What a tough process of collecting Bitcoin tax in your countries but here in my country the tax was simply collected thru our local exchanges that everytime we convert our Bitcoin to fiat then the total fiat receive is already tax and blockchain transactions deducted so i hope this process will be applied in your country too.
Yes, most likely it will be. The tax authorities will receive information from local exchanges located in the territory of this state, but most likely, the tax will automatically be charged and collected from each transaction at the exchange itself. This is the best option for practical taxation. Well, if citizens will go to the exchanges located on the territory of other states, decentralized exchangers? Is it really possible to avoid taxation? 
Topic: Considering about to collect tax about crypto currency (Read 655 times)
What a tough process of collecting Bitcoin tax in your countries but here in my country the tax was simply collected thru our local exchanges that everytime we convert our Bitcoin to fiat then the total fiat receive is already tax and blockchain transactions deducted so i hope this process will be applied in your country too.
In US taxes're collected when crypto's converted into fiat.
I’m sure that most would want to avoid paying taxes or appearing on the radar esp if the government still has no established stand on crypto.
I don't think it really matters what governments think about crypto right now. People need to understand how taxation works within their jurisdiction and understand that it doesn't matter what you sell for a higher price; taxation is inevitable. Ignorance makes bad tax evaders, and they may (probably will) pay the price for it eventually.
Government input on crypto taxation only matters in the way that they eventually will categorize crypto currencies and tokens. Positive aspect is that Bitcoin is pretty easy to categorize for most governments (some have already done so), which can't really be said about a wide variety of tokens. I'm pretty sure that even those issuing these tokens don't know what purpose it really serves. If they don't know, how is the government supposed to know?
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I think setting an international standard is good but the problem I see here is most of the countries have their own version of the taxing system in their country and an international standard will create a lot of concflicts with their local taxing system.
The most logical way is for international exchanges to cooperate locally on countries they have customers by providing trading transaction records set by the customer. This would be enough transparency for them to have a correct audit when needed. This is being done right now by Coinbase as a help for the US government to identify their citizens who are not paying the right taxes.
It is possible that it will be so. Various exchanges will provide information about their customers at the request of states. However, one can imagine what kind of information this will need to be sent to almost every state. Probably the exchanges will be unprofitable to work or they refuse to do it. In most cases, tax authorities will manage information from local exchanges and exchangers. In general, it will be very difficult for states to collect tax on profits from cryptocurrency.The most logical way is for international exchanges to cooperate locally on countries they have customers by providing trading transaction records set by the customer. This would be enough transparency for them to have a correct audit when needed. This is being done right now by Coinbase as a help for the US government to identify their citizens who are not paying the right taxes.
This is possible but it would still takes time.
I think setting an international standard is good but the problem I see here is most of the countries have their own version of the taxing system in their country and an international standard will create a lot of concflicts with their local taxing system.
The most logical way is for international exchanges to cooperate locally on countries they have customers by providing trading transaction records set by the customer. This would be enough transparency for them to have a correct audit when needed. This is being done right now by Coinbase as a help for the US government to identify their citizens who are not paying the right taxes.
It is possible that it will be so. Various exchanges will provide information about their customers at the request of states. However, one can imagine what kind of information this will need to be sent to almost every state. Probably the exchanges will be unprofitable to work or they refuse to do it. In most cases, tax authorities will manage information from local exchanges and exchangers. In general, it will be very difficult for states to collect tax on profits from cryptocurrency. The most logical way is for international exchanges to cooperate locally on countries they have customers by providing trading transaction records set by the customer. This would be enough transparency for them to have a correct audit when needed. This is being done right now by Coinbase as a help for the US government to identify their citizens who are not paying the right taxes.
Governments don't even need to wait for a report from the crypto exchanges. Govts are now using big data one by one and will be very good to make a report itself without the exchange.
