Canadian Prime Minister Proposes Raising Cryptocurrency Capital Gains Tax! The maximum tax levied is 67%

This site (120btC.coM): Canadian Prime Minister Justin Trudeau recently proposed a new capital gains tax policy, which will be based on the taxpayer’s income bracket. Gains from the sale of assets Taxes of 50% to 67% are levied on profits.

Cryptocurrencies to be taxed as commodities

It is worth noting that Canadian authorities plan to classify cryptocurrencies as commodities, although no tax will be required when buying and holding cryptocurrencies. tax, but when making profits from selling cryptocurrencies, you still need to pay tax according to this tax standard.

Canadian Cryptocurrency Taxation Example

Similarly, common stock income is also subject to tax, and any taxable capital must be in the stock sale Reported on tax return for the current year.

It is expected to generate US$19.3 billion in tax revenue in the next five years

According to the Canada Revenue Agency website, Canadian residents or businesses gain when they sell assets such as real estate, land, stocks, bonds, and cryptocurrencies. The profits will be subject to capital gains tax.

The proposal proposes that starting from June 25, individuals whose annual capital gains exceed 250,000 Canadian dollars (approximately NT$5.96 million) will be affected by this policy, and the proportion is expected to be approximately 0.13 of the Canadian population. %, and also includes 12% of Canadian companies.

The Canadian ruling party emphasized that 99.87% of Canadians will not be affected by this adjustment, which does not include the sale of primary residences. It predicts the measure will generate $19.3 billion in revenue over the next five years.

The actual calculation will be shown to you

According to Canadian tax laws, individual investors only need to include 50% of their total income into the tax limit, but professional investors need to include all profits as tax Taxable Funds.

For example, if your Bitcoin is bought at 10,000 Canadian dollars and sold at 10,000 Canadian dollars, the taxable income will be 5,000 Canadian dollars (10,000 Canadian dollars gain x 50%). This $5,000 must be added to taxable income and taxed according to the taxpayer's income bracket.

According to the new capital gains tax law, if the amount of capital gains exceeds 250,000 Canadian dollars, the annual tax rate may range from 50% to 67%.

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