Bitcoin Forum

I have been thinking of this for long and the reason being that a lot of bitcoin transaction is going online everyday in many countries and i think government can generate IGR from this if possible. I am not a programmer and i have a little knowledge about bitcoin technologies but i just want to know if it is possible.

Im not an expert too, but in my point of view its almost imposible to do that. Cause is untracable right ? if you dont know who hold it can you tell that people to pay the tax, for example i live in the usa where tax is mandatory but goverment have no proof that i have bitcoin. can they taxing that ? Spoiler allert, if you not tell them that you had, they cant.

Giving tax for being bitcoin holder is not possible as nobody use their own names or personal details for holding bitcoins in their wallet cryptos give high end privacy for their coin holders and it is not practical for any government to find out how much btc a person is holding so giving tax for holding btc is not something which is practical.

Bitcoin unlike any other currency existing is decentralized, furthermore it is not run by capitalist and elitists, which I think is a good reason not to make bitcoin subject for taxation because although it is run by private sectors it is not run by private elitists. furthermore, we are anonymous when we enter the bitcoin world so I think it is impossible to track and tax the users themselves.

Governments dont tax financial transactions (normally), they tax capital gains (profits) or income (from traders making an income).  Same rules apply to cryptocurrencies. And normally its on you as a law abiding citizen to follow your country's tax law and declare your gains/income.  If you dont, and they find out, big fines and possible imprisonment.  So make as much money as you like within cryptocurrency world, as soon as you exit you will be liable to tax.  Buy services direct with Bitcoin might help stay under the radar, or full under the threshold for investigation.

I think that they have means to detect your unpaid taxes from capital gains or income: look at the US IRS which expressly asked exchanges to pass all the relevant transaction information to them, as well as currently enforced KYC (know your customer) regulations in many countries. The only way to get undetected is to engage in exchanges of bitcoin into fiat with private parties (from localbitcoins, for example)

Also I am reading news that services directly paid with bitcoins are being subjected to VAT tax in many countries, or at least it is planned so it will be the case in near future. So the window of opportunity may be closing here.

Seems that localbitcoins will shortly remain the only option available...

it's possible to do if the goverment and bank cooperate with the exchanger to know all the user asset in the exchanger. so when the user send their bitcoin from their wallet to the exchanger wallet to cash out the money and then list the bank account to cash out and then report to bank and tax authority. in my opinion that's another way to taxing the bitcoin user.

Sorry I'm a new person in bitcoin world, what is an IGR? I do not understand, I hope you as a thread maker can tell me about IGR, I am very curious.

It is decentralized in the first place and we know that tax is can be generate by the government or institution. I don't think that bitcoin can be taxed by these government because they cannot control it. I think that is why are doubtful about this cryptocurrency because if they cannot control it the result will be unpredictable too, i guess they are taking taxes on the wallets we are using there are some part on fees that government will receive.

It is theoretically possible, but it is quite hard to trace identities of bitcoin holders or positively ID holders with their personal details. Therefore, it is hard to implement taxation protocol with bitcoins. Moreover, high end privacy for bitcoin holders is implemented..so all the more reason to say that it is practically difficult for any institution or government agencies to identify the bitcoin asset of a holder of an account.

I'm new in the cryptocurrency world but i think it can't be possible to taxing bitcoin because as long the bitcoin is safe in the personal wallet it will still under the radar and can be tracked by goverment or tax authority. and there are many way to cashing out bitcoin and that will be another problem to thinker who want to taxing bitcoin.

and in my opinion taxing bitcoin is the core problem for govement, this problem that make bitcoin banned to goverment because there still no way to taxing it. so until that problem still unsolved many country will ban bitcoin

I dont think so it can be possible to have tax a btc because some using of btc can stopped it.if the government knows that btc is growthing maybe they can take an action about that issue.

I agree with this since it is a very pratical and possible way. I mean, how is Japan accepting Bitcoin without taxing it? I think they have found a way around this... Correct me if I am wrong.

Taxing can really work if you are converting to fiat, since that would be more like a capital gain tax. However, bitcoin to bitcoin transaction? I am not sure how that can be pulled off. Bitcoin is pseudo anonymous and unless the government finds a way to know who is attached to a particular public address, which is impossible since I can always decide to change my pub key anytime i wish, then with that, I really do not see the possibility of taxing P2P transactions.

Well I think its possible but I think the control will be here not in hands of the governments. I think taxes were great so as an individual you fulfilll the responsibility to help your own community, I think in transactions they already made this and its not enough for the services and taxes . This may help our community though.

Just the same as holding shares, while they sit there on account/paper certificates, the value can ballon and no tax is collected.  Sell them and tax is due.  Bitcoin is no different.  Governments really aren't as concern about this as people think, because the tax system already covers them.

