Accounting services for Czech cryptocurrency companies
All organizations and branches of foreign companies operating in the Czech Republic are subject to accounting. The purpose of accounting is to track and record the economic performance and financial condition of the company. For each organization, accounting must meet the established governmental requirements, in order to be comparable and understandable.
Transactions with cryptocurrency are exempt from turnover tax. The European Court of Justice decided (Case C-264/14) that Article 135 (1) to 1 of the NSO Directive should be interpreted so that the exchange of virtual currency to the ordinary currency and vice versa, as well as the currency exchange service (fiat) is exempted from the payment of turnover tax.
In the case of virtual currency, taxable income may arise as follows:
- from virtual currency price change, when buying and selling/exchanging virtual currency
- when mining virtual currency (mining)
- when receiving payment in virtual currency for work done
Earned income in virtual currency is taxed on the same principles as received income in traditional currency. In taxation, the purchase and sale price of the virtual currency or the income received must be converted into euros on the basis of the current exchange rate (market price) on the date of the transaction or on the date of receipt of the profit.
CRYPTOCURRENCY TRANSACTION TAXATION
Virtual currency is considered a property in the meaning of Art. 15, para. 1 of the Income Tax Act (TPA). Income tax is levied only on profits (Art. 37) from the sale or exchange of alienated and property-worthwhile items (Art. 15, para. 1 of the TPA), i.e., income tax is levied on profits derived from the alienation of virtual currency, including exchange. The profit or loss from the sale of the property is the difference between the purchase price of the property sold and the sale price. The gain or loss from the exchange of property is the difference between the purchase price of the exchanged property and the market price of the exchanged property. (art. 37, para. 1.1)
The cost of accounting for a cryptocurrency company depends on the number of documents processed and the number of employees of the Czech company.
It is necessary to record the amount of fiat money received, as well as the amount of cryptocurrency assets acquired during the month. It is also necessary to record all cryptocurrency assets of the company in Czech kronas monthly.
Regulated United Europe provides accounting services to Czech companies providing services in the field of virtual currencies. In addition, we have successful experience in various business segments and currently provide accounting services to more than 100 companies in the Czech Republic.
At the moment, the main services of our company are legal and compliance solutions for FinTech projects. Our offices are located in Tallinn, Vilnius, Prague, and Warsaw. The legal team can assist with legal analysis, project structuring, and legal regulation.