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Crypto Taxes around the World: Take A Closer Look!

Bitcoin and cryptocurrencies, in general, are legal in major industrialized countries around the world including the USA, UK, Japan, Germany, France, Australia, and many more. However, the legal status of cryptos in emerging economies is still unclear. While China considers cryptos illegal, India is yet to decide on the legal status and regulation of the cryptocurrency market. 

In many countries (including the US and Australia) cryptocurrencies and Bitcoin (BTC) are not considered as currencies. Rather they are recognized as investment assets there. Countries like China and Russia have prohibited cryptos altogether. However, in countries such as Finland, cryptocurrencies are absolutely VAT-free. 

Now, let me walk you through the crypto taxes in different countries:

Crypto Taxes in the United States

Cryptocurrency taxes in the United States are collected by the IRS (Internal Revenue Service). Form 1040 issued by the IRS requires you to declare whether you have made any transaction of digital currency. 

The federal tax rate on cryptocurrencies varies from 0% to 37%. 

  • On short-term capital gains (holding less than 1-year), the crypto tax rate is 10% to 37%.
  • On long-term capital gains (holding more than 1-year), the crypto tax rate is 0% to 20%.

This means, your crypto tax in the US is calculated on the basis of 2 factors:

  • Your income.
  • How long you are holding the crypto (less than 1 year or more than 1 year)?

Short-Term Capital Gains Tax Rates for 2021

  1. Individuals

  1. US$0-US$9,950: 10%
  2. US$9,951-US$40,525: 12%
  3. US$40,526-US$86,375: 22%
  4. US$86,376-US$164,925: 24%
  5. US$164,926-US$209,425: 32%
  6. US$209,426-US$523,600: 35%
  7. US$523,601+: 37%

2. Married Filing Jointly

  1. US$0-US$19,900: 10%
  2. US$19,901-US$81,050: 12%
  3. US$81,051-US$172,750: 22%
  4. US$172,751-US$329,850: 24%
  5. US$329,851-US$418,850: 32%
  6. US$418,851-US$628,300: 35%
  7. US$628,301+: 37%

3. Head of Household

  1. US$0-US$14,200: 10%
  2. US$14,201-US$54,200: 12%
  3. US$54,201-US$86,350: 22%
  4. US$86,351-US$164,900: 24%
  5. US$164,901-US$209,400: 32%
  6. US$209,401-US$523,600: 35%
  7. US$523,601+: 37%

Long-Term Capital Gains Tax Rates for 2021

  1. Individuals

  1. US$0-US$40,400: 0%
  2. US$40,401-US$445,850: 15%
  3. US$445,851+: 20%

2. Married Filing Jointly

  1. US$0-US$80,800: 0%
  2. US$80,801-US$501,600: 15%
  3. US$501,601+: 20%

3. Head of Household

  1. US$0-US$54,100: 0%
  2. US$54,101-US$473,750: 15%
  3. US$473,751+: 20%

Now that you know the tax slabs for capital gains, it is important for you to know how to calculate the capital gains related to digital assets. Let’s understand:

  • The price at which you buy cryptocurrency (say, Bitcoin BTC) is your cost price.
  • The price at which you sell the cryptocurrency is your disposal price. 
  • The price differential between the cost price and the selling price is the capital gain. 

If the cryptocurrency is held by you (the time from buying the crypto to selling it) for less than 1-year, the highest marginal tax rate applicable to your taxable income will be your crypto tax. In case, you make a loss from the transaction, you can offset income tax of up to US$3,000 in total. If there are additional losses over and above US$3,000, you can carry it over to the next financial year. 

In case, the time of holding the cryptocurrency is more than 1-year, the long-term capital gains tax rates will be applicable. In comparison to the short-term capital gains tax rates, the long-term ones are substantially lower. While the short-term capital gain tax is 10% to 37%, the crypto tax rate for long-term capital gains is 0% to 20%. 

On November 15, 2021 (Monday), US President Joe Biden signed the US$1.2 trillion bipartisan Infrastructure bill that contains some controversial cryptocurrency tax reporting requirements. 

  • For Internal Revenue Service purposes, the definition of a broker has been expanded. This bill now makes it mandatory for all brokers to report all transactions under the current tax code. 