I agree that it is impossible that bitcoin become taxable but as a user of bitcoin, even we are anonymous, we can pay tax in other way. We pay tax but not in way directly from bitcoin, during the transaction of bitcoin we pay for the fee to other agency that handles it. Like if we have cashout our money, the bank which process it will add a fee which contain additional tax from it.

I dont think that bitcoin is taxable unless the person holding the bitcoin declares it as part of his/her property. This is the only way that the government can put tax on bitcoin but for the technology itself is not taxable. Government has been finding ways to tax their people who hides their riches in bitcoin and so far non has been implemented.

It would be posible when you are using a wallet that is regulated by the government and also when changing your fiat money to bitcoin. Dont need to worry about tax because it is used for the security of your account.

I have don't lots of idea of this topic but i think its not possible to track the bitcoin transaction by government. The transactions only happen by two person. No one can know it. But I think there will be a decentralise platform could be invented to track that by government. It will helps bitcoin to legal it whole over the world.

Unless people try to convert their bitcoins via exchanges,bitcoins could not be taxed.If bitcoins were kept in the wallet unused,then the governments would not be able to tax it.

That's why,china also laid strict regulations over bitcoin exchanges to follow KYC so that it could know the actual users and tax them for their bitcoins.

I think taxing can be possible but not worth the huge effort, at least now. If, in the future, BTC is a worldwide used method of payment for daily life services, goods, etc., then yes.

They cannot tax it because they do not know to whom will they give the tax. It will only be taxed if the cryptocurrency market is decentralized.

well, yes.

But to tax btc inself governments need to cooperate with exchanges like they do right now with banks.

I don't know how soon this will happen..

I think that Bitcoin is not taxable that is not because of anything else because of bitcoin is running on decentralized network .So, any government cannot controlled the bitcoin’s taxes. If bitcoin can be controlled by centralized authority in future then bitcoin will be taxable.

If the government regulates bitcoin, then yes.  They will need those exchanges to declare their income which will be the basis of the taxes they have to pay.  In return, those exchanges will add those taxes to their users transaction fees.

It is possible.. under certain conditions.

For example, in most European countries, the government determines the amount of taxaton due by the individuals according to their banking records. Well, in reality, they ask the employer to state the wage of all employees, then they ask each employee to state their wage (and other resources as well) and with these, they determine the amount to take.

Yet, in some cases, divergences appear between all the statements. Therefore, in such cases, the State can ask the bank to see the record of all transactions. In such a situation, if someone has changed bitcoin for euros and put it on their bank account, it will appear as a resource. And thus, will be submitted to taxation.

But indeed, this case is very specific. And I guess most of the time, gain from bitcoin are just hidden by inidividuals and ignored by governments. Just because for the moment it will be more costly to try to find those owning bitcoin than the gain the State would make with the taxation of such operations.

As you guys, I am not an expert. Maybe there is already a dedicated branch for that but... I bet there isn't! ;)

If governments recognize the use bitcoins then definitely it will be taxed. The whole idea of taxation is getting a bit of money from a person's revenue in order to provide social welfare. If bitcoin becomes a big success, then government would start to notice eventually having it taxed.

Specifically bitcoin, no. However, capital gains tax for sure. I don't know how it works outside the UK, but you have to declare when you make profits on interest/investment over I think it's 11k. If you don't you'll be in trouble if they find out...which they probably will if you're withdrawing a lump sum greater than that.

That tax here would be 28%. There are ways to get this lower though, but you'll probably need an accountant for that. Feel free to drop me a PM if anyone in the UK needs one - I can get good rates with a friend of mine.

I would say it depends on how you "use" your addresses. If you deposit on a normal exchange that asks for KYC verification, then of course governments can charge taxes over bitcoin, since they can easily know how much profit you are making from trading crypto. In theory they will also be able to track the address you used to deposit on the exchange, so if you use that address for anything else they will know what you are doing.

In the future, if you use bitcoin to purchase goods in a store, and you pay with bitcoin and ask for a receipt, then that address will also get associated to you, so again the government will be able to know how you are using the funds in that address. Don't forget that everything is kept public in the blockchain, so as long a an address gets associated to you, you every move with that address can be tracked.

I think the LN will also help here, and there are some mixing services that could probably help, but I still don't have a lot of information about this.

With bitcoin it is impossible.
But how are you going out?
It is still cash or fiat.
When you go out that could be the way to put a fee on you plus questions where you got the money.
If they cannot track you within then they will be waiting at the other end.
That is possible.

Yes, I've been reading articles that proposal on posting tax on bitcoin had been and already submitted to congress for further study, it was observed by many that a lot of people earning a big amount of money in bitcoin without paying or contributing tax...

I think bitcoin will be having tax but not now.....

I don't really understand programming as well, and i don't know if there's a way to detect all of our transaction using bitcoin.
But if yes, it'll be possible that we will be taxed for our bitcoin income, since it's an income anyway, so we need to pay tax as a citizen.
But unfortunately, i think it'll be hard to detect and track our transact history, when and how much we sell our bitcoin, how many income we get fom this and such.
So it'll be hard to do so, but maybe in the future it will happen with technology development, who knows?

It is possible to have tax in Bitcoin if you transact using centralized exchange that holds your identity and when you convert your Bitcoin to paper money, but I think it is impossible to put tax in all Bitcoin transactions especially if you use over the counter that is used to buy and sell massive amount of Bitcoin. There's nothing to worry about this if your country does't have a tax regulation about cryptocurrency gains but if IRS in your country declared it as an asset then you should pay your tax, and report to them every transaction you made.

oh definitely it is happening. IRS has requested exchanges to hand out the customer lists together with their transactions. So USA has it covered. And then there is this joint France and Germany proposal to regulate bitcoin (read: regulate bitcoin taxation) that is going to be raised in next G20 summit.

So I think that it is happening all over the world and it is not the question of cooperation of exchanges with governments, as some other member suggested. Rather, it will be passed as a regulation, meaning that exchanges will be obliged to pass certain information to IRS and other tax institutions.

It is possible to tax bitcoins, but probably not on an individual level. A bitcoin specific taxation on individuals is hard to implement because whatever regulation they impose anyone could easily avoid by working under the radar. Businesses on the other hand though, they easily tax and regulate. Which translate to taxing everyone using the service of that bitcoin establishment. So yes i think it is possible but they'll be targeting businesses and miners.

It will be impossible to force every one to pay taxes. Millions of transactions are generated every day and knowing their sources is not an easy task since it can be created from an exchange that does not require ID verification, besides the use of VPSs and proxies makes it harder.
The easiest way is to control exchanges and make them pay taxes, in return they will ask their users to pay more fees.

It's impossible. First due pseudoanonymous nature of Bitcoin, second due the impossibility of accurately establishing the economic nature of transactions (trading, sending, outputs integration, etc.).
I think it's better for the government to take the tax when fiat money withdrawing through exchange, maybe even when buying goods (taking into account the amount of fiat money entered into the system).

In my country, i know in due time our government will find a way  how to tax income from bitcoin. Our government is so desperate in taxing businesses and individuals. My government is so good at finding ways to tax its people in fact recently it passed a tax law which the government claimed to be pro poor but in reality its otherwise that people from all walks of life middle earners and low earners are both feeling the bad effects of that tax law. So it is possible that bitcoins will be taxed here in my country.

exactly that they are doing - they are applying the tax when the bitcoin is exchanged to fiat. It is called a capital gains tax. So why are you saying it is impossible in your first paragraph, if they are effectively doing it and you yourself admit it?

This may be a solution for bitcoin holders to have an important role in building the country's economy, gaining government benefits and creating regulations that protect crypto users.
The problem is, how to determine the tax limit to be paid, because the bitcoin price is uncertain.

this is the major problem for the bitcoin. And this is why many countries are denying crypto in their country. But other country also requires you to give identity if you are into bitcoin. And for me, that is better for me than banning bitcoin.

well I am reading in some other thread that bittrex asked its members to provide the selfie and the scan of a driving licence in order to withdraw funds. Try not to pay taxes if they have your selfie already...

Directly taxing bitcoin is a bit impossible due to its decentralized nature. There's nothing the government can do about it. But there are different ways the government can put tax when it comes to bitcoin. Government can monitor and tax all apps and wallets that we use for bitcoin related transactions. Companies who develops the wallet are probably required to pay their taxes and in that way they put tax on every transaction of its user by adding it to the amount of transaction fee that they have to pay.

it's possible if the goverment  in your country apporved it :D

my friend had some income in US and it was very very small so he forgot about it completely, until the letter from his country (non-US) tax authority arrived and they told him: "hey, you had this income in US. Why don't you tax it with us too?" and then he remembered. He paid the due tax, it was no big deal, the sum was very low. What I want to tell, is that it is not necessarily your country that must implement measures to tax bitcoin, but if you use the US-based exchange than you are in trouble too, your country may/will learn about it, because US has already implemented such measures (KYC and others) and the tax authorities collaborate very closely.

Nobody can do that. Taxing bitcoins is impossible because bitcoin is decentralized so who will get the tax? Governments? Nahhh... The exchanges and the regulators maybe they can get tax with them but to bitcoin holdlers is just impossible.

well I am sure that you know that currently you cannot exchange your bitcoins to fiat without providing like a scan of your driver's licence to the exchange ?

Well, I'll say it will be very impossible to tax bitcoin because its a type of digital currencies and sometimes regards as asset, if there will be a such law by a government of any country, they will have to considered the cost of collection to the tax hoping to collect, while I think that the cost would be exorbitant.

