The Republic of Azerbaijan located in the South Caucasus region of Eurasia now taxes revenue received in cryptocurrencies. They joined many countries including Isreal to subject cryptocurrency revenues to taxation.
Nijat Imanov, deputy director of the tax policy and strategic research department for the Taxes Ministry announced this policy recently. Imanov stated that purchasing and selling cryptocurrencies is recorded as income and subject to taxation.
Purchasing and selling cryptocurrencies help the crypto market and are a common method to earn money. Experts observed that there is a rapid growth in the cryptocurrency market from May to December last year.
Elnur Guliyer, founder of Crypto Consulting Company notes that investing as low as $10 in any cryptocurrency could be beneficial. He added that this method could prove to be difficult and may not last for long.
Other Countries Tax Cryptocurrency Traders
Azerbaijan only started taxing revenue received in cryptocurrencies and many other countries have since begun. In the U.S, taxpayers report taxable income from cryptocurrency transactions.
South Africa’s tax agency announced to taxpayers that any cryptocurrency-related income will fall under normal tax rules. The South Africa government deems cryptocurrencies as assets of intangible nature thus, taxpayers must report gains or losses.
Israeli Tax Authorities demanded a share of profits from bitcoin traders who do not report cryptocurrency-related activities. The tax agency released a circular that declares bitcoin an asset and adds a percent of tax for cryptocurrency traders.
Other countries like India plan to collect taxes from citizens. The Indian government reminds investors to file their taxes on profits gained from cryptocurrency earnings.