Income tax applies to crypto trading in Bosnia, says Tax Administration – Taxes
Individuals are expected to pay income tax on profits from trading with cryptocurrencies pay, the Bosnian tax authority has determined. In the absence of dedicated regulations, the federal government established a working group in Sarajevo to assess various risks associated with digital assets.
Income tax will be levied on profits from crypto trades, Bosnian tax officials tell the Ministry of Finance
Taxation of crypto assets is not explicitly mandated in Bosnia’s current legislation, but the country’s tax authority has looked into the matter in consultation with the Ministry of Finance. The latter is responsible for initiating changes in tax regulations.
Cryptocurrencies will soon have their first in the Balkan nation, whose capital BitcoinATMs will have increasing media coverage, news agency FENA noted in a report. Against this background, the aspect of taxation has also come to the fore.
According to the Tax Administration of the Federation of Bosnia and Herzegovina, individuals – independent entrepreneurs and individuals – should pay income tax on their capital gains from cryptocurrency transactions, in accordance with the relevant provisions of the Income Tax Act.
In particular, the authority referred to Article 12(1) of the Self-Employed Taxation Act. These are typically people who engage in various activities, either full-time or part-time, to earn income, including income from trading, freelance work, or other self-employment.
Tax officials also cited statements expressing the position of the Federal Ministry of Finance in January and March last year, when the ministry indicated that cryptocurrency trading can be considered a distinct activity aimed at generating revenue.
The Bosnian Tax Administration, while acknowledging that certain regulations remain unclear, stresses that the Sarajevo executive is moving towards a solution to the problem. For example, in November 2022, the Cabinet of Ministers decided to set up a crypto working group under the Ministry of Security.
The panel was mandated to prepare an assessment of money laundering and terrorist financing risks using virtual assets and crypto service providers in Bosnia according to the methodology developed by the Council of Europe. Along with this report, the group is also expected to present an action plan to address the existing challenges.
Do you think Bosnia will enact more comprehensive regulations regarding cryptocurrencies and taxation of related income? Tell us in the comment section below.
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Source: Crypto News Deutsch
