Crypto Taxation
Governments and tax authorities around the world have noticed the astronomic profits made by trading in crypto. Therefore, they are setting up frameworks to implement crypto taxation.
The regulations around cryptocurrency taxation differ from jurisdiction to jurisdiction, they are complex and constantly changing.
What makes crypto taxation complicated?
- Cryptocurrency activities take place around the world. For example, you may be active on trading platforms based in the US, Italy and Hong Kong – would you need to report your activity in each country?
- A main issue for tax regulators is categorising what a cryptocurrency exactly is, with debates on whether it is a currency, asset or security. This may also depend on whether you’re mining or trading.
- How the cryptocurrency is used by an individual or company. For example, is it used as an investment, received as salary, used for payment, etc.
Your time is valuable. Do you want to spend it on your cryptocurrency investments or trying to research and understand the tax law?
How HKWJ Tax Law can help
Let our experienced tax consultants at HKWJ Tax Law prepare your tax return. We have the expertise, know which forms to use and how to calculate your taxes.
We will help you save time and remove the chance of a wrong tax return (or paying too much taxes!).
There are no gimmicks at HKWJ Tax Law, we prepare your crypto taxes efficiently, on time and without any fuss.
In the meantime, you can keep your focus on trading, mining and investing in cryptocurrencies and digital assets.
Working with HKWJ Tax Law
Internationally educated staff
Personal attention
Professional and fast service
Competitive pricing
Get a free quote for crypto taxation services
We are here to prepare your tax return, including cryptocurrencies and digital assets. Fill in the form below to request a free quote on our crypto taxation preparation services. We’ll reach out to you to get to know you and your specific situation.
FAQ
Companies that generate revenue in cryptocurrencies record it like any other income generated in fiat money. The applicable exchange rates are readily available online. Depending on the jurisdiction, different tax treatments may apply.
Salary payments in crypto, if allowed in the relevant jurisdiction, must be declared and accounted for. Some jurisdictions may not allow salary payments in foreign currency, so crypto may not be acceptable.
In jurisdictions where cryptocurrencies are taxed as capital gains, a crypto trade is a taxable event. If you trade one cryptocurrency for another, any gains should be reported in fiat money on your tax return.
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