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How are incomes from cryptocurrency transactions taxed?
How are incomes from cryptocurrency transactions taxed?
Are activities related to cryptocurrency transactions considered entrepreneurial or non-entrepreneurial? In general, we kindly request information regarding taxation, mandatory state social insurance contributions, and compulsory health insurance payments related to this type of activity.
According to the State Tax Service under the Ministry of Economy, based on Article 99.3.8 of the Tax Code, any other income indicating an increase in the initial value of a taxpayer’s assets (if provided), except wages, is considered income from non-entrepreneurial activities. Individuals earning income from cryptocurrency transactions must register with the tax authorities, obtain a taxpayer identification number (TIN/VÖEN), and calculate income tax at a rate of 14% in accordance with Article 101.2 of the Tax Code. They must submit an income tax declaration no later than March 31 of the following year and pay the tax to the state budget.
The moment of income recognition is considered the time when the acquired cryptocurrency is disposed of, and the taxable income is determined based on the increase in value between the purchase date and the sale date.
Additionally, non-cash transactions related to cryptocurrency trading must be carried out through accounts opened in accordance with Article 35 of the Tax Code. Furthermore, under paragraph 12 of Article 15 of the Law “On Social Insurance,” mandatory state social insurance contributions are not calculated on income not related to employment or entrepreneurial activity.
For more detailed information about tax registration procedures and the steps you need to take depending on the nature of your activity, you can visit the “Tax Guide” section on the official website of the State Tax Service or contact the Call Center (195-1) or taxpayer service centers.
Basis: Articles 35, 99, 101, and 149 of the Tax Code.
Are activities related to cryptocurrency transactions considered entrepreneurial or non-entrepreneurial? In general, we kindly request information regarding taxation, mandatory state social insurance contributions, and compulsory health insurance payments related to this type of activity.
According to the State Tax Service under the Ministry of Economy, based on Article 99.3.8 of the Tax Code, any other income indicating an increase in the initial value of a taxpayer’s assets (if provided), except wages, is considered income from non-entrepreneurial activities. Individuals earning income from cryptocurrency transactions must register with the tax authorities, obtain a taxpayer identification number (TIN/VÖEN), and calculate income tax at a rate of 14% in accordance with Article 101.2 of the Tax Code. They must submit an income tax declaration no later than March 31 of the following year and pay the tax to the state budget.
The moment of income recognition is considered the time when the acquired cryptocurrency is disposed of, and the taxable income is determined based on the increase in value between the purchase date and the sale date.
Additionally, non-cash transactions related to cryptocurrency trading must be carried out through accounts opened in accordance with Article 35 of the Tax Code. Furthermore, under paragraph 12 of Article 15 of the Law “On Social Insurance,” mandatory state social insurance contributions are not calculated on income not related to employment or entrepreneurial activity.
For more detailed information about tax registration procedures and the steps you need to take depending on the nature of your activity, you can visit the “Tax Guide” section on the official website of the State Tax Service or contact the Call Center (195-1) or taxpayer service centers.
Basis: Articles 35, 99, 101, and 149 of the Tax Code.