Bulgaria’s National Revenue Agency announces tax on Bitcoin

The Bulgarian National Revenue Agency released a new tax guidance on Bitcoin. According to the document, entitled “Revenue from Bitcoin Transactions to be Declared and Taxed”, a standard capital gains tax will be applicable to all income connected to cryptocurrency

This means that all Bitcoin-related income will be taxed just like income from the sale of financial assets. Personal income from selling or trading “the virtual currency Bitcoin” is to be specified in annual tax returns and “due on the total annual tax base (10 percent)”.

“Taxable income and the tax base in this case is the sum of the gains realized during the year specified for each transaction, less the amount of losses realized during the year specified for each transaction. Realized gain or loss is determined by the selling price is reduced by the cost of the financial asset”, the document adds.

The National Revenue Agency also states that both profitable and non profitable transactions will be subject to the tax and that the deadline for submission of individual annual statements regarding income generated in 2013 expires on April 30.

Bulgaria is the first country to announce a tax on Bitcoin after the United States Internal Revenue Service (IRS) declared Bitcoin is now considered a taxable form of property in the country.

Image from Wikimedia

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Charles Holmes

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