Hungary Plans 50% Tax Cut on Crypto Earnings to Encourage Disclosure
- Reduced rate an attempt to boost visibility of digital profits
- Authorities around the world grapple with ways to tax crypto
A cryptocurrency mining rig in Budapest.
Photographer: Akos Stiller/BloombergThis article is for subscribers only.
Hungary plans to slash the tax on cryptocurrency earnings by 50% from next year in an effort to encourage investors to declare income from trading digital tokens such as Bitcoin.
The government said it will lower the rate on such earnings to 15% from 30.5% starting in 2022, which would bring it in line with capital gains levies on stocks. The impetus appears to be fears among officials that investors are shielding crypto gains from authorities because of the higher tax rate.