Maltese Cryptocurrency Tax

Digital currencies such as bitcoin, have made a lot of buzz in the media over the past few years. However, it is only now that these cryptocurrencies have begun to be understood by ordinary citizens let alone to be trusted. Malta has not chosen to fall behind in accommodating the new currency. The state already set up a tax scheme for revenues that involve cryptocurrency investments.
The Bitcoin in Malta after its integration as an alternative to the traditional currencies in Malta is subject to taxation. Payment of goods using this digital currency attracts the same tax levies as revenues from conventional currencies such as dollars or pounds. The huge challenge that has seen most governments shut down digital currencies is that of tax evasion on trade dealings. In other cases, laws were passed that minimized the usage of cryptocurrencies
Cryptocurrency and global trade dealings
The use of digital currencies globally has been handled slightly different. The EU, however, considers payments for products transacted in the region using cryptocurrency as legal tenders which are not liable to VAT. While the transactions may be free of VAT, the goods and services themselves are subject to VAT charges. The utility of digital currency has broadened over the years, dominating even in the financial tradings on the Stock exchange. As a result, the currency gained more trust and value. Question on taxation regarding the subject of digital currencies rekindled as trade with the currency became more prevalent. The state of Malta has established some house rules on digital currency tax between those who buy and sell it quickly or after years.
Taxation on capital gains
In Malta legislation, Article 5 of the Income Tax Act lists the assets that when sold for a capital gain will attract taxation on the returns. The assets vary from immovable, intellectual properties and securities or interests of partnerships. The good news is that Malta does not charge tax from profits made through returns on the sale of cryptocurrencies. Other exemptions include gains made from the sale of bonds. On buying and selling of digital currencies, there is a condition for their exemption which detects that they have to be long term investments.
Cryptocurrency mining tax charges
In relation to cryptocurrency mining, earning huge amounts of digital currency over time will attract taxation. However, the miner can follow up for a tax refund on their incurred costs such as energy and equipment depreciation. 
Malta is growing and plans to adapt its laws on cryptocurrency taxes to keep up with times in the future.
 Learn More!
To gain more insight into the Maltese cryptocurrency system, reach out to SIGTAX. Our team of accountants, lawyers, and consultants stay au courant with the latest business trends and regulations in Malta. They can also help with legal counsel on how to set up a company in Malta including giving a profound understanding of the nations’ tax system. Thus, you can be confident that you will get relevant info which guides you to do everything the right way and in your favor.


Add new comment

To prevent automated spam submissions leave this field empty.

Benefit from excellence now! Get in touch with our experts and enjoy our state-of-the-art corporate services, from company formation all the way to audit, accounting and taxation.

Request PriceRequest Call BackFree Case Evaluation