Paying taxes is one of our primary responsibilities as citizens. Government uses revenue from taxes to build bridges, schools, hospitals, and other infrastructures. We pay taxes in the form of VAT (value added tax) for virtually everything we consume, and cryptocurrencies should not be left out. Now the big question is, does the Australian government tax cryptocurrency users?
In this blog post, we will answer some pertinent questions regarding tax payment when we get involved in cryptocurrencies.
Should I Declare Cryptocurrencies On My Tax Return
Of course, you should declare cryptocurrencies on your tax return if you have made any profit from it. Some ways to profit from cryptocurrencies include crypto trading, purchasing goods or services via cryptos, and conversion from cryptos to Australian dollar, and vice versa.
Do I Pay Taxes On Gains Made From Cryptocurrencies?
Yes, you have to. If you have involved yourself into crypto trading or any of the ways of making profits from cryptocurrencies, it is duty bound on you to pay taxes. How much should you pay? This depends on some factors like your trading strategy and your investment worth. For instance, if you are a personal crypto trader, you can expect to pay anything between 0% and 47%. Crypto-related companies are expected to pay anything between 27.5% to 30%.
What If I Don't Declare My Crypto Gains To The ATO?
When you make any crypto investment and you make profits from such investment, you are expected to declare your position to the ATO. Failure to do that is tantamount to tax evasion, and tax laws frown against that. We encourage you to always declare your crypto gains to the ATO so that the long arm of the law would not catch up with you.