regulation
IRD Issues Updated Guidance on Crypto Taxation
Hong Kong's Inland Revenue Department clarifies how profits tax applies to crypto trading and mining activities.
The Inland Revenue Department (IRD) has published updated guidance on the tax treatment of cryptocurrency transactions for Hong Kong businesses and individuals.
Key Points
- Profits from crypto trading conducted as a business are subject to profits tax
- Capital gains from personal investment may be exempt under Hong Kong’s territorial tax system
- Mining income is generally assessable if conducted as a trade or business
- Proper record-keeping of all transactions is strongly recommended
For Businesses
Crypto exchanges and related businesses should consult tax advisors to ensure compliance with the updated guidance.