The Australian Treasury has reached out to the public to seek consultation on a bill that would exclude cryptocurrencies from being taxed as foreign currency if it is passed.
In a press release, Assistant Treasurer Stephen Jones highlighted the Australian government’s intention to exclude crypto assets from being considered foreign currency for tax purposes. However, the legislation will have no effect on the collection of capital gains taxes on cryptocurrencies as investments.
The public was given 25 days, from September 6 to September 30, to share their views on the proposed legislation.
If signed into law, the legislation would see an amendment to the current definition of digital currency in the Goods and Services Tax (GST) Act — effectively excluding crypto assets from the definition of foreign currency. Goods and Services Tax is a broad tax levied on goods, services and items sold or consumed in Australia.
The Treasury noted that the defendant’s personal information, including name and address, would be made public if the same information was not preemptively opted out.
The move to exclude cryptocurrencies as a foreign currency is a direct consequence of El Salvador’s adoption of Bitcoin (BTC) as legal tender. Australia plans to reduce potential uncertainties related to taxation of cryptocurrencies through this legislation.
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Mendoza, a province in Argentina, has begun accepting cryptocurrencies for taxes and fees. The Mendoza Tax Administration (ATM) stated that allowing crypto payments provides taxpayers with an additional option to comply with their tax obligations. In addition, this move achieves its “strategic goal of modernization and innovation”.
As of August 24, Mendoza residents can use the ATM site to pay taxes using any crypto wallets, including Binance, Bybit, and Ripio. The system generates a QR code based on the cryptocurrency selected by the end user, which then converts an equivalent amount of stablecoins into Argentine pesos via an undisclosed online payment service provider.