The Albanian authorities have reportedly decided to impose a tax on income generated from cryptocurrency trading. This law is to come into force from the beginning of 2023.
Albania’s crypto environment
In 2020, the Balkan country demonstrated its intention to regulate the local cryptocurrency sector by passing a law called “Financial Markets Based on Distributed Ledger Technology”. The law caused a significant controversy as some welcomed it, while others were skeptical that Albania had the expertise to implement such a comprehensive regulatory framework on digital assets.
Furthermore, the nation is known to be one of the main participants in the global cocaine market, with many experts warning that criminals may be using cryptocurrencies to profit from such illegal activities. Last year’s MONEYVAL report confirmed those concerns:
“The next monitoring report for Albania concluded that this country has not significantly improved its measures to combat money laundering and terrorist financing in accordance with the recommendations of the FATF. Examines international standards, including cryptocurrencies and providers of such assets.”
According to a recent coverage, the Albanian authorities have once again touched upon the cryptocurrency industry, intending to tax individuals who generate income from dealing with the asset class. Profits from business purposes will be taxed at the per business rate, while investors will have to pay 15% of their annual income to the government.
Nonetheless, the law would not refer to digital currencies issued or backed by central banks such as China’s e-CNY and Nigeria’s eNaira. Albania has yet to launch its CBDC.
The upcoming legislation also focuses on crypto mining. Officials mentioned that in the past years the area had been a gray area but has recently emerged as an interesting place where many individuals invest their wealth and earn considerable profits. At the moment, it is not clear whether the Albanian authorities will impose the tax on the miners as well.
worldwide crypto tax
Some countries, including Germany and India, have already implemented crypto taxation policies. However, it is worth noting that Europe’s largest economy made some amendments last month. The German Ministry of Finance revealed that sales of acquired bitcoin and ether would not be taxed if individuals held the coins for more than a year.
Portugal also considered taxing digital asset gains. A few weeks ago, the country’s authorities rejected two separate bill proposals focused on the matter, and as of now, no tax is imposed on crypto trading.
Australia is another example where legislation like this is about to come. The Australian Taxation Office (ATO) underlined that taxing profits from cryptocurrency trading is one of the authorities’ key goals for 2022.
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