Mind explaining why and how big data will help governments avoid dealing with exchanges when it comes to taxation of users? Big data is nothing more than an additional form of collecting data, not the main one.Big data doesn't show how I trade on an exchange. The government needs to have the exchange provide them that data, otherwise people will be able to cheat in every possible way to avoid being taxed in full.
People could even artificially lower their holdings on paper by pretending they lost half of their crypto holdings due to bad trades and whatnot, and that while they might have doubled their holdings in reality.
That would be a great way of evading taxes, but I’m guessing that many others have already thought of that and are probably already doing it avoid taxes. I’m sure that most would want to avoid paying taxes or appearing on the radar esp if the government still has no established stand on crypto. While tax compliance on crypto shouldn’t be so strict for the moment, users may easily wiggle themselves out but should be wary of tax collectors getting back at them.
Governments don't even need to wait for a report from the crypto exchanges. Govts are now using big data one by one and will be very good to make a report itself without the exchange.
Mind explaining why and how big data will help governments avoid dealing with exchanges when it comes to taxation of users? Big data is nothing more than an additional form of collecting data, not the main one.Big data doesn't show how I trade on an exchange. The government needs to have the exchange provide them that data, otherwise people will be able to cheat in every possible way to avoid being taxed in full.
People could even artificially lower their holdings on paper by pretending they lost half of their crypto holdings due to bad trades and whatnot, and that while they might have doubled their holdings in reality.
It will be really very difficult for the state to collect citizens' tax on profits in cryptocurrency. This currency is virtual and it can exchange on any exchange of the world. It will be very difficult for the state to trace it. It seems that when collecting this tax, the state will rely only on the good faith and law-abidingness of its citizens. In countries like Japan, it can and will work. However, in my own, where the state periodically actually robs people with its laws, monetary and other reforms, the state is unlikely to rely on the law-abiding people. I even wonder how it will be in practice. While in my country there are no laws on cryptocurrency and taxation.
To avoid confusion and to provide evidence I think the best way possible is recording all your transactions including both profit and losses in a notebook or put it where you can physically present it. With this way you will have a detailed view on what is your real capital gains are. I think with this technique it will save you a lot of time doing unnecessary things as filing a tax report supposed to be a one time thing and deducting your total capital gains is easy because it will just be based on your tax income group/bracket.
I would like to pay tax for crypto earnings to my country if it accepts bitcoin. If it's not yet legalised then you can obviously think on it.
If you think you have that free choice, then you're obviously wrong. It doesn't matter whether Bitcoin is legalized or not, there is no way you can escape from your legal obligation to pay tax.No wonder that the number of people paying tax over their gains hasn't been growing throughout the years. People falsely assume that Bitcoin is anonymous and for that reason can skip taxation, or that it isn't legalized.
If governments start forcing exchanges to transfer user data once a year for taxation purposes (which is only a matter of time in my opinion), I'm sure that a lot people will be surprised when the taxman shows up.
Governments don't even need to wait for a report from the crypto exchanges. Govts are now using big data one by one and will be very good to make a report itself without the exchange. The good news is data centers have a bright future coming.
I pay my due, I don't want to be considered as a frauder for a transaction 2-3 years old. Frauding taxes can cost a lot of money
I would like to pay tax for crypto earnings to my country if it accepts bitcoin. If it's not yet legalised then you can obviously think on it.
If you think you have that free choice, then you're obviously wrong. It doesn't matter whether Bitcoin is legalized or not, there is no way you can escape from your legal obligation to pay tax.No wonder that the number of people paying tax over their gains hasn't been growing throughout the years. People falsely assume that Bitcoin is anonymous and for that reason can skip taxation, or that it isn't legalized.
If governments start forcing exchanges to transfer user data once a year for taxation purposes (which is only a matter of time in my opinion), I'm sure that a lot people will be surprised when the taxman shows up.
