Key Focuses of the document:
1. Exemption of Tax for Small Transactions: transactions below $300 will be tax free with a yearly maximum of $5000
2. Deferral of taxes of mining and staking until the moment of assets sale. This addresses the issue of double taxation.
3. Tax Exemptions for crypto loans and charitable contributions in digital assets.
https://coingape.com/lummis-bill-simplifies-crypto-tax-compliance/She believes this will help promote innovation, reduce bureaucratic hurdles and clarify the obligations of tax payers for digital assets.
These changes when implemented will help maintain the US Competitive edge in digital economy.
Of course it does. You wouldn’t expect an innovation and in this case, the cryptocurrency innovation to flourish in a state with hostile policies towards its growth, development and continuity.
I read from a user on the forum just days ago on how he intends to withdraw some of his cryptocurrency portfolio through his wife’s Latin American bank due to a more friendly tax rate of 15% flat as opposed to European rate which ranges from 33%-50% which is as steep as it could get.
To avoid huge taxation on crypto profits in Europe, I intend to send her half of my crypto portfolio.
I consider making an account for her on Binance, and funding her account with some of my crypto assets. She can cash out later this year.
If her Binance account is connected to her Latin American bank card, am I right that only Latin American tax agencies will be informed about her crypto assets/ transactions on Binance?
I don't see how a European tax agent would find her on Binance, when it is connected to a Latin American bank card and she does not have a European nationality.
At the moment she is a tax resident in Europe, but we want to move to Latin America around 2030. It is much more attractive for both of us to be tax residents there.
With reform bills such as these, it makes it easier for people to decide on how to manage and dutiful towards paying their taxes while making sure they are not being reaped.