Topic: Taxes and crypto. (Read 783 times)

Governments taxing crypto is something they agreed that crypto is a currency. However they shouldn't  tax until or unless they legalized cryptocurrency in their country. It is baseless in taxing crypto without accepting that as legal tender in their country. Tax also should be minimal or less since crypto is a not grwon completely on all the aspects. I really don't like governments taxing apart from the transaction fees we pay in lump sum.

Well, is it not the information they have that they will be able to make use of? Apparently, it is what I declare on the exchange to make use of or convert to fiat is what they are going to tax, isn't it? However they want to do it, to find out my other wallets, I guess we will have to wait and see, but for now, I am still managing their fiat and they can be taxing that one until I am totally done with it. Can't a man just have peace from taxes?

The fact that you are feeling freedom with your gainings is good, but you won't be able to transfer the funds you earned to your bank account later if you won't pay taxes.
I can't accept the reason to use bitcoins because you want to avoid taxes, you can do so with fiat currencies as well, work with cash and don't declare earnings to your government.
Nothing has been changed.

It is even funny how most of them at the top do not pay tax and then the common man is busy working hard and still feeding them while they keep getting so rich. Now they are after my cryptocurrencies? No way! I just cannot wait to see the look on their faces when they find out that we can easily spend our cryptos without having to exchange to fiat. Punks! I am done with their shits! Nothing for them!

I also can not calmly pay taxes while in my country there is too much corruption. It is better to engage in charity sending money to the needy, and not to pay taxes and do not know where your money will go.   

Actually, no person authorize or authorities to collect taxes in cryptocurrency, it is totally free of tax. When we say payments of taxes involves, it is already decentralized system of all cryptocurrencies, but until now cryptocurrencies are operated by a private sector, without any assistant from government. So, no need to worry about taxes payments because cryptocurrency today are free from taxes. Many speculations also stated that if government enter in crypto business and collect taxes, the price of bitcoin will affected and result into price bottom line.

I don't see any problem on that besides as a residence of the country we are oblige to follow the government orders. I don't want to be in jail for not paying my taxes. As long as I'm profitable in my investments no problem to me. I do hope that they will use (Taxes from crypto) for the good of the people not for their own interest.  

Oh no my friend! There is no reason for the state mafia to steal on money we earned by taking risks with our already taxed money. By definition I am against any kind of tax, but even more when you are taxed twice! Just "you are taxed" is a word invented by government robbers for "you are stole".

It's possible to use Bitcoin and other cryptocurrencies in the same fashion as foreign bank accounts to facilitate tax evasion.

The real problem is that the blockchain is a double-edged sword: at present, it assures to you a good level of anonymity, but in the same time keeps trace of any transaction.
If the tax authorities can make a connection between you and an address, they will have the possibility to know all your past movement.

So, the problem is not now, where it's not difficult to hide what are we doing, but in the future.

So, be careful.

I agree. I'm so upset with the way politicians use the public money in my country, that I'll do everything to avoid being robbed by them.
However, whit bitcoin is risky, because any transaction is recorded, and if they can connect a bitcoin address to you, they'll have all your situation under their eyes.
So, the real problem with bitcoin is when you try to exchange them in fiat money.

There should be any problem on being taxed on crypto earnings. If they start adding additional taxes, it can be a huge issue.

According to my opinion many of people are investing in crypto because of their negligible taxes and high security.
But there is a big issue of this negligible taxes and the issue is that due to No tax many countries are not legalizing bitcoin if bitcoin is start accepting some taxes then i think countries will be start accepting bitcoin legally most probably.

In a perfect world, any citizen will give part of his profit to the community, and the collected money will be used in different way (infrastructures, services, social help, and so on) in the interest of community.
In this perfect world everyone would be happy to pay his taxes.
But when you see the misuse of public money and the corruption level in government, it's normal to try to hide your assets.

Moreover, there is a big aspect: big companies have an army of lawyers at their service, and they always find "creative" ways to avoid to pay their taxes, in the meanwhile the average citizen has no defense.

Of course, this is an old discussion, and has nothing to do with crypto.

