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SECTOR WATCH: Serbia Adopts New Crypto Law, Regulating Trading and Mining
Belgrade, Serbia - In a significant move towards cryptocurrency regulation, the Serbian government has introduced new laws governing the use of digital currencies in the country. The amendments to the tax law, which took effect on July 1st, aim to provide clarity on taxation and trading of cryptocurrencies.
Taxation of Cryptocurrencies
The new regulations clarify that Value Added Taxes (VATs) do not apply to cryptocurrency transactions in Serbia. According to the Ministry of Finance, cryptocurrencies are classified as commodities rather than money or currency, exempting them from VAT burdens. However, if Serbia were to recognize cryptocurrency as a legal form of payment, VATs could potentially be applied.
Corporation Tax
Corporations facilitating cryptocurrency transactions must pay a 15% capital gains tax on their profits. Companies can take advantage of a Serbian tax law that exempts 50% of capital gain taxes for investments made within 90 days. Non-resident corporations are subject to a 20% tax rate on capital gains, unless an applicable double taxation treaty exempts such gains.
Individual Tax
Individuals must pay a 15% tax on their capital gains, calculated by determining the difference between the market value at sale and the “acquisition value” of the digital asset. A 50% exemption is available for reinvested profits in Serbian legal entities or investment funds.
Property Taxes
Individuals who inherit or receive cryptocurrency as a gift must pay property taxes at a rate of 2.5%. The tax base is equal to the market value of the digital assets when inherited or received.
Global Insights on Cryptocurrency Regulation
While many jurisdictions have yet to enact laws governing cryptocurrencies, Serbia’s move towards regulation provides clarity for investors and businesses operating in the country. Globally, regulatory uncertainty persists, with some countries treating crypto mining as a business subject to corporate income tax, while others are more permissive.
Expert Insights
For individuals and businesses looking to navigate the complexities of cryptocurrency taxation and trading, Freeman Law offers expert guidance on digital currencies, tax planning, and compliance. Contact us now to schedule a consultation or call (214) 984-3410 to discuss your concerns.
Source:
- International legal business solutions - Global Legal Insights
- Welcome to Serbia, The Taxation of Cryptocurrency - Serbia 2021
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