Slovenia getting ready to tax crypto. Will others follow? - page 2.

dupee419

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Quote from: bL4nkcode on October 30, 2021, 04:54:15 AM

Not surprising at all, imposing tax will be available to other countries too soon as they regulate and accept crypto. Fiat to crypto is subject for taxation but for a transfer? That's insane and absurd.
Buying or paying (sending to business) is considerable but for a transfer/giving/sending only? Nah.

The government here in my country is also starting to regulate cryptocurrency through the exchange of crypto to fiat, and no matter how much we complain about it, these governments will still find a way to actually gain profit from us sadly.

livingfree

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Quote from: Blawpaw on October 27, 2021, 04:23:22 PM

Thing is, it puzzles me how are they going to tax cryptos... what sort of technics will the country develop to track all cryptocurrencies in circulation?

Maybe with their local exchanges, everyone who is registered on that exchange is already subject to taxation for any amount of profit they get. We don't like to be taxed in crypto as this is why it's made to be against centralization that includes tax.

But I think that it can't go further without the government doing this. In the US AFAIK, you're required to declare it to the IRS how much you've made in crypto so this can also be like there in Slovenia.

Shenzou

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Quote from: Blawpaw on October 27, 2021, 04:23:22 PM

Slovenia is one of the Cryptocurrency Tigers around Europe. Last April the Finance Ministry of Slovenia proposed a law to levy a 10% tax on all fiat-to-crypto conversions and cryptocurrency transfers. Now the country is getting ready to start taxing cryptos. Given that this will work out as an experiment in the eyes of several countries if everything goes well many other countries in Europe should follow.

Thing is, it puzzles me how are they going to tax cryptos... what sort of technics will the country develop to track all cryptocurrencies in circulation?

I think that they will be going through the same routes that the IRS said they will in the us, ever since the cryptocurrency has became a highly active and profitable industry, they aught out to make regulation through income taxes, first the IRS said that they will go through the route of passing a law to make a lot of KYC exchanges and wallets like coinbase will report your trades and transactions, and other ways is if you are buying some expensive things even if you used a peer to peer exchange to fiat you would be subject to audit, it may seems difficult from our point of view for them to tax crypto but with how big it is becoming it may create some future problems, that i am sure that they will be addressing it and creating a proper infrastructure to control it and tax it, but at least they are not banning it like many other countries that don't have to tools or the budget to allocate to do such things.

bL4nkcode

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Not surprising at all, imposing tax will be available to other countries too soon as they regulate and accept crypto. Fiat to crypto is subject for taxation but for a transfer? That's insane and absurd.
Buying or paying (sending to business) is considerable but for a transfer/giving/sending only? Nah.

Wind_FURY

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Quote from: pooya87 on October 27, 2021, 11:16:42 PM

Quote from: Blawpaw on October 27, 2021, 04:23:22 PM

a law to levy a 10% tax on all fiat-to-crypto conversions and cryptocurrency transfers.

Trading of anything including cryptocurrencies have always been subject to taxation. I've even seen up to 30% tax on trading profit. A lot of countries already have such taxes on cryptocurrency trading so it is not a new thing for "others to follow" after Slovenia does it since they are already behind themselves.

As for "transfers" you can't tax them at all unless they tax the businesses accepting bitcoin payments for each payment which is a different story.

High tax on cryptocurrency to fiat conversions actually encourages what Bitcoiners preach, and makes it the best solution, “the HODL”, and use Bitcoin ONLY if you need censorhip-resistance. Cool

Plus Taproot will make Bitcoin more private.

https://braiins.com/blog/explain-like-im-not-a-developer-taproot-privacy

Vaskiy

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Governments opposed bitcoin and other cryptocurrencies just because they can't have control over it. Even now to certain extent it is possible to tax, countries like USA have channelized the crypto related activities. This gives them better outcomes compared to the rest of the world. Israel at the very beginning imposed tax considering it similar to digital gold.

Transition in the usage happens with time, Slovenia is very less populated. Just around 2 million is the population of Slovenia. In such countries it is possible to make effective functioning of tax over crypto activities. It isn't possible to follow the same with grown or countries with increased population.

mindrust

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Quote from: Blawpaw on October 27, 2021, 04:23:22 PM

Slovenia is one of the Cryptocurrency Tigers around Europe. Last April the Finance Ministry of Slovenia proposed a law to levy a 10% tax on all fiat-to-crypto conversions and cryptocurrency transfers. Now the country is getting ready to start taxing cryptos. Given that this will work out as an experiment in the eyes of several countries if everything goes well many other countries in Europe should follow.

Thing is, it puzzles me how are they going to tax cryptos... what sort of technics will the country develop to track all cryptocurrencies in circulation?

