Government Taxing Bitcoin? Here's the Answer

ice098

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Quote from: Latviand on April 22, 2020, 01:08:29 AM

We have nothing to do with the government getting taxes with our bitcoin because in the first place, we should be thankful that they legalize cryptocurrency in a country and not all countries in the world have courage to make it possible. Some countries are still not implementing cryptocurrency that's why they don't understand how it works.

The only problem here is that the fees or taxes are far too high, but what can we do if that's the government's way to benefit to our bitcoin. We just need to accept the fact that the fees in the exchange are really high than having a government that is against to bitcoin. There purpose is for its people's sake and not for the corrupt politicians.

We do really have a fees in more aspects not only in exchange, taxes are necessary so that the government have funds and budget for their project and all of us will surely benefit to that.

Currently I lived in a country where bitcoin wasn't legally adopted nor announced as illegal and prohibiting its people to used or invest it. But if one of the reason why our government will goind to adopt bitcoin is because they wanted to serve a tax to any transactions or even in exchange then I guess there is nothing I can do than to comply of what was been set as regulation or law. Though, i hate the fact that our government will going to have a tax in bitcoin if ever because the tax percentage here in our country was high.

ropyu1978

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That is what the government continues to do and strive for by the government, the government always says bitcoin is a scam, bitcoin is damaging to the environment, bitcoin can destroy the economy, it's just their intellect to say all that ... because they have only one goal, the government just wants to tax us.
Bitcoin users, because they have seen bitcoin generate thousands of dollars, without paying any taxes ...

rodskee

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Quote from: chip1994 on April 22, 2020, 01:22:18 AM

Quote from: Debonaire217 on December 27, 2019, 07:51:00 AM

I always wonder how could an economy operate and run without taxes from cryptocurrencies. How could a government obtain taxes from people when people are completely utilizing a currency that is not supporting taxes. Would it be really good if we completely have our fiats converted to crypto? For me, there's always a way if our intention is good. We cannot really deny how government is providing regulation that is mainly for the betterment of us despite of some issues regarding corruption and frauds.

For me, the way we could still make it possible is to establish a local exchange wherein, if we convert our money to crypto, these local exchange could already have the portion intended for the tax of each transactions.

The fee for us to execute orders is the exchange's profit, then they pay taxes and that doesn't include our taxes. If true, the government's tax system will look at your account monthly to know your income and thereby collect your taxes accordingly. But now the governments don't seem to have a suitable tax policy yet because traders still trade in the black market quite a lot and can't control it. That's why many governments do not let people operate in the crypto market.

Yeah thats why the exchange must be legit and allowed by the government so
we are sure that safe is where our currency drives.
the Taxes paid by the exchange is where we are contributing the payment
but i think this must be extended so the government will
Not seek more for the crypto users.
there so maybe the system will respect our Needs in privacy and may also supports us in future .

chip1994

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Quote from: Debonaire217 on December 27, 2019, 07:51:00 AM

I always wonder how could an economy operate and run without taxes from cryptocurrencies. How could a government obtain taxes from people when people are completely utilizing a currency that is not supporting taxes. Would it be really good if we completely have our fiats converted to crypto? For me, there's always a way if our intention is good. We cannot really deny how government is providing regulation that is mainly for the betterment of us despite of some issues regarding corruption and frauds.

For me, the way we could still make it possible is to establish a local exchange wherein, if we convert our money to crypto, these local exchange could already have the portion intended for the tax of each transactions.

The fee for us to execute orders is the exchange's profit, then they pay taxes and that doesn't include our taxes. If true, the government's tax system will look at your account monthly to know your income and thereby collect your taxes accordingly. But now the governments don't seem to have a suitable tax policy yet because traders still trade in the black market quite a lot and can't control it. That's why many governments do not let people operate in the crypto market.

Latviand

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Quote from: Lucius on December 27, 2019, 09:45:13 AM

Quote from: Debonaire217 on December 27, 2019, 07:51:00 AM

~snip~

Different countries, different rules when it comes to paying taxes. But it is also important to emphasize that paying taxes is a completely normal thing, especially if the tax money goes to the right purposes (public schools, kindergartens, hospitals, courts, etc.), and something else if it goes into the pockets of corrupt politicians and ordinary people only gets crumbs.

