Topic: Paying TAX (Read 5240 times)

This has always been a topic in the legal section. But I understans why as tax is kinda complicated when it comes to Bitcoin or cryptocurrency earnings from different activities.

Anyway, here in the Philippines investments are filed under income tax that is filed and settled once in a year. It is the same with the tax of business owners, real estate agents, investors and traders of stocks and the freelance professionals who practices theie profession.

Although the income of all these people are taxable to income tax, including Bitcoin earners, a lot are not filing or some are just making up numbers for the sake of just filing. This is because it is kinda on honesty basis. And with Bitcoin being transacted anonymously, it is more hard for the government to know who should be filing. And so, a lot do not bother filing.

If it's taxed, it could be treated as legal by the government. Less chances being banned, you get to keep your coins

thats nice idead but i dont think that their is someone are decklaring their tax honestly in order to them to  to pay tax heartely

This is hard to tell as miners will have a very complicated tax reports if they declare their mining income because the will have 2 kinds of taxes. One is of course income tax (the money they will receive from mining) and second capital gains tax (the money they will receive from price appreciation of Bitcoin) of course declaring this is hard as if the taxing bureau will suspect you of tax fraud you will not have any evidence of proving your income through mining, you must be good in accounting or hire a good accountant in order to be clean with your taxes.

In our country bitcoin or any crypto currency are no need to pay taxes, for the reasons of all digital currency in our place are not totally legal. But it is not illegal too, maybe we are in neutral because we can follow with the rules and regulations of our country to lessen the risk and illegality of crypto currency in our nation.

I do not declare anything right now as i didnt cash out anything outside my basic investment

Thats true. every country has each government. of course each country has its own rules for this. in my own country is busy bans to use bitcoin. even this ban is already in the state law and if anyone violates it will be given sanctionsl. from it makes a chaotic market in my country. the point is there is no tax imposed in my country. even if you get a great minning income you will not be taxed dude because bitcoin is illegal in my country..

There are some thread that miners declare their profit but i don't think that we need to pay taxes for the mining profit. 

If there is no government regulation in our country so far, it refers to the tax on the ownership or income derived from the transaction of mining or investment from the bitcoin business.

I'd say no.

The short answer is yes, you need to, but currently it is difficult to enforce. However, there may be some changes to this in the future. This paper explains some of the issues that may help guide your decision: https://scholarship.law.duke.edu/dltr/vol16/iss1/1/.

question: (my gains are negligible comparatively speaking since I just began)- if I don't move crypto into USD am I still required to report gains made during trades?

I think this all depends on the country in which you live and also on the money you earn from mining . If the income is less than there will be no problem . Every country has different rules regarding the tax payment and you have to follow accordingly . There may be different followups due to legality of the bitcoin in the particular country.

Definitely that is true, because if we are payed taxes in our income in crypto currency only government who become win. Why? Because their fund was increasing without doing anything, they were collect and collect taxes for nothing. In my experience only government officials will become reach because they were abused their power and corrupt the money of many people.

In addition it's better if we used our income to improve our lifestyle in each country, also most of us are wants to become close to the rich people. So it's better if save our income in bitcoin for our own future.

Guys, shoud I pay any taxes mining in Russia? Does somebody know?

Well this is fastest transaction system as well but yet there is no law exist in any country on bitcoin mining and might be possible sooner tax will implement on this business because big organization jumping in this arena and many country think about very seriously...

Interesting read:

http://www.businessinsider.com/how-paying-taxes-on-bitcoin-works

I would highly recommend consulting your tax accountant.

I will admit I am new to this and don't 100% understand all the technology and I am not advocating anything illegal but is there anyway possible for anyone to know what you mined until you actually do something with the coins? The miner doesn't require anything but an address and those can be created anonymously right?

Obviously at some point down the road when you decide to spend or exchange them you might have to explain where you got them but I don't see how it could be tracked prior to that.

Is the actual person doing the mining responsible for the mining or is it the one who controls the address that receives the fruits of the labor? What if I set up a miner here at my house in the US and pointed it to my sons address who lives in another country?

If someone has an actual farm of multiple miners I see it as a legit business and everything should be accounted for. The guy at home running nicehash on his gaming pc and turning around and using all profits to buy more games on steam not so much.

The law is the law but how many people report the income they make on a garage sale or when they bet their buddy $100 on the Super Bowl.

A huge problem I see in reporting profits and losses on small home based mining is electricity which is your biggest ongoing expense. How can you accurately differentiate how much of your electric bill is general home use and how much is due to mining. Sure you can estimate but will that hold up in an audit?

More taxes on actual income? No - You pay the taxes which are due. Whether they are based on income or capital gains.
The state may still come after you unfairly, but at least you have done what is expected.

Uh... so you paid more taxes on actual income, and you expect them to come down on you for not paying less tax through capital gain tax?