According to the association, if you have exchanged cryptocurrency for another currency or property, the State Tax Inspectorate (VMI) will already consider it as income from the sale of currency. You will have to pay 15 percent of the difference between the purchase and sale prices. aiming at personal income tax (PIT).
“Example: 2021 resident bought 0.25 BTC [bitkoino – red. past]. As long as he only keeps this purchased cryptocurrency, for example, in an electronic wallet (that is, he does not exchange it for another virtual currency, etc.), there are no tax consequences for such a transaction.
On 07/10/2022, a resident converted 0.25 BTC to euros and received 9000 euros. He is believed to have received 9,000 euros in proceeds from the sale of the cryptocurrency. When the income is received, regardless of whether the resident transfers such funds from the exchange to his/her current account in the bank, reinvests them by buying another virtual currency, or simply keeps them in a virtual wallet, the proceeds from the sale of BTC will have to be taxed in accordance with the procedure established by the Ministry of Finance, Lithuania writes on Facebook. Association of Accountants and Auditors.
However, it is reminded that a benefit of 2,500 euros is granted per year per resident, from which GPM is not calculated.
According to the experts, the resident must independently record the data of the cryptocurrency purchase/sale or exchange transaction in his personal annual GPM311 declaration. Must also have cryptocurrency purchase documents.
“If these documents are not available, 15 percent GPM will have to be paid from the total amount of the currency sale, from which only the 2,500 euro relief amount will be allowed, but it will not be possible to deduct part of the currency purchase price,” the association emphasized on Facebook.
According to the interpretation of VMI, a bank confirmation (order, statement) that the currency has been paid, which shows how much cryptocurrency and what currency is purchased, is considered the appropriate documents for the purchase of cryptocurrency.
If such information is not visible in the bank order, you should additionally save other messages regarding the purchased currency.
“If a resident does not voluntarily declare crypto-currency operations, during the VMI inspection, he may apply sanctions, the amount of which will exceed the unpaid GPM and the payable GPM will be additionally added,” the Lithuanian Association of Accountants and Auditors stated.
If trading transactions in crypto-currency are periodic, in this case, transactions of sales or exchange of crypto-currency are taxed and declared not as asset sales transactions, but as individual activity transactions.
In such a case, according to experts, it is necessary to register individual activities related to cryptocurrency trading. If the accrual method is used to calculate self-employment tax, it will be possible to carry forward the cryptocurrency trading loss to the next year to reduce the taxable income of the following year.
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2024-05-02 21:12:31
