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<h1>Tax on Virtual Digital Assets imposes a specific regime limiting deductions and prohibiting loss set offs on transfers.</h1> Income from transfer of a virtual digital asset is taxed under a specific regime: the income from such transfer is subject to tax at the prescribed flat rate and the taxpayer's remaining income is assessed as if that VDA income were excluded. Only cost of acquisition may be deducted against the VDA income; no other expenditures, allowances, or set offs are allowed, and losses from VDA transfers cannot be set off against other income or carried forward. Reporting, withholding and exclusion rules apply to specified records and transactions.