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Cryptocurrency taxation: Whos paying and whos not a country-wise analysis by Divly

2023-04-10 17:05:18 ET

It is a widely recognized tradition of businessmen and investors globally who try to hide their actual income to reduce their tax burden. The cryptocurrency industry, with estimated 420 million users worldwide, follows suit.

As per the latest report dubbed Global Cryptocurrency Taxation Report 2022, about 0.53% of the entire industrys crypto holders paid taxes last year. While on the other hand, about 95% of digital assets owners remained unwilling to pay their taxes .

Divly, a cryptocurrency tax firm out of Sweden, conducted the survey across 24 countries and published it on Wednesday last week.

The platform also revealed its approach to accumulating the crypto-related tax payment rate across countries. For this purpose, the platform analyzed official government figures, the available cryptocurrency ownership data and the search volume data.

The Oceania region topped the rank among the continents with the most number of cryptocurrency users paying taxes on their crypto holdings. Per the surveys findings, 3.25% of the Oceania residents paid taxes on their digital coins holdings. The survey conductor, Divly, noted the report that the above figure is only of those traders and investors who reveal their crypto-ownership to their respective authorities. This top performance by the Oceania region can easily be credited to the continent of Australia.

Australia , a major representation of the Oceania region, became 2nd in the countries list that ranked higher in accumulated crypto-related taxation. According to the report, about 3.65% of Australians paid tax on their digital assets holdings.

North America, with a 1.62% compliance rate on crypto-related taxes, stood second in the list of the continents. Followed by the continents of Europe and Asia, where about 1.52% and 0.20% of crypto owners paid taxes to their governments, respectively.

It is important to note that the entire Oceania region comprises the least cryptocurrency userbase but pays the highest taxes among continents. The calculated 3.25% figure of the taxation-compliant users represents only 1.5 million regional crypto users.

Other continents like Asia, North America, South America, Europe, and Africa represent about 240 million, 54 million, 33 million, 31 million, and 38 million crypto users, respectively.

Per the report, the platform analyzed about 24 countries with massive crypto adoption rates for this survey. Finland, a northern European country, ranked first among countries with the highest number of crypto owners who paid their taxes. Last year, about 4.09% of Finnish crypto traders and investors paid taxes on their trades.

Australia stood second in this list of cryptocurrency userbase to pay crypto-related taxes to their government. Austria, Germany, the U.K., Norway, Japan, Sweden, Canada, and the U.S. followed Finland and Australia and became the top 10 countries in this list of 24 explored countries.

Brazil, India , Indonesia, and the Philippines stood at last on this list with only 0.1%, 0.07%, 0.04%, and 0.03% cryptocurrency holders who paid taxes on their holdings.

The post Cryptocurrency taxation: Whos paying and whos not a country-wise analysis by Divly appeared first on Invezz .

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Cryptocurrency taxation: Who's paying and who's not - a country ... - InvestorsObserver