CRYPTO TAXES DECODED: UNDERSTANDING YOUR DIGITAL DUTIES
In the era of globalization, the world is witnessing a profound transformation in the way financial transactions are conducted. Cryptocurrency has emerged as a disruptive force with the ability to transform the global economy as it opens up new channels for cross-border transactions, investment opportunities, and financial inclusion as old barriers to commerce and finance continue to fall.
Cryptocurrencies have grown in popularity in the Philippines over the past several years, as Filipinos now have the option of investing their hard-earned cash in cryptocurrencies. The next query is: What taxes are cryptocurrencies subject to?
There has been debate over whether taxes should be imposed ever since cryptocurrencies first emerged. In the Philippines, former Finance Undersecretary Antonette C. Tionko emphasized that cryptocurrencies are digital or virtual assets whose gains are subject to income tax. Meanwhile, former BIR Deputy Commissioner Arnel Guballa also added that cryptocurrency-based games are also subject to Value-Added Tax (VAT). Moreover, a capital gains tax on cryptocurrency transactions has also been implemented on profits made from the sale or exchange of cryptocurrencies and purchases made using cryptocurrencies.
Cryptocurrencies offer a lot of benefits, such as convenience, practicability, and ease of doing business. However, users must conduct research before buying, holding, or trading them and be mindful of the laws and regulations relating to them. Moreover, users must be mindful of using them to minimize liabilities and maximize profits.
Join us at T.A.X. Satori as we embark on a journey to unravel the complexities of cryptocurrency’s role in a world connected like never before and discover how this transformative technology is breaking down barriers, creating new opportunities, and revolutionizing the way we perceive and engage with finance on a global scale.