Bitcoin Forum

Bitcoin was created to liberate us from corrupt governments and corporations that serve their own needs. The coinbase transaction in the genesis block, mined by Satoshi Nakamoto contained: "The Times 03/Jan/2009 Chancellor on brink of second bailout for bank". What is your opinion on paying taxes on Bitcoin? The government most likely doesn't know my bitcoin address. Even if they do find it, based on the transactions made from my bank account to exchanges, I could simply say someone stole the private key from me. Many of the posts here asking for help on filing taxes on their Bitcoin make no sense to me. We have a system that allows complete financial freedom and yet people choose to pay their taxes from it and support crooked governments.

Why not pay if we are required to do so? right? We should pay taxes not because we have to or we need to but because we want to help street children, and a children that cannot afford to go to school or old people that has a high maintenance of medicine. In that way, we are helping the government as well as our neighbor.

Street children can be helped directly, without the government acting as a middleman. The money is usually not used to help those in need, but rather to wage war and support corrupt insitutions.

When government legalize bitcoin it means that they control bitcoin circulation and have a right to provide a tax on every government subject.
For me it's reasonable as long as the income tax is not being abuse.
There is also benefit for example : government accept bitcoin and bitcoin's demand getting greater and guess what the next ?

Yes, it's value also increasing !

You should pay the taxes if your country government has taxation system for crypto currencies.But many developing countries don't have any taxes yet for the bitcoins so you no need to pay any taxes you just can pay the income taxes which is supposed to pay annually if you earn more than the country limits.But we don't have to pay any taxes actually because bitcoin was a decentralized technology it was found to be fight against the centralized fiat system but the governments are making benefits from everything so they are controlling the crypto usages too.

Really? Are you that brainwashed to believe it or you're just inexperienced and don't know what's going on around you?
What you're quoting is the foundation of the system, the reason why it was created, but it's not how it works nowadays. Once you realize that your local taxes are helping your neighbor, but your federal taxes help finance wars, build bombs, pay for luxury cars and plains for politicians, you will start looking at things differently.


Not only developing countries but all countries. There are no countries that require you to pay taxes for holding coins in your wallet.
You buy fiat - you pay taxes. It's reasonable.
You don't buy fiat - you don't owe them anything!

It's not that easy to say that someone stole your private key. If an government official comes to your place to enquire about your bitcoin investment, you must understand that the person is holding your financial records and he has analyzed it thoroughly. So you can't just say that your private key has been stolen. It is true that government doesn't always know your bitcoin address, but whenever you have made a transaction to any exchange, it is recorded for future references and work as a strong proof to the government officials.

However, it is always safer to pay tax on your bitcoin earning. Because when you pay tax on something, you can claim that thing as legal. So if you pay tax on your bitcoin holding, you will have upper hand on that government official. I always show my bitcoin earning in my tax information sheet under the "income from other sources" head and pay tax on it. I have been doing it since last two years now.

We don't really need government harassment in our daily life. So it is always better to stay on the safer side. 

If you are not satisfied with the government, not paying taxes definitely is not the way to go about changing it. If you are guilty of tax evasion, there could be big fines and prison time waiting for you if you get caught. You may think that the government may not be able to catch you, but it is just not worth the risk.

Keep your Bitcoins to yourself, and you have your liberty. No government can charge/is charging a person for just keeping Bitcoins to a wallet, or trading them on an exchange online, but you get to their territory when you reach out to a bank account to get your cash earned through Bitcoins, and that is where you are charged. So basically the taxation might not be for Bitcoin in most countries, but it is for the money you are receiving in your bank accounts which you can't hide from authorities. You can also not say your account number was stolen by someone and they sent the money ;D yeah I know that was a bad joke, sorry.

And what did the government do to claim the tax on the crypto currency? Maybe they made her or lowered the cost of transactions? Or maybe they insured us from stealing the crypto currency? NO! That's why taxes should not be!

The government can't tax Bitcoin but if you go to exchanges and withdraw some money out of it, that's the time they were going to tax you. Most of the exchanges nowadays are owned by the government and they should follow the law because it was implemented since there are too many complaints before of scamming using the name of Bitcoin.

My point is bitcoin allows us to be free from governments, yet I so many of us take the safe route and support governments via taxes.

It is not a matter of helping the government. It is also a matter of helping needy people. As long as your intention is good and is about helping them, then you should not care about to whom the taxes are going. If they are only going to the government, then who cares anyway? You did actually a good job. Added to that, taxes is related to the bitcoin regulations. Would you rather get it banned or regulated?

