Tax Transaction Bases for Virtual Asset Company Profits A Comparative Study according to the Egyptian and UAE Comparative Legislation

Abstract

 Technology played a key role in growing the size of the digital economy, thanks to modern technologies, such as block chain which serves as the infrastructure for digital financial transaction, which in turn has led to the unprecedented development of business models. This development has resulted in the birth of virtual assets which constitute an important and major sector in many countries.

The relationship between technological development and business practice is regarded as an expulsive one; as technological developments evolve in economic and financial models and forms of activity. These developments reflect the problems that accompany their emergence, such as the emergence of virtual currencies, which poses a problem of legitimacy under the central banks' authority under national laws to issue money.

Dealing with this sector is inevitable, talking about setting up legal frameworks to regulate the virtual asset sector has been overthought economic gains resulting from the regulation of this sector, including tax treatment of the sector’s profits, virtual asset markets estimated to billions of dollars, consequently taxation would bring economic benefits to developed and developing countries, especially in the context of the world’s crises.