CRYPTOCURRENY TAX DILEMMA | Bitcointalksearch.org

armansolis593

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Quote from: Cloudstrife25 on January 07, 2018, 01:25:20 PM

Hello! I am a Filipino currently residing and working in the UK. I have been investing into crypto since November 2017. I use a USA-based Gemini exchange to deposit GBP and get me started with crypto investing. Now what if I make 1M USD profit out of a coin? What are the tax implications?

The only tax that you will be getting is that if you declare it on your SALN when you get back here in the philippines and the BIR will surely to hunt you down.

Quote from: Cloudstrife25 on January 07, 2018, 01:25:20 PM

SITUATION A
If I convert BTC to USD in my Gemini exchange, will that already be subjected to tax? Will USA tax me considering I do not reside there? Now of course I have to transfer the money to my UK bank. If my UK bank receives it, will I have to declare the money as capital gains taxable to HMRC? Or is it treated as betting/gambling wins, therefore free of tax?

I think once you converted the bitcoin to cash its already due to tax if you pass the non taxable gain,it depends on the scale of the money you are converting.

Quote from: Cloudstrife25 on January 07, 2018, 01:25:20 PM

SITUATION B
If I send BTC to coins.ph (Philippine Digital currency exchange), then convert it to PHP, will that give me max profit considering the new tax scheme under TRAIN law?

The problem is that in coins.ph to verify your account will need a lot of days specially when you are at level 3 onwards, processing time and the amount of documents you will be needing will be enormous.

TRAIN law only affects the goods that corporation imports to our country it doesnt affect bitcoin.

Quote from: Cloudstrife25 on January 07, 2018, 01:25:20 PM

Basically, I want to know the best way to lessen the amount of tax that I have to pay. Do I have to record every trade transactions that I make? Because I will start now if I have to.
Thanks ever so much to anyone who will answer.

I cant really tell you on how to lessen the tax but i think our government right now is not taxing what you get from bitcoin, yes they do regulate but only the exchages like coins.ph

what im afraid is that, when you want to withdraw more money in coins.ph you need to a lot of personal documents and it might trigger our government specially BIR to hunt down bitcoin user using the information they get at coins.ph

Idrisu

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I think for governments to relate friendly with bitcoin and others cryptocoin it has to be taxable! If we actually want bitcoins to go maintream we have to allow governments to tax it and bring a bit regulations on it transactions. How can we be making huge profits and lock governments out? This will affect cryptocurrencies in the future if not now.

yamte23

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Quote from: Cloudstrife25 on January 07, 2018, 01:25:20 PM

Hello! I am a Filipino currently residing and working in the UK. I have been investing into crypto since November 2017. I use a USA-based Gemini exchange to deposit GBP and get me started with crypto investing. Now what if I make 1M USD profit out of a coin? What are the tax implications?
.
SITUATION A
If I convert BTC to USD in my Gemini exchange, will that already be subjected to tax? Will USA tax me considering I do not reside there? Now of course I have to transfer the money to my UK bank. If my UK bank receives it, will I have to declare the money as capital gains taxable to HMRC? Or is it treated as betting/gambling wins, therefore free of tax?
.
SITUATION B
If I send BTC to coins.ph (Philippine Digital currency exchange), then convert it to PHP, will that give me max profit considering the new tax scheme under TRAIN law?
.
Basically, I want to know the best way to lessen the amount of tax that I have to pay. Do I have to record every trade transactions that I make? Because I will start now if I have to.
Thanks ever so much to anyone who will answer.

Tax does not apply to bitcoin. Only if you store your bitcoin in a government base. The tax will be charge. I know friends who earn bitcoin but foea not pay their taxes. Since the government are not aware of it maybe.

pinkflower

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Quote from: expert4knowledge on January 07, 2018, 09:13:32 PM

There is currently no clear laws about bitcoin taxes, except in America, i think we will see in 2018 new laws born

This is true. I dont think the Phillippine government cares about taxing gains made from BTC because from all the international news websites, their president cares only about the war on drugs in their country. Or taxing gains from BTC in any 3rd world country for that matter.

Isnt it also martial law in the Phillippines?

HabBear

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Quote from: Cloudstrife25 on January 07, 2018, 01:25:20 PM

SITUATION A
If I convert BTC to USD in my Gemini exchange, will that already be subjected to tax? Will USA tax me considering I do not reside there? Now of course

Are you a USA citizen? (I assume you aren't, because of the context of your questions). If you're not a USA citizen the USA will not expect you to pay taxes on investment gains. You don't live in the USA, you don't work in the USA, the USA has no claim to assess tax on your income.

Quote from: Cloudstrife25 on January 07, 2018, 01:25:20 PM

Basically, I want to know the best way to lessen the amount of tax that I have to pay.

The best option is to repatriate you cryptocurrency into the country and account that will impose the lowest tax rate on your investment gains.

You need to understand first, will the UK assess taxes on investment gains if you live and work in the UK (but are not a citizen)? If so, you'd likely owe the tax to the UK regardless of where you repatriate the money.

If you repatriate the money to the Philippines, will that exchange/company record the transaction and report it to the UK?

Quote from: Cloudstrife25 on January 07, 2018, 01:25:20 PM

Do I have to record every trade transactions that I make?

