New Data Shows 99.5% of Cryptocurrency Investors did not Pay Tax on their Crypto in 2022
The social media influencers in Finland and Australia tout the biggest amount of cryptocurrency investors. Meanwhile, the USA ranks 10th on the global scale based on a new study. This report has come from a Swiss crypto taxation firm called Divly which has published these metrics.
This study has claimed that only 0.53% of cryptocurrency investors around the globe paid their capital gains taxes for 2022. However, these figures are still not studied, and some tax consultants have shared their concerns about the accuracy of these figures.
The Divly report was published on 5 April, while the analysts at the firm have suggested that they came up with these figures on account of their total crypto taxation filings for last year.
The firm has also maintained that they have analyzed the volume of crypto taxation-related guidelines on their website and other related keywords across different nations. This report has also made use of the Statistica Global Cryptocurrency Report to find out the total frequency of crypto investors in different countries and legal jurisdictions.
The report has maintained that the highest number of crypto investors is found in Finland, with a 4.90% taxation rate in 2022. The second largest population of crypto investors hails from Australia, which has shown a taxation filing rate of 3.65%.
Meanwhile, the United States is ranked 10th largest in terms of crypto investment positions and shows a taxation rate of 1.62%. Other nations with the lowest capital gains taxation submission are India, the Philippines, and Indonesia. However, the theory and methodology used to drive these results are still unaudited and ambiguous.
Other reports reveal that most taxpayers search for crypto taxation guidelines online. There has been some controversy around this topic since DeFi is still a largely unregulated sector. Thus financial analysts raise a question on the legal implication of capital gains levy on crypto investors.
Meanwhile, there are some countries, such as India, where high taxation on crypto is imposed to discourage investors from participating in this market. However, Koinly is a crypto app developer that does not agree with the data projections published in the Divly report.
The Majority of Crypto Investors do not Pay Taxes
Danny Talwar is heading Koinly has explained that there this report is likely to gather attention from the common denominator. He mentioned that 99.5% might not reflect on the taxation environment of countries that have strict compliance mechanisms, such as India, the USA, Canada, and Australia.
Greg Valles is a Chartered Accountant serving as a board member of Blockchain Australia. He claimed that it is not correct to conclude that the methodology used in the Divly report is completely accurate.
He claimed that the updated government agencies and taxation methodology has made tax collection more efficient and transparent. He also emphasized that the report may reflect poorly on the performance of financial regulators in the countries that are working to achieve the best possible taxation compliance under their jurisdiction.
He further shared that tax violations for crypto trading are typically more severe in comparison to other assets. Talwar pointed out that the Koinly report has revealed that only 15% of investors searched for crypto taxation laws since other investors are already well-versed in the matter.
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