The European Parliament agreed with the tax policies of digital currencies

Members of the European Union Parliament to the resolution Using blockchain to fight tax evasion and coordination Tax policies of digital currencies They voted yes.

The European Parliament announced in its announcement on October 4 that 566 of the 705 members of the parliament voted in favor of the resolution drafted by Lidia Pereira. The resolution advises the authorities of the 27 parliament member states to consider a simplified tax treatment for crypto users involved in small transactions.

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Establishing digital currency tax policies

According to the digital currency tax resolution, the European Commission will determine whether Convert cryptocurrency to fiatDepending on the location of the reaction, it is considered a taxable event or not. In addition to the above, the policy calls for an administrative amendment to better exchange information related to crypto taxation.

At Digital currency tax resolution It has been mentioned that member states of the parliament can integrate blockchain solutions into tax programs.

Blockchain’s unique features offer a new way to automate tax collection, limit corruption, and better identify ownership of tangible and intangible assets. This work is done to identify the best way to use technology to improve the analytical capacity of tax departments.

EU policy makers for Crypto market regulation have used through their specific legislative framework. This bill was first presented to the European Commission in 2020 and was approved by the European Council in 2021 with the aim of creating a coherent legal framework for digital currencies among the EU countries. Many officials expect these policies to take effect in 2024.

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Source: cointelegraph