It seems to be that people are afraid of tax implementation in all crypto holders. As news spread talking about these, it totally shaken the entire community and they trying to ignored this one. But in the moment when government makes its final decision, we can't do nothing for this. It only make troubles if we opposed such government policy about taxation in crypto.

One of the options to avoid all this is to move to Malta. Malta is very crypto-friendly, they have a national strategy to support bitcoin and blockchain technology and Muscat is a great bitcoin supporter himself. Also, the climat is nice there

In legal terms, yes. We must pay taxes for all the revenue we receive (at least in my country). The question is how to arrange everything right. Governments can manipulate people in different mean ways 

I think the government will begin to realize that they will not be able to stop the development of cryptocurrency. they will use other means to provide regulation and someday there will be a tax for wealth and income that can be from investment crypto. That day will definitely happen because the government would want to benefit from anything in their country. I think its not a problem for me. as long as they can legalize cryptocurrency and we can shop with crypto without having convert to fiat

Sometimes I think that what IRS did is not fair, I am not USA citizens but I think the tax regulations by IRS is not really good and fair for cryptocurrency users. The tax rate also high enough. I hope IRS will decrease the tax rate, I just care about cryptocurrency users in USA. Tax income is good but I hope governments collect it in good way.

I think this is inevitable. Especially with how bitcoin has been progressing once the government caught a whiff of a scent of being able to regulate this income generating activity which in a way can impact the fonancial sector of a country then that would be the end point. HOwever I think it is a neccessity especially woth how bitcoin has been volatile I think that with ot being regulated can contribute to its stability

Bitcoin created meant to be a decentralized economic system. And in my opinion, taxing it will make it just like other centralized economics. I'm sure there is no other way of taxing it because of the greedy governments. So i believe using it in anonymous is the only option.

It does not look like that but it is this way, the government wants to tax us to our deaths. You really think they are not after our money. All they want is to rule over us and control all the aspects of our lives so that we cannot even dream to disobey them. The idea of paying tax on crypto currencies is annoying and unbearable. Nobody wants to see government getting benefit out of his digital asset.

There are people who are really ready to pay taxes if they are really going to be used for the development and progress of their country but the problem is that we cannot trust governments blindly because there are many examples where governments have badly dodged people.

The issue is lack of trust and excess of taxes. People are already overloaded with taxes, even the food for babies is not tax free.

A BIG NO! I have a regular job and I pay my full tax I hope that is enough, If they put tax on bitcoin they should put it to the business owner who uses bitcoin or to the people who earn a huge amount, not those who earn a very little just to help their family and regular expenses, but its the government we cannot oppose the government that's the sad part, nothing can be done, if the government wants to have tax for bitcoin and other cryptocurrencies.

The reason on why government imposes tax on almost everything as this fuels their expenditure for the developments and improvements of infrastructures, provide funding for departments and bureaus, provide job opportunities, etc. Though the problem lies with cryptocurrency being taxable or not since most countries does not provide laws for it. Tax imposition is always a double-edged sword towards a working individual, especially when the corruption occurs inside these government agencies.


Cryptocurrencies in general are not taxed due to its decentralized nature. It'll be hard for them to regulate transactions at the blockchain and impose tax on something that is volatile.

This is a given; taxes paid reduces the amount of money you have. But they are necessary because government is necessary and the government needs funding. If taxes are too high, that's an issue that needs to be solved at the ballot box. In the US, we have a party that pretends to be fiscally conservative, but just passed a massive tax cut that primarily benefits the wealthy in a total abandonment of their pledge to fiscal restraint. If the government is running deficits, it is not currently paying for its current level of function, and cutting taxes is not going to improve the situation.

I admit that I have a conflicting position on this subject: on the one hand, I agree with the fact that everyone has to make a contribution to the society based on their profits; on the other hand, when I see what kind of misuse politicians do of our money, I arrive to the conclusion that if I can hide something from bureaucrats it's not dishonesty but just self defense!
This is not only about bitcoin, but about earning in general.
For now, there is no clear legislation in Europe, so I don't worry. Not yet. We'll see the next moves.