The cryptocurrency industry is rattled by the way the term “broker” is defined. They say that the term broker is too broad in the bill, which could make the authorities also include crypto miners and other parties, who are not actually involved in facilitating transactions. 

A few senators are trying to narrow down the definition of the term ‘broker’. Sen. Cynthia Lummis (R-Wyo.) has already introduced a new bill on Monday. 

  • Another crypto-related provision in the infrastructure bill that the cryptocurrency community is opposed to is the requirement of the recipients of more than US$10,000 to:
  • Verify the personal information of the sender 
  • Record his/her SSN (Social Security Number)
  • The nature of the transaction, and other information

The infrastructure bill requires the recipient to report the transaction to the government within 15-days from receiving the money. 

These cryptocurrency provisions in the infrastructure bill would be applicable to cryptos, NFTs, and other digital assets. 

Crypto Taxes in Canada

In Canada, cryptocurrencies are legal. You can use these virtual currencies for buying products and services online and also use cryptos as payments in stores that accept digital currencies. 

Your cryptocurrency trading can attract either income tax or CGT. The entire amount will be taxable if the income comes from a business. If it is capital gains, then it will only be taxed 50% of the time. 

Crypto Taxes in the United Kingdom (UK)

Cryptocurrencies are taxable in the UK. CGT may be applicable on capital gains when an individual considers his/her investment as a personal investment. You may have to pay CGT if you make a capital gain at the time of selling the cryptocurrency due to capital appreciation. 

Crypto Taxes in Australia

In Australia, cryptocurrencies are considered assets. The trading of cryptos is considered the same as the trading of stocks. Ordinary income is generated if you sell bitcoin or other cryptos. The cost to acquire cryptocurrency, held as trading stock, is tax deductible. If you are an Australian tax resident, holding of cryptos for over 1-year qualifies you for a 50% CGT deduction, provided the CGT rules apply. This means that only 50% of the gains from a trade of cryptocurrency will be considered for taxation. On the day of disposal, only the AUD market value of the cryptocurrency will be considered. 

Crypto Taxes in Netherlands

The Netherlands imposes a wealth tax instead of a capital gains tax. At the beginning of a tax year, a presumed interest rate is levied on all the asset values minus all liabilities. In 2020, this presumed interest rate was 30% flat and in 2021, it increased to 31% flat. 

Crypto Taxes in Germany

Germany considers cryptocurrencies as private money and doesn’t recognize them as stocks, commodities, or monetary currency. In the country, you can get tax benefits for private sales. Up to €600 is tax exempted for private sales of cryptos. 

Crypto Taxes in France

Since Jan 1, 2019 (as per Article 150 VH bis of the French tax code (FTC)), France has had a 30% flat-rate tax on gains made by individuals on the occasional disposal of digital assets. By digital assets, they include everything from cryptocurrencies like Bitcoin (BTC) to utility tokens. The income tax rate and the social security contributions are 12.8% and 17.2% respectively. No tax is deducted just for holding or/and exchanging crypto.

Two additional situations are distinguished from that of flat crypto tax rates:

  1. For occasional (non-professional) mining activity, crypto gains are categorized under non-commercial profits or BNC. According to it, taxation is done at a 17.2% rate of social contributions. 

  1. The marginal tax rate in the Industrial and Commercial Profits (BIC) category and social contributions of 17.2% is applicable in situations concerning regular earnings (professional activity). 

Buy Bitcoin, Cryptocurrencies, Stocks, and Gold for a Better Return (ROI)

If you are ready to invest in stocks and cryptos or buy Bitcoins through online brokerage accounts of centralized or decentralized cryptocurrency exchanges, you can do so in a legit way by investing through stock investing and cryptocurrency apps. You have to open an account with such an exchange or online broker (including trading apps and investment apps such as TD Ameritrade). Then verify your details (including basic personal information) and fund your stock or cryptocurrency and bitcoins trading account. 

The best thing about the Bitcoin and crypto market is that the transactions are done without the involvement of banking entities. This is one of the reasons why more and more investors (including corporates, venture capitals, and institutional investors) are heavily investing in cryptos. 

You can start depositing funds to your stock or crypto exchange account to buy company shares or cryptocurrencies. This can be done by simply connecting your online banking account (savings accounts, checking accounts, or other account types). Besides transferring fiat currency money online through bank transfer, you can make payments with other payment methods including credit cards, debit cards, and others. 

