Yes, that is the answer.
We keep our privacy and then the local exchange will provide for the government to keep on making money for the improvement of infrastructures and anything that is paid by the people taxes.
That is, if the local exchange will be faithful with it.
Now, it is still a risk they should be willing to take.
Bitcoin moves like crazy in price and when people keep on withdrawing funds they might also get bankrupt by it.
Needs a lot of support also from the government for their service to be used.
Topic: Government Taxing Bitcoin? Here's the Answer - page 3. (Read 1063 times)
If there’s no law about this one then government can’t collect taxes, regulation should be made first and if those exchanges really want a good business then they should follow the law. Tax is a must in my country, its sad that even big people are not paying the right taxes, the law should be implemented well and everyone should require to pay whether you’re rich or not.
I think that it's justified to treat cryptos for tax purposes the way fiat currencies are treated. Normally it means only income tax. In my country the legislation is tricky with two different ways and amounts to pay depending on the type of business. Anyway, there are countries with reasonable progressive tax system which even allows people with very small income not to pay anything.
There are also small states which are tax-free, and some zones for crypto businesses that allow not to pay taxes or not to pay a lot for a while.
The exchange idea is also nice. It's kind of like we all pay VAT which is embedded into the prices of goods. Easy and useful.
There are also small states which are tax-free, and some zones for crypto businesses that allow not to pay taxes or not to pay a lot for a while.
The exchange idea is also nice. It's kind of like we all pay VAT which is embedded into the prices of goods. Easy and useful.
I'll never understand why people are so against giving what's due. I do agree and get in that tax in my home country is annoyingly unfair, since a lot of it ends up in corrupt hands. But it doesn't prevent me from paying my dues. You want to live in a country, enjoy the privileges and rights, and expect reasonable public services and amenities, then you have to do your part and support it.
I do like the idea of VAT too. Everything priced in. People in my country are all angry about it but come on, suck it up and pay for it. Or go find a tax free country. Or live off grid.
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.
That can be more possible to collect taxes from a crypto users and government really need to regulate exchanges not just for taxes but also for the protection of every users. I’m ok with taxes, I’m ok for its purpose but I don’t fully support the corrupt politicians and government. Cryptocurrency can be better, it should be supported by every government and their people will be more active financially. 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 don't understand why governments in the world want to tax this market, this is a decentralized market so no one will be able to manage and control all the transactions and actions of the investor. Up to now, I have not seen a country that has been successful in taxing investors. Korea and Japan have investor tax policies but it is not really thorough, there are still holes
You didn't solve the government's taxation, you only made it simple! because as long as there's a centralized third party that is handling the information of the user and the connected wallet to him/her, then the government can do whatever they want.
In my opinion, the only way to avoid taxation is to use decentralized third parties like exchanges. That way, they can't track your earning as long as you don't report it.
But i don’t think we really need to avoid taxation? This is what i am asking for long time since we are profiting from this market,what is the main reason why people that getting money from something is wanting to be free from taxes?In my opinion, the only way to avoid taxation is to use decentralized third parties like exchanges. That way, they can't track your earning as long as you don't report it.
And besides this is the only way for crypto to finally hit the top,but first we must be aware of the coming KYC if this taxing implemented .
This is the reason why some countries do not legalize bitcoin, but also do not prohibit its citizens from using bitcoin. Because
The government of that country already gets tax from local exchanges, so it's not surprising that almost all local exchanges
require users so to do KYC. So the government can get tax from every user to withdraw bitcoin to the bank to convert be fiat.
Because for countries that have not legalized bitcoin, it is still forbidden to use bitcoin as a payment. So from that for its citizens
inevitably have to convert bitcoin that is owned into fiat, then inevitably also users of bitcoin have to pay tax.
The government of that country already gets tax from local exchanges, so it's not surprising that almost all local exchanges
require users so to do KYC. So the government can get tax from every user to withdraw bitcoin to the bank to convert be fiat.
Because for countries that have not legalized bitcoin, it is still forbidden to use bitcoin as a payment. So from that for its citizens
inevitably have to convert bitcoin that is owned into fiat, then inevitably also users of bitcoin have to pay tax.
To be honest, I don't know how the government applies tax for bitcoin, but I am sure that they can do that because they will know people who already use crypto by checking on the bank account. They will search for the account who made a big transaction in a month, and I think they will try to ask that people about the money they sent. But maybe that will be related to the KYC that every exchange did for their members so the government can check one by one of the members so they can get the name of the people.
It's hard to know who uses cryptocurrency through checking bank accounts. I think the best idea is that they will create an exchange in their country and ask people to use it, then they can easily track and tax it as accurately as possible. But honestly no one can tax this market, it's really hard
There are already several countries that have local exchanges.
This should not be a problem because the owner of the exchange must have paid taxes on the exchange business.
Because every country must provide tax for those who have a business license.
This should not be a problem because the owner of the exchange must have paid taxes on the exchange business.
Because every country must provide tax for those who have a business license.
To be honest, I don't know how the government applies tax for bitcoin, but I am sure that they can do that because they will know people who already use crypto by checking on the bank account. They will search for the account who made a big transaction in a month, and I think they will try to ask that people about the money they sent. But maybe that will be related to the KYC that every exchange did for their members so the government can check one by one of the members so they can get the name of the people.
