Our tax authority has a guidance in place that says virtual currency earned on internet platforms created mainly for entertainment purposes is not taxable income until you cash it out or buy goods or services with it or exchange it for virtual currencies external to the platform.
Which country is that?
I guess there will be some interesting conversations about whether currency has been earned or gifted; also between assets that increase in value and assets that are gifted and/or earned, depending how they are defined.
I guess the earned/gifted could be used here, too, but it is unnecessary. Also, when gifts exceed a certain amount (some thousands of euros per year) of value, a gift tax must be paid on them.
Yes, it will become very complex here to demonstrate "gifts": donations over a certain amount would have to be able to show they were for "public benefit" in order not to be subject to one kind of a tax or other.
I'll do everything I can to define Hive as donated, TBH when I cash any out, the gain would have been so much I probably wouldn't mind paying 20% tax anyway.
Well, you don't pay tax on those, dyou!
That makes sense because there is no contract between curators and authors. The curators could've been self-upvoting instead.
or giving/gifting it to someone else.
Yep, as no contracts exist between anyone.
No, you don't. HMRC's attitude is that adoption is so low in the UK that it is not yet worth regulating, so get it while you can :)
Our tax authority has a guidance in place that says virtual currency earned on internet platforms created mainly for entertainment purposes is not taxable income until you cash it out or buy goods or services with it or exchange it for virtual currencies external to the platform.
Which country is that?
I guess there will be some interesting conversations about whether currency has been earned or gifted; also between assets that increase in value and assets that are gifted and/or earned, depending how they are defined.
Finland.
I guess the earned/gifted could be used here, too, but it is unnecessary. Also, when gifts exceed a certain amount (some thousands of euros per year) of value, a gift tax must be paid on them.
😁
Yes, it will become very complex here to demonstrate "gifts": donations over a certain amount would have to be able to show they were for "public benefit" in order not to be subject to one kind of a tax or other.
and @shanibeer
I'll do everything I can to define Hive as donated, TBH when I cash any out, the gain would have been so much I probably wouldn't mind paying 20% tax anyway.
depending on how successful HIVE is 20% might be the minimum - but as you say, in that happy case, none of us would mind very much.