Clarifying the legal aspects regarding taxes
We are bloody sure that every day MUST be happy when you do what you love and when you know you’re on the right path!
Realizing that you are doing something useful is tremendous motivation. That’s another reason why we are so passionate about our cannabis community, breaking the MJ monopoly and giving you a chance to make this change happen!
So, thanks for all your questions, today we will cover some of the legal aspects of our work.
Who pays for taxes, when and for what exactly?
Many of you have raised the about the taxes on profits and cryptocurrency deposits, who’s in charge of paying them and so on.
It’s important to differentiate between deposits and profits in cryptocurrencies and in fiat currencies, such as EUR, USD, CHF and etc. These are very distinct two case scenarios.
1. Fiat currencies
When it comes to fiat currencies, then you are liable for taxes from the profits and should also consider the deposits as a part of your tax base too. The JuicyFields platform works with Euros, so if you go with it, then it’s solely your responsibility to pay taxes. Please seek a financial professional in your country to be certain of your duties.
Looks clear and simple, right?
Let’s see what happens with crypto-assets then
It’s unbelievable, but when it comes to profits and deposits in cryptocurrency, they are equal to products according to the EU legislation. That means that cryptocurrencies are no different from cars, veggies, books and other goods from the EU law perspective. Making crypto transfers from one wallet to another is similar to shipping your products between your warehouses.
The officials are totally fine with the situation when you transfer a certain amount of crypto to us and then we return it with a pleasant bonus, as long as you don’t exchange it into fiat money. This sort of operation is officially called a trade credit.
Nobody would question you if you loaned us a car and a bike for 6 months and then got back a car and a bike together with a brand new iPhone , right?
If you decide to keep these products, you are not liable for taxes. However, as soon as you decide to sell some of them, then it will be counted as a taxable gain.
As a result, you are obliged to pay taxes. This is only if you decide to sell your crypto-assets for fiat currency.
The same applies to deposits in cryptocurrencies. They shouldn’t be considered as a part of your tax base. This capital is not taxable. It’s us who is liable for taxes from yields after we collect our gains.
Also, we do not trade cryptocurrencies. All legal financial transactions with our partners are conducted in fiat currencies and we pay taxes for these operations.
Hopefully we managed to clarify some of this stuff. The bottom-line is — as long as you stay in crypto-territory, you don’t need to worry about a thing!
JuicyFields runs on Euros
Our Juicy website uses Euros as a general currency for all calculations and transactions with users and partners.
Hence, when a user makes a deposit in cryptocurrency, these funds are converted into Euros according to the current rate. And vice versa, when we transfer profits to the user’s JuicyFields account, we do that in Euros. Afterwards, the user can withdraw the entire sum in crypto to the personal wallet according to the actual exchange rate.
To sum these things up, it’s important to pay attention to the exchange rate, which can vary every minute. However, due to convenience purposes for our users, we set a certain rate on hourly-basis in our system.
The Third Party Rule
And the last legal thing for today.. we don’t want to overload you.
According to the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing, we are obliged to return the product (crypto-assets in our case) to the same individuals or companies who “loaned” them to us initially. Unfortunately, we don’t have rights to return them to any third parties.
Please keep these points in mind and our cooperation will be sweet and flavorful like our beloved cannabis!
Ask us questions and we’ll be happy to give you answers!
Stay cheerful & healthy
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