ISK Tax vs Capital gain tax

Hey,

Does anyone know why XBT (ETPs) on ISK account is taxed at 1%~ vs. 30%(capital gain tax) if you bought it and sold it on an exchange? It doesn’t make any sense at all. Plus you don’t own your keys, but that’s another story.

Hi @Jacob70,

The ISK was introduced as a way to make it easier for regular people to invest in stock and other financial instruments. It removed the requirement to declare and calculate capital gains for each stock sale, which is great. It also lowered the tax for most people, but note that the ~1% is a yearly tax on the total capital, while the 30% is a one-time tax on capital gains, so if you make bad investments you will actually pay more tax in an ISK.

Now, actual bitcoins can’t be held in an ISK (who knows, maybe it will be possible in the future) but ETPs can, since that’s a type of instrument that has existed for many years.

1 gillning