CryptoEvent

Report: Albania will start collecting cryptocurrency taxes in 2019

According to reports, Albania in southern Europe will start taxing digital currency gains as of 2023.

According to the local news outlet Exit News, the taxation action is based on a new income tax draft law by the country’s parliaments. This draft law has greatly clarified some of the ambiguities in the nation’s digital currency ecosystem, including the definitions of “virtual assets” and “cryptocurrency mining.”

The new draft laws on virtual currency defined it as a digital representation of a value that can be deposited, traded, or transferred in digital form, and that can be used for payment or investment purposes or as a medium of exchange, including but not limited to cryptocurrencies, excluding Central Bank Digital Currencies from the definition (CBDCs).

Individuals and businesses will pay taxes following the new legislation to reflect their proportional income and investment in the digital currency ecosystem. While larger and more structured Bitcoin mining farms will be forced to pay a business tax that is frequently tailored to meet the business profile, individual miners will be assessed a capital gain tax of 15%.

Although Albania’s approach to monetary policy, in general, has drawn considerable criticism, the nation did not receive very high marks from MONEYVAL, the European Union Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism. The regulator observed that Albania had not taken major steps to combat money laundering, a weakness that might be exploited should the nation become a refuge for money laundering involving cryptocurrencies.

In the developing bitcoin business, taxation has remained a crucial topic. Along with Albania, other nations taking this seriously include India, Norway, and the United States of America.

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