Topic: What if authorities launch a tax for owning bitcoin? - page 4. (Read 630 times)

You need to hold at least a year and trade up to $47,025 in a year to avoid tax.

But if you're someone who earn money (Bitcoin) by freelancing, signature campaign etc, you're supposed to report your income tax regardless how small or big it is. The lowest is 10%, now it depends with your choice, either you commit tax avoidance (pay 10% tax and legal) or tax evasion (0% tax but illegal).


https://www.bankrate.com/investing/long-term-capital-gains-tax/#rates

Hmm, interesting after reading a couple of the reactions on the post, it is too much haha, TBH in my case and my fellow's case we don't care about Taxation on the Bitcoin as there's no regulatory policy about the existence of the Bitcoin. On the concern of taxation, I think India is a big example as people move to the unreliable and some other alternatives to avoid taxation. If their motive is to track down the movement of the assets they need to carefully decide on the policy to follow.

In short for now, don't worry their primary motive is not to make some bucks by imposing taxation on the asset class Bitcoin.

The bolded part is the problem. I know it's the kind of problem you're hoping for, but if Bitcoin goes up enough and you're rich in Bitcoins, it sucks not being able to use it.

Who said you can't do that here either? 
Another interesting point in Portugal is that it was never banned. Therefore, everything can be done normally. This issue of taxes on profits obtained in the last year only exists at the moment - easy to deal with.

Either way, in this case you are right. If it is prohibited in the country, no exchange obtains information to give to the government. You will only have problems if you are caught in the act.

You may laugh after reading my posts. But, Bitcoin is best where it's banned. 
I am not kidding. I live in a 3rd world country and Bitcoin is banned here. So, there is no question of taxing anything related to Bitcoin. However the government does not have any way of knowing if I own Bitcoin or not. I never bought Bitcoin using banks. So, it's connected with any cryptocurrency-related platform. The only possibility to get caught is if they check my devices. But that is unlikely to happen. The authorities won't check person by person to see if anyone holds Bitcoin. If I want to cash out my Bitcoin, send it to someone and get bank transfer through apps and nobody is going to ask why they have transferred the money unless it's a big amount. So, Bangladesh is best for HOLD 

I don't know which country you are in, or when this law was implemented.

It is true that they can change this situation, but it normally only affects Bitcoins purchased after the date on which this law was first implemented. Because basically, it is impossible for them to know what happened before that date, as there are no official records.

For example in Portugal, this law was implemented in 2023. Therefore, only in this year's tax return do I have to declare the gains obtained from the purchase and sale of 2023. If for example in 2026 they decided to change, the rule will only apply since 2023. Because before that, there are no official records.

But, I don't think it's worth living based on an "IF". We can pay attention to some aspects, and predict what could happen, but continue with our lives normally.

And if Bitcoin goes to the moon, you won't be able to use it to buy anything big. That's the risk of not paying taxes, you'll end up with black money.

If you keep on using P2P services in order to buy or sell the coins, then you will be saved from these additional taxes if the government of your nation imposes it. Due to the decentralised nature of the coin, the government cannot keep a track of these types of transactions. Hence, this is the best way to be saved. Moreover if you uses exchanges regulated by your government, then unfortunately no one can save you from paying the taxes.

"What if authorities launch a tax for owning bitcoin?" - They are undoubtedly planning something similar, but how will the authorities know if you are in possession of bitcoin? Unless, of course, you tell this yourself or the platforms in which you will take the KYC tell it.


How can the authorities force you to sell bitcoin? To demand payment of taxes for ownership of btc, you first need to find out from whom to demand these taxes.

What if the authorities declare all wallets stolen or tainted by default and to legalize the wallet, the owner will need to go through KYC and pay taxes so that he can use the wallet officially and in white? But no one forbids using bitcoin directly P2P even from stolen wallets, right.

Therefore, the first thing the authorities will want is for you to independently disclose information about the assets you own. To do this, intimidating laws will be used to force you to do this.

Well, that’s why it was always recommended here to avoid and not undergo the KYC procedure.

But can’t the so-called “wallet thieves” send those funds from a stolen wallet? What prevents you from making a transaction and changing the storage btc address and in case of requests from the tax office, informing that the wallet was stolen the day before and outgoing transactions are transactions of thieves. Let them unravel the further chain of transactions and try to understand who sent those bitcoin to whom and why.

Exchange btc for xmr, and then back again to break your chain of connections. But you will acquire someone else’s chain of connections, someone who also decided to cover his tracks in the same way.

You mean a wealth tax? We've had that for years, and this year, it's above 2% for the first time. That means, every year again, you'll pay a percentage of your wealth to taxes.
So to break even, your assets need to increase enough in value to make up for inflation and taxes. That was almost impossible in the past years, which is why there are still ongoing lawsuits against these taxes.

Wealth taxes, like most taxes, are only for "the middle class". The poor don't pay them, the rich don't pay them, but anyone in between is not rich enough to move to another country just to avoid taxes.

All the addresses at first are anonymous, usually they can be related to you if, for example, you move bitcoin to and from an exchange where you did the KYC, in that case it would be pretty easy to link that address to you. And let's say this is your case, now you have the bitcoins in your wallet, if you move them to another wallet you may say that is not yours, that somehow you got hacked and you lost control of those bitcoins. Of course you should make a police report or something like that, and if in the future you're still in the same country and you try to move again those bitcoins and they found out you lied, well, in that case the consequences are not going to be nice I guess. All this is just an hypothetical discussion, many countries don't tax the simple possession of bitcoins.

Well, if that's the case then I'll just hide my bitcoins somewhere that's not connected to the Internet, my wallet doesn't have my identity anyway, long as they can't track that it's me that have that address and that I'm swapping it for USD or local currency then I don't think that I'll have any problem if they do that taxation thing, also you can just swap it for USD in this forum and get it online through PayPal or set a meetup to help to do a physical exchange or just read the details about the taxation and see if there's a loophole where you can sell, buy, store and transfer bitcoin, when it comes to taxation it's most likely that they're going to only ask for taxes when there's some form of exchange and I don't know about any country out there but I'm sure that in my country, there's a possibility that they won't tax you at a certain amount so use that potential loophole if it ever happens and hopefully we never get to see this ever happening.

This is indeed worrisome and devastating ought to be brainstorm about. Even though it may just be a mere thought of imaginations, there is every autocratic flexible tendencies of the manifestation of this fact.
If a certain government authorities would have the impetus to place Bitcoin and the AltCoins on a banned while some places it on illegal inventory technology, then such as OPs figures of mindsets could also be possible to a realistic.
Despites the decentralization of Bitcoin in a Blockchain, if the governmental authorities wants to indicts any of the Bitcoin investors with any charges or either falseful accusations, the individual wouldn't have the momentum to tackle the condition because the government itself is POWER.

Maybe it's possible if you use a DEX platform. Because if centralized exchange is used for sure, you can really question it. I'm just not that familiar with P2P on a DEX platform. Because there are often fast p2p transactions on the CEX platform, right?

I also experienced someone like that who transferred a large amount, and then the local exchange questioned the amount of bitcoin that was transferred to their platform. The worst part is that they hold my account until I complete the requirements they ask of me.

taxing it is legitimising it but not regulating it..
they want to regulate it. and put CEX spot in a higher annoying category to get than an ETF. to draw attention and customers towards ETF

ill just post this. it will make sense to how things are done in the markets

Yes you can do that but for that you'll have to first download bisq application and swap your Bitcoin with a privacy coin like Monero. Once it's done then you will have to swap Monero back to Bitcoin and create your own personal wallet using a open-source wallet software like Electrum. After that you'll just have to withdraw your new Bitcoin in that wallet and as long as you don't tell anyone about your wallet, the government or anyone else won't be able to link that wallet to you.

I would say a simple way is to move to a country where the citizens don't have to pay tax for Bitcoin holdings. If you can move to a crypto-tax free country then you'll never have to re think about the taxes on Bitcoin. There are some good countries that don't tax the Bitcoin holders like UAE, El Salvador, Switzerland, Singapore, and a few other countries.

Well, I know an asset class where you are taxed barely by holding. It's called fiat money. And the tax is inflation. Do people still use fiat money?

The only way the governments can impose a tax on Bitcoin is through taxing the centralized services that we make use of with Bitcoin. They can't tax Bitcoin directly or any decentralized service that the community uses. The governments can only know you won Bitcoin when you buy from a centralized platforms that they have control with the data they have on you. If the government were to introduced a taxation it'll only encourage the Bitcoin community members to be using Bitcoin in a more self custody way and not relying too much on centralized services providers as we have been doing with CEX and wallet providers.


Yes there are various ways to do that, let say your current address has already been tagged, you can use exchanges that don't need kyc for small transactions or make use of casino that don't need kyc for small withdrawal to clean you Bitcoin and get a new one that isn't linked to you with a new Bitcoin address. There are other ways that if you Google you'll find. You can also send Bitcoin to a new address and only use the Bitcoin on the new address with decentralized services so it doesn't get trace back to you owning it.

In order to stop Bitcoin they could simply close all the centralized exchanges and order banks to freeze Bitcoin-related transactions. But instead they just approved Bitcoin ETFs. Where's the logic in that? They hate Bitcoin so hard that they will allow institutions to get involved with it? Or maybe, just maybe, they don't really care about Bitcoin, and CBDC is just a thing a few low-rank people from the government talk about to make it seem like they do some progress.

The joy of it all is that, government have no control over citizens assets such as Bitcoin since there are no direct depends on any of government control services or facility just like we have with other assets of their class such as real estate that depends alot on government service's such as electricity and water to run the business such business are easily taxed since it involves fiscal gained taxes, but assets such as Bitcoin or gold that doesn't require any of such services to run it business or ownership, will not be put so much under such taxation.


Although I'm some cases, you still will end up paying indirect taxes on such asset's but this will only be applicable at the points of exchange for goods and services such as (VATs) value added taxes so much other taxes that exists in the financial system through government micro economics facility.


But tax on Bitcoin ownership is what we may likely not see since the internet is the host and government have no control of the internet and your Bitcoin assets have no requirement for whatever government service's unless you are a Bitcoin number which is not what we are discussing here.