I want to buy and send crypto(USDT) to my parents living in aboard. What taxes do I have to pay ?

Question

EthanATO · Accepted Answer

Purchasing and transferring cryptocurrency out of your account to your parents is considered a CGT event. Transferring crypto to another person's account is treated as if you sold the coins and received their market value. This means you may be liable for capital gains tax (CGT) on the transfer. The CGT applicable would be equal to the sale price - your cost price. Essentially, you're liable to pay tax on any 'gains' made on the sale. As USDT is a stable coin, the value might not fluctuate too greatly between the time you purchase and transfer the coins. Regardless, it's important to understand that CGT would apply to any gains made. I recommend reading through our Cryptocurrency article (https://community.ato.gov.au/s/article/a079s0000009GmxAAE/crypto-and-your-taxes) that runs through how CGT is calculated on sales.

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