Taxation and VAT advantages
Ireland Taxation on Crypto area
According to Revenue, while companies are entitled to prepare their accounts in a currency other than euro, they are not entitled to do so in crypto – “Accounts, for tax purposes, cannot be prepared in cryptocurrencies: euro or functional currency accounts must be prepared”.
On VAT, Revenue says that as bitcoin and other crypto currencies are deemed to be “negotiable instruments”, they are exempt from VAT. This means that those engaged in exchanging cryptocurrencies won’t be subject to VAT.
The territoriality aspect of cryptocurrencies is still an involving area. In the case of an Irish resident (and for an individual ordinarily resident) person, they will usually be liable to tax in Ireland on their worldwide income and gains (subject to any reliefs or exemptions, including double tax treaty reliefs).
A non-resident person will generally only be subject to tax on Irish-sourced income or gains, or profits of an Irish trade. (In the case of individuals, tax may also apply where amounts are remitted into Ireland.) It is evident therefore that understanding the source or situs of cryptocurrencies is of significance in international dealings. This is likely to be an area that will be developed further.
Considering setting up your crypto-trade company in Ireland?
You will find all related and relevant information in our website. However, should you have any question or matter you would like to discuss with us, before you take a decision to register your business company in Ireland, do contact us.
One of our Business Development Managers will be here ready to guide and assist you.