Light Shed on Cryptocurrency Taxation Rules: Ireland
Ireland officials have released the Tax and Duty Manual with the target to clarify the situation with taxation of crypto-related activities. The rules and description notes that standard regulations apply to the cryptoverse.
The Irish gov agency that deals with taxation and customs – The Irish Revenue Commissioners, highlighted that the manual published does not determine or cover any regulatory aspect while it can be used as a reference for taxes.
Following the document-walkthrough, capital gains, income and corporation tax are fitting but should be analyzed separate. In general, businesses accepting crypto payments for goods or services should keep records of crypto transactions.
Until now no new or special rules have been made public which results with taxable profits to be set under current tax legislation.
The profits and losses of a company transacting in cryptocurrency must be reflected in accounts and are taxable under “normal CT rules,” the document states. Ireland’s Taxes Consolidation Act from 1997 recognizes that some businesses operate and prepare their accounts in a “functional currency” other than euro.
According to the authorities, keeping in mind that cryptos are still not considered functional currencies, accounts that are setup for tax purposes are to be maintained with traditional currencies.
“Profits and losses of a non-incorporated business on cryptocurrency transactions must be reflected in their accounts and will be taxable on normal income tax rules,”