Coinspeaker
Hong Kong Welcomes FinTax to Simplify Tax Reporting as Crypto Adoption Increases
Following the approval of spot Bitcoin and Ethereum exchange-traded fund (ETF) in Hong Kong, the former director of Bitmain and his team have introduced FinTax, an innovative software built to simplify tax reporting for crypto assets. This solution is highly valuable due to the complexity surrounding crypto transactions and the lack of clear rules from tax authorities.
This latest development is necessary in the cryptocurrency sector, where the demand for efficient tax solutions is rising. With the current approval of BTC and ETH ETF in Hong Kong, a country where the crypto industry has gained more interest, clarity and efficiency in tax reporting are becoming more needed.
This new software, FinTax, will make tax calculations for crypto assets easy. Thus, digital asset traders on the platform can easily determine their tax liabilities on salaries and profits generated from digital currencies.
FinTax will also be enhanced with features allowing users to export the BIR60 form, an individual tax return form issued by the Hong Kong Inland Revenue Department (IRD) essential for reporting income and calculating salary tax. Being able to export these forms will help platform users save a lot of time when trying to submit their tax returns.
More so, the software will streamline tax compliance in Hong Kong, therefore promoting transparency and accountability in the crypto industry, which will further boost the long-term sustainability of the crypto ecosystem in the Asian country.
As this software continues to develop, FinTax is raising a seed round to build and enhance its services further. This funding will help grow the platform’s features, improve its user experience, and even enhance its operation to meet the growing demand for crypto tax solutions in Hong Kong. The introduction of FinTax is poised to reshape how crypto taxes are managed and reported as regulations on digital assets continue to seek clarity.
Hong Kong’s Dynamic Crypto Landscape
The Hong Kong authority offers tax advantages for crypto investors in comparison to many other countries. The Asian country has no capital gain tax on cryptocurrency, which means there is no tax on simply buying and selling digital assets. However, people who are constantly trading and earning from it are subjected to tax payments. If an individual or business entity consistently generates profits from crypto trading, such profit is considered an income, and it’s subjected to tax payments of up to 17%.
More so, the Hong Kong security regulators have also introduced a new licensing regulation for Virtual Asset Trading Platforms (VATPS). According to these new guidelines, any exchange operating within the country must apply for a special license with the Securities and Futures Commission (SFC), and foreign VATPS must ensure they have a licensed branch within the country or face punishment.
Hong Kong Welcomes FinTax to Simplify Tax Reporting as Crypto Adoption Increases