If you need further assistance, you may consider taking help from the vibrant and helpful trading communities. You can trade cryptos with credit cards (business credit cards, personal ones, or Citi custom cash cards), debit cards, or other payment options through reliable crypto trading web platforms. 

You can also check the savings calculator to know how much you should save on a weekly, monthly, or yearly basis. Check the financial news to know more about the prospects of various assets so that you can build long-term wealth.

In case you are bullish on the future prospects of gold, stock and ETF trading, crypto market, Bitcoin BTC, Ethereum ETH, Bitcoin Cash BCH, Litecoin LTC, Ethereum Classic ETC, Bitcoin SV, Wrap Bitcoin, and other altcoins, you can start investing in stocks, gold, Bitcoin, and other altcoins with USD. Once bought, transfer them to:

  • hot wallets (including mobile app wallets and software crypto wallets) or 
  • cold wallets (including most secure hardware wallets) 

Hold them for a longer time period to let the Bitcoin BTC price increase. Keep your cryptocurrencies safe with:

  • Ledger Nano S
  • Trezor One
  • Other Ledger and Trezor models

Crypto market investing will provide you with a higher return in the long run. The ROI from crypto investment is much more than investing in:

  • Stocks
  • Mutual funds
  • Index funds
  • Real estates
  • Yield savings accounts
  • Real estate investment trusts
  • Fiat currency trading (forex trading)
  • CD rates
  • Trade Options
  • Money saving in savings accounts
  • money market returns
  • Exchange traded funds
  • IRA accounts (including Bitcoin IRA), and others. 

In fact, many retirement funds or IRA accounts such as Roth IRAs are allowing digital currency investors to purchase XRP, Bitcoin, Chainlink, and other digital assets. These retirement funds are increasing investor choice by allowing them to invest a small percentage of their money in cryptocurrencies. This is, in turn, increasing the prospects of these funds to provide their investors to get higher returns. If you are thinking about building wealth, you should include cryptos in your portfolio like other crypto investors. 

Therefore, it can be concluded that holding Bitcoin Ethereum and other cryptos can help you to build real wealth and multiply your net worth. You can learn investing basics to buy crypto currency and other digital assets to make more gains. Start going through Wall Street Journal and other investing magazines on cryptos to learn more about investing in crypto market and make better financial decisions. Learn about valuation calculation to true bitcoin value and assess the overpriced or underpriced situations instantly. 

As a beginners guide, you may also check out the trading basics provided by various cryptocurrency exchanges such as Coinbase, Binance, Kraken, and other crypto APIs. There are many brokers suitable for beginners as well. So, read reviews of customers before joining a crypto exchange. There are many brokers for beginners in the USA through which you can trade and invest extra cash and investible fund in fractional shares and stocks funds. 

You should definitely learn about:

  • Trading for beginners (Step By Step guide)
  • Types of stocks including penny stocks, value stocks, growth stocks, blue-chip stocks, etc.
  • Gold standard
  • Futures contract
  • Gold miner, gold mining company, and gold mining stocks
  • Bad debt and bad credit
  • Home equity
  • Employment tax records and receipts
  • Periods of limitations
  • How credit score is determined?
  • World gold council
  • How is the price of gold and other precious metals determined?
  • How to rent out your car to make money
  • Significance of owning gold
  • Stock plans
  • Fixed income assets
  • Stocks and Funds
  • Spot price and futures price of gold
  • Write an eBook to start making money 
  • Use spare time and personal internet connection to earn extra cash through part-time graphic design
  • Asset allocation
  • Investment gold
  • Different ways of buying and selling golds
  • How to make money from Google adsense?
  • Gold stocks
  • Utilizing market news for profit
  • Significance of Dow Jones in the stock market
  • How to increase your disposable income through balance transfers credit cards?
  • Different trade ideas
  • Warren Buffet’s investing styles
  • Passive investors
  • Different investment goals
  • Teaching as a private tutor in your free time
  • Cash Management
  • Investing for beginners
  • How to choose brokerage firms and stock exchanges?
  • Gold markets
  • Trading strategies for beginners to time your entry and exit
  • Using price actions to one’s advantages
  • Teach english to earn lot of money online and start saving
  • Browsing websites can also help you earn little extra cash
  • Margin Requirement
  • Margin Call
  • Margin Account
  • Day Trading Margin
  • Trend Trading
  • Market Maker
  • Options trades
  • Fundamental Analysis
  • Short Sell
  • Market Research
  • Success Rates Of Day Trades
  • Trading Vs Investing
  • Swing Trading
  • Time Frames Of Trading
  • Successful Ways Of Buying Stocks And Cryptos Throughout The Day
  • Risk Management
  • Financial Industry Regulatory Authority
  • Trade On Margin,
  • Foreign Exchange Trade
  • Pattern Day Traders
  • Day trading rules
  • Active trading
  • Secrets of a successful day trader
  • Stock price actions
  • How to pay off debt quickly
  • Planning for retirement 
  • IRA guide and fruitful ways of increasing returns of individual retirement accounts
  • Stock price determinants
  • Charles Schwab’s modern approach to investing and retirement
  • Day Trading Tools, trading software, and different financial tools. 

