Bitcoin Taxation - How and Why

A bit of a read today! No beer! TAX and BITCOIN. Yes in the same sentence. Local versus global. What is your take on it?

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We are all taxpayers, willingly or not! Community would fall apart otherwise. Only a radically different state of consciousness would make everything work. Bitcoin will follow that, I’d wager. In developed countries faster than in poor ones. Let’s look at the state of Croatia.

I’ve spoken to several people and they are all dumbfounded on how to get their money out of the virtual without getting fined. Croatian IRS is a maze of regulations and BTC is in all reality still the future of money. I wouldn’t even try talking with them without an experienced accountant.

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This is what I’ve read just the other day in BUG, a Croatian computer and information technology magazine. Image courtesy of @carebbear.

http://www.bug.hr/

In translation:

There is no levy but there might be one [in the future or now? Unclear in the text]

According to the existing tax law of Croatia, Bitcoin and other cryptocurrencies are not taxable because they are not considered to be the means of lawful payment and, beside that, they are not perceived as stocks, in other words, there is no corporate tax on it.

However, in 2014 Swedish Supreme Court has submitted a request for the statement on the bitcoin taxation from The European Court of Justice, and according to the veredict there will be potential changes to the tax treatment of Bitcoin. Since the decisions of The European Court are binding legal acts of the EU, all members must uphold them. That is the case with Croatia as well.

As for the other members of the EU some implemented a tax on Bitcoin, that is, classified it as corporate tax, which in turn is subjected to particular tax laws of any one country. For example, Germany has that kind of law. But, on the other hand, you can be free of this tax if you hold [HODL, really?] a cryptocurrency for more than a year.

In all honesty. This seems vague and even ridiculous, especially the last part.

How do exchanges deal with it?

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The biggest one in Croatia is bitcoin-mjenjacnica.

https://bitcoin-mjenjacnica.hr/#buy-hrk-btc-national-hr

Operated by the very entrepreneurial Nikola i Marin. Just check their website and call them if you don't find it trustworthy. They should be available.

They sent me a response to the article over What's App no less!

We can not confirm anything related to the tax policy of Croatia since the tax policy is unclear. The only advice we can give to people is to make an effort to consult with theTax Administration by themselves and with a qualified accountant. Magazines and exchanges are not a competent source of information for dealings with the Tax Administration.

The crux of the problem: they send you money on your IBAN account. How to proceed with that? Any advice?

Wow, that was quite a read today! I'm off to The Who Cares For Beer Festival!

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