The National Revenue Agency of Bulgaria announced to start a series of investigations of cryptocurrency selling companies according to the crypto news coming from Sofia-based news outlet Novinite reports.
The reason for the investigation is to make sure that the companies are in compliance with the tax regulation because the agency thinks that crypto-related businesses are the perfect way to get to tax evasion.
According to the revenue agency, there has been already a conducted survey of the companies that operate in the country by selling and purchasing cryptocurrencies- crypto exchanges. After the investigation of approximately nine companies ends, the tax authority will determine based on the gathered information whether the users declared their income from the crypto exchanges.
In Bulgaria, the income from selling digital currencies is declared in annual tax returns and is treated as profit from selling a certain digital asset taxed by 10 percent. The companies who make profits from the selling of crypto assets fall under the Corporate Income Tax Act.
For example, in other countries such as Denmark, the tax authority is authorized by the tax council of the country in order to gather all the needed information regarding the trades of cryptocurrencies across domestic crypto exchanges.
Another example is the United States’ tax agency that has stopped its request towards popular crypto exchange Coinbase to turn all of the information on the US users and instead the court ordered that only information regarding high-transacting users is required which is about 13.000 users.
Guangdong Province In China To Use Blockchain-Based Tax Payment Platform
“Blockchain technology has established a highly mutual trust data sharing mechanism among tax authorities, invoice service providers, taxpayers and other parties. This is a major reason for the tax authorities to take a new step in deepening the [technological] reform [by] the distribution services.”Back in December 2018, one of the bigger cities in the Guangdong province-Shenzhen announced its success story of how blockchain technology helped with the tax invoices via the messaging app WEChat payment platform. Also, last year in November, the capital of the Guangdong and one of the most developed economic zones in China, Guangzhou, was chosen as a headquarters city for the new blockchain alliance. The alliance involves 54 different companies and is promoting blockchain technology in finances and trading. Countries around the world are opting for blockchain-based tax solutions because of the higher efficiency and transparency.
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