It is really easy to say that you are against taxation because the government is not doing anything for your benefit,it is true that the politicians are looting us while they are enjoying all the benefits while the common man suffers,but you have to obey the law in order to live a peaceful life without getting into trouble and if they find out the transactions being done without paying the taxes properly the IRS could impose a huge fine for your actions,so you have to be careful with that.

Not that I'm pro about it but I would rather have my bitcoin earnings taxed (reasonably) rather than having bitcoin eyed as a means of tax evasion and get banned altogether. It's the simplest and legal compromise that we can do to keep our precious bitcoin alive.

I don't mind to pay tax, but governments should make it attractive. The way it looks now, is that they want to tax you to your death, to scare you off doing it. There should be a balance and proper rules in place, and the tax should be the same, as you pay, when you trade Forex or Stocks.

I don't mind paying taxes on the country because I love my country even though I know where the money I spend wil run, my country is a corrupt country, the disease is hard to cure
but if I have to pay the crypto tax on the state I do not agree because in crypto I feel free if I have to pay my taxes i will be in forex

I would choose to be taxed rather than to see my fellow crypto people suffer from the ban implemented by our country. This way is better than to see people hiding from their house and dealing crypto's illegally.
If I'm correct, our money are taxable if we cash out but if it remains to our bitcoin wallet its not yet counted.
When there are news about regulations, expect that it will be followed by taxation.

Okay! Let's see where that whatever it takes end up leading them. Sure, they are so scared about the fact that people will see their crazy tax for what it is and will see cryptocurrency as a way of screwing them back the same way they have been stealing from us over the years from paying taxes and not seeing anything to show for it while some thieves keep living large. It is painful we have to convert to fiat now to be able to make use of our digital currencies, but on a normal day, to heck with them and their tax.

Think realistically, even today cryptos are treated as digital assets not currency. Cryptos are not yet widely used directly in the real market we have to convert it into fiat for use in daily life purchasing. So in short we are paying taxes after converting it into fiat, if government is going to tax cryptos on network it will be totally unfair because we have to pay tax on both checkpoints(i.e in cryptos and after converting it into fiat).
Governments are  trying to create a bottleneck for the crypto users and it is expected that a big crackdown is on the way, I don't know how they will going to do it but they are trying.

The problem with the tax system is that it eats up a huge chunk of your earnings. As much as you want to contribute to your own community and be a law-abiding citizen, it's sometimes become detrimental on your side.

Convenient for you that you don't need to have fiat, unlike others who rely on their crypto and frequently have to exchange their crypto into fiat. In that case, they would have no choice but go through having to deal with the government's implications or tax regulations made by them. I would have to agree since I normally wouldn't mind having to pay taxes however it's sometimes too much when you have to pay a huge percentage of your earnings. Instead of using that amount for other things or putting it in your savings, you are forced to pay just because you earn - and sometimes it's just too much of a hassle and unfair to the crypto-user.

I think some of governments are trying to work towards, though many seems to have misunderstood them and claimed that they are trying to ban Bitcoin from their country for good. After going through what they have said, I understood that the reason they said such was because they are looking for a way to prevent bitcoin from being used in sponsoring criminal activities and also from being used by people to avoid paying tax to the government. But I don’t really know if fighting people that are hiding from paying tax matters now than finding criminals who uses bitcoin.

As per current situations, I believe taxation on bitcoin probably far better than completely banning bitcoin usage. Anyhow, we bitcoiners are having some solutions always. Hence we never need to worry.

Oh man! There is a huge harm in giving something back most especially when those you are giving are the corrupt government who has screwed us all with their stupid taxes. It is a pain in the arise and I cannot wait for the day I will be able to spend my bitcoin without having to convert to fiat.

I am still very optimistic that day is going to come, so I am saving up for it, and they can keep taxing up their fiat until that moment comes, but my bitcoin profit, they can go screw themselves. Enough is enough!

I do not agree if the crypto is taxed, because bitcoin is not set by the government

We put high risk just to earn profit from crypto trading and we also pay enough taxes with our own jobs which I think is already efficient enough for the government.

If they enforce the taxes, they should study first the world of crypto. The goverment will be more like scammer that sucks your earning even in the you havent earned enough. I think there will be more discussion on this if they will imply these law of taxes which will make the crypto market dead for these actions.