Eventually the others will follow yes. You didn't think the current state of chaos in crypto would last forever, did you? As crypto gets adopted, it is only natural for the governments to want to tax them. Otherwise it wouldn't be fair to the other investments. You make money from owning stocks, you get taxed, why wouldn't you when you make money from crypto? It is the same thing.

masterrex

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Quote from: Blawpaw on October 27, 2021, 04:23:22 PM

Slovenia is one of the Cryptocurrency Tigers around Europe. Last April the Finance Ministry of Slovenia proposed a law to levy a 10% tax on all fiat-to-crypto conversions and cryptocurrency transfers. Now the country is getting ready to start taxing cryptos. Given that this will work out as an experiment in the eyes of several countries if everything goes well many other countries in Europe should follow.

Thing is, it puzzles me how are they going to tax cryptos... what sort of technics will the country develop to track all cryptocurrencies in circulation?

IMHO, I think it will be a very challenging task for Slovenian tax authorities, and it is a very difficult thing to do that all crypto transactions will be taxed, Anyway, it's too early to judge them so let them work first and conduct that experiment and if the government of Slovenia will successfully implement that plan to tax all crypto transactions, I'm, sure many countries will follow it and use the same method as well.

taufik123

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Quote from: TravelMug on October 27, 2021, 08:34:56 PM

-snip-
If not, then the only method I can think of is that crypto enthusiast will have to report it to their local tax authorities. Now, it's just the question of morality, are you going to report your personal crypto profits or not? Are you willing to take the risk and hide before the authorities have to find it out?

The answer is no. Traders or investors with multiple cryptocurrencies will not report their crypto wealth just like that, because they know the taxes they will pay are quite large.
Reporting crypto wealth to local authorities will reveal everything that is held on the crypto platform.
Hiding may not be an option, but if there isn't a really appropriate method, it's still free to report it or not.

some large transactions involving crypto may be detected, but other transactions will be difficult to detect, so need another really efficient method to regulate and detect crypto transactions that will be taxed.

haidil

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Quote from: Blawpaw on October 27, 2021, 04:23:22 PM

Thing is, it puzzles me how are they going to tax cryptos... what sort of technics will the country develop to track all cryptocurrencies in circulation?

The obvious policy difference is that it is extremely difficult to apply a crypto tax on the level of digital asset traffic without any oversight. It is puzzling how the government in Slovenia announced a crypto tax on decentralized wallets.
Except for traffic from bank accounts to exchanges.

Income from crypto that the government can control? can be effective as a share for the state?

masphie

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Before discussing taxes, we must first see if crypto is legal in the country...
If it is legal, it may be natural for the state to collect taxes from fiat to crypto transactions or vice versa.
But if it's not legal, I don't think it will tax crypto transactions.

Kelvinid

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The government had imposed taxes on these legit exchanges and the way to cover up those taxes they pay for them, that they have to ask for a share from their clients/users and traders. That is why we should have not wondered why these exchanges will ask for huge fees or commissions when having used them. I think some people don't feel it as it seems to be normal but I think this is what really happens and we as users had suffered most than these exchanges.

Welsh

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Quote from: pooya87 on October 27, 2021, 11:16:42 PM

Trading of anything including cryptocurrencies have always been subject to taxation. I've even seen up to 30% tax on trading profit. A lot of countries already have such taxes on cryptocurrency trading so it is not a new thing for "others to follow" after Slovenia does it since they are already behind themselves.
As for "transfers" you can't tax them at all unless they tax the businesses accepting bitcoin payments for each payment which is a different story.

I was also under the impression that most countries have a dedicated system in place specifically for cryptocurrencies, and if they haven't then any profits would be subject to income or capital gain tax, which might not be specifically for cryptocurrencies, but it would apply since you've made a profit. I think most countries have gone away from only taxing Bitcoin once it has been converted.

Also, if you mean transfers as in sending other users Bitcoin, then I wouldn't have thought they could tax that, since you aren't taxed that with fiat currencies. You should only be taxed on your profit; though how much completely depends on the country that you reside in.

avikz

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Quote from: Blawpaw on October 27, 2021, 04:23:22 PM

Slovenia is one of the Cryptocurrency Tigers around Europe. Last April the Finance Ministry of Slovenia proposed a law to levy a 10% tax on all fiat-to-crypto conversions and cryptocurrency transfers. Now the country is getting ready to start taxing cryptos. Given that this will work out as an experiment in the eyes of several countries if everything goes well many other countries in Europe should follow.

Thing is, it puzzles me how are they going to tax cryptos... what sort of technics will the country develop to track all cryptocurrencies in circulation?

Crypto tax will soon become a reality around the world. There are still many countries who don't recognize cryptos but soon they will be forced to recognize crypto and that will happen in very near future.

It's quite easy for a government to lavy taxes. They will allow only a handful of exchanges to operate in their country and laxy taxes on them which in turn will be levied to the end users. That's it! But 10% tax is quite less I would say, compared to the global standard!

