Partners Grahame Jackson, Aaron Payas and Vikram Nagrani have received fantastic news that a report "Taxation of Cryptocurrency Block Rewards in Selected Jurisdictions" prepared by the Law Library of Congress, and announced early in February by US Rep Tom Emmer (who represents Minnesota and is Chair of the National Republican Congressional Committee) cited two sources published by the firm:
- "Crypto taxation: not all unknown", published by Financier Worldwide in 2018, helped establish that crypto assets should be taxed in line with pre-existing principles of taxation in our jurisdiction; and
- the Gibraltar Blockchain Comparative Guide which provides point of law and practice to allow the comparison of regulatory environments and laws across multiple jurisdictions.
The Law Library of Congress is the law library of the United States Congress and is one of the largest in the world. It holds the single most comprehensive and authoritative collection of domestic, foreign, and international legal materials; its "collections are universal, not limited by subject, format, or national boundary, and include research materials from all parts of the world and in more than 450 languages."
Gibraltar does not impose capital gains, dividends, value added, or withholding taxes, including with respect to cryptocurrency transactions. While Gibraltar does have an income tax, if the “badges of trade” test is not met with respect to the sale of any cryptoassets, the activity would be deemed noncommercial and would represent a capital gain rather than income, and thus no tax would be chargeable.