Well, In that case buddy we have nothing to do if the government ask for taxes since they can easily control our system by blocking the internet connections relying crypto currencies sitew, as what happened to those countries didn't legalized crypto currencies. What I mean its because it's been part of our law to pay our taxes, on my opinion about that I prefer to have taxes rather that banning crypto currencies in my country.

If the government deserve so and your a nationalist person then there’s no need to argue about this issue, taxation and those collected if used for public service can help the country, then do it. But if your not comfortable about it because the public officials are so corrupt and pocketing every money that is a public fund then you have all the right to refuse or hide but better be good at that, crocs are to greedy with money they will soon look for you.

Yeah sometimes the idea of losing your money to taxing looks scornful but if we live in a country that levys charge on income as tax, you don't have any choice than to socum to the will of the government so long such collection is stated in the constitution.

The theory of government is locked as a social contract. The government are supposedly people who are elected into political offices, Therefore, the social contract depicts that the people relinquish their rights to the government for the use of the betterment of the whole. So if the government finds it proper to levy on income, it is for the good of the whole used for social amenities.

It is the civil responsibility of citizens to pay tax where it is constitutional to pay, whether bitcoin or fiat - no matter the fiat.

In getting taxes from the crypto is need to study first on how they are going to getvfrom it. Maybe they are going to go on for studies on how to get closer to that. Although it is difficult for them but it is helpful to our economy to improve.

Taxes have to be paid, there's no question there. There's no argument you can make that you don't have to pay taxes on this unless you're argument is income taxes are wrong/immoral/what have you, but then you're wrong anyway (but at least you're consistent). The major problem is the method (at least in the US) of taxation and how the US IRS has deemed "taxable events" to effectively cover potentially hundreds or thousands of transactions. The burden is far too high to compute the proper tax owed, and of course, if you make a mistake you're at fault. Computing taxes should be easy and compliance will be higher.

It will be a hell of a no from many traders in the industry,imagine them placing 5-10 % tax per return on cryptocurrencies considering that most traders profited daily and trade daily they will have no income through this,even if the tax is low its stilla big loss for a big and small traders

It's sad for those fellow crypto trader that they have to pay taxes because here in my country we don't have any provisions regarding the gains we get from trading cryptocurrencies, i hope if they will impose tax on crypto gains it will be another 5 years 
But anyway, i don't want to mess up with the authorities so i don't mind paying my taxes, I trust the government of my country more than ever since i voted our current president during elections.

Such nonsense. Taxes are nothing against crypto.

It's called capital gains tax:

- A gain in this scenario is when you trade your crypto for something of value (a product or a service or fiat)
- If you had a gain within one year of your investment, you will be taxed ~25%
- If it's a gain after a year of your investment it's 15%.
- If the gain is above a certain threshold, you add 2.8%.

For God sakes, it's that simple.

Pay your taxes, be a responsible citizen and stop trying to dodge your duties with bullshit rhetoric.

Most governments will want to take as much in tax from crypto as they can, so long as they are taking it from ordinary people. They will see us - people who have made a lot of money from crypto - as undeserving rich, and will bleed them for as much as they can. Crypto is a threat to the establishment, it shakes everything up, and the people at the top are ruthless. They will do anything to protect their privilege. They will tax crypto as hard as they can.
 
But their friends who are board members at major companies or in any high office, the fiat millionaires who go through the revolving door between the higher echelons of government and directorships of corporations, these people are never touched.

It is said that the two certainties in life are death and taxes. But the truth that for the chosen few who run the country - whether in government or in the corporate sphere - for these people taxes are strictly optional.

I believe governments do not deserve to tax earnings from cryptocurrencies. We are all seeing how government is attacking bitcoin as their see it as a scam and not something worthwhile.
Taxation on cryptocurrencies is very unfair and pay it to government is what I will find difficult to do. But if your minds condemned you about it then you should pay.

At the moment I have the funds be sent from the exchange to my actual bank account, I will have to pay tax. It's not necessarily because I am forced to do so directly, but more because of the fact that banks have the habit to report incoming deposits to the tax authorities. Just to be on the safe side, I will pay tax in order to prevent potential problems.

