New Manual Clarifies Cryptos Taxation In Ireland

Europe Ireland Taxes

A new manual “Tax and Duty Manual” published by the Irish revenue service aims to clarify the rules of crypto transactions taxation.

The manual explains that businesses should keep track of transactions performed using cryptocurrencies in order to have each case reviewed separately. In general, the usual taxes –corporation tax, income tax and capital gains tax are applicable.

The document also states that accounts for tax purposes cannot be cryptocurrencies accounts as those do not fulfil the definition of a functional currency.

As far as VAT is concerned, cryptocurrencies are exempt from it as they are regarded as “negotiable instruments”. The same goes for income from crypto mining which is not currently considered an economic activity for VAT purposes.

ICOs taxation has not been addressed by the manual.

About the author

Maciek Klimowicz

Maciek Klimowicz

A seasoned writer and editor with 10 years of experience in a variety of print and online media. Recognizing the transformative potential of the blockchain technology, Maciek has now put his pen to work to explore the key issues of this fast-evolving sector. Contact him on [email protected].

Leave a Comment

Coinlaw Newsletter

Whether you are a law firm, founder gearing-up for a token offering, or a crypto currency trader, subscribe to the biggest crypto legal newsletter to be informed of the latest developments in each and every jurisdiction