Yes, from crypto to fiat. Each transaction represents a taxable event.

expert4knowledge

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The All-in-One Cryptocurrency Exchange

There is currently no clear laws about bitcoin taxes, except in America, i think we will see in 2018 new laws born

Roukawa

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Quote from: gentlemand on January 07, 2018, 08:50:37 PM

Anyway, ask some professionals, not us.

Correct, some of here does not know how the taxation works in every country like me. I can share some opinion but that is in my way. I am also a Filipino citizen and I think that if he will converted in PHP there is a lot of charges to be paid but I know that there is no tax to be paid. As far as I know, train law does not affect cryptocurrency exchanges because it is just in the price of the products and services. You can ask the official personel of coins.ph and discuss how you will change your usd into coins without higher charge or transaction fees.

gentlemand

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Quote from: HODL_guy on January 07, 2018, 03:07:45 PM

I think you don't need to pay any tax because UK doesn't charge taxes from crypto gains AFAIK. Maybe I'm wrong though

Wrong. In the UK you pay capital gains at 20% above £11,300 more or less, with a 10% band up to the 40 grand gain ish level. Can't quite remember.

There's no tax to pay in the US. That's why we have tax treaties.

He'd be better off asking tax professionals in the UK and Philippines. If it were me and I were planning on heading back to the Philippines at some point I'd do it there if tax rates are better. It's also more crypto friendly than the UK so you might have less bank trouble.

Anyway, ask some professionals, not us.

fabioganga

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As far as I am aware, in the UK earnings from cryptocurrencies are considered capital gains and must be declared when converting cryptos to fiat currency.

This official governmental document might help:

https://www.gov.uk/government/publications/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies

Vatimins

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Quote from: Cloudstrife25 on January 07, 2018, 01:25:20 PM

Hello! I am a Filipino currently residing and working in the UK. I have been investing into crypto since November 2017. I use a USA-based Gemini exchange to deposit GBP and get me started with crypto investing. Now what if I make 1M USD profit out of a coin? What are the tax implications?
.
SITUATION A
If I convert BTC to USD in my Gemini exchange, will that already be subjected to tax? Will USA tax me considering I do not reside there? Now of course I have to transfer the money to my UK bank. If my UK bank receives it, will I have to declare the money as capital gains taxable to HMRC? Or is it treated as betting/gambling wins, therefore free of tax?
.
SITUATION B
If I send BTC to coins.ph (Philippine Digital currency exchange), then convert it to PHP, will that give me max profit considering the new tax scheme under TRAIN law?
.
Basically, I want to know the best way to lessen the amount of tax that I have to pay. Do I have to record every trade transactions that I make? Because I will start now if I have to.
Thanks ever so much to anyone who will answer.

Dude, i aint good with banks and all that sht, but ome thing i can adbice you amd something that has worked pretty well woth my friend is that convert your cryptos little by little while changing the time frame almost every week. Yes, this is very tiring and will really take a lot of effort and precious time. Doing it slowly but surely is better than rushing without knowing what may happen next. But this is just an unprecedented advice, thus really did work for mt friend but i cannot guarantee that it will work for you too. Just wanted to share because maybe it can help. Just try it for a few weeks and then observe hiw the banks and local government reacts.

ralle14

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Afaik here In the Philippines there's no clarification yet about the taxes on selling Bitcoin so the best option to go for is situation B to maximize your profit. Our local government just started regulating Bitcoin a year ago and I haven't heard any announcement or news from other users about taxing Bitcoin.

hitrawal91

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I don't know much about taxation and for this reason, i have already hired a chartered accountant for business use. But i am already in the big dilemma after hearing the news from one of our trading group that the country I live is India and here the taxation slabs and rates are going to change soon, because of increasing bitcoin activities and trading operations in our countries. I don't know why these governments are planning to collect extra taxes from small traders like us, is that necessary or not. I hope there must be single tax slabs for all the level of traders whether it is a bitcoin or stock.

HODL_guy

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I think you don't need to pay any tax because UK doesn't charge taxes from crypto gains AFAIK. Maybe I'm wrong though

fiulpro

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I do think that whatever you do that's related to your bank account does directly ring the bell in government's office.

That ultimately leads them to count you net gain in white.

That net gain is what's taxable no matter what means you use you will have to pay tax if it's going in and out of your bank account.

Cloudstrife25

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Activity: 4

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Hello! I am a Filipino currently residing and working in the UK. I have been investing into crypto since November 2017. I use a USA-based Gemini exchange to deposit GBP and get me started with crypto investing. Now what if I make 1M USD profit out of a coin? What are the tax implications?
.
SITUATION A
If I convert BTC to USD in my Gemini exchange, will that already be subjected to tax? Will USA tax me considering I do not reside there? Now of course I have to transfer the money to my UK bank. If my UK bank receives it, will I have to declare the money as capital gains taxable to HMRC? Or is it treated as betting/gambling wins, therefore free of tax?
.
SITUATION B
If I send BTC to coins.ph (Philippine Digital currency exchange), then convert it to PHP, will that give me max profit considering the new tax scheme under TRAIN law?
.
Basically, I want to know the best way to lessen the amount of tax that I have to pay. Do I have to record every trade transactions that I make? Because I will start now if I have to.
Thanks ever so much to anyone who will answer.

Topic: CRYPTOCURRENY TAX DILEMMA (Read 198 times)