Topic: Tax on the crypto currency! What do you think? - page 13. (Read 3506 times)
Of course, governments always want more. It seems to be the main goal of politicians, to think about new places to collect taxes. If the government can take cryptocurrencies in some way, of course the will! I guess it may best fit under capital gains or income tax. I feel like it would be very hard for the government to trace though, unless you are converting it to fiat currencies in your own country. Could the government actually track and tax your cryptocurrency? You don't have your name and DOB attached to it, do you?
In the US, the since bitcoin and other crypto currency does not have any legal tender status that is, it is not considered as a legal currency in any jurisdiction, the Internal Revenue Service considers all crypto currencies as a property owned and is subject to taxation based on that consideration. Thus people holding and trading crypto currencies are to pay capital gains and income tax.
There are several tax options today, and all of them can be applied to crypto-currencies, depending on how the latter are defined in the state. Most often, the following taxes are introduced:
- Value Added Tax (VAT). It can be levied by trade operations made with the help of crypto currency as a means of payment, as well as currency exchange. Basically - the exchange of crypto currency for fiat money, but in theory VAT can be levied on the exchange of crypto currency between each other. It operates mainly in those countries where crypto-currencies are recognized as a payment instrument, for example, in Japan. When buying goods and services for cryptocurrensies, VAT will also have to be paid to the residents of the UK, but they can exchange the crypto-currencies for fiat without paying VAT.
- Tax on goods and services. A kind of analogue of VAT for those countries that have recognized crypto-currencies are not a means of payment, but a commodity. Acts on the same principle as VAT. Only in the case of VAT, the taxpayer is in fact a buyer, and in the case of a tax on goods and services, a supplier of goods and services, in this case a holder of a crypto currency. He has been working in Singapore for several years. At the beginning of this year, a similar system was adopted by Israel with respect to the mining, which was equated with the production of goods.
- Personal income tax. Personal incomes in crypto-currencies are taxed, for example, the salary paid by the employer in bitcoins. Implemented, for example, in the US.
- Profits tax. They are subject to any companies that make a profit. Also, they are subject to profits earned as a result of trading on the exchange and the performance of other currency transactions. In the cryptosphere, this system is used specifically to tax the crypto traders and various crypto-currency organizations (from the exchange of crypto-currencies to the pools for mining). Mining may also be subject to profit tax. In the US, for example, take into account the profit from crypto-activity in the tax declaration will have to be traders and miners, and all people who somehow earn on crypto-currencies as a result of speculation. The same tax is levied on all crypto-currency transactions made by legal entities in Australia and Japan.
- Capital gains tax. They are subject to income of individuals and legal entities obtained as a result of investing in shares, bonds, securities, valuable assets and so on. In the cryptosphere, it starts acting as soon as the crypto-currencies are equated to valuable assets. Not only investors fall in, but all holders are also crypto currency. This system is implemented in the US, where it matters how long the holders of crypto currency keep them and in what quantity. He also works in Australia, Brazil, Canada and in many EU countries - Bulgaria, Finland, Germany, Spain and others.
- Property tax. For the cryptosphere, it becomes important when the crypto-currencies are recognized as property, a valuable asset that is owned. As soon as such an amendment is made, the holder of the crypto currency is required to notify the tax service of all transactions concluded with this asset. Such an amendment was introduced in the US tax legislation, where the crypto-currencies in this case are presented as a valuable asset, and in Australia, where they are recognized as property.
Well... that's is good that the government make a law amended that they started collecting tax in crypto currency. And in that way also crypto currency accepted as legal tender in that certain country, Who accept bitcoin as legal and so we are hoping for that improvement for the success of crypto currency.
If bitcoin were to be taxed it would eliminate the intrinsic purpose of the coin itself. Bitcoin was founded on the principle of P2P exchange without having some kind of dirty middleman standing there and putting his fingers in your pot. Why should the government take an extra amount of money on top of what you already have for yourself?
Some will argue that we should pay an amount of money for the services that we receive from our government, and I won't disagree with that. We can't exactly freeload forever. But it should be on a pay-per-use basis.