Mahanton

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Quote from: Blawpaw on October 27, 2021, 04:23:22 PM

Slovenia is one of the Cryptocurrency Tigers around Europe. Last April the Finance Ministry of Slovenia proposed a law to levy a 10% tax on all fiat-to-crypto conversions and cryptocurrency transfers. Now the country is getting ready to start taxing cryptos. Given that this will work out as an experiment in the eyes of several countries if everything goes well many other countries in Europe should follow.

Thing is, it puzzles me how are they going to tax cryptos... what sort of technics will the country develop to track all cryptocurrencies in circulation?

Actually the country where i do live in did really make out that kind of proposed bill about taxation of crypto earnings but it did turn out that everything is still on pending because how it could really be done so? If they would just focus on centralized platforms or wallets on where their citizens been cashing out or making conversion then its possible but in overall filtering then its impossible because there are lots of ways for people to cash out or convert
without passing into these platforms which means they cant really still able to do so but well lets see on how they would be implementing on things.

Fortify

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Quote from: Blawpaw on October 27, 2021, 04:23:22 PM

Slovenia is one of the Cryptocurrency Tigers around Europe. Last April the Finance Ministry of Slovenia proposed a law to levy a 10% tax on all fiat-to-crypto conversions and cryptocurrency transfers. Now the country is getting ready to start taxing cryptos. Given that this will work out as an experiment in the eyes of several countries if everything goes well many other countries in Europe should follow.

Thing is, it puzzles me how are they going to tax cryptos... what sort of technics will the country develop to track all cryptocurrencies in circulation?

It kinda makes sense and is good for the wider adoption of Bitcoin in the long term. It either needs to be treated as a commodity or a currency, either way it is going to attract some sort of taxation - especially as it seems to be used more and more for speculation purposes rather than a functional trading currency. It might be better to start at a lower rate though, more like 3% or something because I have a feeling that 10% is going to result in many people not reporting transactions or actively using methods that will be tougher for the government to track (like cashing out via gift cards). I wonder what sort of exchanges are going to cooperate with the government of Slovenia for this type of reporting and will they be banned if they do not comply.

Cafex

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Actually, even a %10 rate is big for taxing cryptocurrencies to me. But taking the action the USA have taken about this into account, this still seems to be a reasonable tax rate compared to it. Because the US government imposes an income tax on the cryptocurrencies. Earnings through cryptocurrencies are seen as income in there. When it comes to whether other governments will follow, I think that they will.

eaLiTy

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Quote from: Blawpaw on October 27, 2021, 04:23:22 PM

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the Finance Ministry of Slovenia proposed a law to levy a 10% tax on all fiat-to-crypto conversions and cryptocurrency transfers. Now the country is getting ready to start taxing cryptos. Given that this will work out as an experiment in the eyes of several countries if everything goes well many other countries in Europe should follow.

Thing is, it puzzles me how are they going to tax cryptos... what sort of technics will the country develop to track all cryptocurrencies in circulation?

Looks like a fair option if they are taxing when you are converting your cryptocurrency to fiat currency, even now i am paying my taxes for the profit i am earning through cryptocurrency even though there is no legal provision in the tax column that accepts cryptocurrency as a source of income but i am paying as income from other sources bracket just to be on the safe side.

Turbolinea

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The countries in which people use cryptocurrencies and cryptocurrencies are not banned will choose to impose a tax on them of course. And all of the countries like this will follow each other in doing this too. This is really an inevitable thing to do as people are making a lot of money in this market. There are even so many people who make a living thanks to the crypto market. So, governments wouldn't prefer just letting people continue like this without paying any taxes.

teosanru

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Quote from: Blawpaw on October 27, 2021, 04:23:22 PM

Slovenia is one of the Cryptocurrency Tigers around Europe. Last April the Finance Ministry of Slovenia proposed a law to levy a 10% tax on all fiat-to-crypto conversions and cryptocurrency transfers. Now the country is getting ready to start taxing cryptos. Given that this will work out as an experiment in the eyes of several countries if everything goes well many other countries in Europe should follow.

Thing is, it puzzles me how are they going to tax cryptos... what sort of technics will the country develop to track all cryptocurrencies in circulation?

Crypto to fiat conversions are pretty easier to be taxed, all you have to do is make KYC mandatory to your local exchanges and most of the money would be under your radar, the most difficult part is to tax crypto for crypto or crypto for service transactions where a person makes payment for a service directly in crypto, the transaction is almost impossible to trace unless traced on standalone basis which will be quite expensive and time consuming, therefore this would be more like a Challenge for Slovenia to implement this, even direct taxes on crypto earnings would be based on good faith from citizens.

Topic: Slovenia getting ready to tax crypto. Will others follow? - page 2. (Read 427 times)