• Divly has released a report estimating that only 0.53% of crypto investors globally paid tax on their crypto in 2022.
• Finland and Australia had the highest proportion of tax-paying crypto investors, while the United States ranked 10th.
• Tax experts have cast doubt on the report’s estimates and methodology.
Divly Report Estimates Low Tax Payment From Crypto Investors
Swedish crypto tax firm Divly recently released a study claiming that only 0.53% of crypto investors globally paid taxes on their cryptocurrency investments in 2022.
Country Rankings On Crypto Tax Payment
The report estimated that Finland had the highest proportion of crypto investors who paid taxes at 4.09%, with Australia following closely behind at 3.65%. The United States ranked tenth on the list, with an estimated 1.62% of crypto holders paying taxes, while India, Indonesia and the Philippines had the lowest rates of tax-paying crypto investors, at just 0.07%, 0.04% and 0.03%, respectively.
Doubt On Report’s Methodology And Estimates
Tax experts have cast doubt on the figures and methodology used by Divly to arrive at its estimate of low tax payment from cryptocurrency investors.
Danny Talwar, global head of tax at Koinly said: “It is likely that 99.5% is not reflective of countries that have specific crypto tax guidance and strict compliance requirements such as USA, Canada, Australia and India.” Chartered accountant Greg Valles also argued that there could be potential bias towards countries with greater internet accessibility.
Koinly’s Recommendation For Crypto Investors
Talwar advised cryptocurrency holders to stay up to date with applicable laws in their jurisdiction regarding taxation on cryptocurrencies as well as to use proper tools for filing accurate returns.
The results from Divly’s report suggest a very low rate of taxpayers for cryptocurrencies globally; however, due to doubts on its methodology this figure should be taken with a grain of salt and further research is needed before it can be accepted as fact.