Timor-Leste Compliance Report

Regulatory Overview

Regulatory Status

Regulators have not addressed crypto; legal status ambiguous

Key Regulator(s)

**Lack of Regulatory Protection

Primary Legislation

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Travel Rule

Not adopted

Tax Reporting

**Timor-Leste does NOT have a separate capital gains tax.**. Generally, gains from the sale of personal assets by individuals are not subject to a specific capital gains tax.. **Implication for Crypto:** If an individual buys and sells cryptocurrency as a passive investment, it is unlikely to be subject to capital gains tax in Timor-Leste due to the absence of such a tax.. **Exception:** If an individual or entity is engaged in crypto trading or mining activities that are considered a **business activity**, then any profits from these activities would be treated as business income and subject to regular income tax.. **Income from Crypto-Related Business Activities:** If an individual is professionally mining, trading, staking, or providing crypto-related services (e.g., running an exchange, consulting) as a business, the profits would be subject to **Personal Income Tax (PIT)**.

Key Facts

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