Topic: Bitcoin and tax in your countries - page 4. (Read 1321 times)

In my country, there are no taxes for crypto too. I think as long as it's not an official currency that's ok. I wonder if cryptocurrency becomes legal in all the countries if it will be possible to use itemized deductions to lower the taxable income. Accountant and crypto trader thoughts. I already do this when it comes to my business and paying taxes, but crypto is different and I'm intrigued whether this will be possible or not. Well, as for me, we're not far from the disclosure, so we'll see in the near future.                                    

In my country, one thing I've noticed when buying bitcoin especially from the convenience store is that, if I buy 0.00022BTC, the local exchange is not taxing my transactions through the 7/11, but if it exceeds in that price, I am paying the tax, so what I am doing is cashing in bitcoin with 0.00022BTC to multiple conveniences store so I can save more money and skip the tax. Though, if there is a lot of customers, it is quite embarrassing if If I cash-in to the same convenience store.

Bitcoin in Greece doesn't have  that strict of a regulatory framework right now. Profits are taxed as with assets with 10%, but other than that authorities have not given very specific instructions and there isn't even any indication that lawmakers will take specific steps to regulate BTC and crypto. The lack of reassurance on the other hand has also deterred exchanges from starting operations withing Greece. Malta and Cyprus are taking the lead in terms of where companies are setting their legal base.

To be honest can't force people to believe my thoughts or it or not share the truth about the bitcoin herein my country I use bitcoin with freedom in my country with taxes I made transaction with out hassle converting butcoin into fiat vice versa using my local online wallet through bank transfer and I pay transaction fee not included the taxes.

Well explained.

I made some brief research since we were talking about 19% in Poland and it seems they introduced exit tax a year ago. There are various articles with different opinions about this but it looks like the tax is aimed at companies. A private resident who did not register a cryptocurrency business will be more or less immune to this as there's no obligation to report unrealized investments and they wouldn't know if you own cryptocurrency or not as long as you hold it. Assets owned by a company are easy to track so they're trying to target them instead of small fry investors.

Background:
The government of Poland introduced new welfare last year and was trying to increase taxes to pay for it. This naturally made companies leave the country with their biggest cryptocurrency exchange leading the way, so they introduced exit tax to get at least some money out of it.
Socialist states always lose in the long run.

The law is usually clear on that for each country and it's easy to find out.

There are basically two things to consider.

1. Does the country have a tax at the end of the fiscal year even on unrealized gains?  The US has it.  Most EU countries don't.  If the EU country we're talking about doesn't have it, nothing to pay here atm.

2. Does the country have an exit tax?

For example France used to have an "exit tax" where you had to pay something crazy like 30% of everything you had before becoming fiscal resident of another country. In that case you'd have to pay 30% of your BTC's value when you left.  AFAICT the french state semi-recently suppressed that exit tax.

Other countries, more rarely, have an exit tax on unrealized gains: Spain for example. If you have spend more than x out of the last y years as a spanish fiscal resident (I think it's 10 out of the last 15 years) and then decide to leave Spain, you must pay an "exit tax", but "only" on your unrealized gains. So if you leave, you're legally supposed to pay a tax on your BTC before selling them on greener pastures.

Now to answer your question: people would need to check for the country concerned but many EU countries have no tax on unrealized gains and also no exit tax (besides Spain I don't even know if there's still any EU country with an exit tax now that France suppressed it).

So without these two taxes you're totally free to go spend, legally, 183 days a year in a EU country which has a low tax on trading / low tax on Bitcoin profits, sell your coins there, enjoy your money, and come back after x years to your home country. (the rule for fiscal residency in the EU is basically: "if you spend physically more than 183 days per year in a country you're supposed to be registered there and to be a fiscal resident of that country").

This is not just fully legal: it's what the law mandates you to do (to become fiscal resident of the country you spend more than 183 days in). It's also why when you go to "unregister" at the town hall / IRS / VAT services in your old country the public servants can be a bit inquisitive: they want to know you're really leaving and not playing games. In my case they asked for my new address. They hate it that they know they won't be able to tax you anymore.

The legal system is not "your local IRS always win no matter what". There are laws and the IRS and judges cannot overrule these laws. People are free to vote with their feet and their money.

In monopoly there's the "get out of jail free" card. In real life there's the "get out of of ultra-taxative country" card : )


P.S: Some countries shall give you fiscal residency even if you spend less than 183 days there, but it doesn't change the fact that should you spend more than 183 days in any EU country, you're supposed to be fiscal resident there. For example if you do 91 days in Andorra (which can give fiscal residency after 90 days per year instead of 183) but 200 days in France and 70 days left and right, France isn't going to fancy very much if you try to explain them that you're a fiscal resident of Andorra.

Since Bitcoin made its name popular here in my country at the end of 2017, I haven't heard it being taxed as a source of income alone. But someone who are registered professionals and business owners has to abide government rules which are paying their own taxes for services rendered. Traders and the like are professionals so have to pay taxes even if they trade BTC or fiat. That's the only knowledge I know about Bitcoin and taxes here in our country.

government dont know how profitable bitcoin, and when they accept it, they will hands off for that problem without any research. but some government will take that advantages, some of them because they know if bitcoin profitable, some of them just it is money.

Almost every country were in the urge of framing laws to enhance the effective use of bitcoin and other cryptocurrencies without much complications. Very few government act immediately and make necessary changes to the law, so that the government too can profit out of the same. Also I haven't come across any of the countries that have perfect fintech law for taxing cryptocurrencies. Few have added it to the taxable assets like gold and however perfect is the KYC it is hard to tax precisely.

In my country, there are banks that are accepting bitcoin but not all of them, I think the government does not really know well the feature of bitcoin and how to earn this. But there are some applications that we are using that are converting Bitcoin to Fiat, and in order to have this money physically, we are going to cash it out in a particular bank. The government is not really giving taxes in any of my profit but I think the idea was, the bank are already giving taxes and the bank is giving the taxes to the government.

Same in México, we don't have to pay tax at all because there is not a good law about it. We got 2 months ago the Fintech law who was about business that use cryptos, but it was about how to hold them and how to get a good KYC, not about tax. But i don't think bitcoin will keep working without local tax in the next years, gobs will fix that.

Shhh, be quiet now. Maybe someone on BSP lurking inside here, might get an idea and finally put taxes oin our crypto income . But kidding aside, having no taxes is not purely considered a good thing based on my perspective. Yeah! It was good in a sense that we can enjoy all of our income with no deductions but in the bad side, like what you've said, this implicates that our community is not lively — so small that we can't even get the attention of our own government. I mean, there's no significant improvement, we are low key and very far from mainstream .

I've visited shopee, and have checked to see if they are really accepting bitcoin as payment.

The answer is NO.
shopee do not accept bitcoin as payment, the same goes with lazada. They only accept COD, Bank transfer, Online banking, remittance/payment center, etc.

I'm also using coins.ph but I don't think that our charges when we do cashouts and cash-in are considered a tax. Cause I believe that it was only a service charge imposed by the company. And don't hear any news that the government is asking us(crypto holders) to pay taxes. It only happens if we converted it into fiat and oblige everyone to pay their taxes as mandated by the law.

Maybe we are lucky in our country that authorities never force us to pay taxes for our crypto assets. But possible that the government will pursue for that in the coming days when more establishments will accept this thing.

I see I am also residing in the Philippines but the taxes based on my experiences are utilized through our local exchange the Coins.ph since if we are to cash in and cash out our funds, we are already paying with tax automatically allocated from the local exchange. But we cannot notice it as we view these as transaction fees from bitcoin blockchain and the network.

My country is not really looking into the area of cryptocurrency yet and I think it is not that much popular for the government to keep an eye it, I mean not popular to the government but the number of users of cryptocurrency is still quite high, just that we don’t make noise about it unlike the government, and since it has not affected their own government in any way, they are not so much paying attention to it.

I don’t know of the future, but for now, no government of mine is interested in cryptocurrency tax, but I believe that in future when cryptocurrency will become so popular, they will look into it which I don’t think I will ever pay it since I will be operating with a decentralized coin and also a decentralized exchange that makes my transaction untraceable.

In the Philippines were I currently live in doesn't collect taxes on crypto at all, I don't know if this continues on or it will be changed when the price of bitcoin will rise maybe. As of now Filipinos are enjoying bitcoin as much as they could. If you are a tourist and wants to use bitcoin as a payment you could hard see any store accepting it, maybe another reason the government did not put taxes is because there are only few users, and those users are not businesses and for self purposes only.

I am from India and here cryptocurrency is totally ban. In any way of usage is punishable and even they have declare the punishment but still it is not got amended in the parliament. So their is not tax or any usage of bitcoins in our country. As per government law what we are doing right now is illegal and if caught we all will be punished.

Here in our country, there is no tax and open for cryptocurrency and we can even use it for paying services like bills, mobile load, and remittance also we have a bank here does support the cryptocurrency and even teaching what is a blockchain.

And have a lot of exchanges for cryptocurrency and registered on SEC which is very great knowing it is a legit company.

In my country, this is still completely uncertain. The authorities cannot decide to prohibit or allow. But in general, you can use cryptocurrencies.
I am from Russia