country in which the company's parent organization is located.
All companies that used standard types of financing at the same time as receiving crypto financing are required to file a declaration and pay tax at capital gains rates depending on the rates in the jurisdiction of the parent company.
The exceptions are those companies and individuals who have invested before 01 August 2023,
in the Pterygota Marker (for private investors) and Aething App (for companies) projects.