Some will argue that we should pay an amount of money for the services that we receive from our government, and I won't disagree with that. We can't exactly freeload forever. But it should be on a pay-per-use basis.
I don't think it is justifiable for the government to add tax on the crypto currency. Knowing the way to earn digital money is through block chain. This activity through block chain are making use of internet connection, electricity, gadgets and technology and those are being taxed by the government.
Of course taxes on the crypto currency are a good idea, if the country wants to take taxes on the cryptocurrencies, including exchanges, then automatically they must recognize the existence of crypto so that it becomes a good guarantee for the future.
Yes right, I am sure that by paying taxes to the country the users are more pleased, it is time for all countries to legalize crypto because it can be used as a source of income for many people including the state through taxes.Tax on crypto will depends on the government itself, But i think the process of it will be long, Because crypto currency is made by the community itself, many investors are in to it so it will not be easier for the government to put a tax on it.
first of all we need to understand something well. it does not matter which method is chosen. countries are not ready for this yet. they are afraid of illegality and they have to be resolved first.
it is true that before discussing taxes, it is better to discuss the legality of bitcoin in a country, many countries that still have not found a policy if bitcoin is legalized, they still calculate profits and losses
first of all we need to understand something well. it does not matter which method is chosen. countries are not ready for this yet. they are afraid of illegality and they have to be resolved first.
Of course taxes on the crypto currency are a good idea, if the country wants to take taxes on the cryptocurrencies, including exchanges, then automatically they must recognize the existence of crypto so that it becomes a good guarantee for the future.
I think if there are taxes imposed on the bitcoins, then governments might take interest in it and who knows the regulations and adaptions of bitcoins become much more faster. So in a way it is good for bitcoin community.
Good point, but think real issues if they consider. Ok government need to be involved but they will want to have huge influence here so this can be backfired in some countries maybe. This is only my option on this but if we look in just in single country any country government want to have control or major influence in all things. Crypto is nothing more to them then a "thing" that they desperately want to control or to have at least major influence on it in any country.
Of course taxes on the crypto currency are a good idea, if the country wants to take taxes on the cryptocurrencies, including exchanges, then automatically they must recognize the existence of crypto so that it becomes a good guarantee for the future.
I think if there are taxes imposed on the bitcoins, then governments might take interest in it and who knows the regulations and adaptions of bitcoins become much more faster. So in a way it is good for bitcoin community.
Most definite! One thing with taxing something is that it is considered acceptable by the government as an asset and it is believed that anyone holding is subjected to capital gain tax
It is a good thing though knowing that even if the space is going to be regulated in a way, although every country will simply be coming up with its own taxation policies, we can at least all have a common ground which sounds to me more like a mutual benefit between the government and the community.
Although this is an approval of the cryptocurrency in one direction, I think this is a scam. A government and a big family deceive civilians. They can't tax Bitcoin, otherwise Bitcoin will lose its freedom.
There are several tax options today, and all of them can be applied to crypto-currencies, depending on how the latter are defined in the state. Most often, the following taxes are introduced:
Doing that will destroy cryptocurrencies, because lots of people will decide to quit from it. People are already losing enough money in this and you don’t expect them to come and start paying tax on top of it that’s a high level of stupidity. I know some people will continue but a lot of people, even more than 80% of the people will quit except those rich dudes who will continue to compare among themselves. And putting tax on the line will destroy the idea of being anonymous. - Value Added Tax (VAT). It can be levied by trade operations made with the help of crypto currency as a means of payment, as well as currency exchange. Basically - the exchange of crypto currency for fiat money, but in theory VAT can be levied on the exchange of crypto currency between each other. It operates mainly in those countries where crypto-currencies are recognized as a payment instrument, for example, in Japan. When buying goods and services for cryptocurrensies, VAT will also have to be paid to the residents of the UK, but they can exchange the crypto-currencies for fiat without paying VAT.
