While 4.09% of cryptocurrency investors in Finland paid taxes last year, only 0.03% of traders in the Philippines paid taxes.
According to a study conducted by Swedish tax firm Divly, only 0.53% of cryptocurrency investors globally paid tax on their transactions last year.
The average proportion of people who follow the rules varies across countries. For example, more than 4% of investors in Finland have paid taxes, while only 0.03% of investors in the Philippines have paid taxes.
global trends
Divly explored 24 countries to determine how many people in each region declared their cryptocurrency transactions to the relevant authorities and paid the appropriate taxes in 2022. Finnish investors appear to be the most stringent, with 4.09% finalizing their tax policy. Finland also has the highest payout rate in Europe, while Italy is at the bottom at 0.26%.
One reason to explain the numbers in the southern European country could be that Italians are only required to declare their cryptocurrency holdings if their holdings are valued at more than 51,645 euros (approximately $56,000). Budget 2023 plans some changes in this area, which could lower the threshold.
The Philippines has the lowest payment rate in the world at only 0.03%. Lawmakers imposed a 35% tax on locals, but only if they earn more than $4,500 from digital asset transactions.
The United States, the country with the largest number of cryptocurrency taxpayers, has 1.62% of investors complying with the rules, compared with 1.65% for its northern neighbor Canada.
Japan has the highest tax rate among Asian countries at 2.18%. Singapore ranks second in Africa with 0.65%.
Analysis shows that nearly 95.5% of cryptocurrency traders worldwide will not pay taxes in 2022. However, Divly believes this number may improve once the government implements revised regulations and seeks better enforcement.
Some crypto tax havens
Germany, Europe’s leading economy, has the best crypto tax legislation, according to another study conducted by Coincub. The Treasury revealed last year that it would not tax individuals if they hold Bitcoin or Ethereum assets for more than a year. Prior to these amendments, digital currencies had to be kept for ten years to be tax-free.
Italy ranks second, while Switzerland (legislation varies from canton to canton) ranks third. However, most provinces in the Aplean countries do not require residents to pay taxes on cryptocurrencies.
Singapore and Slovenia rounded out the top 5. While residents of both countries are currently exempt from crypto taxes, Slovenia may be subject to a 10% tax rate in the future.
Original source: https://cryptopotato.com/less-than-1-of-crypto-investors-declared-their-taxes-to-authorities-study/