Topic: Crypto Taxation - page 10. (Read 4601 times)

I don't think we should even think about it but there are countries that already taxed Bitcoin.

This depends though on how they are using Bitcoin. If they are using Bitcoin in a company and they are accepting it as a payment or salary, they would be under the law of income tax and that would obviously be taxed.

It is decentralized, so how thr governement implement taxation in the cryptocurrency market. That's why it said that it is a threat from fiat currency because the government have no control over it. There is no tax in cryptocurrencies, it is one of the unique characteristics that attract many people in order to adopt it. I'm aware that taxation is important but it is hard to see that they will also require tax in cryptocurrencies.

Sad to say, it's just how things go most of the time. Even I am a critic of taxing cryptocurrency transactions since after all it defeats the purpose of cryptocurrencies being decentralized in the first place. But if you consider the fact that it'll allow cryptocurrencies to be much more accepted and accredited by your local government almost outweighs the feeling of being taxed. Until we can find a way to ensure cryptocurrency transactions safer and a bit more convenient than what it is now we might need to put up with what the government wants

Exactly. Taxation is required in order for governments to function properly. Without taxes, governments won't have a "reason to live". It's interesting to see them tax crypto, when they've declared the same is not legal tender. It'll be difficult for citizens to comply with taxes on something that's decentralized by design. Not to mention, prices are volatile which greatly defeats the purpose of taxation. As long as worldwide governments tax crypto in a fair manner, there should be nothing to worry about. It's best to comply with taxes than evade them. If you go against what's already established by the government, you could be facing jail time. So you would have to choose between freedom (sort of) or jail time. In this case, it's best to cooperate with worldwide governments in order to maintain the legitimacy of crypto and Blockchain technology in general (and avoid going to jail, of course )

Crypto taxation becomes easier to enforce by worldwide governments, if the industry continues to rely on centralized exchanges. These services are required by law to comply with KYC/AML regulations to properly tax crypto from everyday people. The real deal would be decentralized exchanges and P2P trades, as it's nearly impossible to keep track of every citizen for proper tax compliance (decentralized solutions require no ID verification to use them). Imagine what would've been for the crypto/blockchain industry if everything was completely decentralized. By now, governments would've declared crypto illegal for mainstream use.

Nonetheless, time will tell us the outcome of government regulations whenever they'll impact the growth of the crypto industry within the mainstream world. As long as people cooperate, the industry will obtain legal recognition by the government. Otherwise, there will be a full crackdown on crypto and Blockchain technology. Just my opinion

It will help bitcoin to attract more people to use it or invest in it because if the government order a regulation about cryptocurrencies then it is an obvious sign for the citizens that the government are acknowledging the use and purpose of cryptocurrency to their country so it is a win-win situation for the enthusiast and also for the government who will get more taxes for their future projects.

I am interested in the latest review, which in the end issued a country will make regulations that must be obeyed by its citizens. and of course the policies taken will benefit the country, but we must obey them because otherwise we will certainly not deal with applicable law

Government would not allow us to just enjoy bitcoin as investment and a payment system without them interfering for their control and to tax us, I think that's the way the world goes, as long as we have the government to govern its people, tax is compulsory and they need to monitor us to ensure that we are paying taxes and to spy on us, that's how they work.

in the early stage, bitcoin was created to give us privacy or anonymity but it doesn't work like that anymore because of government intervention.

The cryptocurrency paradigm assumes your full control over your finances and, in some cases, complete anonymity of ownership of funds and anonymity in transactions. This model clearly does not fit into the structure of the state, which in its essence must control all the processes that occur in it. From the state's point of view, taxes should be paid, but this violates the anonymity of using cryptocurrencies. I think the state will continue to fight anonymous cryptocurrencies. However, the state normally treats non-anonymous cryptocurrencies if their owners comply with all laws adopted in this state.

Of course, I am not a supporter of the fact that the government levied taxes on me for everything that got.  Especially considering the laws the Supreme Council adopts in my country, people will soon have to pay taxes even for fruit trees.  Nevertheless, in all this there should be common sense, because by logical reasoning all state institutions exist at the expense of the state budget, which is filled by taxes, because the states no longer have their own industries that would support the economy and constant income in  State treasury.  After all, all social guarantees, as well as any structure, practically exist at the expense of taxpayers.

Exactly. That's how governments work. As long as they're able to collect taxes out of anything, they'll consider it legal. This makes me wonder if privacy-oriented coins like Monero, Grin, and even Beam will be able to survive in the long run? Because the way they're designed will make it impossible for governments to tax them properly. This could render these coins "illegal" in the long run. Only a select few privacy coins like Dash and Zcash will survive in the mainstream world as they do not enforce privacy like Monero or Grin. While crypto taxation will be quite a challenging task to achieve from worldwide governments (due to the decentralized nature of crypto), they could easily require centralized exchanges to comply with KYC/AML regulations to make the process easier than ever. Transparent coins like Bitcoin, Ethereum, and Litecoin will survive for a long time as it's possible to track & trace each transaction to require users to comply with their taxes.

