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Bulgaria is the latest country to bring crypto assets into its taxation plans. The eastern European nation's tax authority wants to impose a 10 percent tax on crypto profits.
As reported by Bitcoin.com, local media quoted an official announcement from the National Revenue Agency (NRA) of Bulgaria that crypto users and businesses were now being investigated. The tax authority wants to ensure that crypto trading platforms aren't being used to evade tax, and nine exchanges are currently under review after being assigned "control orders".
After completing a study of these trading platforms, the NRA will apparently cross-check with traders to see if their crypto earnings have been declared in their annual tax return. Crypto assets are to be treated in the same way as regular assets, and any profits earned from their sale will be taxed at a flat 10 percent rate.
Dedicated tax legislation for other crypto activities is yet to be further clarified for Bulgarian residents. Crypto mining and trading is currently treated in accordance with general EU guidelines that were issued some years ago. Another EU nation, Denmark, has also recently started to investigate crypto exchanges in order to determine whether traders are properly declaring their revenues to the tax authorities.
Read more: Denmark's tax authority given power to collect data on crypto traders