Bitcoin and Tax? | Bitcointalksearch.org

rickadone

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Quote from: MIT2K on January 16, 2018, 09:27:48 AM

Yeah well lucky there aint many taxes to pay after days like today!

One of the major reasons of this much increase in the number of investors who are investing a huge amount of money into bitcoin and that too in such a short span of time is the tax free nature of bitcoin which makes all the investors of bitcoin not to worry of paying anything to the government in the form of tax. Moreover, this also helps the investors to make more money by investing in bitcoin.

But, when we are depending on bitcoin to be converted into fiats through exchange services then taxes will be automatically applicable and there will be no point of having bitcoins for saving tax benefits.

MIT2K

newbie

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Yeah well lucky there aint many taxes to pay after days like today!

Alns

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When are you all going to stop trying to avoid taxes? I have a friend who lives on the United States and he is paying taxes each month for everything, and everytime that he withdraws some bitcoins he is doing exactly the same.

Do not try to avoid them, there could be a huge number of consequences if you keep doing so.

And there a lot of cases of people who ended being in jail just because they wanted to avoid $1000 worth of taxes.

maaydin

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Until now as I know governments has not applied a tax onto bitcoin but so many countries are gathering their financial advisors in order to regulate this market and put a tax.

MIT2K

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Quote from: Bruno77 on December 18, 2017, 08:45:32 AM

Bitcoin generates income for many. I am pretty sure that government has a vision already of how bitcoin will be a big part of the future and it is the duty of government to generate also taxes from any income generating activity. At present, bitcoin is considered as an asset and tax are collected only from buying and selling. Actually, our government collects double taxes which I really opposed, they make their people pay a lot and suffer.

interesting, what country are you from? It certainly is a pain! It should be tax free like Forex as its essentially a currency!

Bruno77

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Bitcoin generates income for many. I am pretty sure that government has a vision already of how bitcoin will be a big part of the future and it is the duty of government to generate also taxes from any income generating activity. At present, bitcoin is considered as an asset and tax are collected only from buying and selling. Actually, our government collects double taxes which I really opposed, they make their people pay a lot and suffer.

Lowleary

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Quote from: MIT2K on November 26, 2017, 11:39:02 AM

Whats the deal with Bitcoin and paying tax? How does it work?

bitcoin banned in my country so i pay some taxes as exchange taxes for exchange sites .

also have some friends pay cash for me so in may cases not pay taxes

brainape

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Quote from: MIT2K on November 29, 2017, 07:12:51 AM

Quote from: fipper on November 27, 2017, 09:54:04 AM

in some bitcoin countries it's already applying taxes and that's great because bitcoin belongs to income. but there are still many countries that have not applied taxes because the country has not officially acknowledged bitcoin in the country.

Interesting, Bitcoin seems like an asset so id imagine only once you cash it out and its no longer 'anonymous' money it is traceable and must be declared.

Bitcoin and tax I think they didn’t have a relation because once you earn bitcoin then you shouldn’t forces to give tax etc that’s why according to me there is no tax seems on bitcoin. Bitcoin is a digital currency and people all over the world invest and they didn’t complaint about the features of bitcoin so if there will be tax on it then people didn’t want to point out that.

ajmapalo22

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Well there's really an issue with regards to imposing tax in bitcoin especially if the government who want to implement it doesn't support bitcoin market in the first place. They can declare tax with our earnings provided that they will give equal support to bitcoin the same way they support their national currency because as for now they did not consider bitcoin as a legal currency in fact in some country bitcoin transaction is banned. Some issues must be settle first before this tax implications.

ningrum

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Quote from: roshanfious on December 01, 2017, 05:26:23 AM

i dont think bitcoin can be taxed, it is anonymous and untraceable to all of us, so it is not gonna easy for any one and government to tax bitcoin, if the government can file the way to tax bitcoin, i can sure our privacy will be in governments control.

it could be if the bitcoin is taxed, if over time many know bitcoin and the government agrees that bitcoin is circulated in countries, then it is likely that bitcoin will be in taxes.

MIT2K

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Quote from: Dudeperfect on December 01, 2017, 11:52:38 PM

It is the matter of jurisdiction of the country in which you live or cash out your Bitcoins. Since Bitcoin is not legal yet and hence not classified under forex or commodity trading, the tax rate for those activities won't apply for Bitcoin.

However, in my country, I pay tax for converting Bitcoins into the fiat currency but that applies to the transaction fee and not the transaction amount.

Unocoin | Fee Structure.

As per the current tax rate, it is 18% of the transaction fees in my case. However, when it comes to the income tax, I do have my investments in Tax savings schemes so I never cross the minimum taxable slab when it comes to the final income.

Thanks Dudeperfect, very interesting to hear

Dudeperfect

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It is the matter of jurisdiction of the country in which you live or cash out your Bitcoins. Since Bitcoin is not legal yet and hence not classified under forex or commodity trading, the tax rate for those activities won't apply for Bitcoin.

However, in my country, I pay tax for converting Bitcoins into the fiat currency but that applies to the transaction fee and not the transaction amount.

Unocoin | Fee Structure.

