Avoiding taxes on cryptocurrency trading profits (Cyprus)

[lory]

is your accountant Cypriot actually, please?

yes he is, I spoke with one in the UK said the same to me. Looks like it is the way it is all around Europe at least!

 

[CryptoEfficiency]

yes he is, I spoke with one in the UK said the same to me. Looks like it is the way it is all around Europe at least!

Thank You. Looks like it.

 

[CryptoEfficiency]

Good evening everyone.
Thanks for your replies..now that this was waste of time, any professional willing to help me with my case in cyprus? Thank you.
Have a nice weekend all

 

[gmbh]

Did anybody had success to get a bank account for a Cyprus Limited which does trading as business?

The problem with offshore companies like a Belize company is that you don't get crypto exchange accounts in the name of the company. Either they reject your application or you can't even submit it because they want (like ftx.com for example) the bank details of your company. But it's not possible anymore to get bank accounts for offshore companies, at least in my experience. So your offshore company is useless because you still have to register the exchange accounts in your own name.

So in the end the only solution would be a Cyprus Limited but even for this type of company I don't know a bank which would provide you a bank account if your company does trading.

 

[Thomas67]

Did anybody had success to get a bank account for a Cyprus Limited which does trading as business?

The problem with offshore companies like a Belize company is that you don't get crypto exchange accounts in the name of the company. Either they reject your application or you can't even submit it because they want (like ftx.com for example) the bank details of your company. But it's not possible anymore to get bank accounts for offshore companies, at least in my experience. So your offshore company is useless because you still have to register the exchange accounts in your own name.

So in the end the only solution would be a Cyprus Limited but even for this type of company I don't know a bank which would provide you a bank account if your company does trading.

The problem is not about trading itself but cryptocurrencies. For the latter you might wish to consider a fintech business account.

 

[Thomas67]

yes he is, I spoke with one in the UK said the same to me. Looks like it is the way it is all around Europe at least!

I'm not sure this is only defined at EU level (nor that UK interferes with CY tax law).

Regarding the taxation of crypto to crypto transactions, any view from a (cypriot) tax lawyer or from the tax commissioner in the case of active trading?

 

[uplana]

Regarding the taxation of crypto to crypto transactions, any view from a (cypriot) tax lawyer or from the tax commissioner in the case of active trading?

you want to find one and consult him.. there is so much possible in this small country / island that for now and the next few years in the future you will have opportunities which you won't have many other places.

 

[Thomas67]

you want to find one and consult him.. there is so much possible in this small country / island that for now and the next few years in the future you will have opportunities which you won't have many other places.

Sure, I know Cyprus pretty well. Wab the taxation of crypto to crypto transactions (active trading)?

 

[CyprusLaw]

Sure, I know Cyprus pretty well. Wab the taxation of crypto to crypto transactions (active trading)?

At the moment crypto to crypto is not considered a taxable event. From a legal perspective unless there is an amendment in the income tax law you cannot tax something that is not recognised in the legal framework.

The tax authorities are preparing something that will confirm that crypto to fiat is taxable as income (under income tax if an individual or corporate tax if company), it appears that crypto to crypto will not be covered, at least not yet.

 

[Thomas67]

At the moment crypto to crypto is not considered a taxable event. From a legal perspective unless there is an amendment in the income tax law you cannot tax something that is not recognised in the legal framework.

The tax authorities are preparing something that will confirm that crypto to fiat is taxable as income (under income tax if an individual or corporate tax if company), it appears that crypto to crypto will not be covered, at least not yet.

Thank you for this valuable status on crypto to crypto, much appreciated. Would the tax commissioner decide the contrary (to defend the interests of the tax department), I guess it would hence be possible to appeal the decision to court on this basis.

Performing a close follow-up of the tax law seems important given the announcements to come; I assume there is no official website reporting such changes though.

 

[CyprusLaw]

Thank you for this valuable status on crypto to crypto, much appreciated. Would the tax commissioner decide the contrary (to defend the interests of the tax department), I guess it would hence be possible to appeal the decision to court on this basis.

Performing a close follow-up of the tax law seems important given the announcements to come; I assume there is no official website reporting such changes though.

All the information we have is unofficial so we just need to wait. But we don’t expect much deviance.

 

[blizz]

The author is well known as reliable in cryptocurrency's profit advising, but he is not a tax expert at all. Anyway I can't see any relevant criticism in video's comments.

that apply for many of these video talents.

 

[bab00n]

At the moment crypto to crypto is not considered a taxable event. From a legal perspective unless there is an amendment in the income tax law you cannot tax something that is not recognised in the legal framework.

The tax authorities are preparing something that will confirm that crypto to fiat is taxable as income (under income tax if an individual or corporate tax if company), it appears that crypto to crypto will not be covered, at least not yet.

Very useful information, thanks for that for your input.

Given that crypto-to-crypto transactions are not taxable events, are there any simplifications on the accounting of an LTD if all assets are cryptos? I am asking this to understand whether each crypto-to-crypto transaction will indeed need to be booked (and charged as transaction by the accountant).

There also seem to be some laws on crypto taxation coming next month. Have you heard what what these might include?

 

[CyprusLaw]

Very useful information, thanks for that for your input.

Given that crypto-to-crypto transactions are not taxable events, are there any simplifications on the accounting of an LTD if all assets are cryptos? I am asking this to understand whether each crypto-to-crypto transaction will indeed need to be booked (and charged as transaction by the accountant).

There also seem to be some laws on crypto taxation coming next month. Have you heard what what these might include?

Even crypto to crypto transactions will have to be recorded.

With respect to the tax the information we have is that the tax aurhorities will confirm that the taxation on cryptos is based on income tax and corporate tax. Feel free to pm me to discuss further.
Of course this is always unofficial information we have so it could change.

 

[bab00n]

Even crypto to crypto transactions will have to be recorded.

With respect to the tax the information we have is that the tax aurhorities will confirm that the taxation on cryptos is based on income tax and corporate tax. Feel free to pm me to discuss further.
Of course this is always unofficial information we have so it could change.

Many thanks for the reply.

Regarding the transactions, I was not able to find any reasonable estimate of how much accountants would charge for, say, 25k+ crypto transactions (long/borrow/short). Do you happen to know much is charged charged in such cases? Obviously, I could export the transactions to accounting/cryptotax/cointracking or script a data dump in any required form.

As for tax legislation, no surprises or simplifications to be expected then - trading through the LTD apparently remains the only feasible way.

 

[CyprusLaw]

Many thanks for the reply.

Regarding the transactions, I was not able to find any reasonable estimate of how much accountants would charge for, say, 25k+ crypto transactions (long/borrow/short). Do you happen to know much is charged charged in such cases? Obviously, I could export the transactions to accounting/cryptotax/cointracking or script a data dump in any required form.

As for tax legislation, no surprises or simplifications to be expected then - trading through the LTD apparently remains the only feasible way.

Any changes to what I have said about the tax treatment would be towards being more beneficial, so there is no chance to get a more disadvantageous treatment.

With respect to the accounting please let me know if it would be ok to pm you

 

[bab00n]

Any changes to what I have said about the tax treatment would be towards being more beneficial, so there is no chance to get a more disadvantageous treatment.

With respect to the accounting please let me know if it would be ok to pm you

Thanks. Of course, happy to receive your pm.