What is a Tax Identification Number (TIN)?
Regulations require that we ask all iToroStocks’ users to provide us with their Tax Identification Number (TIN) for all of their tax residencies.
Each country/jurisdiction will have its own TIN – a number issued by government tax authorities to individuals and organizations to track tax obligations and payments.
The TIN can contain letters, digits, symbols or a combination of the three, and can be referred to differently by each jurisdiction (eg: National Insurance Number, Social Security Number, Employer Identification Number or Personal Identification Number).
- Taxes apply to all accounts, but it varies from country to country. (5% or more).
- Taxes must be paid at the end of the financial year. (E.g June 2023), or once the client withdraws profits, whichever comes first.
- Taxes shall be paid in separate by the owner of the account directly from his/her bank accounts or digital wallets, but it can not be deducted from the trading account
Personal — Capital Gains Tax
For all other cryptocurrency activities that do not fit the business criteria, assets are considered a personal investment and are subject to CGT rules rather than those applied to income tax. Examples of personal crypto activities include:
● Purchasing cryptocurrency for yourself
● Recreationally mining crypto
● Casual low-volume cryptocurrency trading, commodities trading, or trading stocks.
Business or Professional — Income Tax
The key here is whether the cryptocurrency was obtained during business-related activities, which could include:
- Professionally trading crypto
- Commercially mining crypto
- Operating a business which involves financial asset
- Business-related cryptocurrency transactions or trading stocks
Shares and investments you may need to pay tax on include:
- Units in a unit trust (include Indices)
- Withdrawing crypto from the wallet (certain countries only).
- Certain bonds (not including Premium Bonds and Qualifying Corporate Bonds)
Tax when you Sell a Share or any financial asset:
You may have to pay Capital Gains Tax if you make a profit (‘gain’) when you sell (or ‘dispose of’) shares or other investments.
You also do not pay Capital Gains Tax when you dispose of:
- Shares you’ve put into an ISA or PEP
- Shares in employer Share Incentive Plans (SIPs)
- Government gilts (including Premium Bonds)
- Qualifying Corporate Bonds
- Employee shareholder shares – depending on when you got them
When you do not pay it
You do not usually need to pay tax if you give shares as a gift to your husband, wife, civil partner, or a charity. (declaration in advance only).