The PWC Annual Global Crypto Tax Report 2024 – What You Need To Know
The world of digital assets has certainly experienced its fair share of ups and downs over the past few years, but despite the turbulence, things are beginning to stabilise. At FRE.DM Wealth, we’ve combed through the latest PwC Annual Global Crypto Tax Report and are here to share our insights and key takeaways, so you can confidently navigate the upcoming cryptocurrency reporting year.
But before we begin, what exactly is the PwC Annual Global Crypto Tax Report?
It’s this annual publication that takes a reliable, educated, and in-depth look at the tax treatment of cryptocurrency and digital assets worldwide. This report breaks down the tax challenges for cryptocurrency participants across 59 jurisdictions, offering a comprehensive guide to how different regions are addressing cryptocurrency taxation.
There is one thing that rang true throughout this year’s report —
Regulators around the world are not sitting idle.
New regulations are being introduced in many different countries, with a special focus on how these assets are taxed. So, whether you are a casual cryptocurrency investor or a business, here’s what you need to know about the ever-evolving cryptocurrency tax landscape —
Trend One: Increased Reporting Requirements
One thing is clear, tax authorities are cracking down on cryptocurrency asset transactions. In places like Australia, the United States and Europe, brokers, exchanges, and custodians (those who hold your assets) now have strict reporting obligations. The idea is to ensure that every cryptocurrency trade or transfer is tracked and reported for tax purposes.
The volume of tokenised asset data is so high that experts estimate around 5-10% of all assets will be tokenised by 2023, with a market potentially worth $19.5 trillion.
Tax authorities estimate that non-compliance and misreporting on cryptocurrency asset holdings currently ranges as high as 55% to 95% but there’s been an uptick in a global effort by governments and taxing authorities to counteract this.
This new level of transparency is largely driven by global initiatives such as the OECD’s cryptocurrency Asset Reporting Framework (CARF), which Australia is aligned with. The CARF framework will essentially require businesses such as exchanges, brokers, custodians, and wallet providers to collect and report information on the identity and transactions of their users to the tax authorities of their residence or jurisdiction of operation.
Simply put, if you’re involved in any cryptocurrency transactions, expect more data to be reported to tax authorities.
What’s the biggest takeaway from trend one?
Cryptocurrency will now be much more visible to tax authorities. If you’re trading, holding, or using cryptocurrency, you need to be aware that exchanges, brokers, and custodians are required to report your activities. This means individuals will need to keep meticulous records of every cryptocurrency transaction — whether it's a trade, sale, or even using cryptocurrency for purchases. With tax authorities tightening their reporting frameworks, there's little room for error, and failure to comply could lead to fines or penalties.
Trend Two: Tokenised Real-World Assets (RWAs)
By now, you’ve probably started to hear about tokenisation, where real-world assets like property, art, or even stocks are turned into digital tokens that can be traded by using distributed ledger technology (DLT). Sounds futuristic, right?
Here’s how it works —
So let’s say there’s a luxury apartment building worth $10 million. Instead of selling the building outright to one buyer, the owner decides to tokenise it using blockchain technology.
They divide the ownership of the building into 10,000 digital tokens, with each token representing a 0.01% ownership stake in the property. Individuals can buy these tokens just like shares in a company. So if you buy 100 tokens, you effectively own 1% of the building. If the building generates rental income or is sold at a profit in the future, you’d receive a portion of those earnings based on your token ownership.
The benefits of tokenisation is that it allows fractional ownership, meaning more people can invest in high-value assets without needing millions of dollars. It also makes the transfer of ownership easier since tokens can be traded on a digital platform, often with fewer intermediaries involved.
That being said, the tax treatment of these tokens may differ depending on the country, and tax authorities are still figuring out the best way to handle them. This is where tokenisation gets complicated and why understanding the tax implications is vital. It’s currently raising some tricky tax questions with this new form of ownership.
For example, when you buy or sell these tokenised assets, you might be dealing with a different tax treatment than if you held the physical asset directly. So, how do we tax a token that represents a piece of real estate?
