Bitcoin Forum

I ran across this video a while ago on what can happen to you if you don't pay your taxes.  At some point during your Bitcoin career, the cryptocoin will be converted to fiat and that's how they will catch you.


https://www.youtube.com/watch?v=hf2fNEUPjQw

You should always pay your taxes, especially if you're in a country that cracks down on that sort of thing (US for example). That kind of thing is no joke. That's how they got Capone.

I would say you should handle it like any other investment. Treat it as either a capital gain or a capital loss. Offset the gain against your basis and pay the taxes on that whenever it's due. Some of the exchanges like Coinbase give you a history log of all your transactions. I would take that log at the end of each year and do the math on your profit or loss, and that's your taxable gain.

If a country requires payment from bitcoin profits, then there is no way out. You have to pay tax or it will end badly.

Since their is no third-party related to bitcoin no one can trace your transactions but the user and the receiver only, therefore they cannot apply tax. However if we change our bitcoin to fiat money to spend, its the time tax comes in. Maybe in future if bitcoin can be legalized then government might implement tax for every use of it.

He looks like he is living quite well  ::) but nonetheless it begs to reason you gotta play the game that is setup because if you don't you will have a hard time accessing funds and that is the name of the game nowadays! I once thought about skipping too but it makes more sense to give and then make your noise after the fact, legally.

That's correct. The guy looks like he's sleeping on money. He even said in the video that he had spent 100k USD on that year. If you're running a business that is bringing you over 100k USD a year and all that money goes through your bank account you simply can't avoid paying taxes. Either you go the legal way through banks or you use cryptocurrencies, gift cards and cash and make sure there's very little money being moved the traceable route.

I see no reason why people don't like paying their taxes. it is always very good to pay your taxes because it helps a lot in building your country's economy. In some countries government use tax money to do new projects such as building new schools, roads, and hospitals. I don't know about you but for me, i see nothing wrong with paying tax at all. I think it's good to pay your tax if you love your country because that way you can help your country move forward.  

If you love your country pay your tax, period!
Some guys here are even lucky their government is doing something good to help them. You should be thanking God for that. 8)

When you convert it to fiat, you pay tax on what you convert it. You don't have to pay on the Bitcoins you have.

The matter is still very unclear, and - at least in Europe - we're waiting for Bruxelles decisions.
Btw, bitcoin itself it's not "money" (it's just as points in a videogame) so it can't be taxed.
When you convert it in fiat money, sure governments will find a way to steal something, but for now there is a lot of space for... uh... creative movement :-)

Tax payment is a necessity and No one should ignore that. Doesn't matter whether you are earning from your job or from Cryptocurrency. I always include my earning from Cryptocurrency in to my tax information sheet and pay appropriate taxes. If you have done that, at least you will have the ground ready for talking with the tax authorities if they come looking for you. I always keep my tax records updated with my crypto earnings so that my tax authority can't call me a tax evader. At least I will have something to counter them.

This is the great thing about bitcoin it's decentralization. No one controls it,  no one owns it and no third party can trace your transactions or how many bitcoin's you own. But if you want to exchange it to fiat of course there are some fees to pay depends on the amount that your converting you might pay a lot. If bitcoin gets legalized then the government could implement some rules about this, if they could.

We don't have to worry about taxes for the cryptocurrency, at least for now. Because most countries do not have regulation about paying taxes if citizens convert bitcoin to fiat currency, unless you live in the US then you have to pay tax for capital gains because IRS said so.
There is plenty of room to avoid bitcoin taxes for Americans such as send bitcoin to your family or friend in Europe to convert bitcoin and then transfer the money through banks or remittance, but no need to avoid taxes obviously, just pay it.

I'm new to this as I just started last year.  Do we have to convert all of our cryptos to dollar value and report?  Do I have to declare how much crypto I own?  Do I only take taxes out when I sell?  I've sold a lot on Coinbase base but always bought back in.  Do I pay tax on each sale or the total I've made?

Yes, this happens. In specific bitcoin has been taxed over different countries adding it to the commodities list or as an asset similar to that of gold. Nowadays taxation is done at some point of converting to real cash, there are people who make trade and keep hold in terms of bitcoin. Uses the same finding people accepting bitcoin for what is required to avoid taxation.

Just simple.We could just sell our bitcoins with persons face to face in cash instead of using bank transfers.Until you use counter sales of bitcoins,there is no fear of being taxed.

Even i have an idea of selling my bitcoins to my friend in abrad and ask him to send cash directly to my bank account.By this way also,we could avoid our bitcoin earnings getting taxed.

In my country government proposes that those who earn $300 and below per month will be exempt from income tax and as far as I know majority of our people who join bitcoin here do not meet this standard amount of income so whether we earn additional amount from bitcoin we are still exempted from paying tax and besides there is VAT on our purchases so government still gets taxes out of our earnings

Depends how much you move that way, but if it's high enough you still have to pay gift tax. If say you receive 15 or 20k from a relative for no reason, that's taxable money. One way or another you will pay tax. This is why people hire accountants, they try to minimize the tax you pay, but you still pay.

It already has occurred to me that one way or another the exchanges that we're using to exchange cash for bitcoin would likely be our mortal enemies since they'd be the ones who would submit all our transaction history with them if in case the government pressures them to. Also, the government would always have their way to peep into your account details and spending history even though you are using bitcoins.

Not paying taxes only becomes illegal if the government declared that any gains made from bitcoin should be declared and are subject to tax. However if there are no rulings or law regarding that matter, you are safe even if they sniff into your private accounts with the exchanges.

No way, you go to jail for that.  You need a money transit license to buy or sell American dollars.  FBI has jailed multiple people over this already.  One example is below.  Google search and you will find more.




I am unable to post links so google search the headline below.

Three bitcoin traders arrested in Florida on money-laundering charges

You have to pay first your taxes even small taxes you should pay it.

In our country all business man, government employee and even athletes are need to pay there taxes. How much more if your earned million and you have luxurious house and cars.

Here you go: https://www.theverge.com/2014/2/7/5390782/three-bitcoin-traders-arrested-in-florida-on-money-laundering-charges
This is an old case from 2014, back when there was almost no regulations in place and one of those guys has sold over $100k worth of BTC, so he was obviously a major evader.

I think it is good for the crypto enthusiast like us to pay taxes or even fees in using bitcoin or any cryptocurrency. It is natural to pay our tax because we are part of the community and it is required for a citizen to pay taxes.
In my country, taxes are highly increasing in goods but the salary tax decreased. It is good to see that we are paying tax even in a low amount of our earning.

I'm not a big fan of taxes, but at the moment you put any fiat in your hands, they know it and you must pay the taxes. Or you could end up in one very unpleasant spot.

At least in most EU places taxes are still 10-12% like for forex trading profits.

as an orderly citizen. it is compulsory for us to pay taxes from the income we earn. because until now there are still many people who do not care about this. whereas paying taxes is one way to prosper our country. I also paid taxes from my real job. Maybe for the future I will list earnings from crypto and pay for each tax

That's Impoper for one not to pay their taxes, because they are indirectly been used to better the country and the citizen but as some point, if I am asked to pay taxes for every cryptocurrencies or digital coin I exchange to fiat, then I won't always exchange my coin to fiat or use them as an everyday transaction, its just the waste of it; nstead I do it ones in many months or a year.

It's safe to pay your taxes on the gains you make on bitcoin. In the country that I live in, it is good to pay on the capital gains I make on bitcoin. It is treated like an asset although there is no official statement from the government or from the tax authorities.

bitcoin will not be taxed until whenever. although want it can happen in exchange just like bitcoin by making deductions in transaction fee. for transactions directly to the wallet in my opinion will never be. bitcoin has an anonymous system.

Bitcoin is not directly control by government, that's why it is non taxable and bitcoin is not legally endorse by government. It is free to use and access by bitcoiner and those people wants, a fastiest and direct transaction just only used cellphones and laptops. But there are some countries that government leaders are used bitcoin as a government transaction by selling and buying goods and product's.

Soon the government can find ways how they can collect taxes from cryptocurrencies.
Maybe thru transaction. In every transaction there will taxes. Just my thoughts.

This will take longer as most of the country were not supported this currencies.

Taxes are the only and main source of income for many governments of the world. One of the main reason for bitcoin`s popularity is avoiding government tax. Bitcoin is an autonomous currency, as no third-party is related to bitcoin, no one can trace your transactions except user and the receiver. You will face no problem  until you are using bitcoin currency for trade or transaction purpose. But once you try to convert it in fiat currency you will come under income tax net. Income generated from bitcoin currency is taxable in USA, India and in many countries irrespective status of bitcoin. Bitcoin income is considered as capital gain and taxed thereupon. For your safety always pay taxes.

It seems that government really wanting people who are currently holding bitcoin to declared it as an asset in order for them to pay taxes. But it could really hard for that, since believing no one will do that because taxes is just a worm for their income. And could also lead the government by controlling its market value once it goes into the hand of the authorities.

You are right that is why it is important for us to pay the right taxes as well especially when we are in a business industry so that our economy will grow and would be balance, it is important for us to regardless of the corrupt person, let us just disregard them, if they will corrupt our money let them go to  hell after this life.

If you are going to convert your bitcoin to fiat you need to pay taxes there is not way around that, I know that may seem unfair because the governments gets a lot of money by not doing nothing but if you want to sleep well at night and not have any worries you need to pay your taxes, but if you do not have plans to do that then you still need to declare that you have bitcoin.

A very educated contribution. Government runs on taxes. Government has a way of protecting other investments such as stocks, bank deposits, etc where they also get taxes. But there is no protection for cryptocurrencies holders, so what is their justification?

Anyway, I'm a taxpayer but my crypto holding is my business, for now.

We should be paying tax, as a good citizen you need to contribute for building a better country for your next generation, and one of the way Bitcoin being taxed is when you convert it to Fiat there are nothing can be hide from that transaction since you need the valid verification for transfer the money to your account, but when all things can be bought using BTC then taxing crypto users will be more difficult

It is mandatory for all the citizens of their respective country to follow the laws of their land. If taxes on the profits earned is supposed to be paid taxes as per the country rules and regulations then one should be following it in order to be able to participate n the growth the country economy.

I think we pay our taxes with bitcoin when we converted it into cash or fiat ( we pay tax here at this point) and when the converted bitcoin turned into cash, obviously we are going to use it to buy sevices and products which is tax generated by government, so i conclude that we are all paying taxes right.

Absolutely correct mate, at this moment even though we are earning fiats through exchanging bitcoins. Even though bitcoin are not paying taxes. We should share our earning through on donation to our community taxed to put on project where they have a lack of budget to be done so it can start because this can really a big help in developing of our society to grow more.

Governments around the world are trying to control the crypto market as this is a very large market and if it collects taxes it is really a huge source of taxation for them.

In some countries you can not pay tax on BTC even if you want,there are no rules and regulations regarding BTC.In some countries like Germany you do not need to pay tax if you sold BTC one year + after purchase,also Denmark is completely free from paying taxes regarding cryptocurrency.

There is always way to avoid paying tax when convert BTC to fiat,but if you want to sleep peacefully and your government is pretty strict on this issue then it is better to give them their share.

Yes that could be true.But in my country i do not see the government giving their full attention to cryptocurrencies so paying taxes  is not an issue to us.But if one day there will be a law that states its compulsory to pay taxes on all bitcoin users,then of course i will be responsible enough to pay my obligation.If that tax will be for the good sake  of everyone,then i see no reason for all bitcoin users to evade from it.

Actually, the tax applicable for users of land operating business is not specified for users to pay taxes in bitcoin there is only selling and buying for business actors and in bitcoin there is no unity of bitcoin holders, another thing with the bank in general it can be seen there is one holder companies that require those who want to use it.

The government cannot trace transactions made with this decentralized currency but when converted to fiat then you are in their hand and paying taxes is only way to get on the safer side but if you are planning to erode this and avoid taxes then you are on wrong side because the governments are keeping supervision and you cant win in this game.

I think that will be depending on the country you are in. I've been converting or selling of my bitcoin but the fiat that I am getting is still the same. I am not also taxed by the government, if there will be some additional deduction, I think that will be the fee of the exchange since they will just be adding the tax of that certain exchange and the tendency of that is to increase the fee of the converting of btc to fiat.

You should be paying your taxes. If you make a massive profit, you are eventually going to be busted. Its on you at the end of the day.

It's a concern that I've had myself while I've been having good success in trading I've yet to withdraw earnings, it's difficult to think that 40% of what you earn is going to be taken away once you convert it to fiat and cash it out but I guess it's just the world we live in. It's much easier to take when you have a normal job and the tax is deducted from your paycheck before you are able to do anything about it.

I don't have a problem with it, if the government already has the accuracy of the tax regulations then it is just implemented, it will be proof they acknowledge our efforts so far in the cryptoworld, there will be no ban if we do not do wrong, my country even appreciate bitcoin though can not legalize it yet.

That's the problem with taxes. The less profit you have the harder it is to pay. When you're rich it's one million here or one million there, not worth the risk. When you're poor and got a loan to pay paying the taxes or not can make a huge difference. We all have to make our choices at some point and live with them.


It's your personal stance. I wouldn't go as far as to telling people they are on the good or bad side of the barricade. Are you really sure that the government is good and people opposing it are on the wrong side?

A lot of people playing bitcoin but not paying taxes. Some of the country not legally bitcoin in their country that's why its hard to ask for taxes fee. But some country take the taxes fee direct from the web of wallet. Its easy way to collect the taxes than should collect from the user of bitcoin one by one. The web include the taxes fee in their change charge.but in my country most of people play btc not paying their tax since it's still illegal here.

Agree . in asian not much money bitcoin its legal . only in china i guess . and now miner fee also more than expect
so the fee its follow the price . if i can use real money for fee its will more help than like this.
my option back to altcoin because this fee .

Yes, even though bitcoin is no central control but still government can benefits of that because in the first place people will get more money from bitcoin then i think he will used its money to buy some goods and services in their society so i think he cannot escape the tax out of the goods that he buys.

agree I think it will depend on the government and the rules on your own country, in my own country there is no regulation to give tax to uncertain income, even if you withdraw huge money from exchange to your local currency, you will not be taxed by government , so far my state government has only given taxes to company workers who have a definite income from the company

If someone is making use of Bitcoin, there is no need for them to be paying tax, cause I don’t think there is any government charging tax for it. And even if the government wants to be charging Bitcoin users tax, I don’t think it would be possible in any way.

Paying taxes from bitcoin earnings for me is quite difficult to implement especially if the government does not support bitcoin market, We know for a fact that using bitcoin in any transactions will not show any history of information of the person who made it and since government cannot regulate it there's no way for them to assess the tax due of a person unless those earnings were sent to banks account which government can trace but for legality purpose any income should be tax properly.

Honestly I am not yet paying tax for my income in bitcoin because it is not regulated yet in our country.
I am happy with this situation because I can maximize my income but if we go deeper, it's not actually that we are not paying because when we buy goods and and avail services we have to pay taxes and in our country it's already integrated on the price that we have to pay.
Maybe it's just hard to tax bitcoin since you can easily launder your funds but I believe the government will find ways to make it possible sooner.

I agree of paying taxes on it but for now governments didn't accept it and I think we should afraid rigth now of paying its taxes because it is not legal yet most of people like me also wants to pay a taxes for what earn too right.

To All those having residence in countries that are taxing Bitcoin - there are many more other places and countries where you can acquire residence in no time and where it is perfectly legal not to pay taxes on BTC. You can even go back to place where you currently live as a formal resident of non-taxable jurisdiction.

Plenty of options are on the table to be perfectly in compliance with law and not pay tax on crypto.

Yes.. i know a lot of people that refused to pay taxes or they just avoided them an they are now paying a huge amount of money because of that, and if they deny to pay that amount of money, they will go to jail. I do not understand why there is a lot of people trying to avoid paying taxes.

I think for every thing we can pay taxes like if we buy some domestic things then you will pay some of the taxes over the small things. For example soaps and other daily need things bitcoin if we cash after that we will must use this to buy things and for that we will pay taxes to the governments so we can't say that we are not paying taxes the consumers are paying more than the big capitalist.

as in my country at this time bitcoin no taxes, although in my country is very popular but no taxes..but likely some time bitcoin will be in wearing taxes. but with it for them no problem even taxable for them, it is better because the government has approved bitcoin.

The day government will apply taxes on bitcoins, that day bitcoins would be accepted legally in the country. We will need to pay certain taxes for bitcoins than but that will also be much more safer to use bitcoins than. Bitcoins will be officially legal and also the price for bitcoins will than go much more above as compared to know. Actually I am waiting or that day to come through. I want to see bitcoins as legally accepted and also the price growth after that.

Taxes are the main source income to the governments. In your country whether bitcoin is legal or not makes no difference on payment of taxes. Bitcoin is a decentralised peer to peer operating currency. So it is difficult for the government to determine the amount of tax. Tax structure comes into operation when you convert your bitcoin currency to fiat currency. It is recommended to pay taxes by the laws of the respective countires. Countries like USA , India are considering income from bicoin currency as income of Capital gain, and impose taxes accordingly.

But first before is taxed bitcoin should be regulated and clearly defined.
If they want to tax it they have to define it as an currency (so you will pay taxes on savings account), as an asset (so it could be taxed the same way as real estate) or something else. I many countries bitcoin transactions are already taxed but that is much different than taxation of bitcoin itself and many usres are mixing these two facts.

Well , I don´t care much about the video. The fact is that you don´t have to pay your taxes until you realise a benefit, so there is in fact nothing to catch before that moment in which you get fiat. If that ever happens

I think that if the crypto currency is not banned in the country, then it is necessary to pay taxes for the profit that we were able to get with the help of bitcoin. Payment of taxes will help improve the economy of the country.

Taxes are unavoidable and you are subjected and required to pay the amount that you owe to the government, you can't evade taxes as it is already imposed from the things that you are buying to your monthly salary, so before you get your money or your thing, taxes are deducted, it always depends on the countries that impose laws and restriction towards tax, if the government regulated bitcoin exchanges within your nation then you have to submit.

Of course that's like that. Just imagine, people pay you woth gold and you received 10KG gold, won't you have to pay tax? Yes, because gold has it's value, paper is nothing without gold guys because gold is behind that paper. In any way, you have to pay tax of something that has value. And there isn't bitcoin regulated in many countries but you still have to pay tax.

in fact, according to the laws of any country, every earnings must be paid taxes. But as they say that earnings should be legal, And how legal is the income in the crypto currency is unclear. Therefore, it is How can I pay tax for trade in crypto currency? I think that this issue should be solved at the state level and adopt the appropriate laws.

You should pay your taxes, no one likes to do it but if you have to do it then just do it, it is better than the alternative which is to spend time in prison, no amount of bitcoin is worth spending a single day in a prison in my country, what you see in movies or in documentaries is an understatement of the life in prison, but at the end it is your decision to make.

Yes that is very right, government can only impose tax on bitcoin if bitcoin is legal there, without making bitcoin as legal currency they cannot impose tax on bitcoin and that is the reason that still there is no tax on bitcoin. Japan is the only country who have accepted bitcoin may be very soon they as put tax on bitcoin income. but still i do not think that even they have imposed tax on bitcoin. We can hope that very soon other countries will also start accepting bitcoin as legal currency.

Its sad but you have of course to pay your taxes, we dont want to end in jail for tax fraud right? ;)
Look at charlie shrem what happened with him, he was two years in jail because of tax fraud with bitcoin: https://www.coindesk.com/bitcoins-first-felon-charlie-shrem-begins-2-year-sentence/

Nobody likes to pay them but you have to unfortunately, thats the sad reality

I don't know why people should keep hiding under bitcoin's anonymous to keep invading their countries tax system. Bitcoin was actually made to make things easier for people and not to using governments read,  electricity and water without paying tax.  If you watch this video you will findout that the future is actually going to be a pay back time.

People have too much faith in Bitcoin's "anonymity" and for that reason believe they can't be found or traced. They ignore how the majority of the exchanges nowadays require people to verify themselves, and maybe even directly report to the IRS. The coins you withdraw from an exchange are tainted with your personal information, which from that moment can be followed basically endlessly. The blockchain is transparent and offers governments a pretty easy way of tracing all your actions, which is why people should always mix their coins before spending them or sending them to their cold wallets. It's common sense stuff....

You haven't read the article and obviously don't know the story behind it. He was a scapegoat, charged for his connection to Silk Road. This connection was almost non existent as he was a trader whose coins ultimately ended up on Silk Road. It was like blaming a bank teller for handing money to a criminal. You never know where the money you're handing out will end up and people like Charlie have no control over it. It wasn't about taxes but unlicensed trading, which is a completely ridiculous law because Bitcoin isn't considered money and selling it is not money transmitting. Also, he didn't have to do 2 years, was released after 16 months.

"Not paying Taxes " is one of the main reasons that government official try to stop this revolution bitcoin and other alternative coins but it is not gonna happen soon .

Exactly. When you focus on using cryptocurrencies to buy the things that you need you no longer can be taxed. Eliminate fiat money from your daily diet and you will be much healthier and happier.


Even if you make it legal it will be almost impossible to tax capital gains on BTC, unless people decide to be open with everything they do, sign every transfer with their name and so on. The only 2 things that governments can do is:
1. Tax exchanges and make them spy on your every move
2. Tax businesses that sell stuff for Bitcoin and make them pay additional taxes to make up for all those people who will decide to hide their coins.

You can try to tax the economy, but you can't tax the individual users because you'll never be able to prove who owns which address and addresses can be generated instantly.
John's coins can in 15 min be on another address that can belong to John, or Chris, or Mary. It's going to be funny watching the suits try.

What taxes, what are you talking about, taxes paid in the electricity bills. The tax on operations with bitcoin will only go to increase the number of bureaucrats who come up with new taxes.

Well exchanging bitcoin directly through dedicated exchange platforms or through pyment process like wzstern union or moneygram or any think that is associeyed with goverment is surely going to get you in trouble if you don't pay taxes, and this is one of the many resons why bitcoin has not been leagelized in many countries due to the fact that goverments is unable to monitor transactions so people could get paid thaousands of dollars and not pay taxes, i am not encouraging this but the best way to exchange bitcoin to fiat is through peer to peer exchanges like localbitcoin where you can find people willing to buy bitcoin with cash anf hand to hand.

Bitcoin does not have to pay any costs for transferring from one person to another. So there is no tax to pay for Bitcoin. However, if you want to convert Bitcoin to local currency, you must pay a tax.

yes

On of the most important reasons which is helping bitcoin and other crypto currencies to gain the interest of the people is the relaxation of not paying anything to anyone in the form of tax. Bitcoin is so far not declared as a legal currency and till the time it will remain decentralized, there is nothing to be worried about like paying of anything to the government. This is helping people to make more money as well.

That is correct. Since bitcoin transactions are anonymous, no once can really tract the whole transaction process, therefore they cannot apply a tax on cryptoexchanges. But if one decided to cash out into fiat money, that is when people are required to pay the tax as long as it is under a government jurisdiction. They have to have a part of it as it is stated in the law and not doing so means you are disobeying the authorities and the law which will only result to something bad. However, it my country, people can get away with not paying tax for a long period of time, plus, there's no tax in cashing bitcoin at all. And I certainly do hope it will not be implemented in the future or else, I'll be packing my bags.

Not paying tax always end badly, it is just matter of time before you get caught. Depend on country's laws you can go free with not paying tax for some time, if you know how. But that goes only until you start earning serious money, that you can not hide. Even if you earn it with bitcoin it is steal earning and you would need to pay tax, unless it is different in your country. Either way, you still would need to transfer that coins into fiat currency, because not every place accept bitcoin as way of payment, and that is one more thing that would be end of your not paying taxes.

Tax is something which people usually avoids because they dont want to share their profits with government which is a wrong thing and ends up in a worst way for the tax avoiders so we need to change our mentality and pay taxes and enjoy the after benefits.Some countries are taking serious steps only due to this reasons which in turning all down.So pay taxes and enjoy your life.

We don't have to pay taxes for using crypto currencies and crypto to crypto transactions.Only we have to pay taxes while buying and selling the cryptos and in some countries they don't have any specific taxes for crypto currencies they keep this under the income taxes so we need to pay taxes to government if the income of us exceeds the government limits.
But it is necessary to pay taxes if the is rules to pay in their respective governments but as long as keep our crypto as it is then no one can ask for taxes.I think in future there is no need to convert cryptos to fiat so the revenue of governments will decrease that's why many governments want to ban crypto currencies.

Taxes are being paid by the exchanges and they are paying it thru taking off some percentage from the trading fees within their exchange, though very minimal and almost cannot be felt, due to the number of trades happening a day, the tax coming from it is profitable for the government. It's just how it goes for money, consumers spend on items/services and the government need these taxes to improve one's nation - hopefully.

I think this is the reason why government impose regulations to cryptocurrency, to avoid tax evasions. Government needs funds so that all of its operations will be work in smooth manner though not all government system is the same, I think they still develop their respective countries by using tax collected from taxpayers.

Cripto money moves directly without any impediment to the state tax manager. But still this will be required transaction costs of buying and selling digital money. Production of digital coin money on taxes if any we can get a lot of cripto money taxes, I hope tax free. Assessing changes in progress here can be delivered without taxes we will feel a better and comfortable life. The world has a very high poverty rate, unfortunately if we let people around the world still have a low economy. The government should build a country that has the freedom to tax-free, not necessarily we live have the funds to pay taxes while we are only unemployed.

i think most of bitcoiners has not paying taxes during use bitcoin because bitcoin still not regulated by the government even in my view very difficult to catch people to paying taxes if they still use bitcoin and indeed this is the biggest fear government to cryptocurrencies that some people had buy a lot of bitcoin as their asset and hold it for tax evasion purppose

it's true that if only transactions bitcoin to other people it will not be in tax but if bitcoin want to exchange to the currency rupiah / dollar then it could be taxed by the government of the country

It is risky to do not pay taxes, in fact, i am not on the US and i am paying taxes for my gains.

And that is a great move if you do not want to have complications in a near future, and came on, the taxes are not high, only a ten percent or less.

That, and to have some sort of control in the way that they know who owns what in crypto. If you know who owns what number of coins, and even till the extent of the addresses connected to these funds, the government can basically track everything you do without much effort. I think we have come to a time where exchanges behind the scenes might be handing over all our data to the government. It has made me a whole lot more suspicious, and for that reason I trade with far lower amounts than I used to in the past. I even started to look at some decentralized exchanges to see how they operate, and whether or not it offers me the convenience centralized exchanges offer me, but thus far there haven't been any decentralized exchange offering that, and probably never will find it.

The fact is that the crypto currency is not realized and the government does not control. I fully agree with you. But if you take the law on taxation of citizens of any state, illegal enrichment or any income should be taxed or levied in the treasury of the state. It depends on what income. Thus, it is still crypto currency and earnings from it, is illegal.

Actually in my region the government is strict enough and on finding huge amount of bitcoins. The income tax departments files a raid on the particular person so it is safe to first pay taxes and than sleep peacefully. I guess some tax will be applied by the government and we do hence indirectly pay taxes for the government for cashing out bitcoins. That might be hence not be risky and also their are a number of chartered accountants who can help you to properly audit your transactions and pay taxes legally.

Bitcoins have the potential to be legal and it than depends on us about how we use bitcoins. If we are willingly paying taxes for bitcoins the probably government will not have much issue in legalizing bitcoins.

Yup that's true! However, where I come from they haven't exactly established or formed something with regards to the handling and taxing of Bitcoin that is why when we convert our Bitcoin to fiat, we don't have to pay any tax yet. We do not have any laws pertaining to it as illegal and no regulations as well that says it is legal, so I guess we are also in a confused and just go with the flow situation. Due to this, we don't know where to declare our earnings from Bitcoin so we don't know how much of the tax we owe.

Don't ever think the government won't catch up, despite them needing USD / Local payment. Eventually taxation could be linked into service features or by direct mailing. Stop thinking taxes hurt people and wonder about benefits gained on staying loyal.

Even though you can evade now, try and use some services to establish ways to better your citizen reward if sticking to the system with want.

not all countries are getting part of this tax evasion to catch you up. like in US they are very strict about that tax evasion and money laundering so you will possibly imprisoned if you don't pay any tax related in. but on the other country there is no tax implement about in crypto so they are just sitting pretty and continue growing their wealth in crypto.

Bitcoin was introduced to me as a source of  income without paying tax. My friends told my college professor about it being not taxable and my professor reacts like it can not be. He said it is a fraud and illegal,they told him that money can be claimed in banks so it is not illegal, it has an authority from the government but I personally think it needs to be taxed. I guess there is a tax involved when converting it to fiat, correct me if i am wrong.

because by paying taxes, could build the country we dwell in, in order for the more advanced countries, and be able to compete with other countries, ...

Well, until bitcoin are only online, a taxation is a nonsense (bitcoin are just some points of a strange videogame)
When you convert them in fiat money, they become a value and government can do something.
But if you act smart, there is a lot you can do to not be caught...

only death and taxes bro

or move somewhere where it's untaxed

in my understanding Bitcoin is not taxable in state of being a crypto currency but once you covert into cash in their the taxation will  take place the government will take its part once it is in the bank transaction , just like the remittances of the over seas worker of our country they will send it in form of BTC to the electronic wallet of their love one but once it you will go to BTC service provider to change it into cash their you can pay taxes.

Yes, that's a real problem with cryptocurrencies as well. You may be rich judging from your wallet, but you will not be able to cash out your money quickly because you know they will catch you and accuse you of sponsoring terrorism or something (like they do in Ukraine).

  the video was not available... in my country paying tax from bitcoin earning is not yet implemented... on my own if my government implement that law then there's no reason not to pay taxes. it will help to benefits my country and everyone need to follow the law to prevent being penalies  so no problem on my part.

I am planning to declare and pay taxes on my profits when I cash out. Generally as long as the value is crypto you do not have to pay taxes. The regulation is country specific so you should do some research on your country's investment taxation rules and figure out how many you should pay if you cash out.

Do you really believe that? That's what it's supposed to do, but in reality in most cases it doesn't. Your taxes are funding mansions of the politicians and all their coworkers, pensions for those unwilling to work and so on.
The infrastructure can and is usually being paid from the taxes you pay when owning a vehicle. Road tax, fuel tax, excise, and so on. None of the taxes you pay on your crypto income will end up in your local infrastructure.
 Don't withdraw then. Use it to buy the things you need. There will be taxes in there that you'll be unable to avoid anyway, VAT for instance.

If you believe your government and support the way they're spending your money, sure. What if you don't?
 And what if your government doesn't support BTC? It had no part in helping you earn it, it's doing what it can to make it more difficult for you to use it, why would you want to share your profits with them?
I'm not saying you shouldn't and i'm not going to discuss the law, but you should at least be unwilling to do it, instead of clapping and smiling while they're ripping you off.

It is not being converted to fiat but yes it might end up being taxable but the truth is that we have to pay taxes at the end no matter how much we revolt against the fact. Taxes are the necessity of any economy and without taxes its hard to think of any govt. too so govts. will surely collect taxes from you in one way or the other.

Agree Taxes are somehow important to run a country in a more effective way. But the fact is how much and how smartly the leaders uses this money in order to develop the nation.
Soon, central authorities of most the countries will came out with the taxes norms on Bitcoin and other crypto-currency. So its better that we should accept this fact in a positive way and prepare ourself to pay taxes on it.

I think that with a little attention, it's not so easy to catch us. Of course, mistakes are not allowed.

This is a great way to do this, you are taking a serious look at investing in the cryptocurrency market. Make sure the transactions in the cryptocurrency market will not be taxed because it's anonymous and very confidential, no one can verify the identity of the investment account holder. You spend tax on the conversion from crypto to cash is very reasonable and proper.

From the video it seems as though as long as you pay after getting caught, it's not as bad as I imagined, unless  you don't have the money. But before I thought it automatically ruined your life.

Yes that is true. But many people in poor countries tend to think that paying taxes is a very heavy one. It is because many officials are corrupt and increasingly makes the poor suffer. The poor will tend to think of not paying taxes because they think their lives are full of suffering, why they should pay taxes to the government who do not help them? It should be the rich people who pay taxes. And when the poor find Bitcoin as an opportunity, they will surely make the most of it. However, we pay taxes if we can. But if we are less able or not able, we can delay it first.

if it happens it means bitcoin is legally in the country, because bitcoin is already in tax, but how it might be bitcoin is decentralized, then the government will be difficult to set it

true, an investor who has a lot of bitcoin in his wallet is not taxable unless he converted it to cash, using legal exchange sites, the tax for that transaction covers the equivalent tax depending on the amount of bitcoin you have converted, if one is trying to frequently converting huge amount of bitcoin, for example 1 bitcoin for that matter, the exchange site which is being logged is monitoring your account, if they see you having those transaction, you will be noticed by the tax people, so better convert your bitcoin not as frequently as possible. especially if your using a single wallet that has multiple transaction which is unusual to remain un-noticed.

I think it is OK to pay our tax in governments if they legalized it but right now we can say that we don't want to pay our tax even you earn a lot of bitcoin in the past year like here in my country it is not legalized and our government have no rules about bitcoin.

It's not that it's okay but we are really required to pay taxes as that is our responsibility.
With bitcoin we can avoid paying taxes but we should think of our country, we know that taxes are its lifeblood so if you progress you share it for other people to benefit.

which I know is applicable when I redeem my bitcoin to be a USD on a local bitcoin wallet in my country other than that there is a few bunches of money I save in a local bitcoin wallet account in my country when I am going to do a delivery or transfer USD which I have to the account that is in the bank that exists in my country. so I think for now there are some pieces that I think it is just like a tax I have to give. and I think if the government is going to make bitcoin as a legitimate virtual financial form then how many more percent should I spend on taxation of course if it's going to be a tax deduction again of course this would be very detrimental to people who have bitcoin assets . so to solve this problem in my opinion there should be a division of some percent for the taxation between the local bitcoin wallet account manager also with the government so that this does not happen sort of thing that will harm each other.

Not paying assessment dependably end severely, it is simply matter of time before you get captured. Rely upon nation's laws you can run free with not paying assessment for quite a while, on the off chance that you know how. In any case, that goes just until the point when you begin procuring genuine cash, that you can not stow away. Regardless of whether you procure it with bitcoin it is take gaining and you would need to pay charge, unless it is distinctive in your nation. In any case, regardless you would need to move that coins into fiat cash, on the grounds that only one out of every odd place acknowledge bitcoin as method for installment, and that is one all the more thing that would be end of your not paying assessments.

When converting by itself, you have to pay, and so far there is no regulation for what to pay for the air. That's when there will be control over the crypto currency, then of course it will not be very sweet for us.

This is inevitable, the moment you convert bitcoin to fiat the government will know and they do not care where you got that money what they care about is to get their money, if you comply then there will not be a problem but if you do not then a big problem is coming your way and believe me you do not want to have problems with any tax agency especially the IRS if you are an American citizen.

Thank you for sharing this vlog with the community. It straight and clear everyone should pay that taxes and be clear when they are going to do some business that actually helps everyone to avoid many types of obstacles which can lead to heavy losses in the business. That actually helps everyone to avoid many types of obstacles which can lead to heavy losses in the business. According to me I believe banks are one type of goons, they can do whatever they have in power to take taxes from us and we have to pay the taxes in order to supply the income flow of other peoples like Fireman, policeman, hospitals etc.

Taxation is a strange one because I feel that many in the crypto community feel they should not pay taxes. While I understand the frustration in having to give away some of your hard earned profits when you really think about it, it is no different to anything else. The only difference is you have a choice to do the right thing and pay your taxes or you can try to avoid them and potentially face the legal repercussions.

People are obliged to pay their taxes so that the government will have funds for their projects and able to pay salary of government officials so if they will  put tax to Bitcoin we should obey and pay for it.

Yes, some country apply strict regulation about bitcoin taxes. Paying tax is fine as long as the taxe rate isnot high. I think the bitcoin tax rate should lower than property or any ordinary tax rate because get involved in bitcoin investment is very risky. Government should understand that even professional trader in bitcoin world is not always get profit in trading.

Pay for government projects and to make greedy politicians filthy rich. I don't have any qualms with paying taxes but realistically, a bug chunk of it goes to the pockets of politicians. But you're right, regular people like us pretty much don't have a choice so we do it anyways with a pinch of salt.

I depends very much form the country you are living in.
In US probably there is a high level of efficiency in fiscal agency, so probably it's better to be prudent.
But in the majority of countries, politicians and bureaucrats have still no idea about how to manage this "bitcoin stuff", so nothing is clear.
And I don't see any reason to take any initiative BEFORE a clear law is made.

Yes ! When you do work or what business it with high income you pay personal income tax . But when investing in bitcoin you don't need to worry about tax issues . Whether you become a billionaire . There is also the advantage for those who join the bitcoin .

Blah blah blah... We are paying taxes just because if we don't do that then we'll end up behind bars. I am fully aware that the income tax which I pay to the authorities is mostly used for wasteful expenses such as waging wars and to give salaries and perks to the government employees.

We have the duty to pay our taxes, but in most of the cases they are just a legalized theft made by government.
So, until the moment bitcoin is anonymous, I don't pay anything. In the future, we'll see.

The bitcoin and cryptocurrencies status is so unclear and different from country to country that the best strategy is to wait.
And if a coutry makes problem, it's not so difficult to cash it in another one!

It's true that there is not really a tax on bitcoin because of the fact that they can tax the bitcoin if they do not know who made it so many bitcoin users are still thinking about creating or creating digital money so far no tax breaks on bitcoin because it's not easy to get the tax immediately

Many countries have defined BTC as assets and recognized BTC's legal status!

But it also increases revenue and business taxes! If you deal in BTC, you have to pay taxes!

First your video is unavailable. Try to re-upload or edit new link. Come to the post, Bitcoin is volatile nobody can control it. If nobody have access to control its then there's no way to apply tax. Even government can't control nor they can apply tax on your transaction. Bitcoin works between 2 members. Once is called seller and other call buyer, no one can trace your transaction,then no one can take taxes.

This will only work in a confined space. But unfortunately the reality is that all bitcoin users need to periodically change bitcoin to Fiat. From now on, we're vulnerable. Fiat is the territory of the government and in this territory they can enter any conditions. At this stage, the government may take any taxes and prohibit the use of Fiat in such exchanges.

Maybe incoming time when the government was going to put some tax of the bitcoin or in a bitcoin user, But how they will know if we have some bitcoin and how will be to do it. I think it a website only cause we the bitcoin it is a online cryptocurrency so it will going through to internet.

Yes, I think it is possible that the governmental organizations would have tied the cryptocurrency with legal frameworks. What the US stock market is a lesson for the investors themselves. I think they will find ways to tax the crypto market in the future for growth, and economic justice. although we all do not want that.

Because of the way Bitcoin is being traded devoid of tax payment due to it's peer to peer concept, not that we want to or are happy avoiding tax, to some of us that are actually obedient with our integrity. We are waiting for the time where a kind of regulation is been driven into the deal somehow and hopefully. It's not so easy going to our revenue office here reviewing Bitcoin earnings that is yet to be believed by our Government earnings to be taxed is just the issue.

If you are honest enough, you can even declare it in your annual personal income tax. And as quoted above, only cryptos that converted to fiat must be subjected to tax.

Most of the country did not collect tax from bitcoin.Because they have not yet a guidelines that mandated to bitcoin user to contribute their taxes.  They have no rule yet bieng implemented about collecting tax from bitcoin. But their are also other country are now start collecting tax from bitcoin. Because they accept bitcoin as legal tender in their country.

Actually, tax avoidance or evasion is against the law and regulation of any country. We are all aware. But is this the fault of anybody for not paying tax in Bitcoin? When Bitcoin itself is shortfall of Tax payment based on its characteristics in Blockchain. I do not for any reason takes this for a crime at all, when it is not that the Tax authority served me any Tax payment Demand Notice that I shunned. However, when the time ripe for that, we must follow and shall obey suit.

There is no bad if you are paying tax mate, it is making sure that government is involved your bitcoin so it will increase the interest of people so they will invest in bitcoin and they will try buy bitcoin, it is very easy to pay the tax if the income tax department has the bitcoin service and they will help people to pay for the taxes without going out of home, having high amount of bitcoin will fix the tax that people will have to pay so I think government should fix the reasonable tax that people will pay happily to make safe and fast transaction.

That's big lol man. Off course if we covert any crypto to fiat then it is ttackble and almost in every other country this conversion osbytacble by banks. They will catch you and they will catch you bad if you have not paid the taxes for the same. It will be our fault if you don't pay the taxes and get caught for that. In reality we must pay taxes and that can bring us good and nothing else. It will help the countries economical development and we can just be relaxed when we see good statement made by our banks. At least that's how it work in my country.

People who will get scared about catching up in the future are people who try to beat the rules. If a country is taxing on certain things for instance bitcoin, it is a call to duty on the part of the citizen. Such accumulated fund would be collected at one time or the other and it might be when not expected.

Well all depends on the country you live as to whether they support or accept Bitcoin and crypto currency as means of exchange for goods and services because that is the basis in which one cannot completely deviate from paying tax to the government. But is not accepted as a means payment for goods and services here in my country and that has given me leverage not to pay tax from all my crypto currency business.

If you want to live in a normal country and have social benefits pay you taxes, i know you as an individual don't make any difference but lead as an example

At present, there is nothing clear about bitcoin, so - even if you had a so big desire to paying taxes(!) - it wold be probably impossible.
Btw, I'm pretty sure that in short time goverments will find a way to control bitcoin addresses and transactions.
But I also think that - for smart people - I won't be too difficult to find a way to not be caught... :)

This is a bit of a generalisation, it will for sure be very dependent on the country you are a legal (tax) resident of.

Yes currently there is no tax on bitcoin, and the reason is that currently most of the countries have not yet turn bitcoin a legal currency and there is no rule to put tax on illegal item, therefore bitcoin is currency tax free, but i think that when countries will consider bitcoin as legal currency then there are more chances that the will also impose tax on bitcoin.

As a result of the way Bitcoin is being exchanged without charge installment because of it's distributed idea, not that we need to or are cheerful maintaining a strategic distance from impose, to a few of us that are really dutiful with our respectability. We are sitting tight for the time where a sort of control is been crashed into the arrangement some way or another and ideally. It's not all that agreeable to our income office here auditing Bitcoin profit that is yet to be accepted by our Government profit to be exhausted is only the issue.

If bitcoin can be legalized then government might implement tax we have no choice but to pay tax,but since their is no third-party related to bitcoin no one can trace your transactions but only the user and the receiver,they cannot apply tax.

Cryptocurrencies are decentralized government has no full control in any income derived from it. But if you use your income to purchase anything still the government earned taxes from your money, the more people engaged bitcoin the more money also back to the government.

Now you will have to pay taxes even on the cryptocurrencies you hold. Governments have started regulating the cryptocurrencies all over the world. The exchanges now will record each and every transactions that occur and will make it all transparent to government thus it will make people pay taxes for holding cryptocurrencies beyond a particular time period. Therefore people will no longer be able to hide their black money, sooner or later it will all come out.

If you are trading in cryptocurrencies or investing in them, you must pay your taxes. Its better to pay certain amount every year rather than losing all your profits and investments later after getting caught.

Though, if one sells crypto locally and convert it into cash, the government wont be able to track it but if you convert your cryptos into fiats at exchange, government will get to know. So always pay to taxes to maintain faith between locals and the government so that cryptos are not banned or made illegal.

Personally, my country is really not strict with tax laws anyway and I really do not care and except for those working for the government, or the big companies, I can decide to keep my crypto, or convert it to fiat and go ahead with my daily activities. I am not against paying taxes, but for a country that is really not bothered about me, not giving me all I need even if I pay tax despite the huge amount being generated from all the natural resources daily, most especially oil and gas, why on earth should I want to go pay tax ? I would rather give it to a charity organization.

Definitely agreed. However it seems a bit disheartening to put taxes even on something that is not owned/controlled by the government, that is completely decentralized in nature. Really, there is no way out, cuz atleast once you will have to convert your money into fiat, and if a large amount of money is done so, it would end up you getting some pretty serious charges in some countries.

In my country, India, the finance minister reported that the government will be looking into it but haven't finalized anything yet so that's that, we don't have to pay taxes, YET, but they are discouraging people from using bitcoin, specially as they can't control it, I reckon.

i am fine paying taxes on my bitcoin/crypto winnings...i recently did my taxes for last year and realised i also should consider my bitcoin winnings... For me honestly the biggest problem is to report them properly- i mean there are tools like https://cointracking.info?ref=H662021. But as a small trader (~800 trades) on 4-5 plattforms it is just hell to do it properly in a reasonable amount of time...
So to be honest i can imagine a lot of people not going down the road not paying taxes...However i just hope there will be made an adjustment soon - at least where I live :P- to simplify the procedure includuing ICO, Airdrops, Referal stuff...because otherwise it will be hell- esp with plattforms like coinsmarkets- which do not allow export data but support staking....So lets hope the government is taking care of important things in life ;)

Paying transaction fees considered that you already pay tax. We just cannot see because it is indirect paying. The private offices who handle that transaction is responsible to pay for the whole tax of it.

Most of the countries have already started regulating cryptocurrencies and setting up rules such as India, South Korea and many others. Government officials are raiding the people that have known to invest in cryptos and are known to have not been paying taxes on it. South korea has already implemented strict rules with respect to crypto assets. Its in the favour of government as well as locals if people just pay their taxes on the yearly profit they earn.

By paying taxes faith can be maintained between government and public therefore possessing no threat towards banning of crypto or announcing them illegal. Cooperation with government is only way one can grow in crypto business.

Not all people think as we do. People try to find as many ways as they can to save the tax they pay. This case if with most of the people. No one wants to give their 1/3rd of hard earned money especially when there is no seen development in the country by government.

Usually many government officials are corrupted thus preventing the development of the country. People consider investment in crypto as a secure way of getting away from paying taxes, but government will surely find a way to crack down this and make people pay the taxes the owe.

Bitcoin is not controlled by the governments that's why they cannot collect tax from the bitcoin, precisely bitcoin is a decentralized currency known to all so paying tax is not compulsory here. Some countries are mulling to collect tax from bitcoin.

Bitcoin can be only taxable if you decide to cash it out. But in the conditions of nowadays this is almost always the case as there are not so many points where you can pay with bitcoin! That is why you are always required to pay taxes. Hope the things will change soon with the mass adoption.

if your not paying obligations in taxes,meaning your a law offender and your an offender jail is what fits you,every people requires to pay taxes and no one has pardon on that ,what i mean all whos making profit..and most specially USA whos having a hard rules about cryptocurrency,then he must pay the debt

As i am the user of the digital money from last two years and i have to say that if i receive any amount in the form of bitcoin then i have to use this for my daily needs like the consumer goods for which the governments and corporation have paid taxes so i am also paying that taxes from my bitcoin money and it is also applicable in the other side as well like if we earn bitcoin we must pay some transaction charges then at the time of withdrawing we pay taxes and if we do some transaction with this money we are also  paying taxes.

Sad reality where we are obliged to pay taxes but on the other side it is also has a positive outcome to our economy and improvements of every projects by the government. Here in my country local exchanges we're regulated by central bank so either we like it or not we have to follow the rules and regulations and the agreement of having a KYC/AML which was implemented by them and that is how they get access or exploit to our privacy though some people don't like it but has no choice.

With bitcoin you don't need to pay taxes because the government doesn't tax bitcoin because of there low knowledge about it and we should maximize it right now that we are not paying tax but in the future, i think that the government will require the bitcoin or crypto users to pay taxes because they will not allow the profit to miss to their hands.

I would not say every country but generally, it is something that should be done in most places where it is very important and necessary. If the laws on it are strict, then anyone evading it will have themselves to blame. Some may consider not wanting to pay tax on their bitcoin, but I guess they would rather have to do a P2P transaction, and never convert to fiat.

That is how I see it playing out in the long run anyway, and for those who would still prefer to leave whatever they have in cryptocurrency as it is, I do not see why I will have to pay tax on that. There is no point in the way OP putting it that I will be caught, as normal sense should make me realize that not paying tax in conversion to fiat is more like going against the tax laws since that may be considered as a capital gain tax.

Yes they will catch you if you don't pay taxes that is implies to all company, all that are using fiat and if you're going to convert your BTC to fiat their would be tax on it because you're exchanging it. That's why if I don't want to pay taxes, peer to peer transaction.  ;D

Really, I do not see any reason why anyone should be evading tax. Sure, some may have their own personal reasons for that, but the fact is law is law and going against the laws of the country you are in, would definitely have some repercussions attached to it. As long as it is reasonable, and the government is not trying to impose some exorbitant level of task on the cryptocurrency holders, I am sure it would be a win-win scenario for everyone.

When you buy a product or service, they can (more often than not) already have taxes embedded. For example, profit tax, VAT, customs fees and many others.

For now we don't have any option not to pay our taxes because even the jobless ones do pay taxes. They put our tax obligation on top of our daily needs and wants, so we don't have any escape this time. And I understand that this is for our own good inorder to promote equality. Before those who work so hard and those who earned a lot have higher taxes but now everybody are obliged.

That right. Taxes are very important tools for government intervention in the operation of the work you do. Proof of bitcoin is not prohibited in your country. This is the obligation that you should make

the man deserves to be jailed because of his greediness,that is America and we know how the rules being implemented there.hes gaining lots of money but he dont even bother to pay a tax .thats what he get when he do more bad moves in that great country.when  laws are implementing for all people in any range of living

bitcoin is a business that needs to pay taxes still. even if it is a computer or internet money or currency it still part of a livelihood and needs to pay taxes to the government. paying taxes is a must that everyone should do. even if it is high or low.

As a results of the means Bitcoin is being changed for gratis installment thanks to it's distributed plan, not that we'd like to or area unit cheerful maintaining a strategic distance from impose, to a number of folks that area unit very obedient with our honorableness. we tend to area unit sitting tight for the time wherever a kind of management is been crashed into the arrangement a way or another and ideally. it is not all that agreeable to our financial gain workplace here auditing Bitcoin profit that's however to be accepted by our Government profit to be exhausted is just the problem.

I am totally against btcs. They shouldn't be let to circulised In any nations or they have to count on the loss :(

Well, that only perfectly applies to a country that imposes rules and regulations on cryptocurrency. Of course, if your country is requiring you to pay tax for your crypto earnings, then you have to or else you will be liable to tax evasion.

We cant do anything if any Govt imposes tax upon btcs. We are bound to abide by the govt

The best thing about bitcoin is that in a decentralize system, it is a direct transaction between two parties, there is no middleman involve. However, a tax can only be applied when the time comes that you need to convert btc to fiat money. Right now here in our country, it is awesome that bitcoin is still tax free but when time comes they will have clear regulation to imposed taxes, we have no option but to abide by the rules as a responsible citizen.

From now on bitcoin here in our country have no regulation yet, that the government imposing to collect tax from bitcoin, because  as of now our government doesn't have a law ammended that any transaction made by bitcoin have pay tax to the government.but we are waiting for this regulation an we have also obliged what the government imposing interms of paying taxes from bitcoin.

As a citizen it is our responsibility to pay our taxes, which is utilized to develop our economy. Even though government cannot trace the transaction since it is decentralized currency but while converting to fiat you should pay your taxes. There are ways to avoid paying taxes but if you want to be in safe side you should always pay your tax.

Since Bitcoin is not yet legalized in all countries, there is no tax apply for all transactions made. But in some countries that bitcoin is already legalized, they should pay taxes to avoid unwanted circumstances that can affect business transactions and cases related for not paying the correct taxes. If you are a good citizen of a country, pay the correct taxes and declare it in your financial statement as you are receiving extra money from Bitcoin to avoid cases as seen on video.

It is true that the moment of change in fiat is a critical moment, but with a little attention one can avoid being discovered.
And then, if the sums at stake were really high, just move the residence in a nation that does not have a law for bitcoins.

I know some of us getting mad when they hear bitcoin/crypto holders will pay taxes as of the government demands. But then, since isn't finalize yet and such regulations isn't totally imposed still we are free from that.
Actually, we should be never argue with that cause those taxes collected from us will be a big help for the community as the government used it for projects which we can benefits it also, unless we are abused by them then that's the time that we take steps against them.

I think if we are to pay taxes then whats the difference between the fiats and the btcs anyway??

We should pay btc tax to Govt so that in return they legalise its fluent circulation

I don't know about taxes yet, since my country haven't release rules about bitcoin taxes. But for the usual income, i always paid every months and make a report every year.

It is necessary that everyone need to pay taxes to the governments according to their earnings if you don't do it then you will be considered as criminal and actions will be taken against you of you get caught.
But as long as you use bitcoin as bitcoin there is no tax in many countries but some countries already have regulations so they will keep track your crypto earnings too if ykur country already regulated.

Paying taxes is one of our obligations as citizen of our country and violating this will result to a serious consequences. Thus, we should pay crypto tax if already specified in our government. Fortunately, our government hasn’t imposed yet a clear regulation on digital currency like bitcoin. But they are still studying on it. But when the time comes, that it will be imposed, it gives me no choice but to pay crypto tax.  Corruption gives us heartache in paying your taxes but let us give this issue to the “Clean” government officials.

Actually we have double standards. We want to make enormous money from bitcoins by regulating them in our countries. We pledge different proposals to governments on this platform for legalizing them as soon as possible. But on the same side, we don’t want to pay taxes if governments would have legalized bitcoins. Due to hypocrisy we haven’t seen bitcoins living in our official papers.

Its better to pay the tax because in that case your transactions will be under a lawful onlooker

For me, that is the real aim of bitcoin they don’t want to pay some taxes or control by the central bank. That is the main reason for some country why they ban bitcoin because they can’t control it, and it is very demanding to recognize or to track how is the user behind that code. But I read some article that they will put a tax on bitcoin I don’t know if they can do that all over the globe.  :)

Yeap. Paying tax for your profit is nothing harm and that is a duty of a good citizen. There is no tax law implemented as of now for any countries until now but some countries imposing heavy tax on cryptocurrency profit when converted to fiat. There will be stable regulations in future but different countries tax people in different tax slab.

and i really dont know what would be the problem just because the country is implementing collections on taxations upon crypto will be big issue,just like in regular work wasnt we obliged to be collected by tax and were not complaining right?but why in crypto when most of the times were earning much higher than regular work we still not complying,if thats the case we have our own problem and not a governments or this forum

That is a central question. Bitcoin is "fair" money, not magical money. It is the only system in the world that anyone can use in any place. It is a math algorithm and not a business or person. It does not need to take profits. No one can stop me or compel me to use it. It is trustworthy open source code that operates on a peer-to peer network that can't be hacked or "taken over". No one can control the supply or decide who gets coins from mining. It is unassailable money that does not require trust. The opposite of fiat.

Taxes have nothing to do with it. Taxes are the business of governments and they can tax whatever they like. If you have a problem with taxes you are wasting your time here. You need to speak with your government.

This is easy pay your taxes, I know that no one likes to do it, every time the government raises taxes no one is happy about it but if you like your freedom you need to do it especially since in my country jails are really not places where you want to be, so forget about trying to beat the system if at some point you're going to cash out then declare your profits and pay your taxes.

Exactly if you really don't like to pay tax to your government then don't convert your coins to fiat. use your coins directly to buy your needs that are the only option you left or else find a local buyer and sell your coins for direct cash. If you convert your coins into fiat using any exchange you must pay tax you don't any option.

I think it would only be fair for governments to collect taxes on bitcoin earnings if they have invested in contributing to the technology, otherwise, it would not be fully justified. You cannot make my business difficult and still want to be a beneficiary of the same business, it does not sound right.

This issue also worries me a little. But, I'm sure if we withdraw small amounts every now and then maybe taxmen wouldn't be so suspicious and tax could be avoided. Of course, it depends from country to county. But if cryptocurrencies continue to rise I'm sure they will find a way to tax even the smallest transaction.

Somewhat agree on you, it depends on how much you are earning, if you earn maximum or in the limit that it should be taxable then you are require to pay taxes accordingly. But since bitcoin is not legalized yet in our country there's no requirement to pay taxes,

I saw that video before, basically it can cause you big time in potential. Lesson is don't leave thing for a later time or to chance.

well, it becomes a problem for investors, as long as bitcoin cannot be said as a global digital currency of course movement and access to a transaction of sale and purchase of goods still very limited. We still need an exchange in which we will pay a fee when withdrawing. If in the future, bitcoin can replace the whole Fiat function, we may not need to pay taxes anymore, although the possibility is very small, because a tax is one of the main income of the government.

That's one of the reasons why the recent G20 meeting called for regulations into BTC and they declared that it shuld be considered as an asset just like Gold and when this regulation happens every bitcoin sold will attract a tax just like people pay taxes when they are selling their Gold.

Yeah once we convert Bitcoin into fiat money taxes will automatically applied. Our local exchanges here in my country are regulated and that is how they tax our funds. I am not against tax and to be honest we cannot evade from it though it will also be helpful to our economy too. Tax is everywhere and that is how we live life from now on.

And I believe so. If the government invests in bitcoin, such as making sure that there is faster internet connection or better gadgets or systems to improve the use of bitcoin, and requiring companies and stores or any other businesses to use bitcoin, then I would be so glad to pay future tax.
But then, if they fail to do so and tries to interefer without us, having any advantage or benefit, then, I would disagree.

It is our obligation to pay taxes in all of our earnings. It just so happen that bitcoin earnings are not taxable automatically so we need to declare it. If everyone is doing the same (paying taxes on bitcoin earnings), I think the others will also follow and it will be easier to track those who are not paying. I hope that they won't automatically apply tax on btc transfers. This will make our life a bit harder than it is now.

If government want taxes from bitcoin, they can get it from bitcoin trade. In my opinion, its better bitcoin trade get taxes and government issueing regulation on bitcoin trade, thats make bitcoin investor more confident

This is the reason that I always cash out my bitcoins in a different account than my usual account which I use regularly so as to keep track of the money that I have made in INR with bitcoins, if it goes above the non taxable limit then I pay whatever the tax applies so as to not get into any legal trouble, as getting into a legal trouble like tax issue will hamper my reputation in my community which I respect the most even more than the money I make as money can be earned again, but if reputation get tarnished then it's pretty hard to earn it back.

As far as I know, with bitcoin trading features, bitcoin can become the focus of unauthorized purchases and tax evasion. This problem has been resolved with the good plan put forward by Japan, Germany by law. Their government will introduce control measures by imposing taxes to create accountability and fairness for their citizens.

why sould you evade taxation in the first place? It where government projects and developments get their funds from. Aside from it's your obligation, the benefit of it returns to you. So unless you don't trust or badly hate your government you should pay your taxes.

You don't wanna grow old knowing that funds alloted for your retirement goes to zero right?

i think,
Tax payment is a necessity and No one should ignore that.
 Doesn't matter whether you are earning from your job or from Cryptocurrency. you will end badly.

No, it's an obligation. You're required by law to do it, but it's not necessary, unless you feel the need to do it and your conscience would kill you if you didn't. A necessity is something you can't do without. An obligation is something you are made to do.

While some taxes should be paid (for instance i'm paying my property tax which pays for the roads around me to be maintained and lit, my garbage to be collected and disposed, things of that sort) some like the income tax shouldn't. They are nothing but a robbery.

Well depends on a lot of factors. There are ways where you can avoid taxes tho. Google it.

I don't think there is any cause for Alarm with respect to payment of taxes at all since there is no how taxes can currently be calculated based on each members encrypted wallets that is inaccessible for anybody saved you alone. So, how can your accumulated Bitcoin in your wallets be calculated by Governments Revenue Services especially in those Economies shortfall of Government support for the unregulated on line currencies. However, it shall become mandatory on all of us that are Holders of Bitcoin whenever this cryptocurrency becomes acceptable in each of our economy unless you are a Tax Avoider or Evader which does not portray a good dignity/image of a respectable Bitcoinner.

Correct, if you ever exchange your bitcoin for fiat then you are at the mercy of the system established by banks and governments and you must follow the rules, we don't like it and in fact that is one of the biggest reasons of why bitcoin was created in the first place but you need to follow the rules, pay your taxes and be free and without any worry especially if you have a big amount of bitcoin.

It is our responsibility to pay taxes so we should know the importance of it. We must do our duties for us to help our community. We should know the the taxes that we are paying usually goes to our government's necessities. Our government's expenses and budget lies on our hands so we better do our duties and responsibility in our society.

It depends on which resident you live. In many places, it is easier to not pay tax because the government does not have enough power to control citizen. In someplace such as Spain, people are struggling about tax and you can see that many football players have to stand trial because they are found not paying enough tax

If you use your bank account you have to watch the amount. While nobody will ask  you about that $500 you got from an exchange, they might ask about $5000.
It's also much worse in the US than other countries. They have some really tough tax laws.

Actually we are paying electricity bills while we are running our mining hardwares and if you are transferring your coins then you also need to pay your transaction fee's so taxes are just bullshit and government just want to get money from people.

If this were true people will not be angry at paying their taxes but we know that is false, we know that the government does not spend the money as they say they do in some cases they spend that money in something else and in the worst case scenario they just steal that money for themselves and keep it in secret accounts in offshore bank accounts.

When we know that taxes that we are paying are used in wars and killing of innocent people, still we should pay the taxes? The taxes we pay are not always use for the welfare and betterment of the society. Some insane governments use it in wars and making atomic bombs for bringing mass destruction in the world. People should be properly informed about taxes that they are paying and their utilization.

I think it is our responsibility to really pay our taxes even if we are just earning theough cryptocurrencies. That’s how our economy in our country improves too. And it will be beneficial to us once we retire, so people must be informed properly on what is the reason why we have to pay our taxes.

Is it possible not to pay my taxes? I'm earning like a government employee but there is a way that they can track my earning? I'm afraid they will accuse me tax evasion

Those trials against well known people like soccer players are just a way to try to scare people, what they're trying to do is to try to make it seem as if there is no way to escape from them and the taxes that they want to charge you, your average person see that in thinks well I'm not going to risk it if that person with all those millions and all those lawyers is unable to escape from the tax authority then I don't have a chance.

That's right, taxes are a standard to those who are in the working class. It's the life blood of the government because it's where the bulk of their profit is coming from. Therefore, if the topic is paying taxes through Bitcoin, I think that many governments would not allow that because the values may change at any time, but taxes should be exact because they are precomputed based on several factors, and if you would pay for your tax dues believing that what you're payment is enough, only to find out that its value has lowered and what you gave is not enough, especially when the government is the one on the receiving end, would surely not be allowed.

in my country, although btc no taxes, but there is still personal tax. from there the government know what treasures we have by looking at proof of ownership. so I think our taxes will tracked as well

The legalization of btc is near we know that a lit of countrys shut the door for crypto cause they knew they won't gain something causes of decentralized system if they find out how  able pput tax on evry bitcoin earner its SD thing for us we know that a lit of politician is greedy in terms of money the high profit for us will be divided and the sad part is government will get much more

well in my country too, all bitcoin users are also not in tax increases. but of course when you exchange it with fiat, then the tax will apply. well, ultimately the use of fixed taxes will happen if you have a lot of money, or treasure.

So in other words, people will have to pay taxes. And if this is happening all around in your country, then definitely it will mark a good impact on your country’s economic health. Because as the bitcoins are fast and easy in transactions, whenever someone uses them, he will be automatically paying taxes or taxes would be detected as per law. This is seriously so amazing.

Don't be scared to much - it firstly depends on the country in which you live - some are very strict, yes, but there are still ways.

Yes thats true, but it will be abide the nature of this currency which is excuse from the taxes due to the fact that this is an example of decentralized currency , on the other hand , Bitcoin is a very profitable currency and if every people here will ble to give some part of their income I think it will definitely help our society, free education and so many opportunity for the less fortunated people, we just need cooperation and sharing our blessings.

I keep saying the same, but newcomers are too lazy to read more what we wrote here. There is always a way to skip regulations, some will be caught by governments but only the ones who don't cover tracks in the right way. I keep saying one more thing if someone is afraid from governments try to use some anonyms coins that guarantee privacy. You can use monero or some cheaper privacy coin, then buy bitcoin with that coin, send bitcoins to your wallet and who will knows that you have a bitcoins? Use VPN all the time, or have a special lap top and when you are out use it on some public network, skip everything that is connected to your name. But most of the countries in the world will be opened for bitcoin, so in the end moving to a bitcoin friendly country is always a good option if you ask me.

but then if bitcoin legalized by government, i think government will look for a gap to levy taxes. but there is also benefit if tax is collected, because it means government has regulated btc, and investor feel free to invest in cryptos

Once bitcoin is exchanged with our regular currency, that will be the time we can pay taxes. Much more when we are going to use that money like for instance in buying goods or anything, there is already a tax once you pay, example the value added tax. If ever the government accept bitcoin, then I  am pretty sure there will be tax to be imposed.

Bitcoin is not looking good with tax and even not feels good by hearing this. Paying taxes is only in fiat currency that is under government and government gets taxes for the well and goodness of people but they do not know what is best for the well and good of people. Bitcoin is designed for people and people should use and can use without paying taxes that is what Bitcoin is good for people due to the easiness.

I do not pay taxes with Bitcoin. But this is because I earn little. If I had large sums in crypto currency and I wanted to withdraw them into fiat money, then of course all taxpayers would pay, that there would not be any problems with the state and I could easily use them and make big purchases.

I do not believe that earning cryptocurrency is not paying taxes because we have transactions fees by transferring our cryptocurrency to different wallet so how come they are saying that we do not have taxes because that can compensate as a tax.

People who doesn't pay taxes but get their gains via cash, it's impossible to track them.
Anyway you can't get your funds to your bank without paying taxes at the first place as most of the banks will just refuse to take this payment and the payment will be returned to it's origin.

When people deals with large money, they usually know what the risk that they are taking and how to avoid getting caught.

In the end, government will find out about our assets. Its better to paying our tax because we get profits from cryptomarket. Not matter we hide our assets, I am believe government will find out because in digital world anything can be tracked

indeed government will find a way to take advantage of the bitcoiner that is with tax. but if not yet legalized they can not collect taxes. though for anonymous reasons, but i think government is more sophisticated. i am sure government will find a solution for this

Ive watched this video already and it makes a lot of sense. Sure there may be a few people who fly under the radar and get away with, but overwhelming majority of people are going to be in the youtuber's position. Lets not give the government that opportunity, I never understood why people evade tax seeing how the penalty is huge.

Well if you will just research about bitcoin, it is not register on the central bank of every country because government aer opposed on this so basically there are no taxes from bitcoin and the people who uses bitcoin doesn't pay tax anymore. And I think that is one of the reasons why government don't want bitcoin in there country.

Taxes are bad in front but good inside sometimes. The government using these money to improve infrastructure and all the nation facilities of a country.

Why do even they catch those people who are using cryptocurrencies? it is just that cryptocurrency is decentralized and it doesn't mean it is not good to do. It is legal in some countries and it is used by many professional people so why do they catch people who uses it.

This is very simple, you need to pay your taxes, no one likes to pay their due taxes and even if I believe that the tax rate is very high in my country we really do not have a chance to do anything else, I know that there are a lot of people that think that they can use bitcoin to avoid paying taxes, but that is a very bad idea if you do that and the amount of money that you earn through bitcoin is significant then you will have to live the rest of your life always looking over your shoulder worried that at some point the tax authorities are going to catch you and put you in jail.

If there's no law base in your country about this yet - you probably should worry about that...

yes...Just pay your taxes from every withdrawal, but it can be unrelevant advice, becouse of differences in a laws of different countries, lol

Federal government does not recognize bitcoin as currency. For federal tax purposes, virtual currency is treated as property. General tax principles applicable to property transactions apply to transactions using virtual currency. At what sum total of cash do you need to claim taxes on bitcoin? All of it. The IRS states that even small income such as babysitting should be reported on your taxes. It’s safe to assuming every single dollar you profit on bitcoin is taxable.

It’s important to understand that you are only required to pay taxes on bitcoin when you turn it into cash. This obviously applies when selling your bitcoin at an online exchange or an ATM because you are receiving cash for your bitcoin. However, transactions made for purchasing goods or services is technically realizing a cash value for your bitcoin at the time you spend it. This means you’re required to pay taxes on the cash value of your purchase. This type of transaction is treated as normal income, not capital gains. So if you spend $100 worth of bitcoin to purchase something, you need to claim $100 of additional income on your taxes.

All bitcoin you purchase and hold for less than 1 years time and sold for profit is considered “short term gains” and is taxed as normal income. You will pay your full tax rate for a bitcoin investment under one year. This percentage depends on your normal tax bracket which is based on your income.

Bitcoin purchased and held for longer than 1 year is subject to capital gains tax instead of normal income tax rates. This means that you will be taxed 15% on the total profit from the selling of your bitcoin. If you buy $1000 worth of bitcoin and sell it for $2500, you have a $1500 capital gain which you will pay ~$225 in taxes on.

Be sure to keep your receipts for all your bitcoin transactions and purchases. If you are not sure what price you purchased your bitcoin at, you can always calculate the daily average price for bitcoin on that particular day. Be sure to reach out to a tax professional when possible.

In my country, we are obliged to pay our salary taxes. There is a constitutional law and enactment against tax evaders or tax exemplary. At first, I was confused that the crypto enthusiasts are exempted against the law. I don't think that decentralization is a reason why we will not pay our taxes as long as we used crypto in order for as our income salary, it is a must that we pay our tax. Tax is an obligation of a citizen, it is for our economic development.

I did not see the video, because prior to watching it I expect a more detailed explanation about what you are talking? And your statement that they will catch you is absolute nonsense, because there are countries in this world where winnings from crypto currencies are tax free if you hold them longer than one year for example!

If you're working on a business  you e able to pay taxes.  In somehow bitcoin has only a transactions fee for transferring it.  You don't  need to pay taxes on bitcoin but you need to pay for a fee.