- Tax on goods and services. A kind of analogue of VAT for those countries that have recognized crypto-currencies are not a means of payment, but a commodity. Acts on the same principle as VAT. Only in the case of VAT, the taxpayer is in fact a buyer, and in the case of a tax on goods and services, a supplier of goods and services, in this case a holder of a crypto currency. He has been working in Singapore for several years. At the beginning of this year, a similar system was adopted by Israel with respect to the mining, which was equated with the production of goods.
- Personal income tax. Personal incomes in crypto-currencies are taxed, for example, the salary paid by the employer in bitcoins. Implemented, for example, in the US.
- Profits tax. They are subject to any companies that make a profit. Also, they are subject to profits earned as a result of trading on the exchange and the performance of other currency transactions. In the cryptosphere, this system is used specifically to tax the crypto traders and various crypto-currency organizations (from the exchange of crypto-currencies to the pools for mining). Mining may also be subject to profit tax. In the US, for example, take into account the profit from crypto-activity in the tax declaration will have to be traders and miners, and all people who somehow earn on crypto-currencies as a result of speculation. The same tax is levied on all crypto-currency transactions made by legal entities in Australia and Japan.
- Capital gains tax. They are subject to income of individuals and legal entities obtained as a result of investing in shares, bonds, securities, valuable assets and so on. In the cryptosphere, it starts acting as soon as the crypto-currencies are equated to valuable assets. Not only investors fall in, but all holders are also crypto currency. This system is implemented in the US, where it matters how long the holders of crypto currency keep them and in what quantity. He also works in Australia, Brazil, Canada and in many EU countries - Bulgaria, Finland, Germany, Spain and others.
- Property tax. For the cryptosphere, it becomes important when the crypto-currencies are recognized as property, a valuable asset that is owned. As soon as such an amendment is made, the holder of the crypto currency is required to notify the tax service of all transactions concluded with this asset. Such an amendment was introduced in the US tax legislation, where the crypto-currencies in this case are presented as a valuable asset, and in Australia, where they are recognized as property.
I know that Bitcoin isn’t fully anonymous, but at least in a lot of ways it is, but when tax gets involved we will have to start providing lots of info about ourselves including bank details, possibly.
Of course taxes on the crypto currency are a good idea, if the country wants to take taxes on the cryptocurrencies, including exchanges, then automatically they must recognize the existence of crypto so that it becomes a good guarantee for the future.
I think if there are taxes imposed on the bitcoins, then governments might take interest in it and who knows the regulations and adaptions of bitcoins become much more faster. So in a way it is good for bitcoin community.
Quote
What do you think about the taxation of cryptocurrencies? Which model fits best?
Why cant I pass a banana to another monkey without some silver back gorilla wanting to take away part of that banana so I can never truly pass on anything without loss. Theres no reason to be taxing a simple exchange of private data, do we have to suffer tax on every single event in our lives. Its ridiculous that government cant operate without constant interference.If a business makes alot of profit then tax that business, if Im just transferring my personal possessions then I dont see why Im liable to confiscation of part of that.
It only really makes sense to tax an industry producing regular profits. To tax revenue could end up closing down that industry or obstructing it
Tax is good and tax implementation should be based on someone's earning for the month since many of us was earning only tokens but no token was turned into cash for a year... This issue should also be considered...
Tax is good. So how possible will it be to impose tax on cryptocurrency users considering the fact that , there's nothing like link between onchain and off chain addresses of crypto owners? 
For me, i dont think so it will happen because they not even support cryptocurrency. Then if will do, i hope that government will use the taxes in a way that it will useful to all of us.
Of course taxes on the crypto currency are a good idea, if the country wants to take taxes on the cryptocurrencies, including exchanges, then automatically they must recognize the existence of crypto so that it becomes a good guarantee for the future.
Yes right, I am sure that by paying taxes to the country the users are more pleased, it is time for all countries to legalize crypto because it can be used as a source of income for many people including the state through taxes. 
Of course taxes on the crypto currency are a good idea, if the country wants to take taxes on the cryptocurrencies, including exchanges, then automatically they must recognize the existence of crypto so that it becomes a good guarantee for the future.
Additional taxes on crypto should not be there. Just the normal tax bracket just as for any other income.
Jump to: