This paper has a in depth look into the subject of Taxation of Bitcion in the UK, Germany, Liechtenstein, Switzerland, Australia.
According to the US Internal Revenue Service (IRS) bitcoin is an asset or an intangible property, but not a currency. The reason behind this definition is that bitcoin is not issued by central banks. For bitcoin holders, this means that every transaction (buying, selling, investing or even using bitcoin) must be reported to the tax authority, no matter how big the amount is. In this context capital gains tax has to be paid if goods are bough in a grocery store (IRS, 2016).
Inhaltsverzeichnis (Table of Contents)
- Taxation of Bitcoin in the USA
- Taxation of Bitcoin in Switzerland (same regulations apply to Liechtenstein)
- Taxation of Bitcoin in Germany
- Taxation of Bitcoin in Australia
- Taxation of Bitcoin in the UK
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This seminar paper aims to provide a comprehensive overview of the taxation of Bitcoin in five major jurisdictions: the USA, Switzerland, Germany, Australia, and the UK. The paper examines the legal and regulatory frameworks surrounding Bitcoin transactions in each country, highlighting the specific tax implications for individuals and businesses.
- Tax treatment of Bitcoin as an asset or currency
- Capital gains tax implications for Bitcoin transactions
- VAT and other sales tax considerations
- Income tax implications for Bitcoin mining and trading
- Specific regulations and exemptions for Bitcoin transactions
Zusammenfassung der Kapitel (Chapter Summaries)
- Taxation of Bitcoin in the USA: Bitcoin is treated as an asset or intangible property in the USA, subject to capital gains tax on every transaction, including purchases, sales, and investments. The tax rate varies depending on the holding period, with long-term gains taxed at lower rates.
- Taxation of Bitcoin in Switzerland (same regulations apply to Liechtenstein): Switzerland does not impose VAT on Bitcoin transactions as the tax authority considers it a payment method rather than a good or service. Trading Bitcoin for Swiss francs is treated similarly to trading Euros for Swiss francs.
- Taxation of Bitcoin in Germany: Bitcoin is classified as a "unit of account" and subject to private income tax in Germany. Individuals must pay income tax on realized gains from Bitcoin transactions, with a tax exemption for gains up to 600 EUR/year. Long-term gains from Bitcoin held for more than a year are tax-free.
- Taxation of Bitcoin in Australia: Generally, there are no income tax or GST implications for individuals buying goods and services with Bitcoin for personal use. However, businesses using Bitcoin for transactions must record them and pay GST on the received amount. Capital gains from selling Bitcoin are ignored for transactions under $10,000.
- Taxation of Bitcoin in the UK: Bitcoin is treated as private money/private property in the UK, subject to VAT, corporate tax, income tax, and capital gains tax. Acquisitions through mining are VAT-exempt, while exchanging Bitcoin for other currencies is also VAT-free. Gains or losses on Bitcoin transactions are subject to capital gains tax for individuals and trading profit rules for businesses.
Schlüsselwörter (Keywords)
Bitcoin, cryptocurrency, taxation, capital gains tax, VAT, income tax, asset, currency, mining, trading, regulations, exemptions, legal framework, jurisdiction, USA, Switzerland, Germany, Australia, UK.
- Arbeit zitieren
- Anonym (Autor:in), 2017, How does taxation in Liechtenstein, Switzerland, Germany, UK, Australia and US look like for the cryptocurrency Bitcoin, München, GRIN Verlag, https://www.grin.com/document/366924