Defi tokens and NFTs (Non Fungible Tokens) are the next generations of crypto coins. These decentralized coins have started to become very popular among active traders who trade cryptocurrency. You can buy sell them through crypto trading platforms too. 

Whether you buy Ethereum ETH or buy Dogecoin, you should also invest in: 

  • Chainlink LINK
  • Litecoin LTC
  • Binance Coin
  • Cardano ADA
  • Polkadot DOT
  • Dogecoin DOGE, and 
  • Trade Litecoin LTC for better diversification of coins

To diversify your portfolio, you may also buy stocks through stock brokers for beginners and pro.

Get better guidance on improving your personal finance, retirement planning, management of cash flows or capital gains, and investment ideas from financial advisors, investment managers, and wealth managers, especially the ones who are not averse to cryptocurrencies such as Bitcoin and others. 

While day trading, you should always try to invest only that much money which you can afford to lose. When you do margin trading, be very careful. Financial protection must be there in your mind always while you make cryptocurrency trades. That’s why having a secure financial plan is so important. 

Invest money in stocks, gold, and other cryptocurrencies through centralized or decentralized exchanges and reliable online brokers. 

Choose NapBots to Increase ROI

Trading Robots (such as automatically scans the market in real-time and trades for you. They run 24/7, which means that you can keep earning your passive income even when you are sleeping. This gives you an edge over other investors as it enables the bot to book profits on your behalf when other investors are sleeping.

Smart crypto investors always remain prepared to get the best of a big market move. They don’t wake up suddenly. To remain alert round the clock, they use cryptocurrency trading bots so that they don’t miss any big market movement. is a Trading Bot, cloud-based platform, on which you can connect to major exchanges such as Binance, Bitmex, Bitfinex, OKEX, Kraken, Bitstamp, and Bitpanda. 

The best thing about the Napbots trading software is that you don’t have to monitor charts and candles to predict your next move. Any novice trader with zero skills can also start trading like a pro and earn money with this unique trading tool. Let Napbots take full control over your trades in just a few clicks. Now, sit back and enjoy earning money. 

You may also check “Napbots Review - Simple Way To Increase Your Crypto Returns” before taking the plunge.

What’s so special about NapBots?

NapBots crypto trading software is special because it comes with:

  1. A unique trading algorithm that processes market data for you 
  2. A unique crypto trading bot library so that you can create your own mix of trading strategies
  3. Autopilot mode that enables you to automate trading 24x7
  4. An easy-to-use interface so that you can copy the proven strategies of NapBots to make successful trades and make money

How to Get Started with NapBots?

NapBots is easy to start with. It involves just 3 steps:

Step #1: Connect to one of the available trust exchanges.

Step #2: Select from the unique list of performing Bots of NapBots

Step #3: Choose a plan that suits your investment style

Once you have completed these three steps, NapBots is ready to trade cryptos and earn money for you. Happy Trading!

Why Choose NapBots?

  • NapBots offers complete trading automation solutions through the use of its own tested trading strategies; offering quantitative trading strategies previously reserved for hedge funds to the public. 

  • The setup and installation process are easy. So, the non-experts can also use it. The simple and special approach of NapBots helps it provide you with excellent ROI. 

  • The team of professionals behind NapBots has extensive experience in the financial market. They have put their years of experience in place so that you can easily automate the management of your funds with no technical skills. This service can run 24/7 and work as your passive source of revenue even when you sleep.