The imposition of taxes are one of the key factors that increases the revenue of the government for expenditures, including development of infrastructure, budget allocation per department, funding for health bureaus and many more. Most countries around the world have the prerogative of imposing tax as its bread-and-butter for these enhancements. Most products and services are taxed as it is being regulated by the government.

The question of whether or not bitcoin transactions should be taxed by the government raises an issue of government regulation. We all know that bitcoin has this nature of being decentralized (which the government cannot regulate) which makes it almost impossible for regulation due to the anonymity involving transactions in the blockchain. But like what most people discussed, this HEAVILY DEPENDS ON THE LAWS ASSOCIATED WITH CRYPTOCURRENCY in general. If there exists no laws about the banning/imposing of tax, then we could say that bitcoin has the freedom on tax.


This is highly dependent per country as there are some factors to consider. Just to give you an example, the laws in my country relating to tax imposition on bitcoin do not exists. But bitcoin mining falls under the 'other income' aspect which makes it taxable. Some of my friends who mine pay tax to the government whenever they mine.

If you hold bitcoin you do not need to pay taxes for it but once youbsell it i think there will be a fee as representing as our taxes but that taxes will depend on the country. Here in my country bitcoin is not yet subject in taxes even you are earning too much money in crypto currency that is why our goverment build some rules and regulation in cryoto currency.

More of a question of ethics than law.


I'm not sure what one has to do with the other, specifically. When I read the whitepaper and early mailing list posts, Bitcoin is framed as a way to remove trusted third parties (like banks) from financial transactions. No more, no less. I see it as a tool, not as a reason to avoid paying taxes.


Unfortunately, the government probably knows a lot more than we think. And everything on the blockchain is permanent, so a lot of privacy attacks can be performed with no time limits. Whether you can just claim loss from theft is a matter of risk analysis. Maybe you can get away with it, maybe not. When it comes to the IRS, they might claim you owe taxes on holdings even if you lost them all to theft.

If the government require us to do so then why avoid it. It is everyone's social obligation to pay taxes. Here in my country, there is no regulation about bitcoin being taxed, so we just pay it forward when we convert it to fiat and when we buy things or services.

Agreed. I think banks closing bank accounts that deal with cryptocurrency exchanges will be a good thing in the long term. Many will realize the tyranny of the institutions surrounding us.

Paying taxes will not make us poor, so don't be so pissed off whenever we are paying taxes as this is for the benefit of all of us, although a lot of corrupt politicians that is why I cannot blame you but for me it is already their conscience if they will corrupt for as long as we are not like them.

You have a very different approach towards paying tax then mine as i think that if you are earning enough either from job or from bitcoin then you should pay tax as it could help in development of your neighbor and overall of your country. I don't know why it is such a big problem or issue for anyone as if anyone of you was only earning from your respective job then also you had to pay tax then why so much nonsense about paying tax on bitcoin.

Actually it's shit to pay the tax for my salary to the government. They won't look into the people's problem.All the tax which I payed to the government is moves to the politicians hand by the name of corruption. Why should I have to pay him a double tax .I won't pay tax for my bitcoin. I had hard earned the bitcoin by signature campaign and trading. I don't want to pay tax for that.

I completely agree !! In fact, we pay hidden taxes regardless of our desire, in our country these are excise taxes on gasoline, value added tax and so on. The tax on the crypto currency is just another possibility to manage to run into someone else's pocket, I'm generally for the fact that it was possible everywhere to make the calculations directly for

but what if you make calculations on the straight line in the crypto currency? today there are no laws that regulate the taxation for the operations on the blockade without transferring the crypto currency into ordinary money. I think and punish for what is not regulated by law, not who will not))

It depends on your jurisdiction. I've seen claims from many people that their country doesn't tax cryptocurrency gains. I can't speak to those claims, but in the US, there are laws that regulate taxation on property gains. The IRS has explicitly said those regulations apply here, whether or not you sell for fiat money. I think we're all hoping to see specific carve-outs that make paying taxes on cryptocurrency gains less of a burden. But until and unless that happens, it's not safe to simply ignore the existing tax code.

The like-kind exchange carve-out was done to protect the interest of the propertied real estate investor class. We aren't in such a privileged position. Congress and the IRS doesn't give a shit about bitcoiners. They're unlikely to make this any easier on us. 

I quite agree

Initially, taxes are imposed in order for the government to generate revenue and use this for the budget and fund government projects which would improve the nation and its community however it is sometimes abused by the gov't officials. Some taxes are even too abusive and anti-poor, which only hurts the citizens more than it should actually help them. If taxes were to be imposed for earning bitcoin, I think that it would be detrimental for the bitcoin user because it takes out a huge chunk of their income, which is unfair for one who has worked so hard for it.

