1) Will this tax clarity for cryptos apply for 2022 profits and after or does it apply also for profits before 2022?
It also applies beforehand. Let me know if you need additional assistant; email me firstname.lastname@example.org
2) Thank you. For further clarification;
1. If i bought different coins since 2017 and kept buying through different times through the years and never sold until today. Only accumulated.
When i sell, i need to sell all coins at once? What if i want to sell at different periods but withdraw to a bank all at once?
2. Will the above be considered to 12.5% tax (if i own a company), or no tax at all? Thank you!
If you sell at once it will be considered as a one off transaction by an individual or a company and will not be taxed. If you sell at various intervals it will be considered educated trading and will be taken under Corporation Tax for your Company.
If you did this as a person then it would be taxed under PAYE - which is not advisable as you would reach the high paying tax rate of 35% .
It is best to instruct us to get you a tax ruling so that you will have the Cyprus Income Tax Office Response in writing and binding:
---> then you will know how to act / trade --> sell at once or in intervals.
==> Having said this, if you create a Cyprus company and you become non dom ---> only pay 12.5% max on profits ---> it is totally worth trading of Cryptos under a company freely!!!
==> Or we can create an international company for you with no taxes ==> 100% tax free but note: Even the UAE is introducing taxes!!! 9% + Banking Issues
==> Cyprus Company works fine. We can facilitate any need.
Thank you, Kyriakos
Email me email@example.com
thank you for the video.
What do you mean sell only once? what happens if we sell once (all of our crypto assets) after 1-2 years of buying them and then we make another crypto investment and hold it for 1-2 years and then sell again? also, for clarification purposes, did you mean we won't get taxed if we buy only one crypto asset and hold it for 1-2 years and then sell all of the amount of that one crypto?or is this true if let's say we invest in 17 different crypto coins and hold them for a 1-2 year period? Please make more educational content on crypto in cyprus as this will be very valuable for all of us in the future.
Ok we will try to do something more specific but kindly note that it is best to obtain a tax ruling as the taxation per individual varies a lot; since crypto trading is subject to interpretation the video will give you guidance but not tax advice as your personal trades and circumstances must be taken into consideration to form a view as to how you will be taxed. Is this clear?
When u say number of transactions ( to see if its trading activity or not ) you mean transactions from crypto to crypto or only transactions from crypto to euro ?
The second; as from crypto to crypto are not considered reaslised gains
only transactions from crypto to euro taxed
So trading profits are not taxed upto 19500?
Yes that is correct
Thank you for your reply, however we have to pay social insurance?
No you do not have to pay social insurance as the proceeds are not considered salaried income
Also most Cypriot banks don't accept incoming funds from crypto exchanges so how are you meant to withdraw profits?
Usage of Binance card, purchase of tangible asset etc