Are you referring to Coinbase? And yes, that happens too in some cases. I am even looking to potentially ditch centralized exchanges for ever when it comes to trading, because I am quite sure that within a few years, all exchanges will be forced to transfer user reports to their respective tax departments. Current regulations are still friendly, that's for sure, so prepare for what has to come.

I do not think that there are many people who will want to pay taxes for the profits received from the crypto currency. Although later in some countries can introduce it.

Well if the general consensus is that there is no way around it, and that eventually we will have to pay something as we will not be able to make withdrawals to fiat without the risk of being asked where the funds came from.

Shouldnt we be focusing on alt coins with high privacy in the hope that some day a non-governmental worldwide system will be in place allowing transactions without disclosure of our details.

Any ideas on this, or has anyone read anything on such a system, please share a link. 

If somebody thinks that it's OK to give something back to their country, they are free to make a donation to the Treasury and support the government. But this has nothing to do with supporting coercion of other people to pay for stuff that you feel good about. Because there is no difference between taxes and robbery.

And since we see bitcoin as a currency (even if the government still doesn't recognizes it as such), do you agree to pay taxes because your dollars are now worth more than they used to do a few years back? (Actually the dollar is worth less every year, his value dropping each and every year because of inflation).

So Hell no, I don't think you should pay taxes for you crypto gains.

I think it would be good if we can pay taxes but hoping that those taxes that we will be paying for would be keep in good hands or will be used to improve the technology of every cryptocurrencies. Hope that they will implement good policy regarding the use of tax to every crypto and hoping that it wouldn't be just in the hands of corrupt people if we pay for it.

I opposed into paying tax to cryptocurrency profits. Our government had enough tax collected. In fact, a new law was implemented to increase the tax revenue. Moreover, corruption is very rumpant in our government. This makes it harder to pay taxes due to corruption. Probably I will not object if I can see where my tax is going. Instead of focusing on having tax on cryptocurrency, they should concentrate on elimating corrupt government officials.

I don't want to pay taxes for my hard earned dollars from cryptocurrency.Actually I was paying taxes for my salary,I was investing my remaining salary. So do you want me to pay a double taxes for my salary. In South Korea, government regulated to pay taxes.Fortunately, I was not in South Korea.Upto now I was free from paying taxes .

No one can escape taxes, even crypto, believe me. Government will always find a way to lay taxes on everything. Look at south korea. They almost banned bitcoin transactions in their country. People goes crazy. After then government said they will bit ban transaction but will include taxes on it. People find it better than banning it totally.

Taxes. Like they are the worst and the best at the same time. You're earning that 1500 USD that will be withdrawn to your bank account? Well let us cut it off a bit. You're gonna buy that PS4  you dreamed off for a long time? Well pay us first or you're screwed than what you can imagine. These things that we hate and would almost want to evade it almost make us have a misconception that these taxes in all of our earnings are all just for the bad. In every cash inflows we get in our wallet, there will always be an outflows. But everyone shouldn't be worried when those times arrive. We should be even more happy and proud. Why? What could have happened the worse from the action of the government other than putting tax in it? Ban it. I mean if government wouldn't regulate these earning we would get then it could also pose a risk for them due to people investing too much in the cryptos that might end up in a crash one day while these local banks are living in a silence. If we will pay our taxes in the future from the earning in Bitcoin or any other cryptos then see to it that it is for the good. It is the gratitude for the government supporting cryptos rather than banning it. And who knows how much more will government support cryptos in the future   ? Korea installed a trading platform for cryptocurrency. It is a real-name trading and it would reduce scams.

Hey! Paying for taxes from crypto means government recognizing it. Once government supported the system then, cryptocoins can be use on markets as well. Isn't that nice, right? Although, it sounds to good to be through a lot of things needs to be done first and studying on how to run this world will be bloody.

I totally agree. First your income gets taxed with personal income tax, then you put it to the bank account and the smallish interest is taxed again, then you go out buying some stuff and you pay VAT on top of that all. Then whatever is saved (if any) you invest and then you may lose or you may gain. If you lost, sorry! But if you gain - pay the capital gain tax.

What bothers me is that they really have means to repeat all that with crypto: you buy something with crypto - you pay VAT on top of the price. You sell your crypto - you pay the capital gain tax.

One must really stretch one's brain to come up with means to avoid that and it really may be that the window of opportunity is slowly closing. The system may become well impregnated, soon.

Well they could try. It's almost impossible to tax at an individual level because of the technology's design. They'd have to tax exchanges (which might cause them to shut down.) but even if they do, you could always use exchanges on different countries with lax laws. It's understandable that governments would want to tax it, especially since it's a booming industry. but of course its citizens would go to extreme lenghts to avoid this. Let's enjoy the relatively lax laws on cryptos because in the future i expect them to be stricter.

Cypto in my country is not declared as legal nor illegal so I'd not think it is logical to pay my tax if it is not bound in the law. And actually I am very much happy of this setting, seeing myself making money but free from these people that can drain my wallet and stregnth in a way that you can hardly see. Tax is just a small amount of one month you earn but because you are bound for the whole of your life in their authority that little thing is increasing and enough for your important need. And the problem, this people are only good for taking your money but not In their responsibility.
Crypt is the freedom of every one who are bondage from their law motivated only for corruption.

The situation will be different from countries to countries. People in our country are risking some of their money and doing trading from grade 12 to a 30 plus year old man. What they are regulating here are only the platform or services that trades diet to BTC, but we are at the point that every person who are doing crypto are paying tax. I think I should pursue my career in engineering if they do that. It is still not even clear to me if I will have some profit, as we can all see, the markets are falling

I'm not too comfortable being taxed from profits I make in cryptocurrency.
I think it's absurd that everything has to be taxed, small transactions should
somewhat be exempted. But I believe governments will try to get involve in
cryptocurrencies, we can expect from that. I understand the importance of
taxes, it has a purpose and citizens can benefit from it. Once bitcoin and altcoins
are regulated and taxes enforced by the government, we may see a decline
and a stable price from these coins in the future.

I think that regulating cryptocurrency is a herculean task because a lot of people would have a divied say into how much should be taxed or how much should we divide so that all parties concerned would be satisfied. However, the only way to really ensure that there would be stability in the area concerncing cryptocurrency in the future would be to have this regulated and in check

I can see how much everyone is pouring out their bitterness here. It is crazy isn't it ?

How the regular people are the ones doing the chunk of the job, paying taxes with nothing being given back to them and then now when we found a way to rub back their shit on them, they want us to pay capital gain tax on the crypto I have worked for ?

They can stick their fiat in the butts, I do not care. I am going to be holding and believing that one day, I can easily just tell fiat system to go screw itself.

Taxes in theory are very beneficial for the society in general and I would be happy to pay something back for them but unfortunately governments take the meat and leave you with the bones and the majority is not used for the society.

People pay taxes for every profit that they make and for governments it doesnt matter where that profit comes from. Its not going to take long until governments will see the opportunity in bitcoin and apply taxes to people ehp are making profits from it. It is going to to be hard to do that since bitcoin was created especially to avoid that but governments will do everything and I think they will be able somehow to add some taxes to it. Even though bitcoin transactions are anonymous, the transactions from exchangers where you sell your bitcoins are not anonymous. The best thing to do is sell it by meeting with the person and taking money in hand

Spot on. People work their entire life to build up a certain amount of wealth, which consists of salary and investments mostly, where people already paid the due tax, and they still are forced to declare their holdings every year and let the government take "their" cut of the pie. Main point of importance is that as long as people let the government do so, this system is paying off in a viable longterm manner, which means that there is no reason for the government to change anything. Their lacking will to change anything becomes yet again visible in the way that wealth taxation hasn't gone down at all, and that while people on average have gone backwards with their yearly returns due to lower interest rates, etc.

Taxes are really very important for a country's welfare and growth. But tax rates should be genuine and does not feel like paying it as a burden on them. Moreover using this collected tax on welfare of society will encourage taxpayers to be honest and pay more.

We are the same I'm no a fiat centric person too which I don't really even have the transactions on converting my crypto coins into cash but same as being said you will still end up on being traced specially when there are transactions happening into your own bank account which you would really be question related to that.This is why when I do tend to cash out some I do only get some money which isn't really alarming or doesn't really caught their attention.Paying off taxes on my regular job would really be already sufficient.

That is it, we take the risk by ourselves, but if we have success we need to share our profit, very fair, no?

Depend the government. If it's a government that respects its people they won't abuse the citizens asking for pieces of the big profit's cake.
But in most countries they will ask for big pieces of cake and will go farest as possible to get it, if necessary.

It's the best business a parasitic government could ask for: No risk (for the government), high profit returns (in taxes), lots of money to steal and distribute to the miserable, so they can continue miserable, but very thankful to the government who gives them 'free money'.

I agree about the corrupt nature of the fiat system. I don't mind paying taxes, but I resent the money being used to feed and support the credit/debt/interest system that crypto will hopefully one day overthrow and supplant. The aim for me is also to hold most of it until we can spend crypto as easily as we can spend fiat.

Non-crypto people talk about how bitcoin is used by criminals - but bitcoin has a guaranteed fixed supply, unlike fiat where governments just print money at will, and they won't even admit it, they'll just call it 'quantitative easing' or whatever is the euphemism of the day.

I agree that large transactions should pay a tax, I would have no problem doing so. But what happens? The governments not only want to demand that we pay taxes for each bitcoin transaction but also that they want to control and declare that they even have a certain amount that it has cost us to obtain, if you do not limit them, eliminate your accounts or they will look for ways to leave you in ruins. That is the cruel thing, they always want to have control of everything the investor does even if he is a small investor.

When they decide to legalize bitcoin than I will start to pay the tax when they have regulate it otherwise I'm not !
It's not reasonable to pay all of my bitcoin tax when they finally legalize bitcoin regulation !?
Luckily my government still not want to legalize bitcoin because they want to protect our security rather than their wealth ( by tax income )

I don't think there is any harm in giving something back to your country if you are earning something great however this percentage must be limited to just something and not everything. Like 30-40% tax is quite burdensome. Not only in cryptos even in General I think taxes must be limited upto around 10% or max 20% of your earnings so much of tax is not only burdensome but also too evil. Its like punishing the people who earn more just because they are earning more.

I do everything according to the law, it's not worth risking your personal freedom over not paying any taxes.
That said, in my country we do not have to pay capital gains tax on long term investments, I avoid a good chunk of that by just holding my coins instead of selling them.

People here seem to be advocating not paying taxes, that's fine, but don't complain when uncle sam takes your ass to jail.

I don't see how earnings in crypto are any different to anything else. Your example of having lost is similar to a new business venture, they have a risk also but that doesn't mean they don't pay taxes if things work out. Arguments can be made for and against taxation but I don't think any real argument can be made as to if crypto earnings should be taxed or not.

Irrespective of our personal opinions, country governments are going to have their own way with deriving the most profitable scenario towards national interest, whether it would be taxation of cryptocurrency income on individuals or an attempt at completely governing decentralized digital currencies.
Yet, I am of the opinion that taxing cryptos would be a burden on the governments itself as tracking down incoming and outgoing transactions would be a big problem with the existence of several anonymous coins unless the country's whole internet is under surveillance which again is highly unlikely.

 I think they will do whatever it takes.. 

I think people are taking interest in crypto because of no tax or very negligible tax, and everyone need to pay these taxes happily because if you can compare these taxes with taxes with fiat then this nothing. While if cypto can start accepting some more tax then also we need to keep patience because we want to improve crypto to peak level.

Well, do we have any choice now? As long as you are going to be converting to fiat, then you better pay up sucker. However, if you want to keep holding and hoping that one day you will be able to spend your cryptocurrencies without having to convert to fiat, then that is good too.

The truth is, the ball is in everyone's court. You cannot eat your cake and have it, so at the end, you will just have to choose one of those. For me though, I have no problem paying tax if I have to remove some of them for something urgent and if I am lucky enough to buy a house, car or whatever without exchanging to fiat one day, then good and fine. I can't wait for it. Those mo'fckers have taken so much already from everyone with their crazy tax.

