Australia’s Treasury Department has contacted the public to seek advice about draft legislation that would exclude cryptocurrencies from being taxed as a foreign currency if passed.
In a press release, Assistant Treasurer Stephen Jones highlighted the intention of the Australian government to exclude crypto assets from being treated as foreign currency for tax purposes. However, the law will have no effect on the collection of capital gains taxes on cryptos held as investments.
The public has been given 25 days from September 6 to September 30 to share their views on the proposed legislation.
If signed into law, the law will see amendments to the existing definition of digital currency in the Goods and Services Tax (GST) Act – effectively taking crypto assets out of the definition of foreign currency. GST is a broad-based tax levied on goods, services and goods sold or consumed in Australia.
The Treasury noted that the defendant’s personal information, including name and address, would be made public if it is not actively selected.
The move to phase out the cryptocurrency as a foreign currency is a direct result of El Salvador’s adoption of bitcoin (BTC) as legal tender. Australia plans to reduce the potential uncertainties related to taxing cryptocurrencies through this law.
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Mendoza, a province of Argentina, has started accepting crypto for taxes and fees. The Mendoza Tax Administration (ATM) said allowing crypto payments provides an additional option for taxpayers to comply with tax obligations. In addition, the move fulfills its “strategic objective of modernization and innovation”.
Starting August 24, Mendoza residents can access the ATM’s website to pay taxes using any crypto wallet, including Binance, Bybit and Ripio. The system generates a QR code based on the cryptocurrency chosen by the end user, which then converts an equivalent amount of the stablecoin into Argentine pesos through an unknown online payment service provider.
