Topic: Taxes on Crypto Currencies and Mining! (Read 400 times)
It all depends on your country, because not all countries cryptocurrency taxed, and not all countries are fully thought out laws on cryptocurrency!
maybe crypto hasn't been taxed yet, but when the owner exchanges bitcoin they pass the banking system they are subject to income tax and asset tax, so any bitcoin owner will be taxed but indirectly. but that's a very good thing because indirectly the government has recognized bitcoin something that does not violate the law.
It is that form of exchange that would bring about the taxation and as long as you are getting a capital gain, in most developed world you will be subjected to capital gain tax and if you evade it, you face the wrath of the law, which is something I believe in most countries that are developed, it is really frowned at.However, this is only something we can see as long as regulation is in place. Taxation is not the problem, but the leniency is always going to be the thing for the government of each country. Also, in the aspect of it being regulated, this shows recognition by the government and in that case, there is no going back.
crypto is a new technology and many of the countries in the world have not prepared certain rules about crypto, ranging from taxation for crypto mining, taxation for crypto investment and also for trading taxes
Actually it grew very quickly because it is the technology that could be operated from anywhere around the world and initially all the people around the world were so excited about this new way of earning money that went viral. Those who invested for long earned great outputs and still are the richest people in Bitcoin. However, they fear the implementation of tax on cryptocurrency for it might make them pay a part of the money they would earn in crypto. Due to this, they fear to invest further. In addition, if the cost of mining after imposing tax exceeds the profit they earn in mining, mining will stop.
I think crypto currency taxing and mining taxing should be way different than each other.
First of all owning crypto should not be taxed at all, it should be however taxed if you cash back out to fiat with profit. Lets say you put in 1000 dollars into something and the coin you invested increases and you now have 1200 dollars, you should be taxed on that 200 dollar profit you had. Otherwise you are just paying for something you just own as it is.
If you mine tho than you should be taxed depending on the power of your mining. Like categories, if you are a bitcoin miner at the levels of thousands of miners and many workers etc etc type deal you should be taxed differently whereas small one or two rig people should be taxed less, even none.
First of all owning crypto should not be taxed at all, it should be however taxed if you cash back out to fiat with profit. Lets say you put in 1000 dollars into something and the coin you invested increases and you now have 1200 dollars, you should be taxed on that 200 dollar profit you had. Otherwise you are just paying for something you just own as it is.
If you mine tho than you should be taxed depending on the power of your mining. Like categories, if you are a bitcoin miner at the levels of thousands of miners and many workers etc etc type deal you should be taxed differently whereas small one or two rig people should be taxed less, even none.
crypto is a new technology and many of the countries in the world have not prepared certain rules about crypto, ranging from taxation for crypto mining, taxation for crypto investment and also for trading taxes
Rules of regulation are not hard to prepare as long as there is a regulatory framework. Over time, I so much believe this is something we would get to experience eventually as each country will want to be able to access things in a very different angle based on the benefit they end up deriving from it.Taxes on cryptocurrency and mining will still be related in a lot of ways anyway as long as regulation comes in and that would be based totally on each country's legislations and laws at the end of the day. Probably, it is time to move to country where tax evasion is easy
just kidding!
How does it work guys? Mining is completely legal and as far as I know there are no such % of tax that is taken specifically to the crypto mining. I think it all goes the same way as you would do with trading and gambling. When you will withdraw money into your bank account which you have gotten from the mining then it will be charged the same way as your salary gets taxed. With the different slots of income you will get charged different taxes mate. That is how it works. Also it depends on your country too. In some country's it is going to be taxed around 28% whopping price tag over the crypto earnings.
Any thoughts about this?
In my country the government does not care about Cryptocurrencies and they don’t charge tax for it. Also I don’t think anyone here is ready to pay tax for making use or investing on Bitcoin or any cryptocurrency. The government has no access to the Blockchain, so you’re only going to pay tax for your real job and not crypto. Crypto is completely out of the hands of government. Any thoughts about this?
