thecoinrepublic.com
There is good news for all the crypto traders from Hungary as the country is looking forward to cutting down the crypto taxes to 50% from the current tax ratio. As per the Finance Minister of Hungary, the government is working to reduce the tax to 15%.
- Tax reduction on cryptocurrency has come to 50% from the current 30.5 percent
- Hungary is looking forward to creating favorable tax policies for traders
According to BTCManager.com, Hungary Finance Minister Mihaly Varga, while addressing the nation, has informed that the government is thinking about reducing the cryptocurrency tax. It means that the tax burden on crypto traders will be reduced to half of what they pay currently.
The government is planning to restructure the crypto policies and will be working on cutting down the tax on cryptocurrency to 15% as against the current 30.5%, which means a 50 percent reduction has been done. According to Vagra, there might not have been crypto regulatory policies in Hungary, but they are now working to bring some changes to the policies and regulations.
Buying and selling of bitcoin and other crypto assets are classified as other income for taxation in Hungary. The country’s economic recovery program for 2022 talks about the reduction in crypto tax forms.
On seeing the government’s effort on cryptocurrency and the proposed cryptocurrency tax reduction crypto investors moving to Hungary. Also the reduction in tax to half could mean extra billions for the country’s budget.
Tax reduction and crypto growth
The crypto sector has seen a massive increase in the adoption of cryptocurrency. The industry continues to witness rapid growth and adoption. Similarly, other countries are also paying attention to cryptocurrency as the traders see emerging tech and introducing tax policies for the crypto sector.
Regulations by other countries
South Korea is looking forward to imposing a 20% tax on crypto gains exceeding $2.5 million won in January 2022. Indonesia is also looking forward to imposing a tax on crypto trading profits.
India is another country, looking forward to bringing a crypto tax policy. However, the crypto regulations in the country are still not clear. The BTC Manager in December 2020, the finance ministry’s central economic intelligence bureau (CEIB) to the Board of indirect taxes & customs to collect 18 percent goods and services tax (GST), on bitcoin trading margins.
The Internal Revenue Service (IRS) from the U.S. is looking forward to issuing strict measures to grab the defaulter crypto holders to pay their taxes. U.S. Senator Rob Portman has said that the country is working to prepare a bill to tackle the problem of crypto tax evasion.
Where Hungary is moving towards favorable tax policies for traders, the U.S. is doing the opposite. President Joe Biden has said that the authorities are calling ahead to doubling the tax imposed on Capital gains to 40% for traders earning above $1million yearly.