Australian Treasury consults public on Bitcoin foreign currency tax exclusion
Australian Treasury
Modified Date:- Published Date:-Categories: Cryptocurrency
Australian Treasuryconsults public on Bitcoin foreign currency tax exclusion
Australia'sTreasuryDepartment contacted the public to seek advice about draft legislation that, ifpassed, would exclude cryptocurrencies from being taxed as a foreigncurrency. In a press release, Assistant Treasurer Stephen Joneshighlighted the intention of the Australian government to exclude cryptoassets from being treated as foreign currency for taxpurposes.
However, thelaw will have no effect on the collection of capital gains taxes on cryptosheld as investments. The public has been given 25 days from September 6 toSeptember 30 to share their views on the proposed legislation. If signed intolaw, the law will see amendments to the existing definition of digitalcurrency in the Goods and Services Tax (GST) Act – effectively takingcrypto assets out of the definition of foreign currency.
GST is abroad-based tax levied on goods, services and goods sold or consumed in Australia.The Treasury noted that the defendant's personal information, including nameand address, would be made public if it is not actively selected. The move tophase out the cryptocurrency as a foreign currency is a directresult of El Salvador's adoption of bitcoin (BTC) as legal tender.
Australia plans to reduce the potentialuncertainties related to taxing cryptocurrencies through thislaw. Mendoza, a province of Argentina, has started accepting crypto for taxesand fees. The Mendoza Tax Administration (ATM) said allowing crypto paymentsprovides an additional option for taxpayers to comply with tax obligations.
In addition,the move fulfills its own “strategic objective of modernization andinnovation.” From Aug. 24, Mendoza residents can use the ATM's websiteto pay taxes using any crypto wallets, including Binance, Bybit and Ripio.The system generates a QR code based on the cryptocurrency selected by the enduser, which then converts an equivalent amount of stablecoins toArgentine pesos via an undisclosed online payment service provider.
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Cryptocurrencies, Foreign currency, BTC, Crypto Wallets, Digital assets, Crypto assets, GST, Australia, Stable coins