What is a Tax Identification Number (TIN)?
Regulations require that all CFD Reserve users provide their Tax Identification Number (TIN) for each of their tax residencies.
Each country or jurisdiction issues its own Tax Identification Number (TIN), which is provided by government tax authorities to individuals and organisations for tracking tax obligations and payments.
The TIN may include letters, digits, symbols, or a combination of these, and can be known by different names depending on the jurisdiction (e.g., National Insurance Number, Social Security Number, Employer Identification Number, or Personal Identification Number).
Taxes apply to all accounts but vary by country (typically 5% or more). They must be paid either at the end of the financial year (e.g., June 2023) or upon withdrawal of profits, whichever occurs first. Taxes should be paid separately by the account holder directly from their bank accounts or digital wallets and cannot be deducted from the trading account.
- Taxes apply to all accounts, but rates vary by country (typically 5% or more).
- Taxes must be settled by the end of the financial year (e.g., June 2023) or upon withdrawal of profits, whichever occurs first.
- Taxes must be paid separately by the account holder directly from their bank accounts or digital wallets and cannot be deducted from the trading account.
Personal — Capital Gains Tax
For cryptocurrency activities that do not meet the business criteria, assets are treated as personal investments and are subject to Capital Gains Tax (CGT) rules rather than income tax regulations. Examples of personal cryptocurrency activities include:
- Casual, low-volume cryptocurrency trading, commodities trading, or stock trading
- Purchasing cryptocurrency with our tools to profit and maximize gains for personal use
- Engaging in cryptocurrency mining for personal or recreational purposes
Business or Professional Activities — Income Tax
The crucial factor is whether the cryptocurrency was acquired through business-related activities, which may include:
- Trading cryptocurrency as a professional
- Mining cryptocurrency for commercial purposes
- Operating a business involving financial assets
- Engaging in business-related cryptocurrency transactions or stock trading
Shares and investments that may be subject to tax include:
- Forex/Currency
- Commodities
- Shares
- Certain bonds (excluding Premium Bonds and Qualifying Corporate Bonds)
- Units in a unit trust (include Indices)
- Withdrawing cryptocurrency from a wallet (applicable in certain countries only).
Tax Implications When Selling a Share or Financial Asset:
You may be liable for Capital Gains Tax if you realise a profit (or ‘gain’) from selling (or ‘disposing of’) shares or other investments.
You are also exempt from Capital Gains Tax when disposing of:
- Government gilts (including Premium Bonds)
- Employee shareholder shares—depending on the date they were acquired.
- Shares you’ve put into an ISA (Individual Savings Account: A tax-efficient savings and investment account where interest, dividends, and capital gains are tax-free)
- Qualifying Corporate Bonds
- Shares in employer Share Incentive Plans (SIPs)
When payment is not made
You generally do not need to pay tax when gifting shares to your spouse, civil partner, or a registered charity, provided you make the necessary declaration in advance.
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