Nauru Compliance Report

Regulatory Overview

Regulatory Status

Regulators have not addressed crypto; legal status ambiguous

Primary Legislation

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Travel Rule

Adopted — Threshold: Implemented

Tax Reporting

**No Capital Gains Tax:** Nauru **does not have a specific capital gains tax regime**. This means that profits from the sale of assets, including cryptocurrencies, held for investment purposes would generally **not be subject to capital gains tax**.. **Important Nuance:** However, if a person or entity is deemed to be *trading* in cryptocurrencies as a business, or if the activities constitute a profit-making scheme, the gains derived could potentially be treated as ordinary income and subject to income tax (see below). The distinction between "investor" and "trader" is crucial and would depend on the facts and circumstances (frequency of transactions, intent, business-like nature of activities).. **Nauru Revenue Act 2014:** The primary legislation governing income tax is the *Revenue Act 2014* (as amended).. **Taxable Income:** If crypto-related activities are considered a "business" or a "profit-making undertaking," the profits or gains derived would likely be treated as ordinary income and subject to income tax under this Act. This could include:. Profits from frequent trading of cryptocurrencies.

Key Facts

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