Profit from cryptocurrencies

Profit from crypto currencies

Question:
Hello!
How to pay taxes on crypto mining profits and crypto "mined" by GameFi https://academy.binance.com/en/articles/what-is-gamefi-and-how-does-it-work
I have income from another country and all taxes are paid there. Since I am officially unemployed, I pay insurances based on the minimum wage, but if, for example, I start earning BGN 1000.00 from mining and go to pay my insurances again, will I be considered unemployed and will the insurances be on the minimum wage? for the country or will I already be "employed" and pay BGN 1000.00 insurance?
Does it make a difference if the income is declared in another country, for example Canada/USA and Bulgaria has double taxation agreements with them?
Thanks in advance!

Answer:
Hello,
If you carry out the activity described by you as an individual, without any registration, you must complete and submit a tax return for the income of individuals by 30.04.2024. It determines how much profit you have (income from the activity minus expenses related to the activity). Due insurance contributions are deducted from this profit (about 28% of the profit) and a 15% profit tax is charged on the amount thus obtained.
For more information, you can read the information on the NRA website - https://nra.bg/wps/portal/nra/taxes/godishen-danak-varhu-dohdite/virtualni-valuti
When you have income that you declare, insurance is paid based on income. If it is lower than the minimum insurance income, the insurance is calculated on the minimum insurance income.
Tax is declared where you are deemed to be a resident. If you have tax withheld in another country for some other reason (for example, a dividend or other withholding tax), then this fact must be declared when submitting an annual tax return, the income, who paid it and from which country, what tax has been withheld and if, by virtue of the double taxation agreement, tax has to be remitted.
We hope we have been helpful!
Greetings!