This new proposed bill sounds wild. It would mean holders have to declare their assets and pay taxes on any increase in value from their original purchase, even on unrealized gains. So, even if you’re just holding, you’d have to report it every year.
Now, if the value drops, sure, maybe you’d pay lower taxes or get a tax offset, but it’s still odd.
They are taxing citizens to death because taxing unrealized gain (profit) is insane. 1 bitcoin is always 1 bitcoin but its value and price change with time, in every market cycle and more seriously in black swan events.
Governments are trying to do the easiest part, taxing first on Unrealized profit, but then even they allow you to claim tax rebate if you eventually sell at loss, I believe that it won't be an easy procedure to claim your Tax Rebate, if there is any tax policy like this.
Taxing citizens to death will push their citizens moving to other countries which are tax heaven like Saudi Arabia.
15 crypto tax-free countries in 2024. You have to double check information in that article, I am not sure about information accuracy.