What are the tax for cryptocurrencies in your country?

[Italian Panic]

In my country, the tax rates are absurd – we're talking over 25 per cent on capital gains, not to mention that if you can't prove the source of the funds, they treat it as a capital gain starting from zero. So it's as if you'd mined them yourself.
For this and other reasons, it's better to hold Bitcoin in NOKYC mode so you don't have to pay tax on it.

How are things over in your part of the world?

[naturelover]

Here in our country, the tax percentage taken from our taxpayers is also around 25%, due to the tax on prime commodities is around 12%, and then the deduction from the salaries of employees in private companies is also around 12%, so if you combine it, it's almost the same as yours.

When it comes to NoKyc, of course, in our communities here in the crypto space, we like it, but if we look at it literally, it looks like tax evasion when the government authorities find out due to we are avoiding the tax that will be deducted from the profit we get from crypto.

[ferrddy]

Switzerland's approach to crypto taxes is actually one of the more pragmatic ones in Europe. Since 2018, the Swiss Federal Tax Administration has treated cryptocurrencies as foreign currency for private individuals, which means you only pay tax on capital gains if you're classified as a professional trader. For most holders, there's no wealth tax on crypto and no capital gains tax on long-term holdings - that's a big reason why so many crypto companies set up shop there.

The key distinction they draw is between personal investment and professional trading activity, which is determined by things like trading frequency, volume, and intent. If you're buying and holding with a long-term mindset, you're generally in the clear. If you're actively trading with leverage and high turnover, that's where the taxman comes knocking.

Compared to Italy's 26%+ capital gains rate and the reverse-burden proof issue you mentioned, Switzerland is in a completely different league. The Swiss model is more about transparency and classification than punishment - you declare your holdings, they assess whether you're a trader or an investor, and you pay accordingly. It's not perfect, but it's a lot more crypto-friendly than what many other European countries are doing.
The NoKyc angle is interesting too. Switzerland does have strict AML/KYC laws for regulated entities, but there's still room for self-custody and peer-to-peer trading that doesn't touch the banking system. That said, the regulatory net is tightening - the new DLT Act and ongoing FATF pressure mean the window for fully anonymous crypto activity is closing, even in Switzerland.

How does your country compare? Are you seeing more governments trying to crack down or are some actually building sensible frameworks like the Swiss one?

[naturelover]

Switzerland's approach to crypto taxes is actually one of the more pragmatic ones in Europe. Since 2018, the Swiss Federal Tax Administration has treated cryptocurrencies as foreign currency for private individuals, which means you only pay tax on capital gains if you're classified as a professional trader. For most holders, there's no wealth tax on crypto and no capital gains tax on long-term holdings - that's a big reason why so many crypto companies set up shop there.

The key distinction they draw is between personal investment and professional trading activity, which is determined by things like trading frequency, volume, and intent. If you're buying and holding with a long-term mindset, you're generally in the clear. If you're actively trading with leverage and high turnover, that's where the taxman comes knocking.

Compared to Italy's 26%+ capital gains rate and the reverse-burden proof issue you mentioned, Switzerland is in a completely different league. The Swiss model is more about transparency and classification than punishment - you declare your holdings, they assess whether you're a trader or an investor, and you pay accordingly. It's not perfect, but it's a lot more crypto-friendly than what many other European countries are doing.
The NoKyc angle is interesting too. Switzerland does have strict AML/KYC laws for regulated entities, but there's still room for self-custody and peer-to-peer trading that doesn't touch the banking system. That said, the regulatory net is tightening - the new DLT Act and ongoing FATF pressure mean the window for fully anonymous crypto activity is closing, even in Switzerland.

How does your country compare? Are you seeing more governments trying to crack down or are some actually building sensible frameworks like the Swiss one?

Well, if I look at the tax rules in Switzerland, according to what you mentioned, it seems like the treatment is okay when you are a private investor in crypto assets, am I right? Only professional traders are taxed.

In our country, there is no such ruling when it comes to taxes here in the crypto local community, but when we are locally entering or making transactions, it seems like we are being taxed here by the local exchange, maybe because the tax our government is taking from them is so high that they are taking it from us, the users, in that regard.