Australian Treasury consults public on Bitcoin foreign currency tax exclusion

Australia’s ministerial department of Treasury reached out to the public to seek consultation regarding draft legislation that would exclude..


Australian Treasury consults public on Bitcoin foreign currency tax exclusion

Australia’s ministerial department of Treasury reached out to the public to seek consultation regarding draft legislation that would exclude cryptocurrencies from being taxed as a foreign currency if passed.

In a press release, Assistant Treasurer Stephen Jones highlighted the Australian government’s intent to exclude crypto assets from being regarded as a foreign currency for tax purposes. However, the legislation would have no impact on the collection of capital gains taxes on crypto held as investments.

The public has been provided with 25 days, from Sept. 6 to Sept. 30, to share their opinion on the proposed legislation.

If signed into law, the legislation will see the amendment of the existing definition of digital currency in the Goods and Services Tax (GST) Act — effectively excluding crypto assets from the definition of foreign currency. GST is a broad-based tax levied on goods, services and items sold or consumed in Australia.

The Treasury noted that the respondent’s personal information, including name and address, will be made public if not proactively opted out from the same.

The move to exclude cryptocurrencies as foreign currency is a direct result of El Salvador adopting Bitcoin (BTC) as a legal tender. Australia plans to minimize the potential uncertainties related to taxing cryptocurrencies through this legislation.

Related: Australia’s new government finally signals its crypto regulation stance

Mendoza, a province in Argentina, has started accepting crypto for taxes and fees. The Mendoza Tax Administration (ATM) stated that allowing crypto payments provide taxpayers an additional option to comply with tax obligations. In addition, the move fulfills its own “strategic objective of modernization and innovation.”

From Aug. 24, Mendoza residents can use the ATM's website to pay taxes using any crypto wallets, including Binance, Bybit and Ripio. The system generates a QR code based on the cryptocurrency selected by the end user, which then converts an equivalent amount of stablecoins to Argentine pesos via an undisclosed online payment service provider.


Title: Australian Treasury consults public on Bitcoin foreign currency tax exclusion
Sourced From: cointelegraph.com/news/australian-treasury-consults-public-on-bitcoin-foreign-currency-tax-exclusion
Published Date: Tue, 06 Sep 2022 09:56:26 +0100