There is a very difficult question some of us are facing right now. In case Bitcoin is illegal in a particular country, are we liable to pay taxes on any profit that results from the trade of BTC? I asked this question to one of my friends (who happens to be an advocate). He told me that we need to pay the taxes on any profit, irrespective of the legality of the act.
But how practical is that? Paying taxes in a country where Bitcoin is banned. How are you going to define it in the tax returns?
Topic: Do people have to pay taxes on Bitcoin? (Read 17804 times)
Tax law is dependent on your country and locality. Recently in the United States, the IRS has declared that Bitcoin is to be treated as property, not currency, for tax purposes. All income in the US is taxed, regardless of what form it takes. If you’re paid in bitcoins, you’re supposed to pay taxes on your earnings at the BTC/USD exchange rate when you receive payment.
Is it a good decision or bad?
Is it a good decision or bad?
As far as I know, in the United States are still determined by the legal identity of cryptocurrency. However, if the cryptocurrency is now recognized as property and the state has established rules and amounts of taxation, then taxes will have to be paid. If cryptocurrency holders ignore tax payment orders, the state will have the opportunity to tighten the rules of cryptocurrency circulation, up to its prohibition. I do not think that this should be allowed.
This is a good signal for the future of bitcoin, I myself have never paid taxes when owning bitcoin in any form because in the country I live there is no legal framework that regulates bitcoin as a legal products.
Every country will have a lot of differences to address bitcoin, what you say is that the legal framework does not yet exist for bitcoin regulation so it can be ascertained that there will be no tax withdrawals to be imposed. indeed it's good that bitcoin is taxed like income received. obviously with the existence of taxes, the existence of bitcoin will be recognized, so that anyone dealing with bitcoin can be calm. 
This is a good signal for the future of bitcoin, I myself have never paid taxes when owning bitcoin in any form because in the country I live there is no legal framework that regulates bitcoin as a legal products.
LOL you came as approver and confirming that you are not paying taxes for your earnings in crypto.
Most of the countries have the minimum earning taxation level. That even your earning bitcoin lesser than estimation tax limit then you can be free without any tax issues.
Here in my country for bitcoin trading or service based works you need to pay 10 percent as tax, if your earning is 15k USD/year.
This is a good signal for the future of bitcoin, I myself have never paid taxes when owning bitcoin in any form because in the country I live there is no legal framework that regulates bitcoin as a legal products.
As a good citizen, whatever income should be obtained from Bitcoin should pay income tax properly, but in fact there are still many countries that have not recognized bitcoin itself so it might also be certain that there are no binding rules for paying taxes. actually the implementation of taxes can be done when every bitcoin exchange becomes fiat.
If it's required then they have to pay, it will be a criminal offense to evade tax.
There are still country that people are not required to pay taxes on their crypto holdings, and I am one of those who experience that, but I am not expecting this will last forever as I know eventually the government will look into this earning generation opportunity.
There are still country that people are not required to pay taxes on their crypto holdings, and I am one of those who experience that, but I am not expecting this will last forever as I know eventually the government will look into this earning generation opportunity.
If state bodies see that the population is evading tax payment, it can take a series of measures aimed at restricting or even banning circulation of cryptocurrency on the territory of this state. We do not need it.
And how they are going to do that? Are they going to shut down the entire internet? Banning cryptocurrency is next to impossible and that is why none of the developed nations have done that. Even the Chinese government is aware of this fact and they have only banned the conversion of CNY to crypto and vice versa. At the most they can arrest a few users and try to frighten the remainder from using it.
Either we like or not we will pay the Bitcoin tax if it was required by the government as there are countries that still imposed free tax on Bitcoin. As citizen, we need to comply with the law or face the consequence and as we believed that Bitcoin will help our economy then it is right that we will give our share without hesitation.
If the tax cannot be withdrawn, of course the government will not legalize bitcoin, because all types of businesses must be taxed with one purpose, namely as a source of state income that will be used to pay the salaries of government employees and carry out development for the welfare of society.Therefore, the gap continues to be sought to get tax revenue from bitcoin transactions, with the intention of monitoring how much potential can be obtained from bitcoin, which means that if bitcoin can be optimized it is better facilitated for trade and investment.
We will need to pay taxes on activities in cryptocurrency, but not before the government of our country of residence accepts the relevant rules about it, which will oblige us to do so. This is necessary so that the cryptocurrency is legalized by the state and developed as a means of payment. If state bodies see that the population is evading tax payment, it can take a series of measures aimed at restricting or even banning circulation of cryptocurrency on the territory of this state. We do not need it.
I have asked a random lawyer that I crossed upon online if I need to pay taxed on my btc or crypto profits. He said yes because any economic gains is subjected to tax. But I did not follow that because there still is not a clear law regarding with btc and it is still not fully recognize in our country.
To pay tax there is minimum amount in your income. In my country cryptocurrency will be taxed if my assets has been reaching around $5000, but if my assets doesn't reach the amount then I am not required to pay taxes. But recently, my country is making a new rule in the pay tax thing and I heard that ,y country will be taxed everyone who use cryptocurrency base on transaction, and it is bad for me.cryptocurrency is still on neutral phase on my countries jurisdiction thats why theres no certain law being imposed on having that mandatory tax.It would just
depend on a certain earner do live on a country which do have strict compliance with this.
I have asked a random lawyer that I crossed upon online if I need to pay taxed on my btc or crypto profits. He said yes because any economic gains is subjected to tax. But I did not follow that because there still is not a clear law regarding with btc and it is still not fully recognize in our country.
To pay tax there is minimum amount in your income. In my country cryptocurrency will be taxed if my assets has been reaching around $5000, but if my assets doesn't reach the amount then I am not required to pay taxes. But recently, my country is making a new rule in the pay tax thing and I heard that ,y country will be taxed everyone who use cryptocurrency base on transaction, and it is bad for me.
Either we like or not we will pay the Bitcoin tax if it was required by the government as there are countries that still imposed free tax on Bitcoin. As citizen, we need to comply with the law or face the consequence and as we believed that Bitcoin will help our economy then it is right that we will give our share without hesitation.
In my country (India), the tax laws regarding BTC are very vague. And on top of that, the government is trying to ban cryptocurrency altogether. I have talked to a few chartered accountants here, and they told me that I don't need to pay any taxes unless I convert my BTC to fiat and I am profiting out of it. I asked them about the coins that I get from airdrops and signature campaigns. The answer I got was that they are not taxable, as the government hasn't recognized them either as a currency or as an asset.
But the posts in this thread suggests otherwise. I am a bit worried now about my tax liabilities.
But the posts in this thread suggests otherwise. I am a bit worried now about my tax liabilities.
And as part of the verification, theoretically, the tax authorities may ask to show the contents of the wallets in order to ascertain whether the amount of income received is under-estimated. In practice, we are not aware of such monitoring cases.
In many countries, Bitcoin is not accepted as a mainstream currency as cryptocurrency is not yet set in the law, some places Bitcoin is 0% taxable.
I have asked a random lawyer that I crossed upon online if I need to pay taxed on my btc or crypto profits. He said yes because any economic gains is subjected to tax. But I did not follow that because there still is not a clear law regarding with btc and it is still not fully recognize in our country.
There are some countries that charge a tax on bitcoin, particularly the Estates Tax, since it is considered a property.
But that will happen once the owner will die and all his/her properties will be transferred to his/her heir.
But that will happen once the owner will die and all his/her properties will be transferred to his/her heir.
Some participants in this forum deny the need to pay taxes on cryptocurrency to the state, explaining that the cryptocurrency is decentralized and no state has the right to interfere with its existence. we still need to pay taxes because for the further development of the cryptocurrency needs to be legalized by the states. Without legalization of cryptocurrency, it is impossible to develop the infrastructure for its circulation as a means of payment. therefore, so that the state does not restrict or even prohibit the circulation of cryptocurrency, we will need to pay state taxes on this type of activity.
Because using bitcoin illegally certainly makes the growth rate very low, besides that the calm factor in making transactions is also lacking.
All countries have not system to pay tax in bitcoin. But i think it's a best way to pay texes on bitcoin because in this system is good.
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