Do Localbitcoins sellers pay taxes? | Bitcointalksearch.org

Daffadile

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Quote from: bitbunnny on September 18, 2016, 05:58:53 PM

I wonder if sellers on.Localbitcoins are paying taxes? I know that in many countries Bitcoin is not regulated and in some you are not obliged to pay tax on Bitcoin itself. But are they paying taxes like registered exchange office or maybe for on line job and earning. Are they reporting this income to their relevant authorities? What do you think or maybe do you have first hand experience?

I think depending on how you sell it you might be able to not pay taxes. The thing is that the transactions will show up on your bank account.
You can get a bitcoin debt card to spend the bitcoin instead of transferring to your bank account. You should look at localbitcoins terms though I think it is your responsibility to do taxes.

skierchewing

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I doubt they do, and I encourage them to don't do it. That's only by cutting money flows to the banksters that we'll win the battle !

daylox

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Quote from: MaritiJames3 on September 24, 2016, 02:55:36 PM

Quote from: chousbwxx on September 24, 2016, 06:31:50 AM

Quote from: abhishek.g on September 21, 2016, 07:54:31 AM

Some ethical guys do and some do not . Its all about the ethics of tax payers. If you want to pay please go ahead . I do not believe in government anyways .

It is ethical if the country has such a law. Avoid tax is very normal, especially those billionaires, you can't measure a bitcoiner is not ethical if they jist don't pay tax.

I guess every country has regulation about tax on income. Perhaps not specific on bitcoin but sure on income. The person should ell the governement how much he/she owned with bitcoin and then the government will tax it. If you don't you may get a high penalty.

No, my Chinese whale friends said bitcoin earning in China is no need to pay tax. But government bans bitcoin, so they have to trade bitcoin privately and secretly.

philiveyjr

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Quote from: nejibens on September 24, 2016, 07:49:42 PM

I think they pay their taxes following the laws of their countries , but as Bitcoin is decentralized they can hide their earnings from selling Bitcoin.

What are you even talking about ? How is decentralization remotely related with paying taxes ?

Once a seller sells bitcoin and earns a profit, all that money goes in his bank, which is then used to calculate a profit. He now has to pay taxes on that profit, as the money is entering the financial system i.e a bank, which does not depend on the bitcoin or the fact that it is decentralized.

nealvanessa990

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I don't think Localbitcoins sellers pay taxes individually any people can pay taxes if he got profit from bitcoin and cash out his own currency.well you can call that taxes like capital gain or self employed tax.different country have different rules for tax.

nejibens

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I think they pay their taxes following the laws of their countries , but as Bitcoin is decentralized they can hide their earnings from selling Bitcoin.

Hellacopter

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As Bitcoin is decentralized currency , i think Localbitcoins sellers aren't forced to pay taxes from their Bitcoin sales. But i believe they pay regular taxes for their general income and banking accounts.

MaritiJames3

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Quote from: chousbwxx on September 24, 2016, 06:31:50 AM

Quote from: abhishek.g on September 21, 2016, 07:54:31 AM

Some ethical guys do and some do not . Its all about the ethics of tax payers. If you want to pay please go ahead . I do not believe in government anyways .

It is ethical if the country has such a law. Avoid tax is very normal, especially those billionaires, you can't measure a bitcoiner is not ethical if they jist don't pay tax.

I guess every country has regulation about tax on income. Perhaps not specific on bitcoin but sure on income. The person should ell the governement how much he/she owned with bitcoin and then the government will tax it. If you don't you may get a high penalty.

philiveyjr

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Quote from: BingoDog on September 23, 2016, 12:32:44 PM

To my opinion majority of localbitcoin sellers are not paying taxes because their earning after tax deduction would be very low. There are not so many big time sellers with huge amount of transactions.

