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Sofia, Bulgaria – On April 2, the Bulgarian Tax Service published an assessment on crypto-currencies.
The National Revenue Agency, as the Bugarian Tax Service is officially called, has published a press release on its website under the straightforward title of “Revenue from Bitcoin Transactions are to be Declared and Taxed.”
The fact that transactions which involve cryptocurrencies are subject to taxation is nothing new. Soon, many countries will look to the decision of the US and follow in its footsteps. But what is remarkable is that the tax service in this article refers to Bitcoin as a “virtual currency” and even “currency,” while omitting such dubious phrases as “so-called” and “referred to as.”
Personal income from selling or trading virtual Bitcoin currency is to be specified in annual tax returns as that imposed tax is to be taken from the general annual tax rate of 10%.
According to the data provided by the Revenue Agency, the taxes will be imposed on the income made from the sale of Bitcoin currency, which is considered as revenue from the sale of financial assets.
The article likewise mentions that both profitable and nonprofitable transactions will be subject to taxation; hence, everything is looking to be pretty fair across the board.
Just like their Aussie counterparts, law-abiding citizens of Bulgaria will have to jog their memories and provide all necessary information on any transactions conducted using Bitcoin for the previous year – they must submit their returns by April 30th. What’s interesting is that the Tax Service did not mention any other digital currencies except for Bitcoin; hence, it’s likely that the Bulgarians will shift to altcoins.
- See more at: http://cointelegraph.com/post/bulgaria_recognizes_bitcoin_as_currency#.U0JLrvl_uSohttp://cointelegraph.com/post/bulgaria_recognizes_bitcoin_as_currency#.U0JLrvl_uSo