Crypto-currency investments attracted the attention of the tax authorities of Belgium. Several investigations have been initiated against Belgian citizens who traded on foreign exchanges,

Every Belgian working in the crypto-currency markets must pay a 33% tax on profits, despite the fact that bitcoin and other crypto-currencies are not regulated in the country. The Special Tax Inspectorate (STI) is studying at least three different cases of investment of Belgian citizens in crypto-currencies. According to local media, the investigation began after the Belgian regulators received data on investors from foreign colleagues.

The publication De Standaard and Het Nieuwsblad notes that the Belgian Tax Authorities have become more interested in citizens investing in crypto-currencies. Last year, STI stated that all those who speculate on the crypto-currency markets are obliged to pay a 33% tax on profits and indicate these incomes in the column “Other income” of the tax return. For companies, such a tax can go up to 50%.

However, the new rules proved difficult to implement, according to the Brussels Times. Management of crypto-currency assets occurs on foreign trading platforms, and the Belgian authorities find it difficult to penetrate there. Despite the obstacles, the Special Tax Inspectorate intends to strengthen inspections in the crypto-currency area.

“This is the direction in which the Belgian tax authorities still have a lot to achieve,  ” says Francis Adins of FPS Finance.

STI began investigation after receiving information from a foreign tax authority on the crypto-currency transactions of several Belgian citizens. Inspection intends to directly contact the trading floors to get more data on transactions.

Taxation without legalization

Last year it was reported that Belgium could tighten the rules for the regulation of the Crypto-currency. Representatives of the government made it clear that they are in favor of strengthening state control over the crypto-currencies. Minister of Justice Cohen Gens said that digital currencies should be more strictly regulated because of their growing popularity among cybercriminals and scammers. He also insisted that crypto-exchange companies should be required to cooperate with the authorities.

“Measures to prevent crime and regulations should evolve along with the development of new technologies,” Gens said in 2017, calling for the adoption of new legislation. Then he  proposed to  regulate all operations with digital currency. The minister received support from the country’s tax department, which recognized that the number of ordinary Belgians interested in crypto-currencies is growing.

At present, the status of crypto-currency in Belgium is not clarified. Brussels has not yet adopted a comprehensive policy, despite the comments and warnings of some officials. Like many other EU countries, Belgium expects a unified European policy.

In December, the president of the National Bank of Belgium, Jan Smets, said that bitcoin is not a currency and does not pose a threat to financial stability. Then Smets said that the risk of investing in bitcoin is relatively low.

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