Australia to impose capital beneficial properties tax on wrapped cryptocurrency tokens

The Australian Taxation Workplace (ATO) has issued steerage on capital beneficial properties tax (CGT) remedy of decentralized finance (DeFi) and wrapping crypto tokens for people, clarifying its intent to proceed taxing Australians on capital beneficial properties when wrapping and unwrapping tokens.

In Could 2022, the ATO outlined crypto capital beneficial properties as considered one of 4 key focus areas. Constructing on the initiative, the Australian taxman just lately clarified a raft of taxable actions in its jurisdiction. The switch of crypto belongings to an handle that the sender doesn’t management or that already holds a steadiness can be thought to be a taxable CGT occasion, the ATO mentioned in its assertion.

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