Most countries have rules that support donations by deducting them from the tax that a citizen has to pay. These are called tax write-offs and are often used by many. So, the recent donation from Vitalik Buterin has raised the question: Will the individual enjoy a significant deduction in tax because of his Shiba Inu donation. Well, the answer is No! This is because Vitalik is a Singapore citizen where tax rules are much different than that of the US.
Vitalik’s Shiba Inu donation
Vitalik is the founder and creator of Ethereum, which is the base of many meme coins like Shiba Inu. Though this dependence is not direct, the creators of the coin have donated half the total supply of Shiba Inu to Buterin. But Vitalik was not particularly a fan of the gesture and donated some part of it and burned most of the coins. The biggest donation was made to India for the COVID relief fund. Approximately 50 trillion coins were donated, worth over $2 billion. Even though after this news, there was a huge drop in the price of the coin, and the effective donation made became almost $800 million.
He also said that the creators should rather do some charity next time instead of gifting coins to him. This huge donation from Vitalik made many ask the question is going to get a tax write-off. About the donation, he also said that he is pleasantly surprised how the traders handled the Shiba Inu incident. He also said that the owners of the coin aren’t really that upset about how much he expected them to be.
Will Buterin get a tax write-off?
Vitalik said that being a citizen of Singapore, he is not eligible for such tax discounts. This means that the individual has to pay full-tax off his gains or earnings made in the last financial year. Not being exempt from tax also means that this was not an attempt to just pay less tax. The truth is he actually didn’t like such meme coins and wanted to get rid of them. I am pretty sure that Buterin will continue to give away such coins even in the future if such donations are made to him.
What are your thoughts on the donation made by Vitalik Buterin? And also the fact that he will get zero tax exemption because of that? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.