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| Cryptocurrency taxation scheme from Albania |
Albania is getting ready to tax income generated from cryptocurrencies. The draft law drawn up by the Ministry of Finance and Economy, already submitted for Public Consultation, aims to tax 8 percent of income from dividends, the share of profit received by each shareholder and 15 percent other income.
“The first part is the taxation of income from cryptocurrency trading as an investment. The second part is the taxation of income from the production of cryptocurrencies", says Fation Ceka, investment manager.
The document also provides that the digging process, known as "mining" and transactions of the sale of cryptocurrencies will be considered as income from investments. "We have not yet determined how to evaluate cryptocurrencies. This is expected to be done by the Ministry of Finance. There should be a regulation on what declaration method will be used", says Ceka.
In addition to the legal vacuum, the tax administration's ability to both collect revenues and prevent money laundering is also questionable, local media reports.
"There are some technical difficulties in structuring the collection of these taxes. For many years I have been talking about the establishment of a task force that will control money laundering and terrorist financing", says Ceka.