Topic: Taxes on Crypto Currencies and Mining! (Read 386 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 !
I think that taxes are still due to the fact that a lot of energy resources are being spent on extraction, and because of this, it is possible in other areas because of this problem.
In my country, only going to make a tax of 20%, but I think that people will bypass them because the tax is quite large and if you pull out a huge amount, then you lose too not bad means.
It is certainly necessary to maintain a country's normal operation, because many countries do not have special taxes on the mining of encrypted money, so they are usually taxed in the way of your assets. I think 28% of the tax is too high, which will hinder a lot of people's enthusiasm for mining.
I think bitcoin is not taxed at all, at least in my country. But when you trade bitcoin, you may be taxed to prevent illegal trafficking and money laundering among criminal gangs.
This is somehow wrong, why to tax someone if the mines us not sustained by the government, like smaller process to energy??
This is wrong and that is the reason people do not pour in their money into crypto just because of the fear that government will tax them for the money they would earn in crypto or mining. A progressive tax is something that will be issued on your name as long as you are earning in crypto and with the rise in your profit. Besides, implementing tax on mining is something that will discourage the activities of mining because of the already high process of electricity and the cost of investment.
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?
I think that they will definitely make something like this, my only hope is that this taxes would be affordable and we will not having a need to pay around 70% of our earnings to government. Any thoughts about this?
I don't like this kind of discussion: bitcoin was born to free us from governments and taxes!
I think it is necessary to work in this spirit and find a way to escape the state robbers.
Unfortunately people are scared, and do not have the courage to go to a different society, free from ties and corrupt politicians.
But I think that the bitcoin - used correctly - is really the key to a new world: if we really can take away from the states the monetary power, what else will remain to them?
I am not sure if Bitcoin would work well enough on it's own. Bitcoin is more of a median point, or interface, more so than a currency. It could not have been as successful as it is today if it didn't start to become regulated. Bitcoins value is affected by supply and demand, the more people that want in, naturally, the higher the price travels. I think it is necessary to work in this spirit and find a way to escape the state robbers.
Unfortunately people are scared, and do not have the courage to go to a different society, free from ties and corrupt politicians.
But I think that the bitcoin - used correctly - is really the key to a new world: if we really can take away from the states the monetary power, what else will remain to them?
In my country there is as yet no legislative basis for the taxation of mining.And in General, how should this happen in practice?If I bought a mining equipment, I need to go and tell the tax office about it.No one's gonna do that.
Taxes are designed to benefit the user in all areas. The tax is levied by each government for approval. So taxes are used professionally and civilly, taxes are very beneficial to the community. On the other hand, if tax is used incorrectly, many organizations that abuse tax to bring bad profits to them are not good. 
In my country there is as yet no legislative basis for the taxation of mining.And in General, how should this happen in practice?If I bought a mining equipment, I need to go and tell the tax office about it.No one's gonna do that.
This is somehow wrong, why to tax someone if the mines us not sustained by the government, like smaller process to energy??
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?
Any thoughts about this?
In my own opinion, placing taxes for cryptocurrency and mining is not necessary because those investors and traders in the market are already paying transaction fee's that can consider to compensate with taxes.
Depending, but there are also many miners who are charged with very high taxes under these market conditions, it is not a good policy for greedy governments to set a tariff on mining taxes, inevitably something that is recognized to be taxed, as well as home and so on, do not can be avoided anymore, many miners are outnumbered by this condition with exorbitant taxes and spending too much on other needs.
Taxes are inputted in the services we often used, if the taxes is just minimal for the system charges i am not be affected by paying such taxes required. Lets not be more critical on the service charges or taxes we pay, such company should pay also their employees or what we call Manpower fees.
I think it is unfair to introduce taxes on cryptocurrency, it is illegal, people invest their honestly earned money there and get interest from it. It's like in a Bank only risk and therefore profit can be greater. You do not pay taxes to the Bank for putting money on the Deposit
With your logic, when we have business, we don't have to pay any tax or can say the same about wages, because it's our own business and people also deserve their wage, if not a higher.It's very fair and OP doesn't write truth. There is tax on mining, everything depends on how you do it. For example if I mine at home, no one will come and tax me but in Georgia Bitfury has largest mining datacenter. In reality they have to pay taxes but with agreement of goverment, they have privileges, they are in Tax Free zone and they even get electricity in more cheap price than anyone in this country. Idea behind this, as they say is to make georgia in top in map of bitcoin mining and to tell others that Georgia exists and it's modern country.
Yes when we speak on tax exemptions.... Mining is nice when you have right equipments and tools and you'll earn good then you can start it..
I think it is unfair to introduce taxes on cryptocurrency, it is illegal, people invest their honestly earned money there and get interest from it. It's like in a Bank only risk and therefore profit can be greater. You do not pay taxes to the Bank for putting money on the Deposit
Do you have any source for this? I just want a form of control/regulation on it. That can reduce fraud and the likes
Depending, but there are also many miners who are charged with very high taxes under these market conditions, it is not a good policy for greedy governments to set a tariff on mining taxes, inevitably something that is recognized to be taxed, as well as home and so on, do not can be avoided anymore, many miners are outnumbered by this condition with exorbitant taxes and spending too much on other needs.
Why not it is also a type of business which use space, energy and work force all the time. All these processes takes up cost and this cost is always taxed by the government as everything happens under the jurisdiction of the government.
Its far better to have VAT, TAX on such things as it also validates the income and gets us white money. We can then expand everything with full surety that what we are doing is having legal status and no need to be worried about raids and stuff life that. Fundamentally!
Its far better to have VAT, TAX on such things as it also validates the income and gets us white money. We can then expand everything with full surety that what we are doing is having legal status and no need to be worried about raids and stuff life that. Fundamentally!
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?
No I don’t think that mining is legal in the whole world. In my country very small number of people mine crypto because it is banned in my country. When a currency is not allowed how its mining is allowed no possibility of that. If I mine bitcoin I will never pay tax on that because the government has nothing to do with crypto, so why I should pay taxes?Any thoughts about this?
Where are you based? In the US specifically, Bitcoins are taxed whenever a taxable event takes place. These include: using them for payments, selling them, converting them to other cryptos, etc. I wouldn't know how to compute for the initial cost, but that may just be operational expenses for the period.
I'd personally say it's fair for as long as it's being taxed the same way as everything else. There shouldn't be higher tax rates specifically for crypto earnings, at the very least.
I'd personally say it's fair for as long as it's being taxed the same way as everything else. There shouldn't be higher tax rates specifically for crypto earnings, at the very least.
That sounds really fair while making the stuff here charged with tax. I think it is more or less good because we can pretend the crypto currencies as part of daily life. There should be no wonder, surprises from the government side while using it and we can just make it our part of life. I think that is sufficient enough and it doesn't matter if they tax it or not. But in my country as responsible person anything you earn have to be looked after its tax payment. This is important because that can make me go green every time I will earn anything from the crypto.
Where are you based? In the US specifically, Bitcoins are taxed whenever a taxable event takes place. These include: using them for payments, selling them, converting them to other cryptos, etc. I wouldn't know how to compute for the initial cost, but that may just be operational expenses for the period.
I'd personally say it's fair for as long as it's being taxed the same way as everything else. There shouldn't be higher tax rates specifically for crypto earnings, at the very least.
I'd personally say it's fair for as long as it's being taxed the same way as everything else. There shouldn't be higher tax rates specifically for crypto earnings, at the very least.
yes, you can mine all you want, you can acquire more bitcoin all you want and whenever you want, there is no tax but when you convert it to fiats, then you will have a problem with tax, when you transact it on an exchange, there will be fees that are subjects to tax but it was being shouldered by the exchange sites, then they pass it on the users covered by high fees and expensive conversion fees. 
I don't like this kind of discussion: bitcoin was born to free us from governments and taxes!
I think it is necessary to work in this spirit and find a way to escape the state robbers.
Unfortunately people are scared, and do not have the courage to go to a different society, free from ties and corrupt politicians.
But I think that the bitcoin - used correctly - is really the key to a new world: if we really can take away from the states the monetary power, what else will remain to them?
I think it is necessary to work in this spirit and find a way to escape the state robbers.
Unfortunately people are scared, and do not have the courage to go to a different society, free from ties and corrupt politicians.
But I think that the bitcoin - used correctly - is really the key to a new world: if we really can take away from the states the monetary power, what else will remain to them?
Its bitterly true but we cant escape these state robber without giving them any robbery at all. Do your really think there is way to hide all the assets from the government. The crypto currencies might be pseudo anonymous but that doesn't mean we can hide our assets and save our taxes. If we are doing mining then we are using heavy electricity for it and thus paying the bills for it. Government will always ask for what we are using such heavy electricity and thus we have to tel the truth, pay the taxes for what we earn from it. You see, its unimaginable to escape.
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?
eAny thoughts about this?
For me 28% is not bad to pay for taxes since we are earning good profit here in crypto,but i dont think it's applicable on mining because it has smaller amount of income since electricity rate are too expensive
This tax value should be implemented for thoses joining ico investment because they are the good earning or most special is on gambling
I don't like this kind of discussion: bitcoin was born to free us from governments and taxes!
I think it is necessary to work in this spirit and find a way to escape the state robbers.
Unfortunately people are scared, and do not have the courage to go to a different society, free from ties and corrupt politicians.
But I think that the bitcoin - used correctly - is really the key to a new world: if we really can take away from the states the monetary power, what else will remain to them?
I think it is necessary to work in this spirit and find a way to escape the state robbers.
Unfortunately people are scared, and do not have the courage to go to a different society, free from ties and corrupt politicians.
But I think that the bitcoin - used correctly - is really the key to a new world: if we really can take away from the states the monetary power, what else will remain to them?
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?
Any thoughts about this?
Some of the minings of cryptocurrencies is somehow hard and expensive. If the government takes taxes from mining then how would the miners and investors cope up the losses they will take when things gets down?
Yes I think that is the way it works in most of the countries. Because there is no way to track the earnings from the mining as long as miners do not take out their money into banks then its almost equal to untraceable. This applies to almost every way of earning as you have mentioned up here. Even I am paying my taxes according to what I earn in the crypto currencies. I have paid this for two consecutive years and happy with that one. This makes me feel good whenever I am making any transaction from the crypto to bank then I confident about it.
You cannot earn a fix amount from mining because it is related to the price of the coin you are mining. If the price increases you will earn more, but if the price decreases your earning will also downs and the government will not be satisfied with the ups and downs in your earnings. Fix amount of tax will be a burden on your shoulders. Taxation is one of back bone for government but politicians will not sharing that money to the people. Then what is the fucking purpose for the paying the taxation for crypto currencies too bro.
Politicians share money with the people. At the very least, they spend some of the taxpayer's money to finish their projects(a great example of this is road expansions and public facility development) and share the money they collect from us(even if some of it ends up in their pockets). The only purpose for paying tax for cryptocurrencies is for it(and transactions done in crypto) to be considered legal in government's eyes.
Off course that might just help the government as well as people who are trying to earn thought those ways. I mean if they are getting money via mining and investing into the crypto currencies then that is not a problem at all. It is not illegal stuff as long as their source of income is very much trusted and straight forward in the government list. This can help them to get passive income and as far as government consider they surely can get money out of it in the form of taxes. Its a good idea but government should really agree upon this and implement some system for it.
Taxation on cryptocurrencies is good because this will enable governments to pick interest in cryptocurrencies market. Investing into cryptocurrencies market should be tax as governments is the one that provides us with enabling environment to mining bitcoin and ever other form of bitcoin investments.
Taxation is one of back bone for government but politicians will not sharing that money to the people. Then what is the fucking purpose for the paying the taxation for crypto currencies too bro.
Mining bitcoin is not a easy but you can mine the alcoins with the GPU cards with the help of electricity.
Taxation on cryptocurrencies is good because this will enable governments to pick interest in cryptocurrencies market. Investing into cryptocurrencies market should be tax as governments is the one that provides us with enabling environment to mining bitcoin and ever other form of bitcoin investments.
There is capital gains tax but that can be offset against expenses. Look at the running cost of a mining rig and then deduct that from the profits and that is what will be taxed. Although the law is still a bit grey in this area
which countries charge taxes up to 28%? I think that figure is too big for the size of income tax. a rational tax is 10-15% of income. but I think for digital currency mining are just some countries that have set about the tax provisions. in asia income tax that has been registered only to be in kenai state tax
It depends on what country you are residing in.
In my country, basically both CGT and any income generated through mining crypto are taxed at the same rates under the tax brackets as income tax. It could be different in other countries, especially if they consider bitcoin to be a good instead of a currency or asset. 28% isn't really that bad, tbh, if it's just a flat rate.
Anyhow, you should check with the relevant tax agencies and seek professional advice. Every country is different on this matter.
In my country, basically both CGT and any income generated through mining crypto are taxed at the same rates under the tax brackets as income tax. It could be different in other countries, especially if they consider bitcoin to be a good instead of a currency or asset. 28% isn't really that bad, tbh, if it's just a flat rate.
Anyhow, you should check with the relevant tax agencies and seek professional advice. Every country is different on this matter.
Yes I think that is the way it works in most of the countries. Because there is no way to track the earnings from the mining as long as miners do not take out their money into banks then its almost equal to untraceable. This applies to almost every way of earning as you have mentioned up here. Even I am paying my taxes according to what I earn in the crypto currencies. I have paid this for two consecutive years and happy with that one. This makes me feel good whenever I am making any transaction from the crypto to bank then I confident about it.
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?
Any thoughts about this?
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