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DOMAINS TOKEN-G

Rachel Welch

12 October 2022 384 Read Crypto

Crypto Taxation in the EU

The EU recently decided to make use of blockchain expertise in the realm of crypto taxation, incorporating it into the tax code. The effort aims to ensure that the taxation of crypto is uniform in all member states. However, before the EU can fully implement its plans, member international locations must reform their tax structures.

Taxation of speculative activities

The EU Financial Transaction Tax (FTT) is an initiative that seeks to curb the negative consequences of financial speculation. This tax aims to generate substantial revenues to meet urgent needs and encourage long-term sustainable investment. While this tax may not prevent all forms of financial speculation, it can be an effective tool to curb high-risk speculation.

While the European Union launched a roadmap for its future Multiannual Financial Framework, which will include common debt instruments, the Taxation of Speculative Activities in the EU (FTT) is just one piece of this roadmap. Some of the other major elements in the roadmap include a tax on financial transactions, a common corporate tax base, and other financial contributions by companies. In the meantime, this resolution aims to give the ETUC's position on the current tax debates and reaffirm its long-standing calls for fair taxation.

The European Parliament recently passed a resolution calling on the European Commission to study the possibility of introducing a tax on financial transactions, including speculative activities. This measure is often referred to as a Tobin Tax or Robin Hood Tax. This resolution was welcomed by Social Justice Ireland. The Tobin Tax could significantly reduce the risk of financial speculation and ensure that financial institutions pay their fair share of tax.

The tax treatment of cryptocurrency differs from country to country, depending on the terms of the transaction. Generally, a Bitcoin-style cryptocurrency is treated as a transferrable asset carrying value. As most jurisdictions do not have specific tax laws for cryptocurrency, the tax treatment is based on general principles and guidance issued by Tax Authorities. Some Tax Authorities have issued more comprehensive guidance than others, while others have not issued any guidance at all.

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