The Bulgarian National Revenue Agency is going to check the local cryptocurrency platforms as well as their users. It is reported by Bitcoin.com with reference to local media.
The checks will concern companies that have declared trading in digital assets as their core business. Also, the tax authority intends to examine in detail the features of the work of these platforms.
Agency representatives are somewhat concerned that some virtual currencies suggest a high degree of transaction privacy. This, tax officials believe, creates ample opportunities for concealing incomes and avoiding taxation.
The ministry will also analyze information about users of local crypto platforms. Officials are going to find out whether traders report on their income from operations with cryptocurrency.
The peculiarity of the Bulgarian legislation is that the profit from operations with cryptocurrencies is equal to the income from the sale of financial assets. Individuals are expected to report this income in annual tax returns.
It is also known that a surplus from operations with digital money will be subject to income tax at a fixed rate of 10%. The same rate will be applied to the profits of cryptocurrency companies.