Thats not how things work. I doubt everyone is a full time trader. This is not the only earning they have, There are tax brackets and if this is the only earning they have, then they might be paying taxes next to nothing.

chousbwxx

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Quote from: abhishek.g on September 21, 2016, 07:54:31 AM

Some ethical guys do and some do not . Its all about the ethics of tax payers. If you want to pay please go ahead . I do not believe in government anyways .

It is ethical if the country has such a law. Avoid tax is very normal, especially those billionaires, you can't measure a bitcoiner is not ethical if they jist don't pay tax.

buxlover

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I am seller in localbitcoins, I pay taxes but i don't declare it as earning from bitcoin, rather i declare it as payment for service. Because in India laws are somewhat confusing, so i don't want any unnecessary visits from government officials.

For some sales below 5K i don't show them or pay taxes

BingoDog

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To my opinion majority of localbitcoin sellers are not paying taxes because their earning after tax deduction would be very low. There are not so many big time sellers with huge amount of transactions.

letyouearn2

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Quote from: bitbunnny on September 23, 2016, 09:12:27 AM

I also wonder, for those sellers who are actualy paying taxes what data do they report? Just if they convert Bitcoin into fiat and transactions on their bank account or maybe Localbitcoins can provide them some data about their business there? And what if they are registered as a firm, not private person?

How bit coin is free of tax where it is not regulated ? In India, it is not regulated and allowed by reserve bank to use it as money for transactions. And I am also interested in learning the procedure , how to report or what to report to the income tax department.

bitbunnny

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I also wonder, for those sellers who are actualy paying taxes what data do they report? Just if they convert Bitcoin into fiat and transactions on their bank account or maybe Localbitcoins can provide them some data about their business there? And what if they are registered as a firm, not private person?

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Quote from: abhishek.g on September 21, 2016, 07:54:31 AM

Some ethical guys do and some do not . Its all about the ethics of tax payers. If you want to pay please go ahead . I do not believe in government anyways .

half will pay taxes and half other will not pay taxes, its depend of that localbitcoins person. for people that obey the rule, they will be pay the taxes, but for people that really don't care about the taxes, they will not pay the taxes.

i think bitcoin is free of taxes, maybe we only pay taxes when we want to withdraw our bitcoin into fiat and transfer it into our bank account so we must pay the administration fee and its should include taxes.

abhishek.g

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Some ethical guys do and some do not . Its all about the ethics of tax payers. If you want to pay please go ahead . I do not believe in government anyways .

TraderETH

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I think they don't pay taxes because there are not rules for sellers paying taxes and they just pay fees trade on localbitcoin. But i think the owner of website pay tax for building service in their country.

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Quote from: bitbunnny on September 18, 2016, 05:58:53 PM

I wonder if sellers on.Localbitcoins are paying taxes? I know that in many countries Bitcoin is not regulated and in some you are not obliged to pay tax on Bitcoin itself. But are they paying taxes like registered exchange office or maybe for on line job and earning. Are they reporting this income to their relevant authorities? What do you think or maybe do you have first hand experience?

yes many of my friends who are big traders usually paid tax to government for thier earning about 5-6$ per month . because there earning ia very high and they earn honesty and also pay tax honestly .

TastyChillySauce00

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Quote from: mobnepal on September 21, 2016, 03:44:34 AM

I don't think anybody nor sellers buyers of bitcoin in localbitcoins are paying or have to pay tax for doing bitcoin related transaction. Even in regulated countries when you try to cashout bitcoin in fiat, than you need to pay taxes and in countries like mine where even what is bitcoin is not known to our government paying taxes for bitcoin related income is far than reality.

actually if the government just know that you're doing a business and can avoid their taxes,they'll find out the way to taxing you even by using any possible way,it's about money and seems government won't miss out money

royalpalm

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In some country you need to pay, in some others you don't need. If you sell bitcoin for small amount, you could get cash and don't need to pay. If you sell 1k btc or more, the cash is too much, paying tax is a must thing, or police will catch you.

Topic: Do Localbitcoins sellers pay taxes? (Read 2251 times)