As per the current tax rate, it is 18% of the transaction fees in my case. However, when it comes to the income tax, I do have my investments in Tax savings schemes so I never cross the minimum taxable slab when it comes to the final income.

ipanks

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I think the governments want to take a tax for bitcoin but until now, they cannot do anything with bitcoin. I don't think that bitcoin can be applied for the tax because bitcoin doesn't have a physical form and besides that, bitcoin is only for use on the internet so the government still not yet find a gap to apply the tax. many of us don't want that tax to be applied with bitcoin because bitcoin is not like a currency and until now, there is a debate about this.

Sasuke102001

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Bitcoin being decentralized, the government has no control over it but some countries people are paying taxes over all the money they earned in cryptocurrency to the government. In the US people are paying taxes on crypto's from what I have heard and in the UK the people have to pay somewhat 20% they earn from crypto I guess. At least in my country crypto's aren't taxed yet maybe because my country doesn't think of crypto's being a legal tender. But the government can only tax something over which they have control right? So how can some governments tax on cryptocurrency? Would like to know the process.

AlienSeeker

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Bitcoin transactions happens in the internet, so the government couldn't get any tax, they even don't know yet how it works to start applying taxes on bitcoin. They should know what bitcoin is all about first before starting to think of applying some shtty taxes on it. In my country, they are starting to acknowledge what bitcoin is BUT they are saying that it is a fraud, a scam.

tonysitaly

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It is because trading bitcoin does not need to pay taxes, at least in my country, so that government departments are more opposed to bitcoin. Because bitcoins do not bring them any good. I think this will change in the next few years, and there should be a number of management departments, first of all to start paying taxes from the exchange.

ModaFuka1994

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The stock photography revolution

As I know for now nobody has to pay taxes for Bitcoin income cause Bitcoin is not legalized in any country yet so it's still not goods or currency so the government can't get any taxes from Bitcoin income from people living in there country. Beside Bitcoin is very secure so it's very difficult to find out anyone using Bitcoin to earn money so there are a lot of people trying to take advantage of Bitcoin to evade taxes. But I think in the future Bitcoin will be legalized soon and everyone will have to pay taxes for Bitcoin income. Although we have to pay more for taxes and transaction fee but it'll be great when Bitcoin legalized cause we can use Bitcoin directly for everything we want.

Siopao

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As like many from this forum says, it really depends on your country. In my country, bitcoin is not yet tax imposed but I think they are looking on the possibility of doing so. As first step undertaken, they already regulated the businesses that is engaged in bitcoin. But as per regulating and taxing the bitcoin itself, there's not yet clear guidelines with that. And of course if our local government impose tax we have to follow or else we will be jailed.

MIT2K

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Quote from: Trivelius on December 01, 2017, 02:43:01 PM

Quote from: squatter on December 01, 2017, 04:48:55 AM

Quote from: audrey12 on December 01, 2017, 04:27:49 AM

Bitcoin should not be taxed if the government will not consider bitcoin as a legal tender

Does not compute. Gold, oil, stocks -- these are not legal tender either. But capital gains taxes apply to trading them, at least in the US. In fact, legal tender tends to be stable in price, so it doesn't make sense to tax its gains. Governments want tax revenue, which is why they are going after bitcoiners now (see the IRS/Coinbase decision).

Quote from: Astvile on November 30, 2017, 11:18:46 PM

Taxing bitcoin will not be good i think.Exclude the fees in each and every bitcoin transactions you send and add the tax in each transactions that would be a hell of a cost specially for small users

It's hard to escape the tax man if you ever want to cash out to fiat. I don't think many countries (if any) tax transactions themselves, although any trade to another currency/commodity will trigger capital gains taxes.

Bitcoin and tax I think they didn’t have a relation unless bitcoin become a legal currency, because once you earn bitcoin then you shouldn’t forces to give tax etc that’s why according to me there is no tax seems on bitcoin. Bitcoin is a digital currency and people all over the world invest still not recognize by most of the countries as legal currency, therefore we are not expecting tax on bitcoin.

very interesting! Thanks for your opinion - it seems governments are being forced to address with each day bitcoins price is rising. I do believe that the second you cash out and it no longer becomes anonymous money you are eligible to being fined if you dont declare.

Trivelius

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Quote from: squatter on December 01, 2017, 04:48:55 AM

Quote from: audrey12 on December 01, 2017, 04:27:49 AM

Bitcoin should not be taxed if the government will not consider bitcoin as a legal tender

Does not compute. Gold, oil, stocks -- these are not legal tender either. But capital gains taxes apply to trading them, at least in the US. In fact, legal tender tends to be stable in price, so it doesn't make sense to tax its gains. Governments want tax revenue, which is why they are going after bitcoiners now (see the IRS/Coinbase decision).

Quote from: Astvile on November 30, 2017, 11:18:46 PM

Taxing bitcoin will not be good i think.Exclude the fees in each and every bitcoin transactions you send and add the tax in each transactions that would be a hell of a cost specially for small users

It's hard to escape the tax man if you ever want to cash out to fiat. I don't think many countries (if any) tax transactions themselves, although any trade to another currency/commodity will trigger capital gains taxes.

Bitcoin and tax I think they didn’t have a relation unless bitcoin become a legal currency, because once you earn bitcoin then you shouldn’t forces to give tax etc that’s why according to me there is no tax seems on bitcoin. Bitcoin is a digital currency and people all over the world invest still not recognize by most of the countries as legal currency, therefore we are not expecting tax on bitcoin.

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