Saudi Arabia

In Saudi Arabia, cryptocurrency is legal but not recognized as legal tender. It is generally classified as an asset. While its use is permitted, the Saudi Arabian Monetary Authority has issued warnings regarding unregulated virtual currencies. A dedicated legal framework for crypto is currently under development. The Zakat, Tax and Customs Authority (ZATCA) is responsible for governing taxation, including any applicable crypto-related taxes, under the existing Income Tax Law and Zakat regulations. The Saudi Arabian Monetary Authority (SAMA) and Capital Market Authority (CMA) oversee financial and capital market aspects of digital assets. For individual investors in Saudi Arabia, there is no personal income tax or capital gains tax applied to cryptocurrency activities. This means that gains from buying, selling, or holding crypto are entirely tax-free, regardless of the holding period. Converting crypto to fiat currency or swapping one cryptocurrency for another also incurs no tax for individuals. For businesses and corporations, the situation is different. Crypto-related profits are subject to a standard corporate income tax rate of 20%. Additionally, sales of crypto assets by businesses may incur a 15% capital gains tax. A Value Added Tax (VAT) of 15% is applied to crypto-related services and fees, such as exchange charges. However, pure crypto-to-crypto or fiat-to-crypto trades themselves are exempt from VAT. Activities like staking, mining, and decentralized finance (DeFi) yield or liquidity provision are not taxed for individuals. However, if these activities are conducted as part of a commercial business operation, the income generated would be subject to the 20% corporate income tax rate. Non-fungible tokens (NFTs) are also treated as asset sales, and therefore, individuals face no tax on their acquisition or disposal.