New reports from Azerbaijan claim that the country joining the growing number of countries that are levying taxes on crypto-related revenue. The new requirement was brought up on May 5th at Baku’s second Finance and Investment Forum.
Azerbaijan introduces new crypto taxes
Governments are realizing that cryptos are not going to go away. Their price of allowing them to stay, however, is the implementation of taxes on received revenue. More and more countries are making this move, and Azerbaijan is the latest.
According to Trend News Agency, Tax Ministry’s deputy director general, who is in charge of tax policies and the department of strategic research, Nijat Imanov, has been the one to table this requirement. He stated during the Finance and Investment Forum that revenues received in cryptos within the country need to be subjected to taxation when selling at a higher price resulting in profit. This profit will be recorded and seen as income, on which the country will impose a tax. In case of individuals making the profit, the tax will be called ‘income tax’. If the profit was made by legal entities, the tax will be called ‘profit tax’.
Crypto world is expanding
Cryptos have received much attention in the last few years, and have become a popular ways of prospecting for profit around the world. Azerbaijan is no different than other countries when it comes to this, and its market grew significantly during the second half of 2017.
During this period, people managed to make a serious profit with only $10 invested, claims Crypto Consulting company founder and director, Elnur Guliyev. He said that situations like that are not common and that buying and selling Bitcoin has been the least expensive option. Other cryptos have been used for this purpose as well.
Azerbaijan is not alone
Implementing crypto-related taxes is not new, with taxpayers in the US already required to report any income that they receive during their crypto trades. They have to include this income as their wages, which are then subjected to taxes.
India has been pretty vague regarding the regulations for cryptocurrencies as of yet. Still, that has not stopped them from creating tax plans that will be imposed on their citizens in the near future.