Cryptocurrency traders prefer not to pay taxes
Every year, the popularity of cryptocurrency trading is growing exponentially; more and more people are making money from speculative transactions using digital assets.
Profits amount to millions, and sometimes tens of millions of US dollars.
It would seem that large earnings presuppose a desire to share money and pay taxes on excess profits received.
But according to a study conducted by one of the Swedish companies Divly, it turned out that only 0.5% of cryptocurrency traders paid taxes on their profits in 2022.
According to the results of the study, the most law-abiding citizens are in countries such as Finland and Australia; in Finland, 4.09% of citizens declared digital income, and in Australia, 3.65% of citizens.
While the United States of America, with its strict control over the income of residents, ended up only in 10th place with an indicator of 1.62%:
Traditionally, third world countries such as Indonesia, the Philippines, Brazil, and Nicaragua pay the least taxes. Here, the share of people who indicated income from cryptocurrency in their tax returns was less than 0.5%.
Why traders and investors don't want to pay taxes?
The main reason for this phenomenon was the opportunity to anonymously cash out cryptocurrency without advertising your identity.
For example, in the European Union countries you can legally withdraw up to 1,000 euros in cash from Bitcoin ATMs without providing identification documents. Or exchange cryptocurrency for cash using a gray scheme, in almost unlimited quantities.
These transactions are not tracked, unlike if the exchange occurs with the currency being credited to a bank account.
At the same time, the commission for exchanging for cash, in some cases, is completely absent, and sometimes has a positive sign. That is, by exchanging 1 dollar in stablecoins you get 1.01 US dollars in cash.
There are also quite a few places where you can directly pay with cryptocurrency when purchasing goods or services.
While, if you declare profits received from trading cryptocurrencies, you will have to pay from 13 to 45 percent, depending on the country of residence of the trader.
Therefore, many people prefer not to indicate this type of income in their tax returns, consciously taking a risk.
Read more about taxation of cryptocurrencies - https://time-forex.com/kriptovaluty/nalogi-kriptovaluty
Brokers for trading cryptocurrencies - https://time-forex.com/kriptovaluty/brokery-kriptovalut