Comparison of Cryptocurrency Tax Policies in Major Countries (As of July 2024)

 

Cryptocurrency is rapidly growing worldwide, and each country is striving to establish appropriate tax policies to address the emergence of cryptocurrency. However, there is no perfect regulatory system yet, and cryptocurrency-related tax policies vary from country to country.

This blog post will compare and analyze the cryptocurrency tax policies of major countries such as the United States, Germany, Japan, and Korea to examine the key characteristics and differences of each country.

1. United States:

• Capital gains tax: Profits from cryptocurrency trading are subject to short-term or long-term capital gains tax. Short-term capital gains are taxed at the same rate as ordinary income tax, while long-term capital gains are taxed at a maximum of 20%.
• Mining income: Income earned from cryptocurrency mining is considered ordinary income and is subject to income tax.
• Other: Income earned from staking cryptocurrency or earning interest through DeFi platforms is also subject to income tax.

2. Germany:

• Capital gains tax: Profits from cryptocurrency trading are exempt from tax if held for more than one year. If sold within one year, it is taxed at the general income tax rate.
• Mining income: Income earned from cryptocurrency mining is considered ordinary income and is subject to income tax.
• Other: Income earned from staking cryptocurrency or earning interest through DeFi platforms is also subject to income tax.

3. Japan:

• Income tax: Profits from cryptocurrency trading are subject to comprehensive income tax.
• Local taxes: Profits from cryptocurrency trading are subject to local taxes.
• Consumption tax: Consumption tax is levied when purchasing goods or services using cryptocurrency.
• Other: Income earned from staking cryptocurrency or earning interest through DeFi platforms is also subject to income tax.

4. Korea:

• Capital gains tax: A 20% capital gains tax is imposed on capital gains from cryptocurrency transfers traded after January 1, 2022.
• Local tax: An additional local tax of 2% of the capital gains tax is levied.
• Other: Income earned from cryptocurrency mining, staking, DeFi platform use, etc. is subject to comprehensive income tax.

Conclusion:

Cryptocurrency tax policies vary from country to country, with different tax rates, tax bases, and tax-exempt provisions. If you are planning to invest in cryptocurrency, it is important to carefully check the cryptocurrency tax policy of the country before investing.