Topic: Tax on the crypto currency! What do you think? - page 3. (Read 3481 times)
There had been a lot of threads here in the forum asking for opinion about cryptocurrency taxation many had frowned the suggestion but some had favored such because of the big help that it may contribute to the government but the thing is, it will be very hard to put taxation on these things because of its anonymity. You can never really recognize whom transaction it is from it can be difficult and possibly tedious.
For my own perspective, if bitcoin will be developed that fast like now it will be used like normal currency in future so goverments need to make some taxes cause people could just "escape" from paying them moving their money to bitcoin, that mean in future there will be special taxes for bitcoin.
I think in the end of the way we will never see TAX on crypto,cuz new nontaxed crypto easily will change taxed...
I believe that the best option for a cryptocurrency tax may be a tax on converting crypto to fiat, since This method is the most transparent and easily traceable. The only negative side for the state in this case will be only the possibility of making a transaction bypassing the transfer to fiat.
I think if crypto currency was being tax then it will become semi decentralized for the government alreadt take a part of controls and I think income of every cryptonians will also lessen but its ok for me as long as the government will take concern about the scattering frauds and scam. 
I believe that the best option for a cryptocurrency tax may be a tax on converting crypto to fiat, since This method is the most transparent and easily traceable. The only negative side for the state in this case will be only the possibility of making a transaction bypassing the transfer to fiat.
In fact, everything goes to the fact that cryptocurrency and earnings from operations with them will be controlled by the states. Perhaps this is even for the better. Because if cryptocurrency are in the area of state regulation, they will have to be recognized as legal means of payment, and this will greatly help cryptocurrencies to become widespread among people all over the world. At the same time, cryptocurrency holders will be protected from strong inflation, which is typical of many countries.
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:
Well, to my mind, it is really hard to tax on cryptocurrenies because cryptocurrency is decentralized and anonymity. The government only can think about taxation on cryptocurrency if they can control it.- 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.
Absolutely right. They can even take the law about the taxes on the cryptocurrencies, but this law will not work in reality. How will they track the people, which are working with the cryptocurrencies?
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:
Well, to my mind, it is really hard to tax on cryptocurrenies because cryptocurrency is decentralized and anonymity. The government only can think about taxation on cryptocurrency if they can control it.- 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 don't think about taxes. I have an opportunity not to pay them and I won't do it. The government should make the tax but not to extort him. Do you see government support for all participants in the cryptocurrency market? What to pay tax for? I hope that someday I will have the opportunity not to use Fiat and I will not interfere with the government at all.
very true what you say in your opinion the government may issue taxes but not so big of course and not burdensome and maybe also with the existence of taxes may make investors more comfortable and safe in investing in crypto currencies 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:
Well, to my mind, it is really hard to tax on cryptocurrenies because cryptocurrency is decentralized and anonymity. The government only can think about taxation on cryptocurrency if they can control it. - 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.
The main thing for me is that government would not put the tax which will be depending on earnings and be represented by percents, so basically 60% of your income would go to government, or even more.
I think that it is to much but of course tax will be one of the things that goverment will do to make crypto possible to use in their country, that will be one of the regulations which will be made in near future for me.
I am agree about cryptocurrency taxes but it should be on the profits. If we should pay taxes because our trades, sometimes we suffering loss on our trade and i think its not fair if paying taxes on our trade
Do you see government support for all participants in the cryptocurrency market? What to pay tax for?
Precisely, what to pay tax for even government did support bitcoin as a currency to use. Some reason why some countries are quite on cryptocurrency because they know that this is not controllable with someone else and having a forcing to tax those who have earned in bitcoin. Well, to make this long story short luckily in my country did not implement a tax on crypto we pay tax when we buy goods using our money from bitcoin.Therefore, the issue of taxation in cryptocurrency is a personal question for everyone.
I think it is not realistic to be deaf in the country for every citizen, how much he owns crypto-currencies. Yes, and still recover the tax from it. To be able to collect taxes, the state should control the system itself, where the crypto currency is actually used - and this is not realistic for a single country. Scales are too huge.
I think it is impossible for the governments to control the system of cryptocurrency for a reason that it is hard to control it. Taxes on cryptocurrency in my opinion is somehow good and somehow bad. It is good because putting a certain tax in cryptocurrency can make it more available and accpeted by people because they will surely think it is now a totally a legit thing. Also, tax is a way to help one's country progress for a reason it serves as a fund. Lastly, based on what I read, it can make the market be stable. As for the bad side, not all the people are willing to pay tax.