Your idea that crypto exchanges collect tax would be good for users, but the whole thing doesn't work that way. Governments want the tax to be reported and paid directly to them, not through some intermediaries like exchanges. The problem is in fact that taxes are too high when we consider the total amount we need to pay.

If we take the example that the capital gain tax rate is 20%, and you pay that every year it is maybe within some normal limits. But if you have VAT on every purchase which is again 20% or more you pay extra tax again on fiat you get from selling crypto. Although there are ways to avoid paying taxes when it comes to cryptocurrency, any trader on exchange which requires KYC will pay it sooner or later.

We have nothing to do with the government getting taxes with our bitcoin because in the first place, we should be thankful that they legalize cryptocurrency in a country and not all countries in the world have courage to make it possible. Some countries are still not implementing cryptocurrency that's why they don't understand how it works.

The only problem here is that the fees or taxes are far too high, but what can we do if that's the government's way to benefit to our bitcoin. We just need to accept the fact that the fees in the exchange are really high than having a government that is against to bitcoin. There purpose is for its people's sake and not for the corrupt politicians.

We do really have a fees in more aspects not only in exchange, taxes are necessary so that the government have funds and budget for their project and all of us will surely benefit to that.

Ozero

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Quote from: Debonaire217 on December 27, 2019, 07:51:00 AM

I always wonder how could an economy operate and run without taxes from cryptocurrencies. How could a government obtain taxes from people when people are completely utilizing a currency that is not supporting taxes. Would it be really good if we completely have our fiats converted to crypto? For me, there's always a way if our intention is good. We cannot really deny how government is providing regulation that is mainly for the betterment of us despite of some issues regarding corruption and frauds.

For me, the way we could still make it possible is to establish a local exchange wherein, if we convert our money to crypto, these local exchange could already have the portion intended for the tax of each transactions.

Most likely, this will continue to be so in the future. Local exchanges will automatically calculate the tax from each transaction and for this we will have to leave their identification data there. This procedure for paying taxes is the most logical. But if we turn to exchanges located on the territory of other states, here the process of paying taxes will already be more complicated and, most likely, the government in this case will rely on the consciousness of its citizens.

CaVO32

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Quote from: Sithara007 on January 27, 2020, 11:04:13 PM

Quote from: Debonaire217 on January 27, 2020, 09:49:17 PM

Quote from: FanatMonet on January 27, 2020, 09:41:58 PM

On the one hand, various taxes on cryptocurrencies are not very good, because this is additional pressure from the government on people.
On the other hand, if the government thinks out some kind of policy regarding cryptocurrencies, makes them a legal means of payment, then you can think about this.

I quite remember one policy that Philippines has, which is the train law, taxes increase too high and it affects mostly those that earns profit. The higher your profit, the higher your tax. If this could be applied to cryptocurrencies, investors will be discourage to increase their profit that much. Though, in the first place, there is no concrete news concerning government taxing bitcoin aside from local exchanges.

In most of the countries, those with higher earnings have to pay a higher tax slab. Here in India, the tax slabs increase progressively from 5% to 42.5%. But even after all this, less than 3% of the population pay any income tax. The farmers are exempted from income tax and in India 80% of the population claims that they are farmers.

All that said, I have to disagree when you say that higher taxes will discourage people from earning profits. Because even after all these taxes, the individual is left with a good amount for himself. The exemptions may be countries such as Germany and Sweden, where the tax rate is around 60%.

And when it comes to cryptocurrencies, right now, it is hard to apply tax on them because most governments don't know yet how to deal with crypto. What they can do, is when someone convert their crypto to fiat and send to their bank or remittance, they can already get a small portion out of it. But it should be put into law what percentage are they scrapping from this conversion. Also, only regulated local crypto exchange can be subjected into this because those 3rd party services offering conversion crypto to fiat without government license are not covered by this. So if a crypto user wants to avoid such scrapping from his crypto, he will just go to this unlicensed ones, but not safe for his funds. Anyway, right now, it is still unclear how government can impose tax to its crypto users. It should at least be transparent how are they going to implement such regulations on crypto users.

gundala

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Quote from: Debonaire217 on January 27, 2020, 09:49:17 PM

~

I quite remember one policy that Philippines has, which is the train law, taxes increase too high and it affects mostly those that earns profit. The higher your profit, the higher your tax. If this could be applied to cryptocurrencies, investors will be discourage to increase their profit that much. Though, in the first place, there is no concrete news concerning government taxing bitcoin aside from local exchanges.