Long story short, regulators are still figuring this out, but the main thing to know is that tokenised assets may come with their own unique tax rules.
In this regard, Australia’s regulatory landscape is still catching up. The Australian Securities and Investments Commission (ASIC) is involved in ensuring that these tokenised assets are regulated similarly to traditional assets. The Australian Tax Office (ATO) is currently expected to treat tokenised RWAs similarly to the way it treats the direct ownership of these assets. This means that any capital gains from the sale of tokenised RWAs would likely be subject to Capital Gains Tax (CGT), just like selling a physical asset.
What’s the main takeaway from trend two?
Tokenisation is transforming the way real-world assets like property, art, and securities are bought, sold, and owned. By turning these physical assets into digital tokens, fractional ownership becomes possible, allowing more people to invest in high-value assets. However, this new system introduces complex tax challenges, as the tax treatment of tokenised assets may differ from the physical assets they represent. It’s important to keep up to date with how these assets are evolving to be taxed to avoid any surprises along your cryptocurrency journey.
Trend Three: Regulation of Stablecoins and Tokenised Money
As digital payments evolve, assets like stablecoins, Central Bank Digital Currencies (CBDCs), and the tokenised money market funds are becoming more common, but they come with their own set of tax and regulatory challenges.
Stablecoins are designed to maintain a stable value by being pegged to traditional currencies like the U.S. dollar, making them popular for cryptocurrency transactions. However, even slight fluctuations in their value could create taxable events, such as when you use a stablecoin to make a purchase and its value has changed, however small that change might be. This raises the question on whether minor gains or losses should be reported, and how.
CBDCs (which are digital versions of a nation’s official currency) are another form of tokenised money but are considered legal tender. This means they’re more likely to be treated like cash, making transactions simpler from a tax perspective, unlike cryptocurrencies or stablecoins.
Tokenised money market funds, on the other hand, represent shares in traditional investments but use blockchain technology to make trading and transferring them easier. They’re essentially investment vehicles that hold short-term, low-risk financial assets like government bonds or commercial paper. Just like stable coins, tokenised funds may see slight fluctuations in value, raising tax concerns about how these gains or losses should be reported.
Side Note — tokenised money market funds sound similar to tokenised RWAs, right? They do share similarities in the fact that they use blockchain technology to create digital tokens representing value, but tokenised Money Market Funds focus on financial instruments and investments in short-term assets, while tokenised RWAs represent ownership in physical or real-world assets.
The big challenge we’re seeing with all these forms of tokenised money is that tax rules haven’t fully caught up. It raises questions such as, “should every small fluctuation in stablecoins or tokenised assets be taxed?” and “if so, how do you track it all?”
Tax authorities are still figuring this out, and right now, many are applying existing rules on a case-by-case basis. As these assets become more widely used for everyday payments, the hope is that tax rules will be clarified to make reporting easier, particularly for small transactions.
What’s the main takeaway from trend three?
The increasing use of stablecoins, Central Bank Digital Currencies (CBDCs), and tokenised money market funds for payments and transactions raises new tax questions. Even minor fluctuations in the value of these assets could trigger taxable events, and the rules surrounding their use are still evolving. As these forms of digital money become more common, tax authorities are working to clarify how they should be taxed, especially for everyday transactions, to ensure compliance while minimising unnecessary complexity.
If you’re dabbling in cryptocurrency or long-time investor, now’s the time to get familiar with the new rules. Overall, here’s what you need to keep in mind.
Cryptocurrency is taxable.
In most jurisdictions (including Australia), cryptocurrency is treated as property, not money. That means any sale, trade, or even use of cryptocurrency to pay for goods or services is considered a taxable event. Depending on how long you’ve held your cryptocurrency, you might be eligible for a capital gains tax discount. In Australia, you’re eligible if you’ve held it as an investment in a capital account for at least twelve months before selling or using it. This discount is massively beneficial as it allows individuals and trusts to reduce their capital gain by 50%, meaning only half of the gain is taxed if the asset was held for more than twelve months. This being said, it’s important to note that if the cryptocurrency is held for business purposes or frequent trading (on revenue account), the CGT discount may not apply, and any profits would be treated as regular income. The Australian Tax Office (ATO) determines whether your cryptocurrency is held in a capital or revenue account based on the nature and intentions of your transactions.
We have some amazing strategies available to make sure you can plan and structure your tax on cryptocurrency gains. Contact FRE.DM to discuss further.
Be ready for more reporting.
Exchanges and cryptocurrency platforms are now required to report a lot more information about your transactions to tax authorities than ever before. This is part of the global push for transparency. Make sure you’re keeping detailed records of your cryptocurrency activities, as this will make tax time much easier.
Stay informed about Stablecoins and Tokenised Assets.
These newer forms of digital money are here to stay, but their tax treatment is ever evolving. Whether you’re using them to make payments or as investments, keep an eye on how the tax rules develop within Australia and beyond.
No matter where you are on your cryptocurrency or tokenisation journey, staying up to date with the ever-changing landscape of digital finance is imperative… if we didn’t stress that enough throughout this blog already. This blog serves as a starting point to help you know what to focus on in the report. We highly recommend reading the full report for a deeper understanding of the topics covered here.
If you need further clarity on managing your cryptocurrency portfolio after reading this blog and the report, consulting a financial advisor can be invaluable. They’ll help you navigate this journey with confidence, ensuring you're on the right track to building your wealth.
At FRE.DM Wealth, Michaela and her team are here to guide you through the complexities of the cryptocurrency world. Whether you reach out via Instagram DM or email us through our website, we are ready to help you grow your wealth.
Let FRE.DM Wealth help you navigate this ever-evolving terrain of cryptocurrency with ease. Reach out today!
See below for the tax implications and consequences for each jurisdiction, but refer to the report for more in-depth information.
Summary of Tax Implications & Income Tax Consequences for Each Jurisdiction
ANGOLA
No tax authority guidance on cryptocurrency. The Investment Income Tax at 15% may apply to income from crypto asset sales, while corporate income tax at 25% applies if crypto trading is part of a company's regular activities.
AUSTRALIA
The Australian Tax Office (ATO) treats cryptocurrency as property. Capital gains tax (CGT) applies upon disposal, with a 50% discount available for assets held longer than 12 months. Trading profits may be considered assessable income based on the holder's intention.
AUSTRIA
Cryptocurrency income is classified as income from capital assets and taxed at 27.5%. Coins obtained through staking or airdrops are not taxable at receipt but are taxed on sale. Non-fungible tokens (NFTs) and security tokens do not qualify as cryptocurrencies under the tax law.
BELGIUM
Cryptocurrencies are treated as movable assets subject to capital gains tax if held privately. If held as part of a professional activity, gains are taxed as professional income. Specific guidance on NFT taxation is still developing.
BULGARIA
There is currently no tax authority guidance on cryptocurrency in Bulgaria. That being said, cryptocurrencies are seen as financial assets different from money. The sale of crypto is seen as a VAT-exempt supply. NFTs are not defined in Bulgarian tax legislation, which means that they would be seen as intangible rights, which are generally subject to 20% VAT.
CABO VERDE
There is currently no tax authority guidance or specific tax legislation regarding cryptocurrencies. The overall tax implications for crypto assets remain undefined.
CANADA
The Canada Revenue Agency (CRA) treats cryptocurrency as a commodity, leading to capital gains tax on profits from sales. Mining income is considered business income and taxed as such. The use of cryptocurrency for purchases triggers GST/HST obligations.
CHILE
Cryptocurrencies are treated as intangible assets, with capital gains tax applicable to their sale. Income from mining may also be taxed as business income. Currently, there is no specific guidance for NFTs.
CROATIA
The corporate income tax rates come in at 10% if the taxpayer's annual revenues are below EUR $1m, or 18% if this threshold is exceeded. Individual tax rate is capped at 40%. Virtual currencies are exempt from VAT. The treatment of NFTs remains undefined.
CZECH REPUBLIC
Cryptocurrencies are classified as intangible assets, subject to personal income tax on capital gains from sales. The applicable tax rate is generally 15%. Further clarification on NFT taxation is still awaited.
