Post
Topic
Board Legal
Merits 1 from 1 user
Re: 0% tax when cashing out crypto
by
kassad1
on 18/12/2018, 17:59:02 UTC
⭐ Merited by freigeist (1)

Very nice.

You think they will buy it?

I definitely do! Please see below...

Was this money sent(wired) from a crypo exchange bank account to your bank account?

Yes it was.

What now?
Do you need to fill some other tax forms and send to your tax office or wait for their call
or there is nothing for you to do now regarding this?

I have actually went ahead and contacted the tax authority themselves with this exact question. The answer was that there are two possible scenarios:

1. If I have had no other income in 2018 that would result in me having to file a tax return for the year 2018. In this case I don't have to file anything, because this income is not subject to tax in the country of my residence, so this income is of no concern for the tax authority (Yes, these are their own words! Btw. no surprise here because the double tax treaty states this would be so, as I described this multiple times alredy. Just confirming for everyone who posted comments here that 'treaties don't work like this' or 'of course all countries would tax it' etc. This is confirmation from the actual tax authority...)

2. If I have other income for the tax year of 2018 that is taxable in my country. This means I already have to file a tax return for the year 2018 to begin with. In this case I DO have to declare this as income that is subject to no tax in my country (tax free income bracket). The reason for this is that eventhough I won't have to pay any tax after this income as it is only subject to tax in the UAE (there you go they've confirmed it once again), they DO still want to know about it as it is used in calculating a persons total income for the year. Which if is above a certain threshold then the individual tax allowance amount changes for the other income (this is a local speciality so might not really be relevant info for residents of other countries but I still wanted to provide their reasoning).