Should Virtual Currency Be Subject to Income Tax?

18 Pages Posted: 19 May 2014

See all articles by Aleksandra Bal

Aleksandra Bal

International Bureau for Fiscal Documentation (IBFD)

Date Written: April 24, 2014

Abstract

This paper describes the main characteristics of the most famous digital currency scheme – Bitcoin. It examines the question whether Bitcoin should be regarded as money in the economic and legal sense, and whether income in the form of virtual currency should be subject to tax. The paper does not try to determine whether such income is actually taxable in particular countries, but whether it would be a right and good policy to tax it in general.

Keywords: virtual money, virtual currency, digital money, Bitcoin, taxation, concept of money

JEL Classification: K34

Suggested Citation

Bal, Aleksandra, Should Virtual Currency Be Subject to Income Tax? (April 24, 2014). Available at SSRN: https://ssrn.com/abstract=2438451 or http://dx.doi.org/10.2139/ssrn.2438451

Aleksandra Bal (Contact Author)

International Bureau for Fiscal Documentation (IBFD) ( email )

Rietlandpark 301
Amsterdam, 1019 DW
Netherlands

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