Background of Bitcoin and Cryptocurrency
Tax on Bitcoin and Cryptocurrencies
Bitcoin and cryptocurrency as a Capital Gains Tax Asset
1. Tax for Passive Bitcoin and Cryptocurrency Investors
2. Tax for Active Bitcoin and Cryptocurrency Traders
Using business structures to trade Bitcoin and Cryptocurrencies
- Sole Trader: If you buy and sell bitcoin or cryptocurrencies in your own name, you can be taxed at the highest marginal tax rate of 47% tax.
- Companies: Or if you run your business through a company, you can pay tax at either 27.5% or 30% tax, depending on your turnover.
- Trusts: if you structure it through a trust, you basically distribute profit from that trust to family members, or other entities (like other companies) in your family group.
Record keeping of Bitcoin and Cryptocurrency trading