Topic: Question about bitcoin taxes and signature campaign payment on this forum (Read 331 times)
June 15, 2021, 04:03:17 AM
I think that in order to tax crypto gains correctly governments need to come up with a new system that will also consider what you put in. This unfortunately is the biggest problem, because our governments are very bad at coming up with something new. All they always want to do is apply an old solution they already use somewhere else, and this most of the times just simply doesn't work or can be done way better.
June 10, 2021, 08:44:17 AM
If bitcoin is banned in your country then there is no tax to worry about!
But should things change and they legalize it like you anticipate then am sure they will communicate who is exempt and what amount will be taxable and under what conditions, don't worry mate keep growing your crypto bag 😉. But certainly this is likely to fall under income tax so apply that rate & multiply it by the income to get what's due to the government.
But should things change and they legalize it like you anticipate then am sure they will communicate who is exempt and what amount will be taxable and under what conditions, don't worry mate keep growing your crypto bag 😉. But certainly this is likely to fall under income tax so apply that rate & multiply it by the income to get what's due to the government.
June 10, 2021, 07:34:43 AM
I'm a little bit confused here, aren't we contradicting ourselves if we're to advice tax be paid on the signature payout we received on the forum.
I don't understand why would you do otherwise. Do you really want to tell them to commit a possible tax evasion and pay for penalties? It's better to tell them to declare or consult someone else that's more familiar with local tax laws.Isn't the whole philosophy on the forum is 'signature campaign aren't job and shouldn't be considered as a source of income'.
Does government care about forum user philosophy?
June 10, 2021, 06:55:45 AM
With all I have read about crypto taxes, I do not yet know how I should pay crypto tax for any signature campaign paid on this forum unless the bitcoin paid later has net increase. But if it has not yet increase in value, this means no taxes to be paid. Is that correct?
Is good that you are asking a question of this magnitude this earlier because the Nigerian government doesn't seem to have a concern to start generating revenue or income from cryptocurrency, they don't understand it and that's why they are fighting it.
But as to your question and how you get to pay tax from your signature earnings , again the government seem not to be able to trace business, enterprises or any other way that people generate income here if they are not linked to the banks directly. There are many people having different kinds of personal income that can't be accounted for because they are not tied to Nigerian banks and many are not registered. So likewise your own enquiry, except there is a way you link your rewards to the banks with the fiat. But the system isn't ready for such tax collections for now.
June 08, 2021, 11:23:31 AM
With all I have read about crypto taxes, I do not yet know how I should pay crypto tax for any signature campaign paid on this forum unless the bitcoin paid later has net increase. But if it has not yet increase in value, this means no taxes to be paid. Is that correct?
In a short answer, it is a big yes. It's considered a regular taxable income, even let's say from mining, they earn Bitcoins through mining, freelancer job or even in the airdrop they are also entitled to pay tax, or as payment for services or goods also count as a regular taxable income. I tend to agree with @hatshepsut93 that you owe tax on the entire value of the Bitcoin on that day that you received it in your tax rate.
Because every time that you have transactions on Bitcoin it counts as taxable no matter how small the value.
June 08, 2021, 07:38:42 AM
Does government care about forum user philosophy? Especially if you join signature campaign on early days where Bitcoin price was very low (4 digit in USD or less).
Governments only care about how to collect as many taxes as possible, and as Daniel91 wrote in the case of income generated through signature/bounty campaigns in our country, this is seen as another income that is taxable. As for the second part of the question, in my case specifically everything related to crypto before 2016 is not subject to tax - of course only if you can prove that you bought or earned crypto before that deadline.
Bitcoin and cryptocurrencies generally are banned in my country for now, but I know the government will still one day legalize cryptocurrencies. If cryptocurrencies are later legalized in my country and paying crypto taxes are mandatory, what do you think about this below.
I wouldn’t worry too much about taxes if I were you, because if something is forbidden you have a much bigger problem staying anonymous in what you do. Furthermore, if one day cryptocurrencies in your country become legal and taxable, it is possible that only what you buy or earn after such a decision will be taxed.
June 08, 2021, 05:08:07 AM
I'm a little bit confused here, aren't we contradicting ourselves if we're to advice tax be paid on the signature payout we received on the forum. Isn't the whole philosophy on the forum is 'signature campaign aren't job and shouldn't be considered as a source of income'.
Does government care about forum user philosophy? Especially if you join signature campaign on early days where Bitcoin price was very low (4 digit in USD or less).
June 08, 2021, 04:24:13 AM
It's difficult to answer your question without knowing country where do you live and what kind of regulations they have. Every country have different regulations, so it would be diificult to give universal answer.