DENMARK
Cryptocurrency is treated as an asset, with gains taxed as personal income at a marginal rate up to 53%, while losses are deducted with a tax value of approx. 26%. Income from mining is taxed as personal income. NFTs are considered taxable assets but are not yet clearly defined under the law.
ESTONIA
There is nothing specific in the VAT or income tax law regarding cryptocurrency, but there is guidance from tax authorities. Income generated through cryptocurrency can be taxed at 20% for individuals. NFTs are not defined, but may be subject to VAT. Payment and currency exchange services are exempt from VAT.
FINLAND
Cryptocurrencies are viewed as property, and capital gains from their sale are subject to income tax at a progressive rate up to 34%. Mining income is also taxable. NFT transactions may be considered capital gains, but specific guidance is still being established.
FRANCE
Cryptocurrency gains are subject to a flat tax rate of 30%. Individuals must report their holdings annually, and trading profits are treated as capital gains. NFTs are treated as movable property and are subject to similar tax regulations.
GEORGIA
Cryptocurrencies are not subject to capital gains tax, making Georgia an attractive location for crypto investors. However, income from cryptocurrency mining is taxed as business income. Regulatory guidance on NFTs is still developing.
GERMANY
Cryptocurrency is classified as private property, with capital gains tax applicable only if the asset is sold within one year of acquisition. If held for longer, it is exempt from tax. Mining income is considered taxable and subject to income tax.
GIBRALTAR
There is no specific legislation or published guidance on the tax treatment of cryptocurrency in Gibraltar. Due to this, crypto assets are taxed under the general tax rules. Capital gains are not taxable, but trading income is taxable at the standard rate (12.5% for corporate). There is currently no VAT or GST regime.
HONG KONG
Cryptocurrencies are not classified as legal tender, but profits from their trading are subject to profits tax (16.5% for corporations and up to 15% for individuals). Capital gains from cryptocurrency sales are generally not taxed. The regulatory framework for NFTs is still developing.
HUNGARY
Cryptocurrency is treated as a financial instrument, with capital gains taxed at a flat rate of 15%. Mining income is taxed as business income. The treatment of NFTs remains undefined, with further guidance expected.
INDIA
Cryptocurrency transactions are subject to a 30% tax on gains, with no deduction for losses. Additionally, a 1% tax deducted at source (TDS) applies to crypto transactions. The regulatory landscape for NFTs is evolving.
IRELAND
While there are no specific Irish cryptocurrency tax rules, Irish Revenue have released limited guidelines. The treatment of income from/charges involving crypto will depend on the nature of the activities and the parties involved. Crypto will be taxed in the same way as any other asset, no special rules apply. The exchange and transferring of cryptocurrency are exempt from VAT. The VAT treatment of NFTs is yet to be determined.
ITALY
Cryptocurrency profits are subject to capital gains tax at 26% if gains exceed €2,000 in a year. Mining income is treated as ordinary income. The tax treatment of NFTs is currently under review, with more guidance anticipated.
JAPAN
For individuals, income from cryptocurrency transactions are subject to income tax as miscellaneous income at the progressive rate of 15 to 55%. For corporations, income from cryptocurrency transactions are subject to the corporate tax of 30%. Consumption tax is not imposed on crypto transactions. The treatment of NFTs is evolving but currently vague.
JERSEY
Cryptocurrencies are classified as property for tax purposes. Capital gains are generally not taxed, but income from trading cryptocurrencies is subject to income tax. The regulatory framework for NFTs is still developing.
KENYA
There is no specific guidance on cryptocurrency taxation. However, income from cryptocurrency trading may be subject to income tax. The treatment of NFTs is currently undefined.
KOREA
Cryptocurrency profits are subject to a flat tax rate of 20%. Income from mining is also taxable. Guidance on NFT taxation is evolving, with specific rules still under consideration.
