I wouldn't really know how to pay taxes if I need to, would this count like a job and how exactly would someone prove they got their bitcoins from signature campaign , seems quite difficult.
You should probably do your own research on this because ignorance isn't an excuse and it could certainly come back to bite you at some point down the line. Take a screenshot of the campaign's payment terms and when you receive the coins. That should be sufficient proof. The evidence is there on the blockchain so it's not like you shouldn't be able to find it.
A few options are presented:
1. Don't say anything, it's virtually impossible for any tax agency to find out what you have. However eventually they might be able to and you could face serious problems.
You could make these same arguments about cash in hand jobs as it's very unlikely the taxman will be able to find out what you have when you provide a service for cash. At some point though you will get audited and if your records don't add up you'll have some explaining to do and that's where at the very least fines will come into place. Also, what do you want to do with the money? If it's a significant amount and you want to put it towards something like a house then they're going to want to know where that money came from. If you can't prove you've paid the appropriate taxes on it then you'll likely start to get in trouble.
2. Mark it as freelance work and a tax rate will be applied to it, up to 50% (reported by an user) It seems that they wont ask for much information or proof as long as you are declaring it intentionally.
It would likely fall under freelancing, but regardless it is still money earned. Most countries give you a tax free allowance up to a certain point so in most cases no tax would be due unless you earn a significant amount, but once you go over a certain threshold tax is certainly due.
3. Simply spend bitcoins or any other cryptocurrency that you earned without ever converting it to fiat because cryptocurrencies are usually not taxable in most European countries.
There may be no taxes on using bitcoin but legally you will have needed to pay income tax on the coins as you earned them. You couldn't just save up enough coins to buy a house or Lambo then use the coins to purchase it directly without paying taxes on anything. That's not how it works.
It all depends on the currency in which you keep your money.
This isn't true. If you earn $100 in crypto then you will need to add $100 in income to your earnings.
Don't bother to pay it if your government doesn't bother you too. Most of the banks doesn't consider crypto currency as a source of income that's why when you have to show them your sources of income you have to make an another job that looks legal to them with a reasonable salary because if it's too big they might lock up your bank account if it is not reasonable. And by the way it really depends on what country you are in, so just stick to the law and everything will be fine.
Don't bother to pay it if they don't bother you? Well this is advice that will eventually get them to bother you. You people really don't know what you're talking about. If you get crypto in exchange for services or goods then it is income. And it's not the banks you need to be worried about; It's the taxman.
The problem is that it gets really messy, specially considering that I have been doing this for a year when you could earn a lot of bitcoins, 0.04 wasn't much then but now is around 300$ not to mention other giveaways and things like that. I was pretty sure it would be something like freelance, however the problem I have is how to prove you did it, I didn't save screenshots or transactions at the time and 50% is a ton of money. I have probably traded/bought things with them along the way too. I will eventually consult a lawyer or someone specialized in tax payments.
It will get even messier when you have to prove what you earned and where it came from. The taxes won't be anywhere near 50% unless you're a high earner. Most capital gains taxes are about 20% as well. Just take screenshots of the campaign threads with their payment terms and your wallet transactions.
I also wonder why there should be a tax, for example when we want to convert bitcoin into our currency, there must be a few percent taxes, what if the small bitcoin amount may be exhausted with the tax, it seems that for companies that use the application get paid from taxes we spend
Let your country do their job, we all know that signature campaigns are not a fixed job so I don't think that it will be just and fair enough if they are going to tax it, it is not stable and not every time you have it.
You tell that to the judge in court when you're there for tax evasion and see how much that helps you.
Op, don't listen to the majority of people in here because they seem like naive kids who seem to think you don't need to pay taxes because it's not a proper currency or 'job' .The bottom line is if you earn something for providing a service then you will need to be declaring that as income. Of course, how much depends on your countries tax laws but I'd say 99% of countries are going to want their cut of the money. Of course, there is the possibility that they'll never find out and if it's just a small amount they never might, but that's something you will have to weigh up whether the risk is worth it for you. If you are worried do the research or hire a tax accountant who is familiar with crypto or at the very least capital gains. The taxes due will likely by the same as if you were a currency trader or stock broker, though.
