From July 2018, Australia will remove double taxation of transactions involving crypto-currencies such as Bitcoin.
A double taxation that has lasted too long
Under the current law, mandated in December 2014, Australians are taxed two times for the transaction of crypto-currencies. Once for the tax on the purchase of goods and services tax (GST), and a second time for crypto-currencies used in the transaction. The Bitcoin and other crypto-currencies are considered as a property that is “intangible” according to the rules imposed by the Australian Tax Office. “If you pay $ 4 in Bitcoin for a coffee, you will pay 40 cents of GST for the coffee and 40 cents for the Bitcoin you used to pay for the coffee,” explained Daniel Alexiuc, CEO of the startup, the australian Living Room of Satoshi. In a global policy of ” FinTech Priorities “, the australian Treasury has undertaken to revise the double taxation controversial at the beginning of the year 2016. “The government is committed to think about this double taxation on digital currencies and will work with industry stakeholders on the reform of laws relating to the GST as it is applied to digital currencies “, wrote the australian Treasury in a press release.
Australia is on all fronts
Earlier this year, the government has kept its promise by addressing the issue in the federal budget this year. In September, the government submitted the draft law to pave the way to a final law that will end the double taxation of digital currencies. All of these initiatives are able to stimulate the adoption and use of digital currencies in the country. The australian bureau of tax also seeks to respond to the growth of crypto-currencies, and even to adopt the technology Blockchain to standardize the process of taxation. If the crypto-currencies are emerging in greater numbers, it is certain that the government will have to adapt to some of these measures to ensure that the system of payment of fees is included.
Journalducoin Source : Cryptocoinsnews