This is not quite true.
Bitcoin transactions and profit from them are already taxed in many countries. Maybe Bitcoin itself as a coin can't be taxed, or in a very hard and unefficient way, but the income that you get from it can. It's written in many existing laws in many countries. You have the duty to report Bitcoin trading income to your tax authorities.

I think for now it is impossible as bitcoin was not yet being regulated by any country, this tax thing is per country, i mean it depends on each country on how they deal with bitcoin transactions, they have a problem with the anonimity of bitcoin users who enter a transaction via blockchain. I think as long as there is blockchain, it is difficult for any country to identify an individual and how much they will taxed them, taxation is based on the amount of money being held by a person, but i think if bitcoin will grow and transactions will be a common thing, maybe someday all countries will have to sit on that issue.

Well it would be possible if the government is really dedicated to implement that law but it can only happen with their own country but I wonder how will they be able to do it if bitcoin is decentralized and only uses wallet address to transact with another bitcoin user. I guess it would give disadvantage to the people living in that country because they will shoulder more expenses.

Bitcoin is decentralized and it would be hard for a government to impose tax to bitcoin. It is impossible to trace a certain transaction and of whose transaction is it. So it would be hard to put tax unless if a bitcoin holder would declare his bitcoin earnings and submit its equivalent tax as whatvis stated in their local law.

Taxing of bitcoin is possible.  In fact some country already did it.  They get the tax at the transaction but not the btc itself. For example your money from btc they get the tax in the bank as per the bank laws.
For direct taxing of btc they need to draft a law on it. Taxing btc it is better and all will benefit. The threat of banning crypto will be gone.

it will be taxing bitcoin possible by using the same wallet bitcoin passenger and the taxi driver, there are will not fee for transaction the exchange, usually in indonesian using the same wallet like vip bitcoin.co.id and the global exchange you can use coinbase.com so it will be nothing fee for transaction. the same wallet using by driver and passenger it will be no fee so the taxing bitcoin wallet will be possible and all of bitcoin rule have the support form the permission off government.

As I understand the topic starter talks about crypto-to-crypto transactions. Not crypto-to-fiat.

yeah, probably because the rightnow bitcoin is anonymous, there are no government can trace out bitcoin users and track them out, but the government
now can charge taxes on us because the willingly of the people. the blockchain system has been working so perfect that every transactions on the internet can hardly be controlled by governments. unless bitcoin is centralized in the future, bitcoin will never be taxed.

bitcoin is decentralized, meaning there are no one managing/manipulate bitcoin. even the creator of bitcoin has no access to manage this bitcoin and implement some taxes inside this program. the only possible things to implement taxes is from the outside of blockchain which is you exchange sites, and local bitcoin exchange outlets.

well, tax by what?
By the income that investers have earn?
On what rate?

it looks like impossible now for lots of government right now deny its legality

I do not know but it all depends on the policy of the government of each country but should be less fitco bitcoin taxable charges.

I am not an expert in taxation but I think it is impossible, because the government can not calculate how many bitcoins are owned by its citizens, unless they have access to calculate and of course have to cooperate with the bank and exchange

I am prwtty sure no one could taxate cryptocurrencies such as bitcoins because the users are anonymous and hard to be traced down. furthermore it is not a government property or project so I couldn't think of any good reason to tax bitcoins.

Taxes are the main source of income for many governments. Bitcoin is a peer to peer operating decentralized currency. So it is difficult for a government to find bitcoin users and tax their income. All bitcoin transactions are autonomous in nature; no third party intervention is possible. Bitcoin investor or bitcoin user can come under tax radar only when they convert their bitcoins into fiat currency. At this time government can impose taxes on the income generated from bitcoin currency. In India and USA governments have already started taxing income from bitcoin currency, irrespective of its legal status in their region. So it is recommended to pay tax while converting bitcoin`s.

There is no doubt for me that a tax will come.
I suppose that for every transaction of bitcoin into fiat, maybe even for every exchange amongst crypto currencies, there will be a tax on the profit you make by it.
The exchanges have already started to identify their users, and at a certain point they will have to work together with the tax offices of each nation that contacts them.

It's possible government will charge a tax for btc. But it's good, meaning government has accept btc foe economy and business.

It's a thought I've been thinking about lately. I think it's kinda hard. I think that's one reason why bitcoin system was made to be decentralized and transactions untraceable. It's one strength of cryptocurrencies. Government will have a hard time charging taxes on untraceable and anonymous transactions.

IGR only means internal generated revenue,its not a bitcoin term.

As government adopts into the digital world of currencies. They have two options, either ban it or tax it. It would be unprofitable for them to ban it so chances are they are goin to tax it. I think its not impossible to trace it, its just time consuming and very hard to track but possible. Also, in this time, we still need to convert it to fiat before going on a transaction because not all stores accept bitcoin as payment so conversion can be taxed. Im not an expert so i can really say.

South Korea seems to be having, and according to the rumors it may be quite possible. The exchanges just share your info and you are easily followed by the authorities.

