Government Taxing Bitcoin? Here's the Answer - page 5.

figmentofmyass

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Quote from: Debonaire217 on December 27, 2019, 06:51:00 AM

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.

you mean they should implement a tax on buying BTC, at the time of purchase? i reckon a thriving market for OTC brokers and p2p trading would develop to avoid those taxes.

there would need to be rules that allow capital losses to offset tax liability. otherwise people who buy (and pay tax) before a market decline are getting doubly screwed.

ChrisPop

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I don't see why would be an impediment for Governments to collect taxes. Companies will still have to invoice people and make filling within the tax authorities. People will have to pay taxes on wages if they have a contract no matter what currency they are payed in. However I think that should happen only once BTC gets adopted on a much larger scale. Nowadays you can't use Bitcoin at many things unless you convert it to fiat.

Pinkris128

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Quote from: Debonaire217 on December 27, 2019, 06:51:00 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.

In my own point of view, the government would really like to put a tax on bitcoin users because a lot of people are earning thousands of dollars to it without paying any taxes, that is why they are starting to think how they will regulate bitcoin and add taxes to it. But i think they are already adding taxes to it by giving us fees when we are about to convert our crypto into fiat.

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Quote from: sovie on December 27, 2019, 08:48:52 AM

The tussle between bitcoin and government will come to an end if both can find a way of how to tax bitcoin. Right now there is no way to tax anonymous transactions of bitcoins. It's possible to tax Crypto trade through exchanges but these exchanges are available in only few countries. That's why many small countries who cant monitor or control bitcoin in their areas have banned it altogether.

To find a way to tax bitcoin is really hard. Already several countries have tried to find a way to tax on the transactions based on the summary got from the exchanges. Though every exchange request for KYC, it is truly hard to tax. Few countries have already added bitcoin to the gold and other commodities list.

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Quote from: Debonaire217 on December 27, 2019, 06:51:00 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.

They'll tax you in any way they possibly can. The only thing constant and neverending in this world is this: death and taxes. Sure you can utilize crypto whatever, however, whenever you want, but as long as you live within their jurisdiction and you are benefiting from the services that the said government is offering, you will be liable to pay for taxes and if not, they'll jail you for not doing your part.

Quote from: Debonaire217 on December 27, 2019, 06:51:00 AM

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.

The road to hell has always been paved with good intentions, so no matter how pure or how 'good' your intentions you think are, it will always end up being demonized and trashed some way or another. Also, converting your cash to crypto 100% is a dumb move in today's society--and that's not being a troll or a pessimist, it's just being realistic. You can't spend it anywhere you like. You can keep it, sure, but that's just about it.

You'll have to convert it to cash at some point when the need arises, so why do such thing?

Quote from: Debonaire217 on December 27, 2019, 06:51:00 AM

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'm pretty sure the accounting department of some exchanges already have that covered.

sovie

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The tussle between bitcoin and government will come to an end if both can find a way of how to tax bitcoin. Right now there is no way to tax anonymous transactions of bitcoins. It's possible to tax Crypto trade through exchanges but these exchanges are available in only few countries. That's why many small countries who cant monitor or control bitcoin in their areas have banned it altogether.

TravelMug

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Quote from: Debonaire217 on December 27, 2019, 06:51:00 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.

Government will simply not allow it. Even here in our country, they wanted to tax on what we call "underground economics". Sooner or later we will see some regulations, actually we have been seeing governments already implementing taxes on crypto.

Quote from: Debonaire217 on December 27, 2019, 06:51:00 AM

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.

Well it could work, but I don't know if crypto enthusiast will agree on how much the tax government are going to impose.

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Quote from: Debonaire217 on December 27, 2019, 06:51:00 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.

?? Taxes are determined by LAW which is independent of currency. Currency is neutral, it's just a token of exchange.

Some states, like Arizona allow you to pay your taxes in bitcoin. But you still have to pay the tax - the penalty of not paying is jail. Can't evade the law of the land no matter which token you use.

Lucius

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Quote from: Debonaire217 on December 27, 2019, 06:51:00 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.

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Quote from: Debonaire217 on December 27, 2019, 06:51:00 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.

People could even voluntary add tax tools where necessary. The tools should make the deduction automatically, whether on decentralized platforms or not. Taxing should only be done where it is required. I wonder if people operating on decentralized platforms will be affected by national tax laws.. . This is assumption that the DEX platforms don't use government-taxed infrastructures

blckhawk

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Your idea is plausible, in fact, this is what I had in mind when thinking of taxing Bitcoin. Exchanges would be subject to regulation, and most likely to implement KYC. Every transaction would be taxed effectively in the platform, in the form of additional fees. Though one may create a wallet online and can even recieve Bitcoins, it would be pretty useless if not exchanged to fiat, and thus it still is not an exception to taxes.

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Presently, there are very few services where you can spend Cryptocurrencies, and this simply means that we constantly have to be converting Fiat to Cryptocurrencies and Cryptocurrencies to Fiat, so whenever this conversion is made, the Government still gets their tax amounts from the fiat part of the transaction and I guess this is why many of them are not bothered at the moment.

But it would eventually get to a stage where Cryptocurrencies can be used worldwide for the payment of goods and services and once someone converts fiat to Crypto, it would never likely be converted to fiat again and this is when they would really start worrying.

arimamib

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in my country, especially in the local market, every time I make a withdrawal of funds subject to tax that I know of the deduction of the other funds are used for my country's taxes. maybe it's one way for the country to get income from these taxes, but maybe the tax is still in a company name not from individuals who use bitcoin or altcoin

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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.

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