Tax Treatment of Crypto Assets Under Serbian Law – Status Quo and Future Challenges

Abstract The present paper provides a comprehensive analysis of the legal framework relevant for the taxation of transactions and activities involving crypto assets in Serbia. In the introductory part, the author provides a classification of crypto assets intended to serve as the methodological framework within which the taxation of various transactions and activities in the crypto domain will be analyzed, taking into account the principle of tax neutrality. The core of the paper elucidates the results of comparative legal research that the author had undertaken in order to identify diverging approaches jurisdictions around the world embraced regarding the taxation of generation, acquisition, holding and disposal of crypto assets. The choices made by the Serbian tax policy makers are juxtaposed to those applicable in comparative jurisdictions and, where appropriate, improvements are suggested. The author concludes by commending the recent trend in the application of Article 9, para. 1 of the Law on Tax Procedure and Tax Administration as a tool that could mitigate the need for recurrent and, ultimately, unsuccessful tailoring of the tax legislation to the novelties in the crypto domain.