Less than 1 % of crypto investors explained their taxes at the authorities (study)

Less than 1 % of crypto investors explained their taxes at the authorities (study)

According to a study by the Swedish tax company Divly, only 0.53 % of cryptocurrency investors worldwide paid for their business last year.

The average proportion of people who adhere to the rules varies in the different countries. For example, over 4 % of Finnish investors paid taxes, while only 0.03 % of investors did this in the Philippines.

The trends all over the world

Divly examined 24 nations to determine which part of people in every area reported their cryptocurrency transactions to the responsible authorities and paid the relevant taxes in 2022. Finnish investors seem to be the strictest at 4.09 % that regulate their tax policy. Finland also had the highest payout rate in Europe, while Italy formed the bottom of 0.26 %.

A reason that explains the numbers in the southern European country could be the fact that Italians only had to declare their crypto if the value of their stocks was more than € 56,000 (around $ 56,000). The household 2023 provides for certain changes in this area that could lead to a reduction in the threshold.

The Philippines are the country with the lowest payment rate in the world with only 0.03 %. The legislator complains of locals with a tax of 35 %, but only if its income from the trade in digital assets exceeds $ 4,500.

in the USA-the nation with most taxpayers for cryptocurrencies-1.62 % of their investors stayed with the rules, while their northern neighbor-Canada-recorded 1.65 %.

Japan was the Asian country with the highest tax payment rate with 2.18 %. Singapore took second place on the continent with 0.65 %.

The analysis showed that almost 95.5 % of the global cryptocurrency dealers had not paid their taxes in 2022. However, Divly believes that the numbers could improve as soon as the governments impose changed regulations and strive for better enforcement.

Some of the crypto tax sky

According to another study carried out by Coincub, Europe's leading economy-Germany-has the best crypto tax legislation. The Ministry of Finance disclosed last year that private individuals do not tax it when selling Bitcoin or ether if they last for more than a year. Before these changes, digital currencies had to be kept for ten years to be freed from taxation.

Italy took second place, while Switzerland (where legislation is different in every canton) took third place. However, most of the pupil nation provinces do not require residents to pay taxes on crypto.

Singapore and Slovenia rounded off the TOP 5. While the residents of both countries are currently freed from crypto taxes, Slovenen could be occupied with a tax rate of 10 % in the future.

.