That means income tax, right?
The development and popularity of cryptocurrency are widespread, many people use it and this is like a new lifestyle, a new trend in earning money, investing, and doing transactions or payments. Government policies will provide trust, the legitimacy for digital assets increases, although everything depends on the behavior of each user. I agree with this tax, a kind of symbiosis of mutualism with the government, provided that it is transparent and appropriate.

AutomaticTrade254

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Though the government wants to get tax, who earns lots of money using Cryptocurrency. But they are unable to find out the technology, how they identify the targeted member who earned the money. That's why they are failed to get tex. But I think, Then tax will be added in futures. And Each country will be developed.

Mike Mayor

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We will have private corporations taking over and each one does a share of the work. Since there is no tax to pay each business can contribute through means of shares. Instead of paying tax for nothing you will own part of what you bought shares in. So you can own part of the road if you wish and sell it to others. If a road needs to be built people will invest in it like stocks and the people building the road will be paid. Then the stockholders can do as they wish with it. They would have to maintain it as well though so there would be a certain level of regulation.

kotajikikox

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Quote from: Sithara007 on January 27, 2020, 11:04:13 PM

Quote from: Debonaire217 on January 27, 2020, 09:49:17 PM

Quote from: FanatMonet on January 27, 2020, 09:41:58 PM

On the one hand, various taxes on cryptocurrencies are not very good, because this is additional pressure from the government on people.
On the other hand, if the government thinks out some kind of policy regarding cryptocurrencies, makes them a legal means of payment, then you can think about this.

I quite remember one policy that Philippines has, which is the train law, taxes increase too high and it affects mostly those that earns profit. The higher your profit, the higher your tax. If this could be applied to cryptocurrencies, investors will be discourage to increase their profit that much. Though, in the first place, there is no concrete news concerning government taxing bitcoin aside from local exchanges.

In most of the countries, those with higher earnings have to pay a higher tax slab. Here in India, the tax slabs increase progressively from 5% to 42.5%. But even after all this, less than 3% of the population pay any income tax. The farmers are exempted from income tax and in India 80% of the population claims that they are farmers.

80% claims to be farmer but the truth is not?and why not government take their gills on this stupidity?are the government having "Red tapes" on this issues?gaining from the tax evaders?so that is the problem why taxation is not successfully taking place.

Quote from: Sithara007 on January 27, 2020, 11:04:13 PM

All that said, I have to disagree when you say that higher taxes will discourage people from earning profits. Because even after all these taxes, the individual is left with a good amount for himself. The exemptions may be countries such as Germany and Sweden, where the tax rate is around 60%.

and also that is the problem from the people that don't know what is taxation all about or theya re justy greedy to oppose?even before our grand ancestors born from the oldest people when the human starts to learn trading,Taxation is implemented already and the truth is?it is much higher in past than in our generation now.

Sithara007

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Quote from: Debonaire217 on January 27, 2020, 09:49:17 PM

Quote from: FanatMonet on January 27, 2020, 09:41:58 PM

On the one hand, various taxes on cryptocurrencies are not very good, because this is additional pressure from the government on people.
On the other hand, if the government thinks out some kind of policy regarding cryptocurrencies, makes them a legal means of payment, then you can think about this.

I quite remember one policy that Philippines has, which is the train law, taxes increase too high and it affects mostly those that earns profit. The higher your profit, the higher your tax. If this could be applied to cryptocurrencies, investors will be discourage to increase their profit that much. Though, in the first place, there is no concrete news concerning government taxing bitcoin aside from local exchanges.

In most of the countries, those with higher earnings have to pay a higher tax slab. Here in India, the tax slabs increase progressively from 5% to 42.5%. But even after all this, less than 3% of the population pay any income tax. The farmers are exempted from income tax and in India 80% of the population claims that they are farmers.

All that said, I have to disagree when you say that higher taxes will discourage people from earning profits. Because even after all these taxes, the individual is left with a good amount for himself. The exemptions may be countries such as Germany and Sweden, where the tax rate is around 60%.

Debonaire217

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Quote from: FanatMonet on January 27, 2020, 09:41:58 PM

On the one hand, various taxes on cryptocurrencies are not very good, because this is additional pressure from the government on people.
On the other hand, if the government thinks out some kind of policy regarding cryptocurrencies, makes them a legal means of payment, then you can think about this.

I quite remember one policy that Philippines has, which is the train law, taxes increase too high and it affects mostly those that earns profit. The higher your profit, the higher your tax. If this could be applied to cryptocurrencies, investors will be discourage to increase their profit that much. Though, in the first place, there is no concrete news concerning government taxing bitcoin aside from local exchanges.

FanatMonet

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On the one hand, various taxes on cryptocurrencies are not very good, because this is additional pressure from the government on people.
On the other hand, if the government thinks out some kind of policy regarding cryptocurrencies, makes them a legal means of payment, then you can think about this.

robelneo

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Quote from: Debonaire217 on December 27, 2019, 07:51:00 AM

I always wonder how could an economy operate and run without taxes from cryptocurrencies. How could a government obtain taxes from people when people are completely utilizing a currency that is not supporting taxes. Would it be really good if we completely have our fiats converted to crypto? For me, there's always a way if our intention is good. We cannot really deny how government is providing regulation that is mainly for the betterment of us despite of some issues regarding corruption and frauds.

For me, the way we could still make it possible is to establish a local exchange wherein, if we convert our money to crypto, these local exchange could already have the portion intended for the tax of each transactions.

I should feel guilty if that is not the case, but I just have this thinking that my local exchanger already deducted the tax that should be due to me, since they are deducting a big fee from my trade and all my other transactions I'm getting from $1 to $5 from my transactions, so I guess that is the case.

tartibaya

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States have noticed the returning money in the bitcoin economy. However, they are not equipped enough to make moves. Claiming taxes from Bitcoin can lead to major economic damage. The informal economy can be triggered.

target

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Quote from: btccashacc on January 27, 2020, 11:55:48 AM

As long as you're holding bitcoin on your wallet then it can't be taxed, here in our country if you use local exchange and do trade or withdrawal then those transactions will be taxed. But this could be different if you use outside exchange the amount of tax will be taxed based on the regulation of the country where that exchange is running. I personally don't have any issue with taxing, it's good for supporting your country.

This is also the case in my country and this is why it makes sense for IMF to ask our government a data of cryptocurrency users and I mean who else will they ask for these information. Although many of us will take it a breach of contract to us users, its going to be easy for IMF and any financial authorities to watch out for people who engage in crypto.

Its really not easy to maintain a privacy when in all of the websites you got into will ask for KYC documents. And these KYC documents will allow them to check out backgrounds and financial status.

btccashacc

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As long as you're holding bitcoin on your wallet then it can't be taxed, here in our country if you use local exchange and do trade or withdrawal then those transactions will be taxed. But this could be different if you use outside exchange the amount of tax will be taxed based on the regulation of the country where that exchange is running. I personally don't have any issue with taxing, it's good for supporting your country.

angrynerd88

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Why still government ignore the power of crypto,Most of countries like dubai,canda,ukraine already in the game of crypto and encourage the technology of blockchain.Recently Iranian authorities issued 1000 licenses for cryptocurrency mining source by cointelegraph.
Pro active approach governments realized the crypto is source can generate record revenue in form of taxes to support the stable economy.

Eclipse26

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It's just normal for the government to add tax in Bitcoin. We cannot escape tax because that's where the government gets money for the whole country. If adoption takes place on a country, there's higher possibility that the government will regulate and add tax with it. They can't just let us to do what we want without paying taxes. Though my country doesn't have regulations and tax yet with crypto, sooner they might add taxes.

Topic: Government Taxing Bitcoin? Here's the Answer (Read 1001 times)