Koinly
Irish Tax Law and Cryptocurrency
Taxation of Cryptocurrency in Ireland
In Ireland, cryptocurrency is treated as a capital asset, meaning that it is subject to capital gains tax (CGT) when it is sold for a profit. CGT is charged at a rate of 33% on gains exceeding €1,270 in a tax year.
Income from Cryptocurrency
Income from cryptocurrency trading or services is also taxable in Ireland. This income is taxed at the individual's marginal income tax rate, which ranges from 20% to 52%.
Capital Gains Tax on Cryptocurrency
CGT is charged on the profit made from the sale of a cryptocurrency. The profit is calculated as the difference between the purchase price and the sale price. Losses on cryptocurrency investments can be offset against gains, reducing the overall tax liability.
Corporation Tax on Cryptocurrency
Companies in Ireland that trade in cryptocurrency are subject to corporation tax on their profits. Corporation tax is charged at a rate of 12.5%.
Conclusion
The taxation of cryptocurrency in Ireland is complex and can vary depending on the individual's circumstances. It is important to seek professional advice to ensure that you are meeting your tax obligations.
The Irish government is currently reviewing the taxation of cryptocurrency and is expected to publish new guidance in the near future. It is possible that the tax rules for cryptocurrency will change in the future, so it is important to stay up-to-date with the latest developments.
Koinly
Komentar