Inspection of Cryptocurrency Sale Companies in Bulgaria by National Revenue Agency

Inspection of Cryptocurrency Sale Companies in Bulgaria by National Revenue Agency

Novinite.com, English language news agency located in Sofia Bulgaria, reported on January 14, that National Revenue Agency (NRA) has announced starting inspection process from cryptocurrency sale companies.

The objective of these inspections is to guarantee compliance with social security and tax; since, according to the reports, this agency worries about encrypted assets to conceal income and divert tax.

According to the reports, Bulgarian RSA security company has started a survey for the companies such as cryptocurrency exchanges, which have their online platforms to buy and sell digital currencies and have formerly allocated some controlling (which probably means inspection) operations for nine companies.

RSA security company is an American network and computer security company which was founded in 1982 as an independent company by Ron Rivest, Adi Shamir, and Leonard Adleman.

According to the published reports, the Revenue Agency will use the information taken from the survey of the platform to determine whether the users have disclosed their incomes from cryptocurrency exchanges or not.

The income of virtual currencies which are announced through annual tax return is considered the profit from selling a financial asset and it entails paying 10% tax.

The companies which turn a profit from encrypted assets sale are entitled to pay tax according to the Corporate Income Tax Act.

As it was recently reported, Denmark Revenue Agency has received the license of acquiring information about all cryptocurrency transactions in three domestic cryptocurrency exchanges by the tax council. In July 2017, Cointelegraph website reported that the U.S. Revenue Agency has retreated from his demand in relation to information delivery of each American user of Coinbase cryptocurrency exchange.

Coinbase is an intermediate cryptocurrency exchange which has high reliability and credit and supports fiat and digital currencies. Fiat money called as unbacked money, is a type of money without intrinsic value; however, it gains value based on state and governmental orders and is used as the asset and capital. Coinbase has an easy user interface which is suitable for novices. The commissions of such exchanges are high, and it observes tax laws. Coinbase cryptocurrency exchange addresses buying and selling fiat currencies, (e.g., Euro, Dollar, etc.) besides cryptocurrencies such as Bitcoin, Ethereum and so on.

Bitcoin and Ethereum are cryptocurrencies which are founded on encrypted, distributed and secure database; namely, Blockchain.

On the contrary, in November 2017, a percept specified that just high-transaction users are required; as a result, the total number of users reported by Coinbase cryptocurrency exchange is about 13000.

The last deadline for earning profit tax of annual income from the public in 2018 will finish on April, 30. During this period tax liabilities are payable. The last deadline of the companies to offer general revenue profit is March 31.

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