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Norway Rejects Bitcoin As Currency; Taxes As Asset, Instead
An anonymous reader writes "Norway is the latest country to consider the legal implications of cryptocurrencies like Bitcoin. Norway's director general of taxation has come out and said '[Bitcoin] doesn't fall under the usual definition of money,' which means that it will be considered as assets and charged under capital gains laws. This sentiment was echoed last week by the European banking authority as well, where citizens were warned of using the cyrptocurrency."
In the US, To be taxed at the lower rate, it must be classified as "long-term" - I.e. the asset must be held for at least a year before it's sold. Other (short-term) gains are taxed at the same rate as income.
tax fraud is assumed to be low in Switzerland compared to its neighbor states
Of course it is. Everything that's considered "tax fraud" in the rest of the world is considered a "business opportunity" in Switzerland.
They very clearly state that bitcoins have not been banned as a currency, only that it's status still has to be decided by Finanstilsynet (almost like SEC, but with a broader mandate).
The Norwegian IRS does not have the authority to claim it is a currency or not, only Finanstilsynet. All they do is tax what they see as an asset until Finanstilsynet gives other directions.
Nettvalutaen Bitcoins beskattes /. heading.
Translated
Quite different heading than the
Translated it just means "Bitcoins are to be taxed".
For example, tax fraud is assumed to be low in Switzerland compared to its neighbor states.
Tax fraud committed by Swiss citizens may be low . . . but tax fraud committed by citizens of its neighbor states in Switzerland is very high.
Schroedinger's Brexit: The UK is both in and out of the EU at the same time!
To follow up, and make the point even more explicitly, the same logic holds for foreign currency. if I hold Euros for more than a year and the Euro gets strong, I have to pay cap gains on that profit.
Mod comment:
Interesting: For some that may not know about the Swiss banking system
Overrated: For those that do know about the Swiss banking system
Insightful: Well, it's true
Funny: Made fun of the Swiss - always good
Troll: Winding them up about their dodgy banking system
Everything that's considered "tax fraud" in the rest of the world *was* considered a "business opportunity" *by certain Swiss banks*.
FTFY
As a Swiss citizen I'd like to point out that many (if not most) Swiss people don't agree with those business practices and are fed up with the bad reputation it has earned all of us. Much like not all Americans agree with US foreign policy (i.e. dropping bombs on innocent people)