Yes and I think it would be great if we pay taxes equal , and yep we should cause we can help other or the government service through bitcoin , and we are required to pay taxes . and on the other hand some government use taxes just fill their own selfishness if you know what I mean. And the bitcoin created where bitcoin is decentrelize crypto currency.

https://www.theguardian.com/business/2018/feb/05/lloyds-bank-bans-buying-bitcoins-credit-cards (https://www.theguardian.com/business/2018/feb/05/lloyds-bank-bans-buying-bitcoins-credit-cards)

Happened in the UK.

Of course, we should pay taxes to the Govt. on Bitcoin. Because Bitcoin may be a big and high amount in national income of a countries' GNP. And it may be a big remittance for a LDC or HDC's country.   ::) 8)

If there is a law requiring any bitcoin holders to pay taxes in every transaction then we must follow it and pay your bitcoin tax. It is better to pay taxes from bitcoin and other cryptocurrencies than banning it. This means you will no longer worrying about the legality of bitcoin in your country. Taxes collected from bitcoin will surely be use by the government for their different projects in improving the lives of the people.

Fuck taxes. That's why everyone is into crypto because we want to stay at the eyes of the government. Sadly those they are putting a lot of pressure today, its either they will regulate it and put taxes or totally put the hammer ban. And we are only going to pay taxes if we are going to convert our cypto's to fiat so if you are a bag and long term holder, you might have a chance not to pay for your government.

What I don't like about taxes though is that we don't know where it's going. I wanted to see my hard earn taxes go to something useful, health care perhaps or education or even try to improved the lives of those less unfortunate. But if my taxes would just go to the politician's pocket then they wouldn't even get a penny out of my bitcoins.

Exactly!  If you do not sell your BTC, you do not have to pay taxes on anything.  They treat it as buying a expensive piece of art.  However, if you then sell your piece of art (BTC), you must pay taxes on your profit.

It must or not, in essence i think.. it depends on the government of our respective countries. If the country doesn't consider / regulating about bitcoin.. it's better no need too concerned must to paying it, let alone like me who still earn bitcoin income which's not high yet. ::) But if my bitcoin income is getting high, i will try to pay for it even if it's still not legal yet in the country where i live.

When you receive an appreciated asset,you inherit the cost basis and future tax liability. However there’s quite a bit of variability and complexity. Here’s a Schwab article using stocks as the example.
https://www.schwab.com/resource-center/insights/content/how-to-value-a-gift-of-stock
But if you never sell it, there’s no tax liability.

I personally think that the real essence of crptocurrency is to avoid government interference, so it will be totally wrong if we begin to to pay tax on Bitcoin, if we do so, the purpose will be defected.

It is always good to pay taxes on Bitcoin earnings because even though your government is not legalized the Bitcoin. Otherwise, they will send the notices afterward when they find it and you need to pay fine for that, so be careful while dealing with the government.

No. Tax is one of the avenues government raises money. How do you pay tax on something you don't see. When this money, however is withdrawn to pay for goods and services, they may be taxed. That way you don't get taxed multiple times.

If we are required to do so, don't deprive this since as a citizen of one country we are required to pay taxes and it is for the benefit of all people, we could also benefit from it especially when we don't have funds and an emergency comes then we can ask for help from our government especially in the hospital bills.

Taxation on bitcoins will be applicable depending on how you treat income from bitcoins, based on the frequency of transaction. If the gains from bitcoins is arising due to trading, it will be treated as business income. In case the gains arise due to increase in prices while you hold it as an investment, the gains will be treated as income from other sources. Suppose you buy and sell bitcoins regularly, then the gains from the sale of bitcoins will be business income and the loss would be business loss. In case you hold a bitcoin for longer duration and then sell it, the profit will attract capital gains tax. Bitcoins will be treated as capital assets if you buy for investment purposes. This means if you hold bitcoins for not more than 36 months, the gains arising from it will be considered short-term capital assets. In case of short-term capital gains, the gains from sale of bitcoins would be taxable at your applicable slab rates plus surcharge and education cess. If you make gains after holding bitcoins for more than 36 months, then long-term capital gain will be applicable—you will be taxed at 20% plus applicable surcharge and education cess, with the benefit of indexation.

Even though bitcoins are not mentioned in the income tax Act, you still have to pay taxes. As of now, there is not enough clarity on bitcoins in terms of regulation. So, it would be advisable to seek professional help while filing your returns in case of any gains from bitcoins.

