Are crypto-to-crypto transactions included in a Cyprus audit?

[maybelater33]

I understand that conversions between cryptocurrencies is not a taxable event in Cyprus. The only taxable event is when you convert crypto to fiat.

Do crypto-to-crypto transactions need to be included in your bookkeeping?

Or do you only need to include transactions between crypto and fiat?

 

[CyprusLaw]

Crypto to crypto are still included in bookkeeping. But as you correctly mention the tax trigger at the moment is the conversion to fiat

 

[maybelater33]

Crypto to crypto are still included in bookkeeping. But as you correctly mention the tax trigger at the moment is the conversion to fiat

Thank you

How does Cyprus treat mining rewards? Are they also only taxed once converted to fiat?

 

[CyprusLaw]

Thank you

How does Cyprus treat mining rewards? Are they also only taxed once converted to fiat?

Again no specific framework so unless and until otherwise provided for it will only trigger tax obligations upon fiat conversion

 

[Cristero]

Again no specific framework so unless and until otherwise provided for it will only trigger tax obligations upon fiat conversion

Hi @CyprusLaw . Would you be able to send me a PM, as it seems I can't send you one? Thanks!

 

[Almouk]

Crypto to crypto are still included in bookkeeping. But as you correctly mention the tax trigger at the moment is the conversion to fiat

Imagine I move to Cyprus next year. In 2021 I must pay taxes in my country of origin for the profits that I made in crypto during 2020.

Imagine I have made 100k. And during 2021 or in 2022, I decided to convert USDT to EUR and receive a transfer to my current account.

I have already pay taxes for this 100k to my country of origin on 2020 Taxes Return, but as is a taxable event -the unique- in Cyprus convert crypto to fiat, should I have to pay again for these profits? I shouldn't, but I prefer asking and not be taxed twice for the same profits and when Tax Authorities see a deposit in your bank coming from a crypto exchange could be problematic even already have been paid for these profits previously.

In case of not paying again, imagine the same example,. I made 100k during 2020, pay taxes in my country of origin, and make another 100k during 2021 already being resident in Cyprus this year. I have 200k in any exchange and decided to return 150k. In this case I should have to pay taxes only for 50k when I fill my taxes Return on 2022 in Cyprus. I guess should be at this way. Hope someone can clarify me this point.

I have read that profits generated trading securities are tax free -stocks, bonds, stock options, futures and other assets-. My doubt is if trading stocks or indexes through CFDS are tax free as well? And index options?

Thanks in advance!