It's still today, yet many people don't know how to comply with their crypto taxes accordingly. This is largely because there isn't a proper framework from worldwide governments to tax this new kind of money. The industry being only 11 years old, has a lot to go through before it's legalized in every way. As long as we do our part to comply with governments' regulations, they'll give the green light for crypto's growth within the mainstream world. Otherwise, you could expect adoption of crypto and Blockchain tech to decrease over time as the industry is declared illegal by worldwide governments. No one would want to use something that's illegal, even though they can still access it. Time will tell us what will the outcome of crypto taxation will be within the mainstream world. Just my opinion

Please do not use the crypto system with its anonymity and decentralization to legitimize your reluctance to pay taxes. If the government gives you the freedom to make a self-declaration of the tax value that you must pay without having to know the source from where, will you calculate and report your crypto assets?

Don't say the government is corrupt as an excuse not to pay taxes, because where have you been all this time. The one who serves in the government and represents your interests in the legislature is your choice, and even then if you use your voting rights. If you do not use your suffrage correctly, it can be said that you participated in the formation of a corrupt government.

We are cryptocurrency users and we have faith that cryptocurrency will make the world better. So it never hurts us to proactively socialize that the legalization of cryptocurrency can bring more tax revenue, in terms of trade, in the digital world the volume is usually 10 times that of trading in conventional markets. Meaning greater tax potential.

Be a critical and curious citizen to drive tax revenue, digitally make everyone well connected, use digital media to eradicate corrupt practices, so that taxes are used properly and on target.

There a lot of people who want government to do many good things but also not wanting to pay their taxes not because they are actually trying to steal from governments but because they saw that their governments take the money and not do anything good with it.

Living in first world nations will make you question if you should pay your taxes or not and I can understand that, if I was an UK citizen I wouldn't mind paying my debt, but do you guys realize how many third world countries have governments that take insane amount of taxes from you and basically asks 2x of what stuff cost and then do absolutely nothing with that money?

They literally steal from you and fill their own pockets with it, so of course we all want governments to provide stuff for us and we should pay our taxes for it but if our taxes goes to waste then I am sorry but I will try to find ways to not pay my taxes until government actually spends it on good stuff.

The issue of cryptocurrency and tax has recently become popular. States may want to derive a tax income from this situation. But this is not a simple matter. How will they get the tax as bitcoin? This is a very complicated issue. I don't think it's possible for now.

Any government is constantly looking for ways to rob its citizens, often in the most unfair way possible.
Bitcoin - in Satoshi's intentions - was born precisely to defend itself from this constant thievery.
Obviously, you need to be careful, but with a little attention you can still move anonymously.

I have pretty much same opinion regarding taxation and centralization of crypto currencies especially that of bitcoin. Bitcoin is something which people loved because of its decentralized nature and because it gave people an alternative way of making money without any influence from government. We simply can conduct a poll on forum in order to check whether crypto users are okay with taxation or not.

Tax object is a source of income that is subject to tax. Crypto tax for individuals is usually related to income tax. The object of the tax is income, that is, any additional economic capability received or obtained by the Taxpayer, both originating from domestic or from abroad, which can be used for consumption or to add to the wealth of the Taxpayer concerned, by name and in whatever form.

The tax officer target is not bitcoin or cryptocurrency, but the amount of our wealth in the form of fiat, other assets or in the form of bitcoin or crypto. The taxman is chasing our wealth that we might hide in crypto. The government statement was clear from the start that crypto is not considered a legal payment tool even though it is not prohibited, we ourselves choose to save our assets in the form of crypto. So the tax on crypto is not a government weapon to fight crypto either directly or indirectly.

Whereas for exchanger other than income tax there is also a value-added tax, assuming services provided by virtual currency exchange service providers cannot be classified as financial services, so if the company has passed a certain turnover limit then it must be confirmed as a Taxable Entrepreneur. In effect, every Bitcoin sale made by this taxable entrepreneur is subject to VAT.

Yeah you’re right, the government always wants to take tax from every business and when it’s not working out for them they declare it an illegal asset and try to prevent their citizens from making use of it. That’s why they are trying to take total control over centralized cryptocurrency exchanges by regulating them, since they can’t regulate cryptocurrencies like Bitcoin directly due to its decentralized nature, centralized exchanges now serves as a gateway for them to gain access into the crypto world and accomplish their plans.

I guess for the sake of welfare of our nation, anyone will be preferring taxes but only for availing goods and services and not for the income. This is my personal opinion and everyone must be having their own view on paying taxes for building their country stronger.

I think the purpose of decentralized is to make each users control money and not one entity controls the market. Government would have to find and pay people who would actually make codes to tax this. Easy to say to add tax but it is hard to control and centralize cryptocurrency again.

They want to tax the cryptocurrency because want it to be regulated. If there is a tax imposed by the government for every withdraws and deposits, therefore more people will think also of their loss. People wanted crypto because it is decentralized and no tax. But for me, it is good if there is a tax. Especially that most of us here is earning a large amount of money.

Isn't the IRS taxing capital gains already but not doing it the way yo have described?

They want you to pay for your unrealized capital gains. If you hold a bitcoin and it goes up in value by 1000 dollars they want you to pay a percentage in fiat money even when you are still holding. Next year if it goes up by another 1000 they will again demand you to pay and on and on until you sell and be done with it. This is so bad i'm happy i don't live in the US.