Tax authorities took action to take drastic measures after seeing the profits made on cryptocurrencies.
The US, Canada, France, Germany, Italy, Japan and the UK, known as the G7 countries, are considering collecting taxes on their cryptocurrency earnings. At the G7 summit on February 12, Japan will focus on taxes on cryptocurrency earnings and Central Bank Digital Coins.
Japan had recently set standards on regulations. Before COVID-19, Japan distributed leaflets on regulations to the leaders of G20 countries. Cryptocurrency taxes went out of G7 countries. Spain plans to penalize untaxed cryptocurrency earnings up to $ 6000. At the same time, the penalties will work in the presentation of the wrong documents.
Hacienda (Spanish Tax Authority) plans to make a profits on offshore cryptocurrency accounts. In Russia, work on the cryptocurrency declaration system is expected to be activated in the 2021 financial year. In South Korea, cryptocurrency taxes are expected to arrive in 2022.
The cryptocurrency tax was activated in South Korea, but the three-month deadline for trades was suggested when exchanges were told the government would not be timely.