Every government want to make revenue from anything that is beneficial to the citizen so they are asking taxes for using crypto currencies but it is not fair in my opinion.But they can only tax us until we to crypto to fiat transaction.When we full adopt to crypto to crypto usage then there is no need to pay any taxes.

Will you not have to pay taxes the  time when you finally cash out ? I mean one day you will get the profits in banks and then how will hide those transactions. In my country, the Income tax department has already started raiding the exchanges and collecting the information of investors. Thereafter notices were sent to those who were investing huge amount of money in Bitcoins.

Hi,

For the moment, I think the answer is clear. Governments are corrupted, public money goes in red tape...

So definitely, no. As long as we can avoid paying taxes on what we earn, let's avoid taxes!

BUT in a different world, in a perfect society.. It could be actually great to consider bitcoin as part of the income. It's actually quite normal, if you earn your life through bitcoin, to give part of it to society. Just because I believe that the State can play a role in providing necessities for everyone (schools, hospitals, etc). And what could be actually great, would be to develop a REAL direct democracy, n which everyone can vote for any decision. In such cases, I would be more than happy to pay taxes, even on bitcoin. Just because what would be provided with such money would be what people really need.

I know, this is kind of an utopia. Still

I don't mind paying taxes for the government. The only problem I see is that I don't know where my taxes are going. In my country, there are too much corruption and the taxes are already high (around 30%). That's why I dig my hands on crypto to stay away from the prying eyes of the government. But with all the regulations around crypto around the world, it will be just a matter of time before everyone of us started to pay taxes with our crypto earnings, specially converting it to fiat. If I know that the money that I'm paying is going to be for let say health care or education. But if its just going to the wallet of corrupt politicians, I would rather hold my bitcoins for a long time.

i could be in Forex if i want to pay taxes... Crypto is the only way that i am feeling freedom with my gainings also i hate tı contribute on social life and goverments with boundries and i hope that will change soon . They are living as rich people with my saving and risks for gaining money ... Ahh hate it .

Yeah totally agree. Being audited and having the 100% taken is definitely not something I am willing to risk. I have nothing against paying taxes, and I do, however its nice when something is coming back into society in the form of public health etc.

But as pointed out correctly by 1Referee, all we seem to be doing is paying off a never ending debt which was inflamed by the greediness of politicians and VIP's. So it gets me a bit hot under the collar when I take the risk to invest in a system where its legitimacy is trying to be undermined by the very source which is trying to make me broke only to charge me again on any earnings i could get.

It's not a great feeling when The Man comes to take a significant portion of your earnings. I always think about that Roman tax collector from Asterisk and Obelix, i.e., I hated him and wish there was an Obelix around to level the playing field once in a while. That said, how bad you feel when paying your taxes will dwindle in comparison to how bad you will feel upon being audited and having not paid your taxes. It's really serious stuff.

So pay your taxes, you may earn less, but enjoy your earnings with a clear head and sleep well at night regardless of whether or not you are going to get audited.

I pay enough tax already outside the crypto field, so I am definitely not letting to government eat off any of my crypto holdings. The downside of this is that my freedom to have it converted back to fiat gets drastically limited by doing so. It doesn't mean that I can't have it sent to my bank account, but these bastards register and report everything, which is forming quite an obstacle. Good thing however is that I am not a fiat centric person, which means that I gladly keep holding on to my coins for plenty of more years, just like I have always been doing. Don't get me wrong, I don't mind paying tax, but it has to be reasonable and limited - it's pure theft to require people to have them pay tax endlessly over the same amount of money.

It's a system based on debt that will drain your wealth bit by bit throughout the years till you have nothing left. Seriously, the majority of people only see their wealth shrink and shrink, where they will end up broke at whatever point in time. I am glad that Bitcoin allows me to outrule this poverty stimulating rubbish system.

How does everyone feel about being taxed on profits earned through crypto currencies. We all took the leap of faith and risked our money, if we had all lost our money would the IRS still be interested in taxing us. Dont think so.

How far do you think governments will go to get a piece of the action?