Authorities in Albania are finalizing regulations that will allow the taxation of income and profits from cryptocurrency assets and investments.
The government intends to begin imposing the levy in 2023, after adopting the necessary legislation which is currently open for public consultations. It introduces the concept of taxing crypto holdings and the income derived from virtual assets. However, the definition does not cover central bank digital currencies (CBDCs).
Albania is expected to adopt new legislation regarding the taxation of Cryptocurrencies in 2023
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Author: Kristina Dosen
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Fiscal subject related
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1729
Content accuracy validation date:
26.07.2022
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13:49h
Albanian law also defines cryptocurrency mining as an activity using computing power to confirm transactions and gain virtual assets in exchange. The extraction of cryptocurrencies has been a grey area although law enforcement has been going after illegal mining facilities in the country and pressed charges against some of their operators. Under the new legislation, any income from crypto transactions or mining will be classified as corporate income when it’s received as a result of business activity. And when the beneficiaries are private individuals, they will have to pay a capital gains tax of 15%.
Earlier this month, the Albanian parliament ordered the Financial Supervisory Authority (AFSA) to prepare and adopt new regulations regarding cryptocurrencies by the end of 2022. Albanian law allows crypto trading platforms to legally work in the country but no licensed entities are currently operating in Albania.