Latvia adopts a law on the taxation of
August may not be the best month for making important decisions, but right now it is worth pondering, what plans will You have in the second half of the year. Regulators of different countries in August has defined its policy on cryptocurrency and many of them are quite positive.
Approval for bitcoin show the mood and the representatives of the Latvian authorities: earlier this year they announced the possibility of incorporating cryptocurrencies in the number of means of exchange. This was done to ensure that the government could levy taxes on the profits from transactions with virtual currencies. The Ministry of Finance of Latvia is going to prepare the final version of the bill by December 2018. It should be specified all types of operations, from which the tax will be levied, as well as its value.
The Latvian member of the Bitcoin Foundation, Alexander Kitsenko, said that authorities will collect information about potential taxpayers via platform for trading cryptocurrencies. Monitoring will be conducted by third parties, that is, institutions through which traders have to undergo when entering and exiting the exchanges.
In principle, Latvia is not the first country which proposed to impose cryptocurrency transactions tax in Russia is also trying to create certain rules, but due to the fact that the status of cryptocurrency in the country has not yet been determined to do so in the near future will be impossible. However, there has been progress in relation to personal income tax the Ministry of Finance concluded that the income from the sale of cryptocurrencies can be reduced by the amount of actually incurred and documented expenses related to their acquisition, i.e. to consider similar transactions with the property.
So, we see that the cryptocurrency is becoming an important theme for discussion among the legislative authorities of different countries. The overall trend is positive: gradually more and more countries come to the conclusion that the fight against crypto operations does not make sense, and that it is better to legally solve the issue of virtual currencies in order to have an additional source of replenishment, than in vain to fight them and watch the flight of capital from the country.