Belgian Tax Authorities Are to Investigate Foreign Crypto Exchanges

In Belgium, profits gained from trading cryptocurrencies is subjected to a 33% tax as of 2017.

by Viko
04 March • 4 min
In Regulation

According to tax authorities, there are some local citizens who operate their assets on overseas exchanges and have not yet paid their "various income" tax.

Since the inception of the new Belgian tax rule in 2017, the Special Tax Inspectorate (STI) is on the look for local citizens who trade digital currencies on exchanges without disclosing any gains. According the rule, cryptocurrency related profits are subjected to a 33% flat tax rate under the "various income" policy of the form.

As mentioned by The Brussels Times, information about four Belgian traders active on the Finnish crypto market has been received by the authorities, as one of them is disclosed as a "non-case".

glasses and monitors

Even though the newly approved rule seems hard to implement due to the anonymous nature of blockchain transactions, Belgian authorities might follow the example of the Internal Revenue Service (IRS) in the USA. The two countries have adopted the double taxation treaty which may, in turn, be a way around to requesting information about traders with Belgian citizenship who exchange on foreign cryptocurrency markets.

STI is on the look for Belgian taxpayers who have not disclosed gains made on international cryptocurrency exchanges. According to Francis Adyns, "It will be investigated whether a similar question can be asked as that of the IRS [...] There are several other websites that deal in bitcoins and many other crypto coins. Every known website in this domain can count on our explicit attention."

In November 2017 Coinbase was requested to disclose personal information of about 13,000 exchange members by the IRS. However, the case was brought to the court where it was decided that data only of "high volume" traders will be provided.