KOSOVO
Cryptocurrencies are not recognized as legal tender in Kosovo. Instead, the TAK classifies them as intangible assets for tax purposes. As Kosovo's regulatory framework adapts to digital currencies, businesses in crypto transactions must follow specific reporting standards and tax obligations. This may include a standard CIT rate of 10%, depending on their operations and how crypto assets are classified under Kosovo's tax laws. Kosovo applies a 10% capital gains tax on all net taxable income, and a 16% VAT. There is no definition for NFTs in VAT law.
LATVIA
Cryptocurrencies are treated as property, with capital gains tax applicable on profits from sales at a rate of 20%. Mining income is taxed as personal income. The regulatory framework for NFTs is still developing.
LIECHTENSTEIN
Cryptocurrency gains are subject to income tax, with a 12.5% flat tax rate for individuals. If held for longer than one year, capital gains may be tax-exempt. NFT taxation is still being clarified.
LITHUANIA
Cryptocurrencies are treated as property, with capital gains tax applicable at a rate of 15%. Mining income is taxed as business income. Guidance on NFTs is still in development.
LUXEMBOURG
Virtual currencies and digital assets are typically subject to general tax rules applicable in Luxembourg. Virtual currencies are not considered to be currencies but intangible assets for Luxembourg direct tax purposes. The VAT treatment applicable to transactions related to NFTs usually depends on specific facts and circumstances.
MALAYSIA
Currently, there is no specific tax authority guidance on cryptocurrency taxation. However, profits from trading cryptocurrencies could be subject to income tax as business income, depending on the nature of the transactions.
MALTA
Crypto used as a means of payment or medium of exchange are treated as ordinary income and taxed accordingly. The tax rate for both corporate and individual is 35%. However, gains derived from the sale of coins, which are held for long-term capital purposes, should not be subject to Maltese income tax. NFT taxation is still under review.
MAURITIUS
There is currently no specific guidance on the taxation of cryptocurrencies. However, profits from trading may be subject to the income tax rate of 15%, depending on the nature of the activities.
NETHERLANDS
Any income derived from cryptocurrency activities by a Dutch corporate entity is subject to Dutch corporate income taxes at a rate of 25%. Dutch citizens can be subject to taxes for their crypto activities if they qualify as an active business or if they hold a crypto position exceeding the threshold for the Dutch wealth tax, of which they’d be taxed up to 49.50%. NFTs are not defined in the Dutch VAT Act.
NEW ZEALAND
Cryptocurrency is treated as property, with capital gains generally subject to income tax if the activity is considered a business. The income tax rate is based on the individual's marginal rate. The regulatory framework for NFTs is still evolving.
NIGERIA
Gains on the sale of digital assets will be subject to 10% tax on capital gains in the hands of the seller. Trading income and fees earned from the trading of cryptocurrencies are liable to company income tax at an effective rate of 33%. The sale/transfer of cryptocurrency and crypto assets are not liable to VAT. NFTs are not defined by the VAT Act.
NORWAY
In Norway, cryptocurrency is treated as property, with capital gains subject to a flat tax rate of 22%. Mining income is taxed as ordinary income. The taxation of NFTs is currently evolving, with specific regulations still being developed.
OMAN
Currently, there is no tax authority guidance on cryptocurrency taxation, and the implications remain undefined. The potential for future regulations is uncertain.
PANAMA
There is no specific guidance on cryptocurrency taxation at present. However, capital gains from cryptocurrency transactions may be subject to income tax based on individual circumstances.
PHILIPPINES
Gains from cryptocurrency transactions are subject to general tax laws. For citizens and residents, a graduated rate ranging from 0% to 35% or an option to avail an 8% tax on gross sales/gross receipts and other non-operating income in excess of P250,000 is applied. For non-resident individuals doing business in the country, the same graduated rate is also applied. Crypto payments made to a non-resident foreign corporation or a non-resident individual generally are subject to withholding tax at a rate of 25%. Crypto may be subject to VAT.
POLAND
Cryptocurrency is classified as property, with capital gains taxed at a rate of 19%. Income from trading or mining activities is subject to personal income tax. The treatment of NFTs is still being developed, with no clear guidance yet.