I think it is not realistic to be deaf in the country for every citizen, how much he owns crypto-currencies. Yes, and still recover the tax from it. To be able to collect taxes, the state should control the system itself, where the crypto currency is actually used - and this is not realistic for a single country. Scales are too huge.
I think it is impossible for the governments to control the system of cryptocurrency for a reason that it is hard to control it. Taxes on cryptocurrency in my opinion is somehow good and somehow bad. It is good because putting a certain tax in cryptocurrency can make it more available and accpeted by people because they will surely think it is now a totally a legit thing. Also, tax is a way to help one's country progress for a reason it serves as a fund. Lastly, based on what I read, it can make the market be stable. As for the bad side, not all the people are willing to pay tax.
The implications for your taxes due would be significant, depending upon the choice (either FIFO or LIFO methods) you make. So I would suggest to try LIFO and FIFO calculators to decide which method is better for you. Here are the links for very easy-to-use handy Excel sheet for calculating the gains (after commissions) in bitcoin (or other cryptocurrency) trading using FIFO and LIFO methods.
Bitcoin Cryptocurrency FIFO Gain Calculator for Taxation https://www.eloquens.com/tool/3MdIAv/engineering/cryptocurrency-excel-templates/bitcoin-cryptocurrency-fifo-gain-calculator-for-taxation
Bitcoin Cryptocurrency LIFO (Last In First Out) Gain Calculator for Taxation https://www.eloquens.com/tool/3B4lfy9X/engineering/cryptocurrency-excel-templates/bitcoin-cryptocurrency-lifo-last-in-first-out-gain-calculator-for-taxation
Can we choose between LIFO and FIFO with which method do we want to pay taxes?Bitcoin Cryptocurrency FIFO Gain Calculator for Taxation https://www.eloquens.com/tool/3MdIAv/engineering/cryptocurrency-excel-templates/bitcoin-cryptocurrency-fifo-gain-calculator-for-taxation
Bitcoin Cryptocurrency LIFO (Last In First Out) Gain Calculator for Taxation https://www.eloquens.com/tool/3B4lfy9X/engineering/cryptocurrency-excel-templates/bitcoin-cryptocurrency-lifo-last-in-first-out-gain-calculator-for-taxation
I think that option will be great. Thanks for sharing these calculators with us.
What I think ? I think its perfect way to legalise the crypto currencies itself and government can also benefit from the taxes that are conveyed through this procedure.
However, taxation is the first step towards making the crypto currencies as legal tender of that particular country and counties if it is big one.
I would say taxes should be applied everywhere for this so that we can sue the crypto currencies the normal way as if we are using the fiat currencies in the first place. So its more or less good thing to have in place.
However, taxation is the first step towards making the crypto currencies as legal tender of that particular country and counties if it is big one.
I would say taxes should be applied everywhere for this so that we can sue the crypto currencies the normal way as if we are using the fiat currencies in the first place. So its more or less good thing to have in place.
In my own opinion. Taxes is our way of contribution to the government it is also a source of funds to distribute in every sector of the Government. For me if they want to applied taxes in cryptocurrency then they should legalized Bitcoin to addition of their collection. When tax applied make sure to legalized bitcoin so both are have an agreement regarding to the possible charges that increase.
Encrypted currency is a new thing. Many countries in the world have not reached a consensus on the regulation of cryptocurrencies!
The taxation of cryptocurrencies also requires a long-term exploration! Taxing cryptocurrencies is very useful for protecting cryptocurrencies!
The taxation of cryptocurrencies also requires a long-term exploration! Taxing cryptocurrencies is very useful for protecting cryptocurrencies!
If one country applies a tax on cryptocurrency especially, the character of a country's tax must be observed through a cryptocurrency transaction depending on whether the cryptocurrency is a capital asset in the hands of the taxpayer / government.
Or crypto sales profits that qualify as capital assets are netted with other capital gains and losses. I think this needs a long process.
Or crypto sales profits that qualify as capital assets are netted with other capital gains and losses. I think this needs a long process.
I think we have enough taxes. We pay taxes on everything. While in the cryptocurrency market no taxes, it is in great demand, but I think that taxes will be, when the government accepts cryptocurrency as a payment method for the goods.
As good slaves we must obey government regulations, even though what the government has given us is not what we expect. Cryptocurrency has a decentralized system, so neither party will dare to influence the system in it. Actually I like what you say at the beginning of the sentence, everything is set up with taxes and the cryptocurrency should be able to avoid taxes, I would prefer that. I do not expect every government in this world to accept cryptocurrency in return for receiving taxes, because basically we don't need the government to use bitcoin and without the government, bitcoin will still worth.Jump to: