I would agree that taxes are imposed on bitcoin transfers. If the tax is levied on the count of bitcoin income each month and takes a few percent for it, it will be a bit of burdensome. Better taxes are imposed on bitcoin transactions, for example 1% for each transaction.
1% for each transaction? Then it would be more a burden considering that theres still a fee and thinking off that doing transactions on a single day would really be just not once specially on those active traders. 1% will hurt you up. The same on having a fixed % on overall bitcoin or altcoins profits on your trades which its still big to consider but i dont really bother at all since this thing isnt possible to happen directly on a certain bitcoin or altcoin holder. 
Topic: Taxation on Bitcoin transfers (Read 248 times)
I would agree that taxes are imposed on bitcoin transfers. If the tax is levied on the count of bitcoin income each month and takes a few percent for it, it will be a bit of burdensome. Better taxes are imposed on bitcoin transactions, for example 1% for each transaction.
Perhaps, although (and has been noted above) if the tax is too high for the transfers, the incentive to hoard the cryptocurrency increases and a fundamental principle or ideal of Bitcoin is hurt.
I would agree that taxes are imposed on bitcoin transfers. If the tax is levied on the count of bitcoin income each month and takes a few percent for it, it will be a bit of burdensome. Better taxes are imposed on bitcoin transactions, for example 1% for each transaction.
i live in India, where transaction fee is taxed as per the tax on Securities transaction tax for the local stock market, however for incomes generated through trading in bitcoins or any other cryptocurrency, taxes are going to be applied @33%. The problem is that they will track the outflow and inflow of the fiat currency on various exchanges and tax on the basis of the difference in net inflow and outflow for a year. So if one is receiving payment for some service done online, he will be taxed completely @33% on the revenue as this will be a part of the outflow. If one holds on to the investments for a year or so, there is going to be no tax. Each transaction, however, will be taxed between 0.2 to 0.5%.
I feel like it's kind of unfortunate for transaction fees to be taxed. Having the procedure of the transfers delayed is one thing, taxing it is another and it seems impractical really. What would you do if you would lose all your earning from just transaction fees alone because it requires almost half of what you will have to transfer? That is just so heavy to take on the side of the user. I feel like this just ruins the beauty of Bitcoin and how it allows easy and flexible transactions. With this form of taxation, it will hinder people to enjoy their Bitcoins to the fullest.
Hi all, I live in Israel - a country with relatively high regulation and tax rates. A recent article shows how bitcoin transfers may soon reach taxation rates of up to 47%! I’m wondering how that compares to other countries?
https://www.themarker.com/opinion/1.4727995
Are there any countries with higher rates?
https://www.themarker.com/opinion/1.4727995
Are there any countries with higher rates?
It totally depends upon your country . What is the exchange rate of your country . What exactly is the value of your fiat . These considerations will lead to the decision factor on how much the tax is going to be . I think you should study your native bitcoin exchange to get the better answer . That would totally clear a couple things from buy and sell rate to the taxation .
Hey,
Regarding the Israeli case, I see that it is still under discussion by the government.
I've found the following - a report from the Israel tax authority from last January with recommendations regarding taxation - but I can't find any decisions on the issue:
https://taxes.gov.il/incometax/documents/hozrim/hoz_x_2017_tyota.pdf
Have you found anything definitive?
Regarding the Israeli case, I see that it is still under discussion by the government.
I've found the following - a report from the Israel tax authority from last January with recommendations regarding taxation - but I can't find any decisions on the issue:
https://taxes.gov.il/incometax/documents/hozrim/hoz_x_2017_tyota.pdf
Have you found anything definitive?
Hi all, I live in Israel - a country with relatively high regulation and tax rates. A recent article shows how bitcoin transfers may soon reach taxation rates of up to 47%! I’m wondering how that compares to other countries?
https://www.themarker.com/opinion/1.4727995
Are there any countries with higher rates?
https://www.themarker.com/opinion/1.4727995
Are there any countries with higher rates?
47% is extremely on the high side. If you try that over here, you must build a lot of prisons because a lot of people would prefer to evade tax knowing the consequences than to willingly pay such huge chuck of their profit as tax. One of the canon of taxation as propounded by Adam Smith who wrote Wealth for All Nations published in 1977 is convenience and ease which a lot of country base their tax policy on. 47% is a whole lot that negates all of the 9 canons of taxation as added by other scholars over the years. And they are not even talking about the sale of bitcoin but the transfer which means that moving my bitcoin from one wallet to another, I would pay tax despite the fact that I am not receiving any inflow of cash as a result of that.
Actually no. When using an "exchange" you are trading or exchanging one coin for another. They are at the same value at the time of purchase. DUH!! When swapping back it's the same idea. Having to be taxed on each exchange is really pointless. Now if you are purchasing coins for an ICO, for example, I can understand potentially recording the initial price and then the cash out value.
