ChainCatcher news, according to the Korea Economic Daily, in light of the recent agreement reached by various political parties in South Korea to cancel the planned financial investment income tax, the cryptocurrency capital gains tax originally scheduled to be implemented in 2025 is now more likely to be postponed until 2027. A Democratic Party official stated that it is now deemed necessary to delay the cryptocurrency capital gains tax to maintain fairness.The South Korean government proposed a tax law amendment in July that includes the postponement of the cryptocurrency capital gains tax, but there has been uncertainty regarding the passage of the amendment due to the Democratic Party's opposition to other tax reduction policies proposed by the government. Democratic Party member Min Byoung-dug emphasized that before legally taxing the income from the virtual asset industry, legal recognition of the industry must first be established, thus he supports the current decision to postpone taxation on virtual assets.

ChainCatcher news, the Argentine Chamber of Deputies has passed a cryptocurrency tax regulation bill aimed at advancing a series of important government reforms. The bill introduces the possibility of regularizing previously undeclared cryptocurrency assets, up to a maximum of $100,000, without paying government-imposed fees. However, if the value of the cryptocurrency assets exceeds this limit, the government will apply a preferential tax rate based on the taxpayer's declaration date.

ChainCatcher news, the Biden administration released the 2025 budget proposal on March 11, which includes provisions for a series of regulatory measures for digital assets.It is expected that the proposed rules for digital assets by 2025 will generate nearly $10 billion in additional tax revenue. Among these, it is anticipated that applying anti-money laundering rules to digital assets alone could raise over $1 billion in taxes in the 2025 fiscal year; incorporating digital assets into fair market valuation rules (which require taxation based on the current market value of securities rather than the purchase price) is expected to generate an additional $8 billion in revenue that same year. Additionally, the proposal also imposes a consumption tax on cryptocurrency mining operations.

ChainCatcher news, the Argentine government, under the leadership of Javier Milei, has decided to forgo the tax opportunity on cryptocurrencies in the comprehensive bill submitted to Congress. The bill allows taxpayers to declare some previously undeclared asset ownership, including cryptocurrencies. Interior Minister Guillermo Francos stated that the decision to withdraw these proposals was due to the lack of consensus in Congress on this part of the bill. "The proposal aims to create freedom for economic development. It must be implemented as soon as possible. The tax part is smaller and can be processed later."

ChainCatcher news, according to Nikkei, based on a proposal being discussed by Japan's ruling coalition, if Japanese companies hold digital assets, they will no longer need to pay taxes on unrealized cryptocurrency gains. Under the proposed tax law changes, cryptocurrencies held for purposes other than short-term trading will be exempt from corporate tax at the end of each fiscal year based on market value assessment.

ChainCatcher news, according to the new income tax rules passed by the Brazilian Senate on November 29, citizens may soon be required to pay up to 15% tax on income from cryptocurrency holdings in foreign exchanges.According to the bill, starting from January 1, 2024, any citizen earning more than $1,200 (6,000 Brazilian Reais) from exchanges outside Brazil will be taxed; income earned before December 31 of this year will continue to be taxed at the current rate of 8%. The bill will also affect "exclusive funds"—that is, investment funds with a single shareholder, as well as foreign companies active in the Brazilian financial market. The government hopes to raise $4 billion (20.3 billion Brazilian Reais) through this measure in 2024.Currently, the bill has passed in the House of Representatives and is expected to be approved by President Luiz Inácio Lula da Silva.

ChainCatcher news, the UK government is urging cryptocurrency users to voluntarily disclose any unpaid capital gains or income tax to avoid penalties, and has released guidelines for tax payments. Users who have already disclosed can pay all necessary amounts within 30 days from the date of disclosure. The post states that if this is not completed by the deadline, HM Revenue and Customs (HMRC) will take steps to recover the funds, and users may face penalties.

ChainCatcher news, according to The Wall Street Journal, to address the issue of tax evasion by cryptocurrency investors, the U.S. Treasury Department has proposed new tax regulations. These regulations aim to simplify complex tax issues and ensure that cryptocurrency investors comply with tax laws. According to the proposal, by 2026, cryptocurrency trading platforms such as Coinbase will be required to submit Form 1099s to the IRS, reporting the total income from transactions.In addition, trading platforms will later begin reporting the cost basis of assets purchased by customers. The purpose of these new regulations is to increase tax transparency and ensure that investors report their taxes correctly. Furthermore, these regulations will also apply to non-fungible tokens (NFTs) and decentralized finance platforms.

ChainCatcher News, the Japan Blockchain Association (JBA) calls on the national government to amend the tax system to accommodate cryptocurrencies. The JBA claims that its review of the current tax system indicates that the growth of Web3 businesses in Japan is being hindered.Specifically, it demands that the personal transaction tax be set at a uniform rate of 20% and that profits generated from crypto transactions be exempt from taxation. Statistics from the Japan Cryptocurrency Exchange Association show that as of April 2023, approximately 6.8 million crypto accounts have been opened. The JBA believes that if the tax system is amended, investment will increase, according to a survey.The JBA also calls for the elimination of the unrealized profit tax on third-party issued tokens at year-end, stating that companies will no longer need to sell their held tokens to pay taxes, which will lower the entry barriers for Web3 businesses.Earlier this week, Japanese Prime Minister Fumio Kishida stated that Web3 has the potential to change the traditional internet framework and contribute to social transformation, and the government is committed to creating an environment conducive to promoting Web3.

ChainCatcher news, U.S. Senate Finance Committee Chairman Ron Wyden and member Mike Crapo issued an open letter on nine topics including digital asset lending, staking, and mining, aiming to seek help from the cryptocurrency industry to better understand how Congress can address the tax challenges and opportunities presented by digital assets. The committee will collect feedback by September 8, 2023.

ChainCatcher News, U.S. Representatives Brad Sherman and Stephen Lynch urge the IRS and the Treasury Department to formulate cryptocurrency tax rules as soon as possible. Brad Sherman believes that for many years, the cryptocurrency industry has been a major source of tax evasion and a significant component of the national tax revenue shortfall. (Source link)

ChainCatcher News, the IRS is ramping up its efforts to combat international cybercrime.The IRS will enhance its oversight of "tax and financial crimes involving the use of cryptocurrency, DeFi, peer-to-peer payments, and mixing services" through a pilot program established by the agency. The program officially launched in June, and the IRS is preparing to send staff to Germany, Colombia, Australia, and Singapore for investigations. The deployment of staff is expected to last for 3 months, concluding in September.In the United States, the IRS has warned that a crackdown on cryptocurrency is imminent regarding digital assets and tax evasion measures. The IRS is expected to update tax regulations based on Sections 6045 and 6045A, both of which cover broker reporting of digital asset information. (source link)

ChainCatcher news, according to Watcher.Guru, U.S. President Biden stated during his speech on the last day of the G7 summit: "I will not agree to a deal that protects wealthy tax evaders and cryptocurrency traders while putting food assistance at risk." (source link)

ChainCatcher news reports that TaxDAO today released an analysis of the "2023 National Budget of Portugal Related to Cryptocurrency." The article states that until the end of 2022, Portugal was one of the few countries in Europe where cryptocurrency transactions (e.g., capital gains) were exempt from personal income tax.However, starting in 2023, there will be significant changes to the tax framework for crypto assets. In terms of personal income tax, the definition of crypto assets is expressed as "a digital representation of value or rights that can be electronically transferred or stored using distributed ledger technology or similar technology," excluding single crypto assets and non-fungible crypto assets.The gains from the disposal of crypto assets will be treated as capital gains, and a standard 28% flat tax rate will apply to the positive balance of capital gains and losses generated from the disposal of the aforementioned assets, unless these assets are held for more than 365 days, in which case an exemption will apply (but this does not apply to crypto assets classified as securities). (source link)

ChainCatcher news, according to Cointelegraph, as the deadline for submitting 2022 federal income tax returns approaches, the Internal Revenue Service (IRS) has released a checklist of requirements for reporting cryptocurrency income. The term "virtual currencies" in previous reporting forms has now been updated to "digital assets."It is reported that the checklist provides nine instances where "yes" must be checked, such as receiving, earning, transferring, or selling cryptocurrency for any monetary gain, including mining and staking. The only situation where taxpayers can check "no" on the form is if they purely hold crypto assets, transfer assets between their wallets, or purchase cryptocurrency with fiat currency. (Cointelegraph)