Personally, myself I haven't figured out how I should pay taxes on my crypto income from signature campaign when I will cash it out. It's not that easy.
Personally, myself I haven't figured out how I should pay taxes on my crypto income from signature campaign when I will cash it out. It's not that easy.
I'm a little bit confused here, aren't we contradicting ourselves if we're to advice tax be paid on the signature payout we received on the forum. Isn't the whole philosophy on the forum is 'signature campaign aren't job and shouldn't be considered as a source of income'.
I'm pretty sure 90% of the users on the forum give that advice, now if we're to pay taxes on our signature rewards that automatically means signature are actually job and should be considered as such.
That been said, aren't the service providers already taking care of the tax from the servers fees they charge?
It doesn't matters that much how we consider signature campaigns. It matters how laws and regulations consider it. And because we get continuous income every week or month, it can be considered as law. Though, it's not same as regular full time job, it's more like freelancing. And in my country, for such activity people need to have individual activity certificate. I'm pretty sure 90% of the users on the forum give that advice, now if we're to pay taxes on our signature rewards that automatically means signature are actually job and should be considered as such.
That been said, aren't the service providers already taking care of the tax from the servers fees they charge?
June 07, 2021, 09:53:46 PM
It is difficult to answer not just because we are under different tax laws but also because tax laws of many countries have yet to even set specific stipulations on Bitcoin or cryptocurrency.
Anyway, I think capital gains tax does not apply to your ordinary income such as a weekly signature campaign payment. Your ordinary income tax has a different computation. And it is done the moment you receive it.
However, capital gains would probably come into the picture if you decided to keep your payments in the form of Bitcoin for years and finally convert those into fiat. When that happens, you'd be taxed based on the gains of your Bitcoin.
Anyway, I think capital gains tax does not apply to your ordinary income such as a weekly signature campaign payment. Your ordinary income tax has a different computation. And it is done the moment you receive it.
However, capital gains would probably come into the picture if you decided to keep your payments in the form of Bitcoin for years and finally convert those into fiat. When that happens, you'd be taxed based on the gains of your Bitcoin.
June 07, 2021, 05:51:11 PM
Bitcoin and cryptocurrencies generally are banned in my country for now, but I know the government will still one day legalize cryptocurrencies. If cryptocurrencies are later legalized in my country and paying crypto taxes are mandatory, what do you think about this below.
All what I have read about crypto taxes are:
With all I have read about crypto taxes, I do not yet know how I should pay crypto tax for any signature campaign paid on this forum unless the bitcoin paid later has net increase. But if it has not yet increase in value, this means no taxes to be paid. Is that correct?
Depends on the law of your country and how they see crypto currencies. If you have accumulated just few hundred dollars through signature campaign, I doubt its going to be a huge issue if you know what I mean(I am not suggesting you to avoid tax or anything. Always do what you think is right.). But since it was illegal in your country, and you still were using, trading, earning or buying bitcoin, you should probably talk to an expert before you think of disclosing your coins to the officials. All what I have read about crypto taxes are:
- only capital gain will be taxed
- capital gain will not be taxed if there is a capital loss until no losses again
With all I have read about crypto taxes, I do not yet know how I should pay crypto tax for any signature campaign paid on this forum unless the bitcoin paid later has net increase. But if it has not yet increase in value, this means no taxes to be paid. Is that correct?
June 07, 2021, 05:04:19 PM
You need to pay taxes over that income, and this has nothing to do with bitcoin regulations. Personally, I don't know how to solve this problem where I live. My suggestion is that you hire some tax consultant...
all of this depends mostly on how the cryptocurrencies will be regulated in his state.
Profit from the signature campaign can be considered as any other freelance method of earnings. But in cryptocurrency cases, there is also a profit from the growth of values which is particularly taxable.
In my country, we are currently working on passing a regulation on cryptocurrency. For example, we must provide proof when we buy/earn Bitcoin/crypto, on which price also at the time we exchange them for fiat. that difference considered as profit from the digital currency is taxed.
June 07, 2021, 04:35:20 PM
If you think logically, you owe income tax, because signature campaign is like freelance work, and you also own capital gains if the coins you own increase in price since the time you got paid. Income tax should be tied to the value of coins during the time when you got paid. But it's not so easy on practice.
In my country, you can only be paid in fiat money via traditional payment channels, even some p2p electronic payment systems are prohibited. Since Bitcoin is not explicitly allowed in such restricted context, it's basically prohibited, though it's not like there are any legal cases when someone was punished for this. I decided to just not report my signature campaign earnings until there are clear laws that would allows me to do this and pay taxes.
In my country, you can only be paid in fiat money via traditional payment channels, even some p2p electronic payment systems are prohibited. Since Bitcoin is not explicitly allowed in such restricted context, it's basically prohibited, though it's not like there are any legal cases when someone was punished for this. I decided to just not report my signature campaign earnings until there are clear laws that would allows me to do this and pay taxes.
legendary
Activity: 2408
Merit: 4282
eXch.cx - Automatic crypto Swap Exchange.
June 07, 2021, 04:25:17 PM
I'm a little bit confused here, aren't we contradicting ourselves if we're to advice tax be paid on the signature payout we received on the forum. Isn't the whole philosophy on the forum is 'signature campaign aren't job and shouldn't be considered as a source of income'.
I'm pretty sure 90% of the users on the forum give that advice, now if we're to pay taxes on our signature rewards that automatically means signature are actually job and should be considered as such.
That been said, aren't the service providers already taking care of the tax from the servers fees they charge?
I'm pretty sure 90% of the users on the forum give that advice, now if we're to pay taxes on our signature rewards that automatically means signature are actually job and should be considered as such.
That been said, aren't the service providers already taking care of the tax from the servers fees they charge?
hero member
Activity: 2660
Merit: 651
Want top-notch marketing for your project, Hire me
June 07, 2021, 03:20:55 PM
Bitcoin and cryptocurrencies generally are banned in my country for now,
What I read is that banks and payment company are ban from working or offer services to every crypto related transactions.With all I have read about crypto taxes, I do not yet know how I should pay crypto tax for any signature campaign paid on this forum unless the bitcoin paid later has net increase. But if it has not yet increase in value, this means no taxes to be paid. Is that correct?
Some people will advice not to treat signature campaign like job but i don't support the idea because we're presenting the company we wear the sign code and work for the veryerment of the company we have to treat signature campaign as work.The tax payment in capital gain or lost was applied to crypto traders and I believe signature campaign participants are to pay tax of every weekly payment they received because it also a salary
June 07, 2021, 01:35:15 PM
Bitcoin and cryptocurrencies generally are banned in my country for now, but I know the government will still one day legalize cryptocurrencies. If cryptocurrencies are later legalized in my country and paying crypto taxes are mandatory, what do you think about this below.
All what I have read about crypto taxes are:
With all I have read about crypto taxes, I do not yet know how I should pay crypto tax for any signature campaign paid on this forum unless the bitcoin paid later has net increase. But if it has not yet increase in value, this means no taxes to be paid. Is that correct?
All what I have read about crypto taxes are:
- only capital gain will be taxed
- capital gain will not be taxed if there is a capital loss until no losses again
With all I have read about crypto taxes, I do not yet know how I should pay crypto tax for any signature campaign paid on this forum unless the bitcoin paid later has net increase. But if it has not yet increase in value, this means no taxes to be paid. Is that correct?
I agree with LeGaulois here. You need to pay taxes like a normal income. You atre basically working, just like running a blog.
You need to pay taxes over that income, and this has nothing to do with bitcoin regulations. Personally, I don't know how to solve this problem where I live. My suggestion is that you hire some tax consultant...
As bitcoin price goes up and if you live in a developing country, your income might become a lot in the future. You might want to spend that bitcoin in a house or car in the future. It is important to follow your country regulations to be able to cash out if you need to.
June 07, 2021, 01:19:38 PM
Bitcoin and cryptocurrencies generally are banned in my country for now, but I know the government will still one day legalize cryptocurrencies. If cryptocurrencies are later legalized in my country and paying crypto taxes are mandatory, what do you think about this below.
All what I have read about crypto taxes are:
With all I have read about crypto taxes, I do not yet know how I should pay crypto tax for any signature campaign paid on this forum unless the bitcoin paid later has net increase. But if it has not yet increase in value, this means no taxes to be paid. Is that correct?
On our region, there are still no taxation of investing on bitcoin or on any other cryptocurrency that are existing. Of couse it is the same with receiving bitcoin payments through signature campaign on this forum, I do not have to pay for taxes. There's no such law currently for that here. All what I have read about crypto taxes are:
- only capital gain will be taxed
- capital gain will not be taxed if there is a capital loss until no losses again
With all I have read about crypto taxes, I do not yet know how I should pay crypto tax for any signature campaign paid on this forum unless the bitcoin paid later has net increase. But if it has not yet increase in value, this means no taxes to be paid. Is that correct?