It's hard to know who uses cryptocurrency through checking bank accounts. I think the best idea is that they will create an exchange in their country and ask people to use it, then they can easily track and tax it as accurately as possible. But honestly no one can tax this market, it's really hard 
Your idea is very good but in my opinion it is very unresponsive to every tax need. In fact, we not only pay taxes when sending goods or make transactions at banks but there are many types of taxes that need to be paid such as house tax, vehicle tax, etc. And it cannot be adjusted to a local exchange when transacting.
On the other hand, it means that we must always pay taxes when making exchanges or trading, of course it will be expensive especially if added to the fee.
On the other hand, it means that we must always pay taxes when making exchanges or trading, of course it will be expensive especially if added to the fee.
There is a lot of ways of imposing a tax for the government's rising fund which is used for the expenditure for maintaining a state properly, I think only BTC is not their headache, Another thing is that, If Bitcoin would be included in the tax system then what is the problem, I don't see any problem at all, We are giving Foreign exchange when we convert BTC into USD and Covert into local fiat, so we have already given to them, so there should be a proper system which only once imposes tax for using BTC or Cryptocurrency, I think it's not a difficult thing anymore.
Every government tax based on the holdings we've got. This can be property, assets, shares, stocks and other valuables (Gold, bonds, policies). Here Governments find it easy to have every information added to their database as everything is centralized and subject to provide information to the government. With bitcoin and other cryptocurrencies information on holdings of people can't be found exactly until the person himself discloses. This way taxing of bitcoin isn't easy. 
That is one of the major reasons for governments to not make crypto a legal tender. They think people will find ways to not pay taxes and there are people who do this. I just pay the tax according to what I have withdrawn or sold crypto for my local currency and thats how it should be.
There is a lot of ways of imposing a tax for the government's rising fund which is used for the expenditure for maintaining a state properly, I think only BTC is not their headache, Another thing is that, If Bitcoin would be included in the tax system then what is the problem, I don't see any problem at all, We are giving Foreign exchange when we convert BTC into USD and Covert into local fiat, so we have already given to them, so there should be a proper system which only once imposes tax for using BTC or Cryptocurrency, I think it's not a difficult thing anymore.
the government in my country has made it clear that users of cryptocurrency or bitcoin are required to report ownership or profits we get through bitcoin investments, so they will collect annual tax on us, but they do not take tax specifically into our bitcoin ownership but rather from revenue between selling prices and the purchase price which is the object of taxation.
You didn't solve the government's taxation, you only made it simple! because as long as there's a centralized third party that is handling the information of the user and the connected wallet to him/her, then the government can do whatever they want.
In my opinion, the only way to avoid taxation is to use decentralized third parties like exchanges. That way, they can't track your earning as long as you don't report it.
In my opinion, the only way to avoid taxation is to use decentralized third parties like exchanges. That way, they can't track your earning as long as you don't report it.
In reality this is not possible unless you store your wallet in a thirdparty wallet.
I judge, from what you write, you conclude that taxes are allowed, to guarantee the sustainability of a development, but in my opinion, there are other things besides taxes, because the true tax is made so that we together feel the results ... !!
Having decentralization means that taxation of funds is going to be an issue, probably why many governments have implemented hard regulations on Bitcoin. Back in the bitcoin boom in 2017, you were expected to pay capital gains taxes in the US similar to as if you had invested in a stock so it's not like the IRS has forgotten about crypto investors. The way I see it, governments are going to crackdown on tax evasion through crypto currencies if it becomes a big enough issue to the point that people are converting fiat into crypto for the sake of tax evasion. Clearly, bitcoin isn't mainstream enough to warrant any extreme measures but don't have any fear, if Uncle Sam is missing share of cash he'll go hunting for it.
Taxes for Bitcoin or other cryptocurrencies have become issues in some countries. This also happens in my country after there is legal protection for all digital assets, including cryptocurrencies. However, the tax for BTC is not implemented yet. This is still within the framework of the formulation and consideration.
There are always pros and cons toward the taxing for BTC if it will be implemented. If the government really want to tax the BTC, they must have the crucial reasons and must be fair for all people who have the BTC. Additionally, the regulation as the basis of the tax-decision must be clear enough, not only getting tax for the country but also considering whether the BTC holder does not mind about the amount of the tax. IN my opinion why there are still many countries that do not tax BTC is that it is quite difficult to make the mechanism, issues, and also consideration.
But, if the rule is like what OP said:
There are always pros and cons toward the taxing for BTC if it will be implemented. If the government really want to tax the BTC, they must have the crucial reasons and must be fair for all people who have the BTC. Additionally, the regulation as the basis of the tax-decision must be clear enough, not only getting tax for the country but also considering whether the BTC holder does not mind about the amount of the tax. IN my opinion why there are still many countries that do not tax BTC is that it is quite difficult to make the mechanism, issues, and also consideration.
But, if the rule is like what OP said:
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 exchanges could already have the portion intended for the tax of each transactions.
I rather agree with this. It may be fair enough for all. But of course, consider the amount, for a fair decision. Jump to: