Legally , I don't think it is the duty of a buyer to submit him or herself to the tax office on the amount of taxable income accruing either on the amount of bitcoin bought except where the country has made it mandatory.
Otherwise, it is the responsibility of the government to trace or track the taxes to be collected and this is possible where it is legal to levy tax on bitcoin because such transaction will be tied to the tax office .
Topic: tax. questn (Read 253 times)
Are you suppose to tell tax people that you bought the coin? If so, after spending how much of your own dollar?
And after making how much money?
And after making how much money?
Oh by the way, I think that many countries will not consider BTC as a coin, so if you make profit you will have to pay taxes. That normally does not happen with small amounts of fiats.
Note, the taxes depend on the legal regulations within each country. What country do you live in? Also, it is important to note that generally taxes are on the sale of cryptocurrency
You don't always need to report that you have bought a cryptocurrency, you can always file it up and report it every time a tax report is needed and of course you need to have supporting documents for it. On your question about how or what will be taxed in your cryptocurrency, the part you will be taxed on is when your cryptocurrency increased in price greater than your purchase price which is called capital gains. You need to based your gains always in its Fiat currency equivalent as it is a normal procedure of the law.
Tax efficiency is better phase than tax avoidance, but still pay your taxes! don't forget fatca and crs regulation, meaning you or your exchange will most likely declare your assets to the tax authorities.
Depending on your incumbent residency and the relation it has with other countries, your exchange is not likely to give any information to the authorities. e.g. If a citizen of Norway opens and account in a chinesse exchange, be sure that their authorities won´t know unless he tells them
True, it's unlikely and depends how compliant the exchange is, but it's possible if the exchange is classified as a financial institution, this is a good assessment of one of the exchanges:
https://www.linkedin.com/pulse/do-you-need-disclose-your-cryptocurrencies-anna-szkudlarek-acca/
Tax efficiency is better phase than tax avoidance, but still pay your taxes! don't forget fatca and crs regulation, meaning you or your exchange will most likely declare your assets to the tax authorities.
Depending on your incumbent residency and the relation it has with other countries, your exchange is not likely to give any information to the authorities. e.g. If a citizen of Norway opens and account in a chinesse exchange, be sure that their authorities won´t know unless he tells them
in my coutntry indonesia, i don't have to...
coz the coin not include in the tax
coz the coin not include in the tax
Tax efficiency is better phase than tax avoidance, but still pay your taxes! don't forget fatca and crs regulation, meaning you or your exchange will most likely declare your assets to the tax authorities.
Amount of tax also depends on your jurisdiction and accounting methods.
If you are concerned about it, a local tax professional can provide you advice in writing, which if you rely upon, will be proof of any intention to evade taxes.
This is why paid advice is worth more than free advice from internet lawyers, (who are not your lawyer).
Having provably no intention to break a law means that it is not going to be a "criminal" problem even if you are wrong, at most it would be a civil fee.
Tax efficiency is better phase than tax avoidance, but still pay your taxes! don't forget fatca and crs regulation, meaning you or your exchange will most likely declare your assets to the tax authorities.
First of all you need to know the tax law of the country you live in, you can get help from tax bureaus or lawyers to find out. I was a tax-free person, but I received a tax penalty from the country where I live because of high transfers.
Are you suppose to tell tax people that you bought the coin? If so, after spending how much of your own dollar?
And after making how much money?
And after making how much money?
Where do you live? Normally you can hold the coin and as long as you don´t sell you are not making real profit. If you sell with gains, those normally have taxes.
In my opinion based on what I know in the tax code of the Philippines, you do not need to tell tax officers that you bought Bitcoins. But what you should tell them (or file) is your income from the investment or trading Bitcoin. This is filed under the income tax that is done once a year. This is the same tax filed by other investors of stocksx the self-employed, business owners, real estate agents, brokers etc. This tax return is filed like in honesty basis. That is why many doesn't file it properly.
Has bitcoin been made taxable? How much is the tax?
Yes, if you live in the US, you have to pay taxes for capital gains or using cryptocurrency for transactions in certain amount.
However, it's better to consult with a tax professional if you want to trade cryptocurrency in big amount.
You can avoid taxes as long as you buy and sell cryptocurrency which not through exchanges such as coinbase, as exchanges is the object of investigation to check whoever avoid the taxes.
long-term gains and losses will be taxed at each investor’s applicable capital gains rate (15% for Max) as opposed to at ordinary income rates (this would be 25% for Max). Bitcoin miners and investors may see a huge difference in marginal rates as a result of this distinction. Nonetheless, active traders with short-term capital gains could still be taxed at their ordinary income-based rates.
Generally, a person who in the course of a trade or business makes a payment of $600 or more in a taxable year to an independent contractor for the performance of services is required to report that payment to the IRS and to the payee on Form 1099-MISC, Miscellaneous Income.
Read more: Bitcoin Tax Guide: An Introduction | Investopedia https://www.investopedia.com/university/definitive-bitcoin-tax-guide-dont-let-irs-snow-you/#ixzz51zx8NBS6
All Foreign Income is taxable when you bring it over to your country unless your country don't have any laws saying you have to pay taxes on money you make outside your country. The Tax rate is based on whatever your countries taxable brackets are for what you make as income. (Go check your government website for these)
From Google, this is the list of countries that are tax free:
**These include countries like Costa Rica, Hong Kong, Panama, Seychelles, Singapore and Taiwan. On top of these countries, there are also a handful of countries, which have no income taxation in place. These include countries such as Andorra, Bahamas, Bermuda, Cayman Islands, Monaco and the United Arab Emirates.**
People saying its unfair to be taxed on bitcoin, this is how any business/other income works, no matter if you made it in India or if you made it from a business trip to Mars.
From Google, this is the list of countries that are tax free:
**These include countries like Costa Rica, Hong Kong, Panama, Seychelles, Singapore and Taiwan. On top of these countries, there are also a handful of countries, which have no income taxation in place. These include countries such as Andorra, Bahamas, Bermuda, Cayman Islands, Monaco and the United Arab Emirates.**
People saying its unfair to be taxed on bitcoin, this is how any business/other income works, no matter if you made it in India or if you made it from a business trip to Mars.
Has bitcoin been made taxable? How much is the tax?
When you do talk on direct tax into your bitcoin holdings then its not possible because government cant really do such thing but when it regards when you are transacting on an exchange or any services which being backed or regulated by government then its possible. Maybe they would depend on how much are earning on would totally depend on their laws imposed.If you do live on USA I don't have too much idea how they do treat out bitcoin.The best thing to do is find a lawyer and do ask on the things that is on your head regarding on bitcoin taxation.
Has bitcoin been made taxable? How much is the tax?
If you are due for taxing and you don't pay them, it is called tax evasion and it is labeled as a criminal offense punishable by the law. Therefore, if bitcoin has been made taxable, the right thing to do is to obey the law and follow its provisions.
How to avoid tax?
If you are talking about a wealth tax, you avoid this by not being wealthy. Sell your assets and spend the money if you don't want to pay it. There are allowances to distribute wealth tax free, you should do this to family. You also get tax breaks by giving money to charities or investing in certain business ventures.
If you are talking about capital gains tax, go to some fucked up third world country where there is no society and therefore no tax.
Taxes are good things. I know it might not seem that way sometimes, but they are there for a reason. Pay them.
Are you suppose to tell tax people that you bought the coin? If so, after spending how much of your own dollar?
And after making how much money?
And after making how much money?
You don’t say which country you are from but in all countries I know you don’t have to tell the tax people that you have bought, you only tell them when you sell, so to speak. They will charge tax on your profits when converted to your fiat currency again.
There is one exception in my country. If your bitcoin investment grows higher than 700.000€ they will charge tax as well. It is called a tax on net worth.
I am in USA. What is the policy here? How to avoid tax?
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Are you suppose to tell tax people that you bought the coin? If so, after spending how much of your own dollar?
And after making how much money?
And after making how much money?
You don’t say which country you are from but in all countries I know you don’t have to tell the tax people that you have bought, you only tell them when you sell, so to speak. They will charge tax on your profits when converted to your fiat currency again.
There is one exception in my country. If your bitcoin investment grows higher than 700.000€ they will charge tax as well. It is called a tax on net worth.
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