Moreover, I think even if bitcoin is taxed, you won't need to pay for it if you earn it through signature campaign as I can't think of a way how can government track it. Unless you exchange it to your local currency.
June 07, 2021, 12:50:49 PM
...
All what I have read about crypto taxes are:
All what I have read about crypto taxes are:
- only capital gain will be taxed
- capital gain will not be taxed if there is a capital loss until no losses again
Taxes on bitcoin are this way because bitcoin is like an investment tool and not money. If you spend $1000 in bitcoin and withdraw $1100, you have to pay taxes only for the $100 of profit. But as you mention that should change when Bitcoin becomes a legal coin just like it's happening in El Salvador.
If bitcoin becomes a legal coin then you will have to pay the same taxes as you do with normal money.
June 07, 2021, 12:49:35 PM
Bitcoin and cryptocurrencies generally are banned in my country for now, but I know the government will still one day legalize cryptocurrencies. If cryptocurrencies are later legalized in my country and paying crypto taxes are mandatory, what do you think about this below.
All what I have read about crypto taxes are:
With all I have read about crypto taxes, I do not yet know how I should pay crypto tax for any signature campaign paid on this forum unless the bitcoin paid later has net increase. But if it has not yet increase in value, this means no taxes to be paid. Is that correct?
All what I have read about crypto taxes are:
- only capital gain will be taxed
- capital gain will not be taxed if there is a capital loss until no losses again
With all I have read about crypto taxes, I do not yet know how I should pay crypto tax for any signature campaign paid on this forum unless the bitcoin paid later has net increase. But if it has not yet increase in value, this means no taxes to be paid. Is that correct?
I can share with you situation in my country.
Yes, in my country we are required to pay 10% tax plus surtax on crypto earnings, capital gains tax.
If we haven’t sold crypto funds in 2 years, we don’t have to pay any taxes.
Earnings from signature campaigns are taxed differently, like second income from abroad based on earnings from work.
June 07, 2021, 12:47:31 PM
What does your tax laws says about income received outside of your country? Does your country have laws on income from online jobs? You can follow the rules applied in those instances if you plan to declare your income from signature campaigns. Weekly payments in BTC may be valued in fiat at the time of receipt and not at the time of conversion or sale. You better ask in your local crypto community if there is one or ask an accountant.
June 07, 2021, 11:53:52 AM
There is no blanket answer to this. Each country taxes it differently. In some countries you pay almost no tax at all and in others you have to pay full tax at your income tax rate.
However, there is one rule that is the same in many countries, and may also apply to your country: income from self-employed work such as bounty activities must be taxed as regular income. Income from capital gains (e.g. you buy cryptos today and sell them two years later at a profit), is often subject to a different lower tax rate or is completely tax free.
However, there is one rule that is the same in many countries, and may also apply to your country: income from self-employed work such as bounty activities must be taxed as regular income. Income from capital gains (e.g. you buy cryptos today and sell them two years later at a profit), is often subject to a different lower tax rate or is completely tax free.
June 07, 2021, 10:33:30 AM
In the case you're describing, it will be considered as an income and so you will have to pay the same taxes rate as if you work IRL.
Usually, I mean for most countries, you do not pay a tax if you haven't sold your bitcoins.
It's the sale that triggers the tax event. For example, you receive BTC today and later you sell on December when the price is $40,000. You will be taxed on the base of $$40,0000
Increased in value or not doesn't really matter. What matter is its value on the day you sell your BTC
Usually, I mean for most countries, you do not pay a tax if you haven't sold your bitcoins.
It's the sale that triggers the tax event. For example, you receive BTC today and later you sell on December when the price is $40,000. You will be taxed on the base of $$40,0000
Increased in value or not doesn't really matter. What matter is its value on the day you sell your BTC
June 07, 2021, 09:19:25 AM
Bitcoin and cryptocurrencies generally are banned in my country for now, but I know the government will still one day legalize cryptocurrencies. If cryptocurrencies are later legalized in my country and paying crypto taxes are mandatory, what do you think about this below.
All what I have read about crypto taxes are:
With all I have read about crypto taxes, I do not yet know how I should pay crypto tax for any signature campaign paid on this forum unless the bitcoin paid later has net increase. But if it has not yet increase in value, this means no taxes to be paid. Is that correct?
All what I have read about crypto taxes are:
- only capital gain will be taxed
- capital gain will not be taxed if there is a capital loss until no losses again
With all I have read about crypto taxes, I do not yet know how I should pay crypto tax for any signature campaign paid on this forum unless the bitcoin paid later has net increase. But if it has not yet increase in value, this means no taxes to be paid. Is that correct?
Jump to: