The following can be applied to any currency but let's consider EUR/USD for simplicity.

In the context of cryptocurrency exchanges, one can hold assets for the value of thousandths of a dollar or even much less (e.g. 0,0000058 usdt).

Now with regards to tax declaration, it is usual that taxpayers are obliged to declare any assets that they own in foreign countries. However, for such small amounts the question is whether these amounts are technically zero or not:

Since these currencies have oficially 2 decimals, are smaller quantities than a 100th of EUR/USD considered effectively equal to zero or are they not?

It could be that this depends on the country or legal framework, of course.

PD: For those who think such amounts are negligible, in some countries like mine (Spain), there is a rule that for each of the wrong piece data provided or data not provided taxpayers are subject to a 5000€ fine. This is 5000€ for each of the not reported / missreported foreign assets.

  • 1
    "It could be that this depends on the country or legal framework, of course." Absolutely - some laws may (or should) include some level of materiality. I suspect that you would not be fined thousands of Euros for not reporting a miniscule amount of a foreign currency as an asset.
    – D Stanley
    Jan 4 at 21:11
  • In the US, at least, gasoline is sold by the gallon and almost universally it's priced in 1/1000 USD. For example a gallon is often seen priced at $3.099 or possibly $3.09 9/10. I've also purchased electronic piece parts that are priced below $0.01 but the min. quantity is usually 1000 or more.
    – jwh20
    Jan 4 at 22:20
  • 2
    Voting to close, since the context matters. But in the example of personal finance reporting - in the US the IRS requires either rounding to 1/100th of a dollar or $1, as long as you're consistent (i.e.: if you're rounding to the nearest dollar - you do that everywhere on the form). Anything that rounds to $0.00 is... well... $0.00.
    – littleadv
    Jan 5 at 0:32
  • Will you really own just one unit of that currency, or a number of units which total less than once cent? That seems unlikely to me (unless you bought high and the value of the currency crashed). Also I believe it is more frequent that you hold a fraction of an unit of the cryptocurrency because one unit is too expensive (e.g. 1 USD = about 0.00002 BTC).
    – jcaron
    Jan 5 at 14:23
  • Also "legally valid amount" is quite different from "reportable amount". Tax authorities usually only require amounts to be reported to the nearest cent, and often even only to the nearest unit. But that applies to the total value you report, not each individual thing you have. If you have one million units of <insert favourite currency here> each worth a hundredth of a cent, that's still $100, not $0.
    – jcaron
    Jan 5 at 14:27

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