Republic of Georgia makes new tax exemptions for Bitcoin (BTC)

13 Jul, 2019
by David Robb
Regulation
Republic of Georgia makes new tax exemptions for Bitcoin (BTC)

Authorities in the nation of Georgia have adopted new regulations regarding to crypto. The former Soviet republic has exempted Bitcoin (BTC) from value-added tax (VAT).

The new rules went into force at the end of June, after an order signed by Georgia’s finance minister Ivane Matchavariani, as reported by Bitcoin News. Traders and investors will not have to pay any VAT on their investments, when converting from fiat into BTC. They will also be exempt from tax on any income made through Bitcoin (BTC).

Located in the caucus region of eastern Europe, Georgia offers abundant cheap hydro-electricity, and this has seen in transform into a major hub for Bitcoin mining. Malta and Jersey are two other key European crypto hubs, due to their relatively lax financial regulations. 

The issue of tax and how it relates to crypto is a growing concern for the space, as adoption continues to increase. In the U.S., some tax lawyers have warned that any profits made via the fluctuations in price of BTC in between merchant-consumer transactions may be subject to capital gains tax. The IRS' criminal investigation unit is also developing dedicated resources in order to tackle those individuals who attempt to use crypto in order to evade tax. 

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