The Swedish tax firm Divly recently carried out a study in 24 countries. The survey aimed to determine in each region the proportion of crypto investors declaring their crypto transactions to the competent authorities. It also made it possible to assess the number of crypto investors who paid the appropriate taxes in the past year. Here are the results of the survey.
Only 0.53% of crypto investors paid their taxes in 2022!
Two months after Binance launched a crypto tax filing tool, Divly publishes a relevant survey. The firm’s study reveals that less than 1% of crypto investors have declared their holdings to the authorities. Indeed, only 0.53% of them paid taxes on their crypto transactions last year. The survey also indicates that the number of investors complying with tax policies varies from region to region. For example, in Finland, 4.09% of crypto investors paid taxes in 2022. Meanwhile, only 0.03% of traders did so in the Philippines.
Actually Finland has the highest crypto-asset tax payment rate in Europe and worldwide. On the other hand, the Philippines has the lowest payout rate in the world. Considering Europe only, Italy is at the bottom of the scale with 0.26%. Meanwhile, only 1.62% of crypto investors in the US complied with the tax rules. Yet, it is the region with the most crypto taxpayers in the world.
At the same time, Divly noted that 1.65% of Canadian crypto traders paid their taxes last year. In addition, we find Japan and Singapore in the lead on the Asian continent. They have a tax rate of 2.18% and 0.65% respectively. That said, the Swedish tax firm believes that all these numbers could improve. It would be enough for governments to reconsider the regulations in force and take care to better enforce them.
It appears that the low rate of payment of crypto taxes could come from the rigidity of certain tax rules. For example, the tax on cryptoasset holdings is 35% in Italy. However, traders in the region only declare their crypto income if it is above $4,500. Separately, it was revealed in December that the crypto tax could be a boon for Europe. Indeed, it could make it possible to bail out the coffers of the EU.
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