Any one familiar with how crypto is taxed in Malta? This is what I found on the KPMG website which is a bit ambiguous.:
The tax treatment of transactions involving coins would be identical to the tax treatment of transactions involving fiat or conventional currency. As such, coins fall outside the scope of income tax and duty, and gains on isolated transfers will not be taxed in Malta. Conversely, where the Coins are transferred as part of a coin exchange business or trade, profits realised from such business would be taxed at the standard Maltese corporate income tax rate of 35%. By the application of structuring options which are available under the Maltese full imputation system, the effective tax rate on such trading income could be reduced to between 5% and nil. The exchange of coins for other cryptocurrencies or for fiat money where such exchange constitutes a supply of services for consideration will not be liable to VAT. Mining would also fall outside of scope of VAT, unless it is carried out against payment of transaction fees.
Blockchain Tax Guidelines in Malta
Does the coin exchange business refer to crypto exchanges or to individuals trading coins for business or both?
How and when are coins and tokens taxed in Malta?
CoinsThe tax treatment of transactions involving coins would be identical to the tax treatment of transactions involving fiat or conventional currency. As such, coins fall outside the scope of income tax and duty, and gains on isolated transfers will not be taxed in Malta. Conversely, where the Coins are transferred as part of a coin exchange business or trade, profits realised from such business would be taxed at the standard Maltese corporate income tax rate of 35%. By the application of structuring options which are available under the Maltese full imputation system, the effective tax rate on such trading income could be reduced to between 5% and nil. The exchange of coins for other cryptocurrencies or for fiat money where such exchange constitutes a supply of services for consideration will not be liable to VAT. Mining would also fall outside of scope of VAT, unless it is carried out against payment of transaction fees.
Blockchain Tax Guidelines in Malta
Does the coin exchange business refer to crypto exchanges or to individuals trading coins for business or both?
To plan your taxation, you should do more steps than just open an offshore company. Usually, your taxes are determined by your tax residency, so at first, you should change that.