If the government will adopt and engage digital currencies, it is not possible for them to tax bitcoin. And I think that it would be okay for as long as they would not interfere with the holdings of each bitcoiners. And for as long as they would not ban that because it is the right of every person who would like to have bitcoin for their own.

Depends...if exchange have to say info about subscrivers, force by government

Most of the countries all have taxation rules for cryptocurrencies and the gains you make through trading them. Its just how they will enforce it? The bureaus are not prepared to deal with such a huge information flow yet, but its just question of time.

It is already being taxed, come to thinks of it the internet services,block chain fee transaction are tax goten for companies the that has those servers.

I think it depends, it may be both possible and impossible. But if taxer want you to give your taxes related to bitcoin, you may have to show your all transactions?

There may be a slight chance in taxing bitcoin but that would take so much work just to track and tax one person also bitcoin transactions happen worldwide I dont know if they can create a program so perfect to track and tax every transaction made who knows... but I want you to know it is possible with the technology in our time it can be just like when bitcoin is impossible now it is. Specially if your government patronizes crypto currencies tax can be imposed.

In my country they are already putting some tax into capital appreciation, around 15%, wich is like income tax. But I don't know if is possible tax it before you take the money of it. That would be so rude! Thanks God  it won't be possible.

In my counties, Bitcoins are already taxable. There are huge taxes on Bitcoins and it may increase in future.

I think it's possible to do it, but it's extremely difficult and it's very expensive. When a person submits his income. That state will impose a certain tax. And here it is very difficult to know how many bitcoins a person has. Development that with the help of exchanges

If you're not an active trader, can't you just track all of your transactions to show the government that you're a clean transactor?  I'd HIGHLY recommend keeping a handle on all of your transactions for tax time, the IRS is going to come knocking any time you show a huge gain that sticks out like a sore thumb. 

In terms of laundering don't even bother.  It is never worth it to launder.  whatever gain you can make by avoiding taxes will be negated 10x over if you have to deal with the government.  I remember one time I got audited for one simple stock transaction where I made something like $3k, I was sending snail mail correspondence back and forth to the IRS for months. It was an error that THEY made, and it was just $3k, but they were painful to deal with.  Play it straight my friends, always.

Yes it is possible if government will handle the cryptocurrency in different countries. It was a very bad idea if they will place tax on bitcoins since the tips on exchanger is very expensive today. Placing a tax on bitcoins is a very bad idea for the government it was like they will only milk the miners from getting taxes to them.

It really depends in each country, if a certain country will put up bitcoin in their market then it is not possible to have to imposed tax on it, just like what South korea wanted to do with those people investing not only in bitcoin but to the whole cryptocurrencies as they don't like someone avoiding tax, they don't really want to ban crypto they just wanted to imposed tax on it by stating the real name of each person investing in the market as much as possible.

I think it is impossible to tax bitcoins. But taxing fiat money out from bitcoins (trading bitcoins to fiat money) is indeed possible. The government may count this as income and may place an income tax on it. Unless they impose a law to tax cryptocurrency-fiat conversion by a certain percentage.

Bitcoin in our country is already spread the news about it when bitcoin reached the 1M price.i guest they're not going to put tax bitcoin because they just earning as to careful when you invest because we might scam fake crypto.

It is already taxable. In fact, in my country government is strictly after big investors and had issued them tax notices for investment in crypto.

Don't know if they can tax Bitcoin per say, but they can definitely get you when you cash out.

I'd be willing to put money on whatever country you're living in starting to tax Bitcoin at some point, it's simply far too lucrative for getting taxes from and it's almost free money for the government under most circumstances. Plus having the taxes be developed around them helps to cement their control over the entire developing economy, which is something absolutely all of them would want to have happening. Even if Bitcoin thrives right now, there's going to be a high chance it won't be like this forever. Governments are going to start getting aggressive eventually, assuming they aren't also exploiting the crypto market situation as well.

Tax not possible to catch. Because, there is no owner of Bitcoin. System is regulated. Because of the failure of tax on the island. In today's illegal countries

Its imposible because its untracable..if ever it would be i guess there is a long process..

It's fine even if the money is taxed we have surety that govt. Shall not ban crypto

But in our country,bitcoin is not yet adopted by the government so they cannot impose taxes on it.Although i believe that there are lot of bitcoin users in our country which remain anonymous,still the government have not taken actions provided that all bitcoin users and investors should pay taxes in all their transactions.

Yes, the government can tax Bitcoin if we will change it to fiat or vice versa. It is already happening in African and Asian countries. In our country, our Central Bank already created a regulation that stated all Bitcoin conversion is submitted to tax. There are a transaction fee and remittance tax on the transaction that I have made.

I think tax can not be bitcoins. But it really depends on the country, taxing bitcoins is a very bad idea for the government, just as they only allow miners to collect taxes for them. And the government is hard to know how many bitcoins a person has.

In my opinion, yes it is possible! Government can find a way in tracking transactions and impose tax on it. However, it would be quite tricky to do so since transactions are done by people that didn't use real name but aliases or screen names.
But it will be a good leap in cryptocurrency, could mean that government now recognizes the digital currency

During its stay in the network or in the internet nothing can ever tax it however once you try to encash it and change it to something real and physical then that would be hhe time that regulations and taxation would take place and would really be susceptible to all these sanctions as they are now in the real world and can now be handled by anyone and everyone

if this time can not be taxed, because in my country has not been made legislation but if it was inaugurated by the government it could be in taxes.

I think this is very difficult, but it is possible. Enlightened by the profits of cryptocurrency governments envy, I think they are looking for excuses to rectify cryptocurrencies, taxation is a good excuse for them to take the opportunity to take the opportunity to formally join the bitcoin world.

for the time being this may not have been in taxes, because there is no law that regulates about bitcoin. but maybe if it is set or in sahkan, income from bitcoin must taxable.

with my knowledge in crytocurrency, i guess it almost imposible to make bitcoin and others taxable. but nothing is imposible, japan used to accept bitcoin but i dont know if they have found away to make bitcoin taxable

Yes I think the same thing about this,Of course Its possible to have tax if you transfer your funds using financial sector wich has centralized administrator or there are identificator documents in any centralized service wich you use..As in South korea,wich is good example:Financial commision of South korea has just announced that exchanges  will be obliged to send transaction information of traders to the banks,wich i think is nonsense.but for this there must be legislative basis in your Country.

i think its a impossible thing, due a lot of bitcoin addresses, and people can make multiple bitcoin addresses i think that was impossible.
did government want to track a whole of bitcoin addresses ? i dont think so, it really need a lot of time

If exchanges are regulated by the Government - then yes. Also, if you withdraw fiat and the bank knows it's from selling cryptocurrency, it might be taxed (if the government decides so).

I think we are all aware of the regulations being imposed by the IRS in the United States of America, where the onus is on the individual to volunteer the information of their financial activities. They are planning to tax any capital gain on each and every crypto transaction. Sure other countries will try and do the same at some point so maybe think of relocating to somewhere more sympathetic with your philosophy  :)

I suspect that this will increasingly become the rational for legislation. We will see taxes on cryptocurrency gains become normal. I don't think each move should be taxed but rather the eventual payout should be, if it has to be, the only thing subject to a countries taxation code.

It is possible. Yes, because bitcoin can be ban in the country so it is possible. Government can collect the addresses of the bitcoin holders and ask them to register first their bitcoin address but it will takes a lots of process. The government will make a system so that they can compile the address and personal information of the user and also they have to make a law about the bitcoin. Unregistered bitcoin address will become illegal in that country and it will become a crime. Government can do that if the government is willing to put tax in the bitcoin. Also if they do that, they acknowledge the bitcoin to become the digital currency in that country.

Bitcoin is a decentralized coin. That is the key asnwer for that question. What does decentralized means? It means BItcoin itself is nothing but independent. No one controls it. Even Governments of different countries. Or even what you known the powerful country ever existed. BEcause bitcoin is decentralized. You can obtain bitcoin through mining, faucets, but you cannot control it. So how does that correlate to the question? It means Bitcoin cannot be taxed directly. But in the world where the tax is the lifeblood of the Government, it can. Indirect taxes would be its name. Your earnings through bitcoin will be converted to fiats. That is the moment you are to be charged for taxes to your earnings. That means, even Bitcoin and cryptocurrency is in underground economy, it is still possible, earnings from it will go to the Government.

I don't think this is possible because it's gard for the government to track it. The taxing is possible only when you withdraw it

In my opinion, if bitcoin income is taxed then it is a good move. Income bitcoin is very reasonable to tax. Because most investors have very high profits. By paying taxes then we at least have helped the government in building this beloved country.

Perhaps the rationale is the application of taxes and our honest sense of the amount of assets we have. If this is approved then most likely crypto could be a thing that can be used freely, with the regulation of the position of crypto will be stronger. Oh yes tax withdrawal is also very possible if applied to the exchange, by applying the amount of withdraw that we do then the exchanger company that will deposit the tax of its users. This can be an alternative because with so Crypto transaction flow can be more organized.

It is possible to tax the bitcoin. When the government enters the bitcoin? we can not do anything. When the government is giving it, people can do nothing. We will just follow it because that's their law. But hopefully they would not, tax the bitcoin. Let's just have the bitcoin to benefit people who really need money. Bitcoin is the hope of people to rise to life. :)

I personally don't find it essential to tax Bitcoin or any cryptocurrency on that matter. Why? Every country has different rules on taxation. If that's the case since Bitcoin is available in almost any countries if would be definitely a problem. Or perhaps, there will be a unified guidelines which is accpetable in every countries.Another point is, at the very beginning not many have given attention to this breakthrough. Now that it has been tested, people will burden us.

This is not possible, the government can not control all activities on the internet. And the more you can not test your bitcoin income. Even if you are a good programmer, you can not do this. Uncontrollable taxes, so many countries have banned bitcoin in their country. If you do this you will be famous in the world. Wish you success with your ideas.

Taxing bitcoin is certainly possibly, and is currently how it is for most countries. Some countries consider it speculative gambling, others consider it a commodity when sold, but very few countries tax it how they do with foreign exchange, which is due to their refusal to recognise BTC as a valid currency. The ability for a government to determine how much tax you owe through your BTC transactions is likely extremely limited, most will rely on self-reporting systems to estimate tax.

Probably in the future bitcoin will be taxed. I think this will affect the bitcoin user. But it is good for bitcoin as it is protected by law and bitcoin is more secure. it will become legal

in the absence of clear rules and guidelines some people may decide that it is safer to go to the extreme: either stay under radar and report NO bitcoin-releated income nor capital gains, or pay full taxes (no deductions) on all the bulk sum resulted from selling the bitcoins.

Yes, it is possible, as.an example, government can impose tax on btc when you convert it into cash and have it deposited to your bank account. Also, other countries are already taxing it. It just depends on what they think of your coins.

I think taxes are possible when you cash your bitcoins, as long as it's the only stage that isn't complete anonymous, in other circumstances how can anyone know and proof that you even have bitcoin and that you accomplish transactions. And if somehow there will appear transaction taxes (apart from transaction fees) bitcoin might lose it's popularity, because the whole point of BTC was the ability to pay peanuts for transfer of money of any amount.

Taxing of Bitcoin will become inevitable at some point, the only good news is that they didn't figure out yet how exactly to proceed on this issue.

If government will place a tax on bitcoins then cryptocurrency will decrease its investors. Government can really manipulate the cryptocurrency in their country since they are the leaders, japan has really a very good decision to use bitcoins to improve their economy.

I will like to know how exactly Japan has been able to do this, probably it can be copied in my country thus improvingthe economy of my broke state.

In this world nothing is impossible, everything in the world of Crypto will be possible, because we know that the bitcoin community that is now, is very high and it will help what is expected, about bitcoin. ..

Your words are ready to be realized, and the United States is prepared to order a tax on Bitcoin, which no doubt recognizes Bitcoin as a legal, investable asset that allows Bitcoin to go underground.

Yes, it is quite easy for the governments to implement taxes on crypto-currencies trading if they wanted to do it. The South Korea authorities is one good example that shows the world how they can enforce taxation on crypto-currencies exchanges that operates in the country itself, that is also one of the reason that cause bitcoin price to drop dramatically recently.

I think that's so possible. According to me, the government will give tax for 'bitcoiners' after they makes bitcoin legal.

Virtual currencies like Bitcoin have attracted public attention in recent years. Some employees are paid by Bitcoin, few retailers are beginning to accept Bitcoin as a payment. In the recent past, the IRS has clarified the tax treatment of Bitcoin and Bitcoin transactions. In general if you keep your bitcoins as capital assets, you should consider them as a 'property' for tax purposes. The general tax principles applicable to property transactions apply. If Bitcoins are held as equity, such as stocks or bonds, any gain or loss arising from the sale or exchange of the asset is taxed as a capital gain or loss. The main question is to tracking the crypto currencies are not easy today.

Please do you have information on how south korea did this, kindly share with me, thanks?

It would be hard because of the built-in security features that comes with bitcoins, this adds anonymity to the user which in turn makes it hard for the government to be able to tax that user. However, you can classify bitcoin as "property" because of its nature as a currency. taxing bitcoins will be hard, but it is possible.

Directly bitcoin to be taxed i think that's never happen, because bitcoin is decentralized coin no body big person behind this great blockchain technology.
But, if we converted our bitcoin into fiat then we are going to withdraw any company who accepted bitcoin just like remittances and some bank who recognized bitcoin, if you have noticed when we cash out our money we have an transaction fees either remittances or banks that's already being taxed by our local government.

Actually can be once and not the fact that someone can find out if you have Bitcoin or not, no wonder her Satoshi has created just one word anonymity. Great quote.
And in this terrible world comes the one. He rebelled against the system. He taught people to get money to bypass all of these financial bloodsuckers.

taxes can be implement out side the bitcoin blockchain, because no one can manipulate/control bitcoin, even the government cannot handle this blockchain. meaning the taxes can be implement outside these bitcoin blockchain, maybe outside transactions like withdrawing a huge amount of bitcoin into fiat. or fiat into bitcoin.

