January 16 2019

Tax position for traders dealing with cryptocurrencies clarified

Source: IBFD Tax Research Platform News

On 14 January 2019, the National Revenue Agency published on its website an official announcement concerning persons dealing with cryptocurrencies. The main items of the announcement are listed below:

  • gains of individuals from the sale or exchange of virtual currency generated in 2018 are subject to personal income tax at 10%, which must be declared and paid by 30 April 2019. Companies which realized such gains in 2018 must declare and pay corporate income tax at 10% no later than 31 March 2019;
  • gains from the sale of cryptocurrencies are considered gains from the sale of financial assets; and
  • the National Revenue Agency is initiating tax audits of companies and platforms dealing with cryptocurrencies. It is of the opinion that there is a risk of tax evasion as these transactions are conducted anonymously.

The announcement (in Bulgarian) is available on the National Revenue Agency's website.