Depend on the countries and who accepted bitcoin. I would like to pay tax for crypto earnings to my country if it accepts bitcoin. If it's not yet legalised then you can obviously think on it. And I love countries to adapt and have facilities to earn bitcoins and other crypto currencies to pay tax.
And for me, if a country is organized and utilizes it revenues including taxes, I don't have a reason not to remit my own because it will also be well utilized. But I don't blame people who have not seen a reason to pay, maybe it could be because of experience.
Depend on the countries and who accepted bitcoin. I would like to pay tax for crypto earnings to my country if it accepts bitcoin. If it's not yet legalised then you can obviously think on it. And I love countries to adapt and have facilities to earn bitcoins and other crypto currencies to pay tax.
For the countries that legalized bitcoin it is very helpful for the economy, because bitcoin is always involved transaction specially if you used it in some commodities, services or goods, even though it is anonymous but use infrastructure and other facilities, in these cases the government can collect taxes. The more the their citizens spend bitcoins the more taxes the government can collect. 
Depend on the countries and who accepted bitcoin. I would like to pay tax for crypto earnings to my country if it accepts bitcoin. If it's not yet legalised then you can obviously think on it. And I love countries to adapt and have facilities to earn bitcoins and other crypto currencies to pay tax.
Still there is no tax for crypto in many countries but it will be applicable in few countries. Bitcoin is legal without any restrictions at the same time it is illegal without any refulations. But day by day crypto become more famous in many countries governments are planned to put tax for crypto. If tax is announced means then the economic growth of the country would be great.
How do you think about CRS(Common Reporting Standard)?
At present, crypto currency transactions are not covered by this system, but I think it will be covered in a few years.
Application of this system will allow governments to get a information from foreign governments automatically to disclose transactions of residents, and it make Crypto World more uncomfortable.
The following are the main members of CRS. America is not a member.
At present, crypto currency transactions are not covered by this system, but I think it will be covered in a few years.
Application of this system will allow governments to get a information from foreign governments automatically to disclose transactions of residents, and it make Crypto World more uncomfortable.
The following are the main members of CRS. America is not a member.
By cooperation, do you mean sharing taxpayer info between countries? I personally wouldn't be very comfortable with that.
I mean shareing trade history report, and that make me uncomfortable as well. But even now Japanese government seeks the submission of reports to domestic exchanges and strengthens regulations on foreign exchanges.
If government can not grasp the transaction history on foreign exchanges, people will use foreign exchanges to escape tax, and crypto become a hotbed of tax evasion. I think it's not good for the future development of crypto.
I think you are beginning to see the benefits of crypto. censorship resistant, secure and borderless exchange of value.
This idea of using foreign exchanges to stay off the radar of local criminal mobs in government is a major benefit and will not slow down crypto development at all, the exact opposite really. It is the whole reason behind the crypto movement.
To give people control over their wealth again and protection from being extorted by criminals wearing suits.
If centralised exchanges bow to the will of local authorities then decentralised exchanges will rise to fill the void.
The sooner people wake up and realise that taxation is nothing more than legitimised theft the better.
That means turning every human on Earth into a slave.
I will never pay any tax on my BTC profits, just like I've stopped paying income tax in 1997.
I will never pay any tax on my BTC profits, just like I've stopped paying income tax in 1997.
It depends on the country that you have ran to. If you have eloped to a country where they don't joke with tax issues, you will still be traced and hooked to pay up your tax and if they also tax on bitcoin, you will be made to pay up.
No, sir. I will never pay income tax anymore. I'm not running, and no country can hook up with me for any reason. It hasn't been easy, but it's legal. I've been doing it for 20 years, so I know it works.
For some reason I have to agree with you. I also have been not paying my taxes for the last 5 years. They have not traced anything. Lucky, my country's government doesnt have any solid decision on whether Bitcoin could be legal or illegal to use, but the central bank recognizes Bitcoin a year ago, so I guess its considered legal then. But, there has no plan for taxation yet.
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