Questions about taxes on bitcoin transactions

levalencia

newbie

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Quote from: LeGaulois on November 25, 2017, 10:09:52 AM

Quote from: levalencia on November 25, 2017, 09:01:25 AM

2.A friend of mine who lives in Colombia can buy bitcoins in localbitcoin F2F at some good price, lets say 6000 dollars one, then he sends it to my wallet in belgium using XAPO.COM. I can immediately go and get the money out of an ATM and we can do 9% earnings immediately. or even more if we wait for btc to go up.

However I have to send him his money back and half of the earnings, 4.5%. We did this test with only 100 dollars just for testing purposes. However that wire transfer is under my name.

We want to do it with at least 1btc per month, I am afraid of how regulations work here in Belgium, the money will never be deposited into a belgium account, but there will be a trace of me sending a lot of money 6k per month and they might think where I am getting the money from.

1. How can I do this as legal as possible and not get into any kind of troubles
2. Wlill I have to pay any taxes on those transactions each year? otherwise seems not a good transaction at all,

thx

You should ask in the French subforum because there are some Belgium citizens there, but if I am not wrong there are no taxes in Belgium with cryptocurrencies (not yet). Yes, you have records of you sending money to buy bitcoins but you are sending to a friend, not to a company. They have no way to know that you are sending money for the purpose to buy bitcoin. (they can't see you're friend bank account and to know what he is doing with)
In fact, the one who maybe should be worried is your friend in Colombia because he is buying and selling bitcoin and he is supposed to report the profits from buying and selling.

If you are from the Flemish or Wallonia zone and don't know French language I can help you to translate if you want so you can ask there to the Belgium folks

Thank you, indeed I dont speak french or dutch as I am an expat in Belgium, can you help me with the translation?

LeGaulois

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Quote from: levalencia on November 25, 2017, 09:01:25 AM

2.A friend of mine who lives in Colombia can buy bitcoins in localbitcoin F2F at some good price, lets say 6000 dollars one, then he sends it to my wallet in belgium using XAPO.COM. I can immediately go and get the money out of an ATM and we can do 9% earnings immediately. or even more if we wait for btc to go up.

However I have to send him his money back and half of the earnings, 4.5%. We did this test with only 100 dollars just for testing purposes. However that wire transfer is under my name.

We want to do it with at least 1btc per month, I am afraid of how regulations work here in Belgium, the money will never be deposited into a belgium account, but there will be a trace of me sending a lot of money 6k per month and they might think where I am getting the money from.

1. How can I do this as legal as possible and not get into any kind of troubles
2. Wlill I have to pay any taxes on those transactions each year? otherwise seems not a good transaction at all,

thx

You should ask in the French subforum because there are some Belgium citizens there, but if I am not wrong there are no taxes in Belgium with cryptocurrencies (not yet). Yes, you have records of you sending money to buy bitcoins but you are sending to a friend, not to a company. They have no way to know that you are sending money for the purpose to buy bitcoin. (they can't see you're friend bank account and to know what he is doing with)
In fact, the one who maybe should be worried is your friend in Colombia because he is buying and selling bitcoin and he is supposed to report the profits from buying and selling.

If you are from the Flemish or Wallonia zone and don't know French language I can help you to translate if you want so you can ask there to the Belgium folks

EXtremeAEX

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Since you gain the 4.5% earnings, you will be required to report those earnings under cryptocurrency. Still, you should check with a consultant that works and answers any question regarding this field. There should be an official website regarding tax in Belgium, so just drop them an email to clarify.

For most countries, you are to declare all your profit gained in anyway possible and pay tax, so it should be somewhat similar there too.

Thanasis

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Every country bank has annual deposit limit for the personal if you exceed that you have to pay income taxes to your country so you should contact your bank to know about that limit.If you have current bank account or business class bank account then annual limit will be very high so if you can open an current account and do this transactions but everything has limit.So ask that about that limit by contacting you bank manager or if your bank is well reputed then you can just google it.

dothebeats

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I'm quite unfamiliar with the banking regulations on Belgium but it's best to ask your local bank about it and see what would be your best options. Here in our country, anything more than $25000 a month transfers would be a red flag and the authorities would be notified about it. It might be considered as money laundering here but I don't know much about your country. It wouldn't hurt asking the bank directly and you'll be enlighten as to how you'll handle this opportunity.

h0lybyte

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Well, what i understood is that you want to convert your bitcoins after withdrawing from xapo card and then send to your friend in colombia?
If you think you would be in trouble by doing this in your country, you need to visit your bank and ask them to upgrade you account to a business class and must set your business as digital assets trading, i hope you wouldn't be noticed by any legal authority after setting this all because it tracing depends on business.

levalencia

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Activity: 12

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2.A friend of mine who lives in Colombia can buy bitcoins in localbitcoin F2F at some good price, lets say 6000 dollars one, then he sends it to my wallet in belgium using XAPO.COM. I can immediately go and get the money out of an ATM and we can do 9% earnings immediately. or even more if we wait for btc to go up.

However I have to send him his money back and half of the earnings, 4.5%. We did this test with only 100 dollars just for testing purposes. However that wire transfer is under my name.

We want to do it with at least 1btc per month, I am afraid of how regulations work here in Belgium, the money will never be deposited into a belgium account, but there will be a trace of me sending a lot of money 6k per month and they might think where I am getting the money from.

1. How can I do this as legal as possible and not get into any kind of troubles
2. Wlill I have to pay any taxes on those transactions each year? otherwise seems not a good transaction at all,

thx

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