Bitcoin Forum

Hello
Is there a tax on the bitcoin or any new law that entered  regarding tax on selling and buying bitcoin? ( if i have profit )
Or as a Miner is there a tax?


thank you for your help!

do some research:
https://en.bitcoin.it/wiki/Tax_compliance
http://www.investopedia.com/university/definitive-bitcoin-tax-guide-dont-let-irs-snow-you/
visit the legal board: https://bitcointalk.org/index.php?board=74.0

to get the idea and finally do the most important thing: consult a real professional in your country specially if you are handling large amounts of money. it is best to pay a little consulting fee now than paying a lot of lawyer fee later.

All countries have different policies depending on the country where you live?
I think even if profitable you can also give advantage to your country by paying tax fee it's not big deal :)

Pretty sure that  if you are doing any speculation stuff then you would be charged (like if you were trading on forex). I'm still curious about the accounting details of such taxes but most countries will definetely find a way to charge you.
Would be nice to hear if someone wants to tell us how he is paying / avoiding taxes.

It probably qualifies as capital gains, and you should declare it as so.

There are many people from USA in this forum, if you look around, this question as been discussed many times before, and you probably can find clarification from the proper authority in USA.

Bitcoin is considered an asset, which means you pay capital gains tax on the earnings. If you hold for more than a year it is considered a long term capital gain. If you trade it regularly it is considered a short term capital gain.

Long term capital gains tax are a much lower rate than short term capital gains tax. Short term capital gains tax is the same as your income tax. Long term capital gains tax is much better. If you make less than $37,950 ($50,800 if you are head of your household) like me then you are taxed at a rate of 0%. That's right 0%. Yeah! Go long term capital gains!

Also, don't forget. If you lose money you can claim it as a deductible for up to $3,500 as a capital loss.

Well it depends on your country. Some countries have some policies regarding bitcoin and some doesn't have any. Here in my country, Philippines I never heard of taxing bitcoin. I don't know if that is it or I never heard of the law before. It is revolving behind that.

There are also some news that the government is trying to close some online bettings sites but i think it was just toppled by many issues regarding the welfare of the country from terrorists. But i dont think it is just easy to tax btc transactions unless countries will manipulate there own conertion sites from btc to there own currency.   The transaction fee of btc itself may be called tax and unless a country has its own blockchain then it is possible.

Tax laws differ from one country to another. I don't know where your country is. In India I think Bitcoin income is taxable. Here in my country, the Philippines, it is also taxable since it is a legitimate income but the Bureau of Internal Revenue is not that high tech in monitoring all kinds of income. So many online jobs and other source of income online are not even monitored even if millions are involved.

What if someone got payed in bitcoins and did not exchanged it for several years? So the income tax should be taken from the initial amount of btc in old btc rates or from the whole amount counting on actual rate?

I highly doubtful any government will be shutting down and Bitcoin casinos anytime soon. Terrorists ? What you talking about ?
Bitcoin is only taxable after converting to us because it's capital gains like the users above were talking about.

Most online gambling sites in the Philippines have already closed since the crackdown of the government. Bitcoin casinos, however, is another thing and because the government don't know what bitcoin is 'yet', it is safe to say that these type of casinos will continue to be used by its peers.

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On the taxing part, it varies very differently by country. Like in the Philippines, it is fine even if you don't file any taxes in regards to your gains in cryptocurrencies since it is not specified by the law to be taxable.

The whole amount counting on the actual rate.

If I traded 31,500 Little Caesar's pizzas for a house of $200,000 and sold it many years later at $400,000? I would have to pay taxes on the house for the $400,000. So for BTC, you would pay the current rate for when you sold it. Since you've held it for years that would be at a long term capital gains rate.

I use bitcoin for small purchases and therefore do not pay taxes. The government of my country does not fight with bitcoin and so it was no problem. If you withdraw to a Bank account a large sum from the sale of bitcoins or make a major purchase then you will be in the interests of the tax service.

That is not true with United States federal income tax.

You would calculate the fair market value of 31,500 Little Caesar's pizza's and use that as a cost basis.  You would subtract that value from the $400,000 and pay the capital gains income tax on the difference.

Depending on how you acquired the  31,500 Little Caesar's pizza's you may or may not have to pay an income tax on the fair market value of 31,500 Little Caesar's pizza's in the year that you acquire the house.

Well generally if your country has an income tax then it is taxable even if your earned it through Bitcoin. There is no escape from the law that says if your earnings are through Bitcoin then you won't be tax from it. Then if it is not taxable people will just shift to using Bitcoin instead. The purpose of taxing you is to avoid the unjust richness of a person and it is a way to fund the government. The only problem is it is hard to keep track of Bitcoin transactions whether or not what you receive is taxable or not.

I'm not familiar with the United States of America's taxation law but here in our country, there is no such law with regards to Bitcoin. Every one can enjoy their Bitcoin related income because the government has no means to identify on which citizen is using and earning from Bitcoin.

It depends on your country's view towards cryptocurrencies. My local exchange puts a small tax based on buy/sell but there is no tax for deposits and withdrawals. Being a trader it is lot harder to make profit because of this.

You're right.I have never heard taxation on bitcoin in our country because i think the government does not have an idea yet on bitcoin here.I believe there are only few users here in our locality,not like in the other parts of my country.And yes you're right,who can anyway identify us as bitcoin users where in fact there's no personal identities required.

There's a big difference between:

"I do this thing that the local law says is illegal, because I don't think anybody knows I'm doing it, and/or I don't think I'll get caught."

and

"It is legal to do this thing according to local law."

Depending on what country you are in, there may be laws that require you to report all sources of income even if the government can't figure it out on their own. Failing to report the income could be illegal, and failing to pay taxes on the income could also be illegal.  Therefore, you may be guilty of breaking 2 (or more) laws by hiding your bitcoin income from the government.

it depends on your country mate, some have tax other not, but if you sell and have a capital gain you must pay in any country afaik, for mining if you don't sell your bitcoin or altcoin, you don't pay anything but otherwise you pay tax on your income

I know in current Miner not considered a job in most country, just need pay fee electric bill with huge money every month. But, I don't know in next time if Bitcoin and cryptocurrency accept as digital cash internet, the government will tax fees or not?

for now i think there's no tax if you use bitcoin for transactions but there's a ALOT of FEE on your app devs if you do transactions
even on mining there's a dev fee

Capital gains tax is applicable on the profit that you made. I am not clear on the tax implications if you were gifted with

bitcoins. Let's say your relatives gifted you 5 bitcoins. Will you have to declare the gift and pay tax on the whole amount? I

gave one relative some coins to pay some debt and to get started with Bitcoin trading. Can I declare the gift that I gave him?

Yes, I know it differs from country to country.  ::)

If you already paid the tax for the 5BTC before you gift it then the receiver has no obligation to declare a tax for it since the transaction happened is just an internal. Transaction fee will serve as the tax for that gift.

I think these are the sides and weaknesses of bitcoin, many argue that bitcoin is very prone to money laundering and tax evasion.

I'm just wondering how the country's tax authorities will be able to control the increase in capital in bitcoins in order to tax such an increase in tax? After all, such activities are completely anonymous. Even if the relevant laws on the taxation of income from the crypto currency are introduced in a particular country, how can such a law be executed and the profits received controlled? It turns out that if the citizen does not show such a profit on a voluntary basis, then it will not be able not only to control, but also to fix that such a profit really was.

Oh yeah you're right. I forgot that very important part. You only pay taxes on the gains. Little Caesar's pizzas are worth $6.35 per pizza. 31,500 of them is roughly about $200,000. So you are selling your house for a 400,000 - 200,000 = $200,000 profit and therefore need to pay the capital gains tax on only that $200,000.


I'm thinking that at this time we should enjoy bitcoin as an asset. If it becomes very popular it will probably be recognized as a currency, making income tax come into play instead of the lovely capital gains tax. Enjoy it while you can. :D

Agreed! It is not bad to pay off tax if you are earning while staying in the state. State has a great right on our possessions. But the tax should be less. Too much tax is not good for bitcoins. Originally it was made to be a currency that is tax free and provided complete freedom to its users. Personally I feel sad for those who are paying tax on bitcoins.

Each country has the right to impose any taxes on it. Since the Crypto-currency can make a profit, such activity can also be taxed. For example, Japan recently introduced a tax on profits from the digital currency, which is eight percent of the amount of profits.

When it comes to taxes laws vary wildly not only between countries but even between different states so it is better to consult a tax attorney about the taxes you are due than to try to make sense of it in a forum like this, this forum is great for a lot of things but it is not for legal advice.

 I think some countries have taxes in bitcoin but not all countries. Some countries do not see bitcoin as a source of income yet that's why they don't have taxes and the government doesn't care about it but some of the countries see bitcoin as income that's why they do have taxes. Each countries have different rules and you should do your research in your country if there is a tax in your country, even though sooner or later bitcoin will be known all around the world and most countries will recognize bitcoin as a source of income and if that time will happen I'm sure the government will issue a tax in bitcoins, so for now enjoy your tax free money if you don't have tax in your place.  ;)

I am not completely sure about the US but I will take a stab at it anyway.  If you sell your Bitcoin back into fiat, spend it on altcoin, or spend it on anything then you would pay a capital gains tax on it or take a loss depending on if you purchase something with Bitcoin at a lower Bitcoin value than when you bought it.  My suggestion would be that if you are a long term holder but want to spend bitcoin to buy Alts is that you stash your long term bitcoin holding away in a wallet to grow and just buy bitcoin on the exchange and immediately turn around and buy the alt with it not mixing it with your long term stash or you will have to pay tax on it by way of FIFO.  Sure, with the volatility of bitcoin you may have a small loss or gain by the time you buy the alt but you'll just have to try to keep track of it.  I am by no means a tax expert but I plan to consult one down the road when I want to start spending my accumulated bitcoin.  My advice is to be honest and not cheat the tax man in the US even though I don't know anyone who likes to pay taxes.

It depends from country to country, in my country you as the giver of the gift do not have to do a thing, but the receiver of the gift has to declare it if the value of the gift is bigger than 200 dollars, so you are in the clear I guess under most jurisdictions, and your relative is the one that should research how to declare that income.

I believe that the state can not establish a tax on the sale or purchase of a bitpoin on the exchange or between individuals within the digital space, except for commissions for a transaction. When buying and selling crypto currency through a bank, the bank sets the amount of commission taking into account the possible taxes of the state, that is, the amount of tax should be included in the amount of commission. Each state can only establish a profit tax on activities with a crypto currency. In Japan, for example, this tax was recently set at 8 percent of the profit that brought the crypto currency. Other taxes, in my opinion, the state can not establish. However, for full confidence in this, it is necessary to consult a lawyer of your country.

Yes it can, bitcoin is considered in some jurisdictions as an asset, like a stock, if you buy a stock for 5 dollars and then you sell it for 10 then you are subject to taxes for capital gains, basically you need to pay taxes on the profits you got from selling the stock, to me it does not make sense but that is the way it works.

Not many countries have tax on Bitcoin. In fact if they do then it's connected with trading od other business not just holding coins ih your possesion. You can make inquires at your local tax authorities and search for some laws on that subject.

That is not true. If you own Bitcoin it is considered an asset and if your asset increases in value then you must pay income tax on that.

I do not know the taxes that there must be bitcoin taxes in USD, whether many or a little I do not know for sure, but I thank the bitcoin for having a lot of my life changed.

There is no tax on bitcoin because they do not even know you are making transactions on the network so why or how would they then come and tax you, all they can do is just see your transactions logged on the blockchain and nothing more.

it depends on your country if they implement a law to enter a tax on selling and buying bitcoin, so far theres no taxes regarding on your concern, and i think that theres no big deal if its has a tax on your country regarding bitcoin to be powerful legalized bitcoin on your country, but for me its more useful for me if theres a totally no taxes to implement, except transactions fee for the miners.

Yeah its nice in Philippines because there is no law to pay taxes in using bitcoin even if you use a big amount, because i think taxes almost getting a lot value if you sum all your small expenses

Who is dreaming on taking taxes on transactions that are involving bitcoin, the transactions are completely anonymous and they do not even know where they originate from so how do they plan to do that. Except they make deals with exchangers.