Cryptocurrency News

Bulgarian Revenue Agency to Inspect Crypto Selling Firms

The Bulgarian National Revenue Agency recently announced it is all set to launch inspections of crypto-selling firms. The English-language Sofia-based news outlet reported the news yesterday.

The objective of the agency’s investigation is to ensure firms and their clients comply with social and tax security legislation. The investigation is being conducted because the agency is worried about use of digital assets for tax evasion and revenue concealment.

The revenue agency already conducted a survey on Bulgarian firms that own websites for sale and purchase of crypto. And it has already assigned control actions to nine firms.


Also Read: Cricket South Africa falls Prey to $70,000 Bitcoin Twitter Scam: Sells Bitcoin Lottery

Utilizing Data from the Platform

Once the actions are completed, the tax officials will utilize data acquired from the platform. The authorities will later determine whether the users have declared the income from their transactions.  In Bulgaria, the individual’s income from the sale and exchange of cryptos is declared in an annual tax return. The returns from the sale of crypto are treated as income from the sale of a financial asset and are taxed at ten percent.

Additionally, the returns earned by the firms from this activity are also subjected to taxation under the Corporate Income Tax Act. As per the announcement, the deadline for filing annual income tax returns obtained by individuals in 2018 will expire on April 30, 2019. And in the same period, the due tax should also be paid. The deadline for the firms to submit the annual corporate tax returns is the 31st of March.

Denmark’s Tax Authority recently acquired data regarding all trades of cryptos across three domestic cryptocurrency exchanges. In July 2017, the US Tax Agency stepped back its request toward Coinbase to report data on every single US users. Later, the court ordered that only high transacting users data was required.

Also Read: Hacked!!!! Cryptopia Exchange falls Victim to Security Breach

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