PORTUGAL
Cryptocurrency gains are generally exempt from tax for individuals unless they are derived from professional trading activities. Capital gains tax applies to corporate entities. Specific guidance on NFT taxation is still evolving.
QATAR
There is currently no tax authority guidance on cryptocurrency taxation, and the implications remain undefined. Future regulations may be developed.
SAUDI ARABIA
There is no specific guidance on cryptocurrency taxation at this time. Potential future regulations are uncertain, and the tax implications for crypto assets remain undefined.
SINGAPORE
In Singapore, cryptocurrency is treated as a good, with no capital gains tax on profits from sales. Businesses that deal in cryptocurrency may be subject to Goods and Services Tax (GST). The treatment of NFTs is still evolving, with specific regulations pending.
SLOVAKIA
Slovakia have recently revised their cryptocurrency taxation legislation. Resulting in a significant reduction in the tax rate applied to cryptocurrency transactions. If an individual decides to sell their cryptocurrencies after one year of ownership, the subsequent gain will be subject to a reduced tax rate of 7%.
SLOVENIA
Profit from crypto transactions is taxable at the level of a legal entity and is subject to 21% taxation or 15% for small entities. Profit from the crypto transactions is subject to personal income tax at 15% / 19% / 25%. Additionally, those profits are subject to health insurance contributions at 14%. Cryptocurrency is generally excluded from VAT – however, supply of goods or services, where the remuneration is received in crypto, is subject to VAT. Additionally, the exchange of crypto for another crypto is subject to VAT.
SOUTH AFRICA
The South African Revenue Service (SARS) treats cryptocurrencies as assets for tax purposes, subjecting capital gains to income tax rates. Income from mining and trading is also taxed as normal income. The treatment of NFTs is still developing.
SPAIN
The corporate tax rate for crypto is 25%, while the individual tax rate sits at 47%. There’s no current guidance nor particular regulation on the VAT treatment for cryptocurrencies. Additionally, there is no definition in the VAT Law about NFTs and they are not considered cryptocurrency as long as they are not configured as currencies nor fungible goods.
SWEDEN
In Sweden, cryptocurrencies are treated as property, with capital gains taxed at a rate of 30%. Mining income is subject to income tax, and NFTs are treated similarly to other digital assets under the tax framework.
SWITZERLAND
Cryptocurrency is treated as a form of property, with capital gains for private individuals generally tax-exempt. However, business-related trading is subject to income tax. The treatment of NFTs is evolving, with more guidance expected.
TAIWAN
Cryptocurrencies are not considered legal tender but are subject to income tax on capital gains at progressive rates. Mining income is also taxed. The tax implications for NFTs are still being clarified.
THAILAND
Cryptocurrencies are classified as digital assets, with capital gains subject to a flat tax rate of 15%. Income from trading is treated as personal income. The tax treatment of NFTs is currently under development.
TURKEY
Currently, there is no regulatory guidance available on the classification of crypto assets and/or VAT treatment on the sale of such assets.
UNITED ARAB EMIRATES
The UAE does not impose income tax on individuals, including cryptocurrency gains. However, businesses engaging in cryptocurrency trading may be subject to corporate tax. The treatment of NFTs is evolving, with regulations still pending.
UNITED KINGDOM
While there's no specific cryptocurrency tax legislation, profits or gains from tokens are generally taxable, depending on the token's nature and use. Income from trading crypto assets is taxed as company or business profits if certain criteria are met; otherwise, gains are taxed as capital gains. Individuals are only considered trading in crypto assets in rare cases, but if they are, the income is subject to income tax, including crypto received as employment income. No public guidance exists on VAT for NFTs, though VAT applies normally to goods or services sold for crypto tokens, and mining is usually outside VAT scope.
UNITED STATES
The IRS treats cryptocurrencies as property, subjecting gains to capital gains tax upon sale or exchange. Short-term gains are taxed as ordinary income, while long-term holdings qualify for lower rates. The tax treatment of NFTs is evolving, with further guidance anticipated.
VIETNAM
There is no specific tax authority guidance on cryptocurrency taxation, leaving implications largely undefined. Future regulations may address potential tax liabilities.