The article in Bloomberg and other media outlets stating this new U.S. tax bill changes like-kind trades and each trade is a taxable event, is probably fake news that will be retracted later. This was all being reported before anyone even knew what was in the bill. And most people still don't even know what's in the bill other than the big stuff like tax brackets and % for people and corporations. I think it's a political stunt and I have yet to see any links or images within these articles to prove any of it anyway. Until then I'll call it unsubstantiated and, therefore, fake news...
The article in Bloomberg and other media outlets stating this new U.S. tax bill changes like-kind trades and each trade is a taxable event, is probably fake news that will be retracted later. This was all being reported before anyone even knew what was in the bill. And most people still don't even know what's in the bill other than the big stuff like tax brackets and % for people and corporations. I think it's a political stunt and I have yet to see any links or images within these articles to prove any of it anyway. Until then I'll call it unsubstantiated and, therefore, fake news...
You are correct, it is impractical to charge on each exchange, as it is pointless as no actual income is made until the funds actually arrive at your country of origin (Cashing out your investment). Though, you will need to keep all your transaction data/exchanges to prove to the CRA/IRS/ ect.. that you are claiming money made on interest/investment gains and not on initial investment capital.
Cheers.
Actually no. When using an "exchange" you are trading or exchanging one coin for another. They are at the same value at the time of purchase. DUH!! When swapping back it's the same idea. Having to be taxed on each exchange is really pointless. Now if you are purchasing coins for an ICO, for example, I can understand potentially recording the initial price and then the cash out value.
The article in Bloomberg and other media outlets stating this new U.S. tax bill changes like-kind trades and each trade is a taxable event, is probably fake news that will be retracted later. This was all being reported before anyone even knew what was in the bill. And most people still don't even know what's in the bill other than the big stuff like tax brackets and % for people and corporations. I think it's a political stunt and I have yet to see any links or images within these articles to prove any of it anyway. Until then I'll call it unsubstantiated and, therefore, fake news...
The article in Bloomberg and other media outlets stating this new U.S. tax bill changes like-kind trades and each trade is a taxable event, is probably fake news that will be retracted later. This was all being reported before anyone even knew what was in the bill. And most people still don't even know what's in the bill other than the big stuff like tax brackets and % for people and corporations. I think it's a political stunt and I have yet to see any links or images within these articles to prove any of it anyway. Until then I'll call it unsubstantiated and, therefore, fake news...
You are misunderstanding how taxes work.
Once you buy anything, or convert to currency, you have to claim as income on your taxes.
Buying in Bitcoin does not change the law or is some special loophole.
Once you buy anything, or convert to currency, you have to claim as income on your taxes.
Buying in Bitcoin does not change the law or is some special loophole.
Really this could be. We all have to exchange our crypto currencies for Fiat to spend them on daily needs. Who would said but all of our purchases we make for Fiat. The government can force the exchange and the stock exchange take a percentage of any transaction. The only way to protect against this is to trade bitcoins. But this transaction needs to be cheaper and faster.
It really depends on your country's Tax Laws, and how the government allows you to file your taxes.
In Canada, you have to report Foreign Income on your taxes. It will then be added to your taxable income and taxed on a normal rate. (Keep all your transaction history to prove market price when bought, and market price when sold.)
Now the decision for Canadians is, do you report it every year when you have over $100k or do you only report it when you bring it in.
In Canada, you have to report Foreign Income on your taxes. It will then be added to your taxable income and taxed on a normal rate. (Keep all your transaction history to prove market price when bought, and market price when sold.)
Now the decision for Canadians is, do you report it every year when you have over $100k or do you only report it when you bring it in.
Hi all, I live in Israel - a country with relatively high regulation and tax rates. A recent article shows how bitcoin transfers may soon reach taxation rates of up to 47%! I’m wondering how that compares to other countries?
https://www.themarker.com/opinion/1.4727995
Are there any countries with higher rates?
I didn't actually able to read up on the link you have given since its on different language and I did fail to translate it since its not possible.I want to read up but theres no way. When you do talk on imposing taxes on each bitcoin transfer then it would really be on the way where exchangers would implement such rule because they are the ones who would really impose those add ups. Tx free + Taxation fee = Really a burden for us bitcoin users. https://www.themarker.com/opinion/1.4727995
Are there any countries with higher rates?
Hi all, I live in Israel - a country with relatively high regulation and tax rates. A recent article shows how bitcoin transfers may soon reach taxation rates of up to 47%! I’m wondering how that compares to other countries?
https://www.themarker.com/opinion/1.4727995
Are there any countries with higher rates?
https://www.themarker.com/opinion/1.4727995
Are there any countries with higher rates?
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