What should you do with the profits you make from trading in crypto coins? For the time being there is not much clarity about this yet. By default, the authorities assume that these gains are speculative in nature. The authorities receive the advice from the authorities in Belgium to tax crypto profits by 33%.
It remains a vague subject, taxation of profits with crypto coins. Many investors and tax specialists are cracking their heads about what exactly needs to be done.
According to the Preliminary Decisions in Tax Matters (PDT), these profits must be viewed as a result of speculation. That means that you would have to enter them on your personal income tax under the heading ‘various income’, a tax of 33%.
Burden of proof
In the most recent newsletter of the PDT, the following statement is made: ‘Based on the pre-filings and applications already submitted’. The PDT is of the opinion that ‘investments in virtual currencies generally have a speculative character’.
‘Usually’ is the key word. By formulating it in this way, all crypto gains are speculative in nature and therefore taxable at 33%. Unless you can prove the contrary as an investor, it is up to the investor to make an effort to show that the profits are not speculative in nature.
In practice it is often different since there is a lot of money traffic on various foreign online exchanges. It is almost impossible for the authorities to know who does what with his crypto gains. Especially if investors use virtual coins to buy other cryptocurrencies.
Only when exchanging crypto coins to euro, or the other way around, can transactions be noticed by the authorities, especially at large amounts. Financial institutions can also contact the tax authorities if they notice that customers have executed certain transactions.