The Strategist

PwC names countries with the most transparent cryptocurrency tax policies

12/16/2021 - 14:03

For the second year in a row PwC ranked Liechtenstein as the country with the most transparent cryptocurrency tax policy. The small state beat out Germany, Singapore, the US and other major financial centres.
Liechtenstein topped consulting firm PwC's index of clarity and transparency in cryptocurrency tax systems, follows from the second edition of the company's annual Global Crypto Tax Report 2021. Last year, the small state between France, Belgium and Germany also topped the list.

In the top three of the 2021 rankings, Australia moved Malta from second to third place. Germany moved up from 20th place last year to fourth place this year. Singapore, Switzerland, newcomers New Zealand and Austria as well as Hong Kong and Italy are also in the top 10. El Salvador, Hungary, Jersey Island, Luxembourg, Portugal and South Korea were included in the index for the first time.

PwC uses 19 different parameters related to the taxation of crypto-assets to compare countries. The company assessed how much each of them is affected by each country's laws. Past leaders Liechtenstein, Malta, Australia and Switzerland improved their scores compared to the last ranking, which means their crypto tax policies continue to evolve, PwC noted. Germany rose sharply in the rankings thanks to tokens issued in July and a draft law on an income tax on virtual currencies, the company explained. El Salvador, despite adopting bitcoin as an official means of payment, still has no formal rules for taxing digital assets, PwC added.