Bitcoin Forum

If bitcoin is hold as long term saving asset, it will raise such a question:

Current law says that when you have large amount of foreign currency gain due to exchange rate change, that is capital gain, should be taxed as capital income, similar to other type of capital gain

But that only applies when you cash out the bitcoin into domestic currency. If later you moved to abroad and invest/consume your bitcoins, I guess that country will not try to tax you, since for that country the foreign capital injection is always a benefit, if you try to tax them they will never arrive

Unlike other assets (stocks/bonds/real estates), which can only be traded on domestic exchanges and be taxed accordingly, if you want to tax bitcoin, you must tax it before the people leave the boarder, but that is not OK because at that time the coins have not been exchanged into any other currency thus does not generate any taxable event

So maybe it is not right to classify bitcoin as asset, an asset without boarder is in fact physically non-taxable

I have this question when I just went through an old report that swedish bailiff are trying to find people evading tax with hidden bitcoins   :)
http://sverigesradio.se/sida/artikel.aspx?programid=1646&artikel=5983956

hi there, i think you might find some answer from this section https://bitcointalk.org/index.php?board=74.0

It is just considered a property in the United States, isn't it?  It could be worse.  Thank god we don't have to pay capital gain taxes on it.

Well, I asked a similar question to this here ---> https://bitcointalk.org/index.php?topic=1060307.0

The answers will be different from country to country, based on their own tax laws and regulations. I am also intriqued by this and wonder how they will solve this problem.

They would most probably define it as digital currency under the current tax legislation {PayPal etc...}

^^^That.
It all depends on where you are located and how Bitcoin is seen - is considered - there.
In U.S. it is considered property.
On the other hand there are countries that do not consider it at all.

well yes but usa isn't the entire world, the problem is not everyone is seeing bitcoin as a property(i still think bitcoin should be considered just a currency, even if his value is tied for now to fiat), look here https://bitcointalk.org/index.php?topic=1067164.0, they consider it an asset

this thing about everyone having their own interpretation is irritating me, bitcoin should simply be considered a currency, nothing else

Did any other country other than U.S. put a tax on Bitcoin?

Singapore once tried to tax Bitcoin in 2014. Have not heard any more news about it since March last year. Here's the news: https://www.techinasia.com/singapore-government-mind-decides-regulate-bitcoin/.

And here is two interesting sentences from the news:


. IRAS stand for "Inland Revenue Authority of Singapore". While MAS stand for "Monetary Authority of Singapore".

Look like they have different view.

Wait....
So the only country that has imposed tax on Bitcoin is U.S.A?

And what about regulations and licenses?
How many countries have those?

So what would happen in the UK if (unrealistic but hey) bitcoin went to 10,000 USD per coin & we cashed in all of our coins?
Would we be taxed on it?
Surely it's not fair to tax somebody on something that was such a risky investment to begin with?
If you're a professional gambler in the UK & try to declare yourself as so HMRC (tax man) isn't interested in dealing with you, surely bitcoin is a bit of a gamble so it's the same?
Unsure what it's like in other countries but if they're not regulating/approving/accepting bitcoin in the mainstream/banks how could they suddenly say they want to tax you?
Surely they can't have it both ways?

Yeah. Every country will treat bitcoins differently, but I guarantee you new laws and regulations be coming out over the next couple of years to try best tax bitcoins. If they see people are trying to avoid taxes by using or saving bitcoins they'll soon change the rules so they can get their cut or thrown you in jail.

This is an interesting read. I'm not sure whether it's been updated since it was published.

https://www.gov.uk/government/publications/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies#ct-it-and-cgt-treatment-of-bitcoin-and-similar-cryptocurrencies

"As with any other activity, whether the treatment of income received from, and charges made in connection with, activities involving Bitcoin and other similar cryptocurrencies will be subject to CT, IT or CGT depends on the activities and the parties involved."

"Chargeable gains: CT and CGT - if a profit or loss on a currency contract is not within trading profits or otherwise within the loan relationship rules, it would normally be taxable as a chargeable gain or allowable as a loss for CT or CGT purposes. Gains and losses incurred on Bitcoin or other cryptocurrencies are chargeable or allowable for CGT if they accrue to an individual or, for CT on chargeable gains if they accrue to a company."