Everything will be possible by using bitcoin as the payment for anything transaction we made, not only taxing bitcoin payment but also we can do more payment by using in another transaction like we made the payment from buying and selling drinkwater, food, electronic and many more. When the some country have accepted the bitcoin we can make many transaction by using bitcoin as the payment, but if your country still not allow fro using bitcoin as the payment like Indonesian, Malaysian you will not be able using bitcoin.

hmmm yeah? if the government said so it will have taxes else, a government can banned bitcoin in their country.

Ofcourse yes, though bitcoin transaction are anonymous, you still need cash and once you exchange your bitcoins to a financial institutions you will have a record and this record can be you use against you if what you withdraw is too much. They will accuse for tax evasion, so pay your taxes to eliminate this undesirable circumstances.

Not until people or the tax payers themselves decide to self declare their income to the government. I mean the exchanges can be said to meet KYC compliance but you can't say the same thing for the private key wallets as they are public wallets with no central company owning them. So taxing your bitcoin in private key wallets is next to impossible. All they can do is monitor exchange transactions and tax them.

I would love to pay for a tax rather than banning bitcoin in our country, and as a citizen, I would be willing to do it since I know that it is for the goodness of many people so why would I become selfish about putting some of my earning in the government, besides I am also benefiting with their project such as bridges, school building and many more.

They cannot tax bitcoin directly the same way they do with your dollars, in my country the government already subtract your due taxes from your paycheck so there is nothing to do, but this is impossible with bitcoin, only when you try to cash out to fiat you will need to give an explanation of where you got that money and pay taxes on it but if you keep holding your bitcoin then you are safe.

Its not possible to tax bitcoin owners because the system is decentralized generally and all users have total control individually to their funds in bitcoins form. The government cannot also track the record of people who own what number of bitcoins how much more tax them for the number of bitcoins they.

They cannot tax bitcoin directly the same way they do with your dollars, in my country the government already subtract your due taxes from your paycheck so there is nothing to do, but this is impossible with bitcoin, only when you try to cash out to fiat you will need to give an explanation of where you got that money and pay taxes on it but if you keep holding your bitcoin then you are safe.
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Yes I agree with you they only be able to tax local currency or FIAT but it is impossible to tax bitcoin. In my country its when the bitcoins has been converted and becomes local currency then the banks charges you for VAT (Value Added Tax) on your account balance in local currency. If you hold more than necessary in your personal account you are going to have answer some questions on how you come about the money. So bitcoin cannot be taxed

Taxing bitcoin is not possible, because the system is decentralized, is not control by single administration authority, individual are in control his or her bitcoin, so who do government tax?  Do to this reason, it make it difficult for bitcoin to be taxable.

but a lot can still be done if government is able to work with those companies that sells bitcoins, at least they can take the data of those who they sell to etc.

The government does not conduct tax financial transactions, they gain tax benefits or income from income-generating traders. The same rule applies to cryptocurrencies. And usually you as a law-abiding citizen follow your country's tax law and declare your income. If you do not, and they know, big fines and possible imprisonment.

and it is possible for you to have a bitcoin tax because bitcoin users make a lot of money and little to lose their income when bitcoin is taxed in the Philippines.

Taxing bitcoin is possible, if only bitcoin is dolly register with appropriate government authority, for proper regulation, taxing bitcoin can make bitcoin global acceptable, like others hot currency,.

Well for me bitcoin cannot be subjected to tax.  Because it is very impossible to tax persons who are using or earning bitcoins.  Simply because transactions are untraceable.  It would take so many times and extensive planning and study to just tax our earnings from bitcoin.  The only thing maybe the government can do is to regulate bitcoin.

It is already implemented in some countries just like South Korea wherein you are obliged to pay for tax when you are doing trading or buying bitcoin, some that cannot control this one just like China just decided to banned rather than imposing tax.

I think the only option that would all transactions are taxed is to control all exchangers

It is possible to tax bitcoin investments but no bitcoin itself, I think this will work when you will be cashing out your earnings, it will happen will your online wallet, whenyou make transfer from your wallet to your bank, the money will be deducted for fees and taxes accordingly. I think this is the most viable option for bitcoin taxation.

It's not directly possible to have your Crypto taxed. However, if you exchange your crypto to Fiat currencies and then withdraw your funds into a bank account then they will get taxed. Everything that's shown as an income is taxed, you can avoid it though if you are dealing in person.

bitcoin would be appropriate to be taxed by the government, if a country's government could formalize the existence of bitcoin. as we know most countries still can not formalize the bitcoin used as a means of payment transactions for fear the population is more comfortable using payment transactions using bitcoin. if the government is able to legalize the bitcoin most likely every bitcoin user, his income and expenditure will be imposed with tax deductions from the government.

Taxation of bitcoin is possible if the government or any business establishment will legally accept bitcoin for payments  and it can be done during payments by adding the price of a subject or items paid with btc. In my country.there is an existing value added tax, but it can be add on if they want too.