What is the tax on cryptocurrencies in Serbia and when is the right time to invest in bitcoin?, News
Bitcoin is a type of digital money behind decentralized blockchain, which is open source, neutral, censored and globally oriented.
In order for someone to invest in bitcoin, they should decide what exactly they plan to do with that bitcoin, how much money they want to invest, and on which stock exchange they want to buy, Marija Blesic from Belgrade Crypto Community explains.
Belgrade Crypto Community brings together fans of cryptocurrencies, blockchains, decentralized applications and modern technologies. They educate and network community members.
“Bitcoin cryptocurrency has all the characteristics of money, and its advantage over the national currency is that it is a fixed number and cannot be reprinted. Bitcoin is actually a deflationary currency, and all bitcoin transactions that have ever taken place are recorded on the Internet within so-called blocks – blocks of information that are connected in an inseparable sequence, after which the blockchain got its name,” states the interlocutor of the portal.
Taxation of cryptocurrencies in Serbia
The Law on Digital Property regulates that income from digital property is taxed with capital gains tax, with a tax rate of 15 percent. The capital gain, explains Marija, is considered to be the documented difference between the purchase and sale price.
“If a person bought a cryptocurrency for 80 euros and then sold it for 130 euros, that person should pay a tax of 15 percent of 45 euros when he submits a tax return with proof of purchase and sale price. On the other hand, if a person does not have proof of the purchase price, but only the sale price, he risks paying 15 percent of the entire amount,” she says.
She adds that changes and additions are still expected, which will define more precisely how exactly this evidence is submitted.
“We will see if there will be logical facilities that would help both traders and miners of cryptocurrencies, as well as the tax service.”
When to invest?
Those who are interested in investing in bitcoins should know how the price of bitcoin has moved in the past, and what the price of bitcoin depends on.
“It is very important that the buyer is not subject to the influence of the masses who will, as always, react positively when the price is highest and react negatively when the price is lower. Because exactly when the price is lower you need to invest. When it is true, the price is a little harder. It would be best if the future investor was part of a crypto-community, because that would make it much easier for him to buy,” says Blesic.
Mining, she explains, works by having machines solve algorithmic tasks and thus “open” blocks within a blockchain.
“When a machine solves an algorithmic task it will get a reward in the form of that cryptocurrency. Mining can be thought of as solving some kind of sudoku: anyone can solve it, but the one who solves it accurately and fastest will get a reward. Different cryptocurrencies have different mining algorithms, require different equipment, a different level of investment in it, but also a different profit in the end.”
For those who would like to be a part of the crypto era, but do not have too much experience – buying on the stock exchange is the solution. Thus, as she points out, they will easily reach the cryptocurrency that interests them and participate in these interesting events on the stock exchange and in the community.
Mining, on the other hand, is intended for those who have a little more technical knowledge, and is not too recommended for total beginners. An option for someone to access a cryptocurrency can also be to sell cryptocurrency products and services. If a person has a business or hobby – he can receive payments or donations in cryptocurrencies.
The price of mining equipment depends on the type of equipment and the quantity.
“If we are talking about serious mining, it is an expense, but then the better question is: How long would it take for that initial investment to return? In order for a miner to know that, he would have to investigate the profitability of mining in a given cryptocurrency and sells at market value, and deducts the price of equipment, electricity, maintenance and other expenses, including taxes.”
Bitcoin – a means of storing values
The field of cryptocurrencies is relatively young and its further development is yet to come.
“It seems that bitcoin, as before, will be a store of value. This is very important when we know how important capital diversification is. Bitcoin is suitable for that because of its digital characteristics, easy portability and global orientation. I expect to see solutions to some technical problems on certain platforms and especially the development of the crypto-commerce sector. Of course, this whole area will be fully legally regulated, which means – profit taxation, but also the possibility of doing business within the legal framework,” eKapija reports.
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