Cryptocurrency in Estonia

Cryptocurrency trading is gaining popularity, and buyers may wonder whether it is necessary to pay taxes on cryptocurrency, and if so, when? The Tax and Customs Board clarifies this issue.

In general, we can say that the tax liability arises in three cases:

  1. When converting cryptocurrency into regular currency;
  2. When exchanging cryptocurrency for any other cryptocurrency;
  3. When using cryptocurrency to pay for goods and services.

What happens if you do not pay taxes on earned income?

The tax authority can assign a estonia crypto tax amount to be paid with retroactive force within three years, and in the event of intentional non-payment of the tax amount – up to five years. In addition, it should be borne in mind that interest will be added to unpaid taxes.

It should also be borne in mind that the submission of false data in the tax return is a misdemeanor for which a private person can be punished with a fine of up to 1200 euros, and a company – up to 32,000 euros. If false information is presented in order to reduce the tax liability, and thereby concealment of a tax liability of 40,000 euros or more, it is a tax crime, for which a pecuniary punishment or imprisonment of up to five years is prescribed. Hiding a tax liability of more than € 400,000 is punishable by a prison sentence of one to seven years.

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