In a new study by crypto analytics firm Coincub, Central African Republic is referred to as one of the best country in the world in terms of crypto taxation for residents. That is according to in-house rankings covering taxation aspects like taxes on crypto income or crypto capital gains.
Released on Thursday, Coincub’s tax rankings also bring up countries like Iceland, Israel, the Philippines and Japan as the locations less favorable to crypto investors.
Coincub mentioned classic tax havens or countries that offer foreign businesses and individuals minimal to no tax liability for their financial deposits, where crypto is no exception.
In Iceland, any crypto gains up to $7,000 are subject to under 40% tax, while bigger gains will incur 46%, the report notes. Under Israel’s tax regime, the sale of crypto is usually subject to capital gains tax, which is up to 33%. On the other hand, if crypto trading involves a business income tax, it may go as high as 50%.
In the Philippines, there is no tax on any crypto income under $4,500, but after that, any income is taxed up to 35%. The country’s government has also been discussing new taxes on crypto by 2024, raising concerns that Manila may follow India’s lead and impose a 30% flat tax on all crypto income.
Also Read: Central African Republic President Describes Launch Of Crypto, Sango Coin As an Important Milestone.
“The Central African Republic has adopted bitcoin as legal tender – that doesn’t mean all citizens are falling over themselves to use it by the way – and like with El Salvador, we watch to see the outcome. The country’s president is a huge advocate of all things crypto and hopes to build the Republic into a leading crypto hub. The Central African Republic has also announced the creation of Sango Coin, a cryptocurrency with a host of additional benefits attached to it. Turning the CAR into a crypto-economic zone to attract businesses and global crypto enthusiasts is the wider plan. The CAR may become another one of those countries that offer very favorable tax concessions to overseas investors as a means of boosting its economy. Tax as far as we can see doesn’t apply to crypto gains, but perversely the country has pretty stiff penalties for conventional tax evasion. Sango anyone?”
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