Investment in crypto assets, Bitcoins and other cryptocurrencies has increased significantly over the past few years, but investors have not been able to know enough about their tax consequences.
The lack of tax regulations in some countries, like Turkey, does not mean that cryptocurrencies are strictly untaxed. In particular, institutions that develop projects by creating a legal entity have corporate/income tax obligations in all countries, including Turkey.
We have a team specializing in the taxation of blockchain-based applications, projects and investments. We advise on what actions should be taken and under what conditions they should be declared. We advise on how to create a tax strategy for exponentially growing ICOs.
Miners are individuals or businesses that receive cryptocurrency as a reward for solving algorithms. The algorithms they solve are required to validate transactions (or blocks) that later become part of the blockchain. Mining or algorithm decoding is normally carried out through a number of computers and servers. Mining requires a significant amount of computer hardware, processing power, electricity and time.
Investors are individuals or businesses that own cryptocurrencies but do not keep it as a commodity or as inventory in the business. Such cryptocurrencies are held as an investment instrument, such as stocks and securities.
Service providers are businesses that buy and sell virtual currency to customers. They usually make money by serving as an intermediary. They can potentially be possess cryptocurrency as their inventory.
These actors are a hybrid of investors and service providers. These are usually people who buy, sell and trade virtual currency for profit. They don’t keep cryptocurrencies in their inventory or sell them to customers. But to make money from value increases, they trade a significant amount.
How Can We Help You? We advise all types of cryptocurrency users on reducing the tax burden, simplifying research and reporting, and configuring your operations for tax efficiency.