Topic: Bitcoin and tax in your countries (Read 1321 times)

I want to write a little about Taxes, because there will be questions and issues that arise as we begin the Punic Wax Network and we will likely need and FAQ, but this is also useful for Bitcoiners or any Coiners.

I run a Tax Exempt Religious Organization, we have a Federal Employer ID Number (FEIN), and a Ruling Letter, as well as an IRS approval to not withhold Social Security Taxes to pay Employees, further we can bring other organizations under us. We also will have any Employees and those Spreading the Religion file for their Self-Employment Religious Tax Exemption (IRS form 4367 or 4361).

But,
That does not make everything Tax Exempt, so I am going to get into a little about Religious Taxes, intertwined with Crypto Taxes.

The Reverend or Minister will often build his house on a Church Property because Religious Organizations are exempt from Property Taxes, but if the Minister or Reverend, etc, buys a House not on Church Property, a Property not used for Religious purposes, it is not exempt. You could have a House with a Bible study Room, or Altar, or otherwise intended for Religious use, and then you start getting into Grey Areas. In the Religious Land Use and Institutionalized Persons Act (RLUIPA) we see that Religion can build structures outside of Home Owners Association (HOA) regulations, etc. So, a good Rule of Thumb would be that if you have a Religious Land Use instance that is constant, then you would probably qualify as a Tax Exempt property of the Church. You can then see this same type of Qualifier for Taxes. If you are Earning and Spending Crypto in a Capacity in which you are creating Religious Materials (Literature, Art, etc) you are likely qualified to get Tax Exemption on your earnings.

Cryptocurrency can be seen in the Work of Art part of Tax Law. If you write a Song, someone else can own it, you can Buy it or Sell it, it may be valued at $5,000,000 but you only pay Taxes when you sell or earn. Cryptocurrency is a line of Code, like a Video Game Token, it only has the Value we give it collectively based on our appreciation of the unerrorability of the Blockchain technology, but as far as the Tax Code, it is like a Music Book, or a Song on the Radio. The Government gets their part, when you Earn. When you have Income.

The IRS has said a few different things regarding Bitcoin, and if you want to be real safe you can pay Capital Gains Taxes on your Bitcoin, or other Currencies Explicity mentioned by the IRS, but most Altcoins and really an Altcoin you make yourself is not something to worry about, and the IRS is just writing Rules in place of a True Rule created by the Court. Because there just has not been a Case where like someone like me was involved. And most cases are about people paying 0 Taxes.

Spend Coins on a Car to Drive to Friends Houses and the Bar = Pay Taxes at Cashout

Spend Coins on a Car used for Religious Business Materials Transportation for Production and Shipping = No Taxes

Earn Coins Day Trading Currencies and cashing out to your personal Bank Account, used by yourself for Entertainment spending, Vacationing, etc = Pay Taxes at Cashout

Earn Coins writing Religious Literature to then spend feeding those who keep the Religion alive and spread it throughout the World = No Taxes

Bitcoin is not regularized in my country so there is no tax system about it .If Govt regularize it then they can collect massive amount of tax.People are working in Crypto hiddenly .If it opens then it will be very helpful for tax collection for the country.

Thanks for the clarifications because user electronics got it all wrong and my believe is that she's using old article to judge the recent update. However, you never clarify the issues of holding cryptocurrency for long either since we have investors that use it as their own way of investment.

OK, a little clarification seems to be needed here.
According to recent information we received from the tax office, the tax is no longer 12% but only 10% plus surtax.
The exchange of one cryptocurrency for another is not a ''tax event' and is not taxed.
The tax is paid only when changing the crypto currency to fiat and only on the profit from trading.
So, if with FIFO evidence you can prove that you invested in crypto 1 btc and earned 4 btc, and now you have 5 btc, then the tax is paid only on 4 btc, on the amount you earned.
It's latest update from tax office in Croatia, with more clarification for us.

That's misinformation because holding of any form of crypto currency does not involve any tax, if the crypto currency is sold or replace for another crypto tax is still not involve since it was not sell for fiat or stable coin and their tax is paid to online trading platform so their exchange site is doing the job for the government.

EU countries had long been making laws about crypto so its not surprising. but why do you bitcoin holder for 2 years in Croatia have to pay 12% when you are not gaining from it?  as if they've determined already that when you hold BTC for 2 years you already have withdrawn some cash thru the investment. if i am a holder for long term in this country i would rather not make my btc known.

my country doesn't yet have laws about it. hope they'd not make soon.

EU countries had long been making laws about crypto so its not surprising. but why do you bitcoin holder for 2 years in Croatia have to pay 12% when you are not gaining from it?  as if they've determined already that when you hold BTC for 2 years you already have withdrawn some cash thru the investment. if i am a holder for long term in this country i would rather not make my btc known.

my country doesn't yet have laws about it. hope they'd not make soon.

The EU is always trying to regulate everything and this often ends up with too much bureaucracy and unnecessary rules 
As far as I remember, the EU court has somehow legalized bitcoin and now it remains for EU member states to agree on practical details and rules for crypto.
It seems that step by step all countries are adopting more and more rules about crypto and are slowly regulating this area which is actually good for users who will be able to more easily legalize their crypto earnings.

The EU is always trying to regulate everything and this often ends up with too much bureaucracy and unnecessary rules 
As far as I remember, the EU court has somehow legalized bitcoin and now it remains for EU member states to agree on practical details and rules for crypto.
It seems that step by step all countries are adopting more and more rules about crypto and are slowly regulating this area which is actually good for users who will be able to more easily legalize their crypto earnings.

Last year I read an article about the EU taking a positive step towards cryptocurrency and making AML/KYC a priority for cryto related organization but with your explanation and the support choose toward cryptocurrency by the EU government does it tax is a must in Ukraine or it varies?

I would like to hear about the situation with bitcoin and taxes in your countries.
I think it would be interesting to hear different experiences and compare results across countries.
Of course, I understand that in some countries you can't declare bitcoin tax.
I'm not interested in these countries but the ones where it is possible to declare and pay bitcoin tax.
I will start first.
In Croatia, several years ago we received clear instructions from the tax office on how to file a bitcoin tax.
In short, we must lead FIFO and if we can prove that we held btc funds more than 2 years, than we don't need to pay tax (long term investment).
If we have kept btc funds for less than 2 years, we pay 12 % tax plus surtax.
Can you share situation in your country?

The next month a lot is going to happen. Because of the Corona Virus a lot of stuff was postponed, we weren't even on WiFi most of the time but we are now getting everything moving.

We are going to have the Etsy shop up soon, so PUTI, BLURT, STEEM and HIVE for Soap, Oils, etc, will be available within a few weeks.

We are also suing Facebook for attacking my Wife's business, likey to use as the model for their failing idea Libra, which is being renamed "Diem" and stealing my Wife's brand.

And we will have a few more Tokens and our own Blockchain soon, including some Pegged Tokens for cross chain trades.

Our Organization, the Shaivite Temple, is also:

1. Federally 501(c)(3) Tax Exempt and we have a Federal Ruling Letter

2. Exempt from paying Social Security Taxes as a Religious Organization

3. Any Minister doing work related to the Religious Mission, and are part of the Ministry/Order, are exempt from Taxes for earnings in that capacity

To be honest I don't know about it up till now,
But due to my curiousity created by this thread this is what I found out,
Taxation of cryptocurrecies in the Philippines how are virtual currencies regulated.
I don't have any update if they finally going to implement the tax but 30% is huge tax.

In Ukraine not so long ago yhe draft law has been adopted about the cryptocurrency and regulations in the direction of taxes and so on. In this draft bill, a virtual asset is defined as a collection of data in electronic form, which has a value and exists in the system of circulation of virtual assets. And people must declare their crypto assets in their every year declarations. But there are lots of aspects that are not fully finalized.