I think tax is the reason why the government ban cryptocurrency. If there are taxs on cryptocurrencies and mining, maybe the government will accept bitcoin soon.
Some countries have laid taxes on cryptocurrencies and mining while many other countries are deciding to impose a tax on cryptos.We could even take this move positively that by imposing tax, governments indirectly agree on cryptos and their related industries like mining to be legal.
and to this day I am truly grateful that my country has not given more attention to these two things, especially in the area of taxation
although in the end if one day there will be a tax withdrawal for both things
although in the end if one day there will be a tax withdrawal for both things
maybe crypto hasn't been taxed yet, but when the owner exchanges bitcoin they pass the banking system they are subject to income tax and asset tax, so any bitcoin owner will be taxed but indirectly. but that's a very good thing because indirectly the government has recognized bitcoin something that does not violate the law.
I believe taxation is something we will get to see eventually as the space starts getting regulated and as long as fiat still stays relevant and even if you have to spend at times, it will still have to go through a channel unless you are doing peer to peer but I always believe is that at some point, there will still be someone who would need to convert to fiat. Leaders in Abu Dhabi recently have been clamoring for the need to implement international regulations across board, so it is something that in the long run, seems would be expected. BTC > TrueUSD
Problem solved.
You wish. If you cash out profits, whether it's to fiat or another crypto currency, you have to pay due taxes. If it was that easy to game the system governments would have changed everything by now already.Problem solved.
It still seems that people don't know how taxation works, likely because many of them haven't ever paid a penny in tax or they just blindly assume that you can work your way around the system.
Trading on centralized exchanges is a direct gateway to governments, especially when it comes to Coinbase and Poloniex with how regulated they are. The rest of the exchanges will follow in the coming months/years.
I don't know why some countries banning and regulating cryptocurrencies when income in form of taxes can be generated it baffles me to see even countries whose economy is struggling taking a stiff stance on cryptos having known that adopting it will boast their economy downturn because vast amount income would be generate from taxing mining operations, gambling, trading etc.
maybe crypto hasn't been taxed yet, but when the owner exchanges bitcoin they pass the banking system they are subject to income tax and asset tax, so any bitcoin owner will be taxed but indirectly. but that's a very good thing because indirectly the government has recognized bitcoin something that does not violate the law.
How does it work guys? Mining is completely legal and as far as I know there are no such % of tax that is taken specifically to the crypto mining. I think it all goes the same way as you would do with trading and gambling. When you will withdraw money into your bank account which you have gotten from the mining then it will be charged the same way as your salary gets taxed. With the different slots of income you will get charged different taxes mate. That is how it works. Also it depends on your country too. In some country's it is going to be taxed around 28% whopping price tag over the crypto earnings.
Any thoughts about this?
Each country has its own legislation so you will have to check with an attorney and your accountant what kind of taxes you need to pay if you're a miner, if you are a trader or a holder, so it is very difficult to answer your question because there are some countries in which you will need to pay income tax while in others you will probably need to pay capital tax gains. Any thoughts about this?
crypto is a new technology and many of the countries in the world have not prepared certain rules about crypto, ranging from taxation for crypto mining, taxation for crypto investment and also for trading taxes
BTC > TrueUSD
Problem solved.
Problem solved.
tax implementation for crypto currency mining I think it's pretty good considering this will be very profitable for the country because the money generated from this activity is quite large every day, besides that crypto currency mining activities also require very large resources to be feasible if taxed like large-scale industrial companies
Here, in the Philippines, Cryptocurrency is recognized but not controlled.. Giving taxes on crypto might depend on your country.. and I think the transaction fees in mining is like giving tax already..
If that's the case, many people will stop involving in crypto.. many will not support/trust the technology and digital transactions if it will be taxed..
If that's the case, many people will stop involving in crypto.. many will not support/trust the technology and digital transactions if it will be taxed..
There is no regulation on my country about mining earn. So I think, almost all government still didn't make any regulation.
Even if the state wants to take a tax for the use of cryptocurrency or mining, it will not be able to calculate the person who is engaged in this because the crypto currency is completely anonymous !
Jump to: