I am considering staking strategy or the timing to calculate profit and tax imposed.
Current my amount of staking is small but if I feel confident in my model then I will increase it. Then, tax will be matters.
It depends on your country but I also want know the situation in the world. For example, in Japan which is my country, 55% is the maximum tax for profit of crypto lol
Shortly, how long do you hold NMR and when do you liquidate your NMR exposures and pay tax?
I have had the same considerings when I started staking.
This might be different than in Japan, but in my country (Denmark) the staking process is seen as a service or product produced that you get paid for, so you should be paying tax from the staking payouts when you receive them (Or in the giving tax year) and not when you liquidate. Then of course there is the question about when to liquidate, but that is probably in general a smaller profit than the payouts itself.
Here the maximum tax on crypto profits is also 53%, however I have created a small holding company that have a minimum of running costs and then the tax drops to 22%, so this could be something to look into, if there is the same possibility to do so in Japan
Thank you very much for the infomation. I will consult with tax accountant.