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Author: Admin | 2025-04-28
Like professional trading, mining, or similar blockchain services will have to pay a regular tax rate of 35%. This may be drastically reduced with proper structuring. It may be reduced to a rate of 0% to 5%, but you will need a professional with a deep understanding of Malta’s tax regulations. Malta crypto tax rates depend on whether you’re operating with cryptocurrencies as an individual or business.Individuals typically don’t have to pay capital gains tax, but if they are frequently trading and operating in a business-like manner, tax rates between 15% and 35% may apply. This also depends on your annual income.Businesses have to pay a flat tax rate of 35% in Malta, but this number can be lowered with proper structuring. If you get a professional with a deep understanding of crypto tax regulations, you can lower it to 0% to 5%. All cryptocurrencies, including the top 10 cryptocurrencies used across the globe, are subject to asset classification under the Income Tax Act (ITA) to determine their purpose and valuation. The four categories under which a DLT asset could fall are: coins, financial tokens, utility tokens, and hybrid tokens.While the classification of these digital assets is mandatory, it does not necessarily make them subject to taxation. In fact, any taxation that would be applicable to DLT assets would only be determined by the context within which they are used, as well as the purpose for which they are used.The Maltese crypto tax considers the nature of the transaction of a virtual financial asset, the status of the parties involved, and the specifics and circumstances of each transaction. Once determined, DLT transactions may be taxed under regular income tax, or other taxations.Definitions of DLT asset classification categories1. CoinsThese DLT assets are designed to be used in place of fiat currencies
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