Accepting Bitcoin for paying tax - page 2.

EL MOHA

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Quote from: M. C on April 09, 2024, 07:43:50 AM

Switzerland is also crypto friendly nation so I guess it can depend on the state of a country.

That’s definitely why they have actually agreed to accept the payment in bitcoin because a country whose government is stern on bitcoin wouldn’t allow its communities or states pay taxes in bitcoin. My question now is what do they do with the bitcoin, do they hold or they convert it straight up to fiat currency?

Quote from: Barikui1 on April 09, 2024, 09:19:22 AM

But the major disadvantage about it is that you might end up paying even more than person paying with the fiat, because after paying your tax with Bitcoin, you will definitely be pay the higher transaction fee attached to it, which will be very much expensive compared to the fiat.

Transaction fee is always brought up every time bitcoin been use for payment discussions are made, I will always say this as long as it isn’t compulsory to use just bitcoin for a particular payment that is other currencies are also acceptable I will go for others when it is a small amount of money involved. I will only use bitcoin when it is the easiest of options left to me

btc78

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Eloncoin.org - Mars, here we come!

Quote from: M. C on April 09, 2024, 07:43:50 AM

What do you guys think about a city accepting Bitcoin for paying taxes, fines and all other invoices from the municipality.

Is it a bad thing or a good thing for the Bitcoin ecosystem ?

It would definitely be a good thing for us investors and bitcoin users because if a country accepts bitcoin as an official payment method for taxes this will add to bitcoin’s credibility and we would be one step closer to having bitcoin fully adapted.

On the other hand, it might not be as good for a city to accept bitcoin. If the country does not still recognize bitcoin as a legal tender then the city would just probably convert it into their local currency which would make accounting their finance more complicated and thus might be in trouble with the government for some regulatory issues.

Mauser

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Quote from: M. C on April 09, 2024, 07:43:50 AM

What do you guys think about a city accepting Bitcoin for paying taxes, fines and all other invoices from the municipality.

Is it a bad thing or a good thing for the Bitcoin ecosystem ?

I think it's a good thing if people can pay their taxes also in crypto currencies. This offers a lot of opportunities for people to start switching to a fully crypto lifestyle. In case you are already being paid in bitcoins than now you can also pay bills and expenses in bitcoins. For the city this also offers opportunities with only creating some small additional financial management. The city can now choose if it wants actively to build a Bitcoin portfolio and stores the coins it receives. If they want any crypto exposure than they can directly exchange it back to fiat money.

Barikui1

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Quote from: Helena Yu on April 09, 2024, 09:00:51 AM

I see nothing different, what's exactly the biggest difference if you pay tax using fiat and Bitcoin? I think you might end up paying 2x tax, first is your income tax and second is capital gains tax.

Technically people need to pay tax if they sold their coins at profit, it doesn't have to wait until Bitcoin can be used for paying tax.

I actually sees it as a major plus to the Bitcoin ecosystem, if most states start accepting Bitcoin in tax collection, because it will definitely bust it popularity among local and by doing so, they are advertising Bitcoin unknowingly to the general masses, which will make it adoption process worldwide very fast.

But the major disadvantage about it is that you might end up paying even more than person paying with the fiat, because after paying your tax with Bitcoin, you will definitely be paying the higher transaction fee attached to it, which will be very much expensive compared to the fiat.

Helena Yu

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I see nothing different, what's exactly the biggest difference if you pay tax using fiat and Bitcoin? I think you might end up paying 2x tax, first is your income tax and second is capital gains tax.

Technically people need to pay tax if they sold their coins at profit, it doesn't have to wait until Bitcoin can be used for paying tax.

M. C

newbie

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What do you guys think about a city accepting Bitcoin for paying taxes, fines and all other invoices from the municipality.

Is it a bad thing or a good thing for the Bitcoin ecosystem ?

Here's some articles about a city in Switzerland that accepts Bitcoin :

https://bitcoinsuisse.com/news/city-of-lugano-accepts-crypto-payments

https://cointelegraph.com/news/bitcoin-accepted-taxes-swiss-lugano

https://planb.lugano.ch/

I believe that accepting crypto and especially BITCOIN to pay taxes could be a favorable business framework conditions for crypto companies / investor that are looking for a place to establish their operations.

Additionally, let's imagine a company that decided to go full on crypto (in their treasury) , how are they going to fulfill their taxes obligations ?

Switzerland is also crypto friendly nation so I guess it can depend on the state of a country.

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