Taxation of Crypto: MEPs for Harmonization

Taxation of Crypto: MEPs for Harmonization

The MEPs have widely adopted a resolution provision of a better coordination in L’taxation from digital assets. They also support the use of blockchain for Struggle vstax evasion.

Taxation and control. MEPs want progress on two fronts. By a very large majority (566 votes in favor) on October 4 they passed a resolution aimed at i use on blockchain and to standardize taxation from cryptocurrencies.

The resolution, which is not a law, held that ” crypto-assets should be subject to fair, transparent and efficient taxation ” to European level. However, parliamentarians are proposing simplified measures for casual traders and small transactions.

Each member state has its own tax system

This approach to cryptocurrency taxation is similar in its principles to the French doctrine. The French tax framework therefore distinguishes between casual and professional investors with different levels of taxation

However, taxation is far from uniform across Europe. on Portugal for example, it is considered by some to be a tax haven for these assets. Capital gains are not taxed there.

That is why MEPs are calling European Commission to act, initially by assessing Member States’ practices. A homogeneous taxation it also assumes a “clear and widely accepted definition of crypto-assets” as well as the event triggering taxation.

Parliamentarians believe that this event or operational event can be converting a digital asset into fiat currency. It is up to the Commission to evaluate the possible options, as well as to determine the place of taxation.

Administrative cooperation and tax efficiency through blockchain

Finally, the resolution calls for the amendment of the directive on administrative cooperation in tax matters to include crypto-assets within the framework of the exchange of information,” the parliament further specifies.

However, digital assets and underlying technologies are not seen by parliamentarians as the only source of tax revenue. This is how the MEPs’ resolution is recommended the use of blockchain to increase the efficiency of tax collection.

Blockchain’s unique features can provide a new way to automate tax collection, curb corruption, and better identify ownership of tangible and intangible assets, making taxation easier for mobile taxpayers.

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