en
az
ru
tr
How is income earned from P2P cryptocurrency trading taxed?
According to Article 99.3.8 of the Tax Code, any other income reflecting an increase in the initial value of a taxpayer's assets, excluding employment income, is regarded as income derived from non-business activities. Therefore, individuals earning income from cryptocurrency transactions must register with the tax authorities, obtain a taxpayer identification number (VÖEN), and declare their income in accordance with the applicable legislation.
Under Article 101.2 of the Tax Code, income derived from cryptocurrency transactions is subject to personal income tax at a rate of 14%. Taxpayers must submit their Personal Income Tax Return to the tax authority no later than March 31 of the following year and pay the calculated tax to the state budget.
According to the legislation, income is deemed to be earned on the date the cryptocurrency is transferred (sold). The taxable amount is not the total turnover credited to the bank account, but rather the gain arising from the difference between the cryptocurrency's acquisition value and its value at the time of disposal. Therefore, a high transaction volume in P2P trading does not mean that tax is calculated on the entire turnover.
In addition, all non-cash payments related to cryptocurrency purchase and sale transactions must be carried out through bank accounts opened in accordance with Article 35 of the Tax Code.
Furthermore, under Article 15 of the Law on Social Insurance, mandatory state social insurance contributions are not assessed on income that does not arise from employment or business activities. Likewise, under the provisions of the Law on Medical Insurance, individuals earning non-business income from cryptocurrency transactions are not required to pay compulsory health insurance contributions.
According to Article 99.3.8 of the Tax Code, any other income reflecting an increase in the initial value of a taxpayer's assets, excluding employment income, is regarded as income derived from non-business activities. Therefore, individuals earning income from cryptocurrency transactions must register with the tax authorities, obtain a taxpayer identification number (VÖEN), and declare their income in accordance with the applicable legislation.
Under Article 101.2 of the Tax Code, income derived from cryptocurrency transactions is subject to personal income tax at a rate of 14%. Taxpayers must submit their Personal Income Tax Return to the tax authority no later than March 31 of the following year and pay the calculated tax to the state budget.
According to the legislation, income is deemed to be earned on the date the cryptocurrency is transferred (sold). The taxable amount is not the total turnover credited to the bank account, but rather the gain arising from the difference between the cryptocurrency's acquisition value and its value at the time of disposal. Therefore, a high transaction volume in P2P trading does not mean that tax is calculated on the entire turnover.
In addition, all non-cash payments related to cryptocurrency purchase and sale transactions must be carried out through bank accounts opened in accordance with Article 35 of the Tax Code.
Furthermore, under Article 15 of the Law on Social Insurance, mandatory state social insurance contributions are not assessed on income that does not arise from employment or business activities. Likewise, under the provisions of the Law on Medical Insurance, individuals earning non-business income from cryptocurrency transactions are not required to pay compulsory health insurance contributions.