The Latvian authorities consider the possibility to impose cryptocurrency investment tax on capital gains, said Wednesday the representative of the Ministry of Finance in Latvian public radio.
Astra Kalani, Director of the Department of direct taxes Ministry of Finance of Latvia, said that cryptocurrency investments are very similar to the gains in the value of assets, therefore the Ministry of Finance may impose such assets is tax on capital gains. Also Calang recalled that, at the moment, the tax on capital gains in Latvia is 20%.
The implementation of this plan and regulate the use tax the cryptocurrency will require amendments in Latvian tax legislation.
Possible models of regulation of cryptocurrency were discussed in the Latvian Parliament on Wednesday, after the debate on the parliamentary budget and report of tax Committee on the situation with cryptocurrencies in Latvia, representatives of the financial regulator of the country, the Commission for Finance and capital (FCMC).
In the parliamentary readings have voiced the opinion that transactions and investments in cryptocurrency are considered to be extremely risky, although, at the moment, crypto-currencies are not recognized as currencies with legal tender, they can still function as trading instruments.
Financial experts investigative division, stressed that the special regulation of the cryptocurrency is also required in the criminal legislation and legislation on combating terrorism.
The government of Latvia has collected a working group which would make proposals on the future regulation of the use of cryptocurrency by July.
Janis Vucans, member of Parliament from the ruling centrist party Union of greens and farmers, said that currently the Latvian government did not take responsibility for the circulation of cryptocurrency.
In April it became known that South Africa introduced a tax on the profit for the cryptocurrency. Tax Spain sent requests to financial firms to provide information on the amounts and participants in transactions with cryptocurrencies, running the country’s largest rounding up members of the crypto community who evade taxes and launder money by using digital coins. Meanwhile, Thailand imposes double taxation on trading operations with cryptocurrency.