Taxation of Cryptocurrencies with Income Tax and Corporate Income Tax

Abstract

Cryptocurrencies are a completely new concept that changes not only the way we pay but also the way we experience money. Currently, different member states of the European Union define cryptocurrencies differently and tax the income from cryptocurrency trading differently. Most of the European Union’s member states income from cryptocurrency trading is taxed as capital gains. Therefore, this paper will analyze the legal issues of taxation of cryptocurrencies with income tax and corporate income tax. The de lege ferenda will also analyze the introduction of universal rules for the whole European Union to protect all investors, equal rules within the European Union for all cryptocurrency issuers and all service providers, remove legislative barriers to innovation and cover technological development and future types of cryptocurrencies.