You are right, since a lot of the countries are still in the process of studying whether to accept bitcoin or not so it is somewhat of how we are going to treat it for as long as their is still no tax regulations about it then we don't have to worry about those things, yes we should pay tax when needed and required.

Paying tax on bitcoin transactions would mean legitimizing that transaction as the government will directly be involved. I know many people here want the various governments of the world to legitimize bitcoin, so they will gladly want to be taxed and enslaved by the same system Satoshi wanted to do away with. Bitcoin is decentralized and should be allowed so. There are other avenues from which the governments can get their taxes/revenue from the people.

I think if Taxes are imposed in any one's country for getting profit from crypto than he should pay taxes to govt because by doing he will abide by law and his money will not be freezed by govt.

Bitcoin taxes are coming for sure - it will take a while for the tax authorities to get their heads around it. Although how it should be done is a question, since different countries have different tax rates, and some regimes may implement before others...

i think we needn't pay tax,no country manager bitcoin,why we have to pay tax?

If bitcoin is consider the alternative of fiat then its just fair to support the govt by paying these taxes if required but if no requirements of such exist then no need to pay the tax.

At this stage when I'm not loaded with money I don't like the tax idea. But if I had big money in the future, I'll probably want to spend it. But with spending so much money problems will turn up. Government is curious where I did got that kind of money. In that case I would like to come forward and say I have earned it in crypto I will pay the tax and come clean out of it.

Yes we should and we "must" pay equal to bitcoin because taxes can help our economy to grow and not just economy but the bitcoin industry itself , it's good thing that it is decentrelized because government cannot control bitcoin and just uses bitcoin for corruption.

it depend son which country you are living. if your country required all bitcoiner to pay some tax then why not. if you  dont want to declare all the income you earn in bitcoin. Then make your computation that will not exceed the total amount of contries annual limit. we should pay tax if need so that we cannot disobey government regulation about tax payment.

Let us always think before reacting or making any decisions? Why is there a tax? Does tax doesn't have a good effect in our life and in our economy? Of course it has a big impact, although given the fact that there are already a corrupt politicians but that does not mean that they are corrupting all the money, of course there are still some part that we are benefiting at.

If one would want to avoid any complications, then it is really just best to follow the rules. Tax evaders are posecuted by the law and unless you want to become a criminal, you must pay the taxes even if it is against your will and wpuld wish to spend it on other things. Whether taxes should be imposed at all is another question and is up for debate but there’s really no choice once it is imposed by the government.

In my country, no tax slab or revenue policy is cleared till now. But I think we need to pay capital gain on the profit earned through BTC. If we Sell BTC within a year, we must be liable to pay short-term capital gain & if sold after 1 year then long-term capital gain will be levied on the earned amount. But Still we are waiting for the standard guidelines of the govt. to deal with crypto-income in INDIA.

It depends on the regulations on your place cause some people are paying taxes base on their profit. But I think its better to pay taxes than to be banned using bitcoin, cause after all our profit are much higher compare to the taxes we are paying for which if ever goes to the people who really need that.

If we need to go long run we have to pay tax but someone bought bitcoin at 20K in December what about them?

Generally I'm strongly pro-taxes, especially when it comes to corporations which try to avoid it and it's really unfair because small business usually pay all the taxes.

But when it comes to cryptocurrencies, I am against taxation of profits from trading or mining. Because people take big risk and it's not fair that government will take part of potential profit but if you loose your money, they will not care. And they will not help you if an exchange scams you or someone hacks your wallet/private keys.

If it's being so unfair and big companies don't pay their taxes, neither the small businessmen should pay theirs.
That is what happens in my country, and what I see are small businessmen afraid to start or continue their businesses, while the big companies control the market, with government being conniving with these big companies, massacring the small ones.

The conclusion is that no one wants/likes to pay taxes, so let everyone run their businesses without paying this or paying much less taxes and let's see what happens with the country's economy. Changes will have to be done, outgoings will have to be decreased, state size will have to decrease.
But in the end, it can work.


I fully agree with this.

i think that it is simple for that system, by only inside that, to pay somebody else is no matter, it can be cause of many crookers

In general, Bitcoin is not like the Fiat (Euro, Dollars, Yen..), because their transaction is not expensive (Low fees) and unlike other currencies of the countries, where the size of taxes is large, and unfortunately there is an exploitation of the users, That's why the cryptcurrency is better than FIAT in terms of many characteristics (profit, low fees, no exploitation of their users and more).
 
In addition to that, thanks to Bitcoin (Satoshi Nakamoto) and cryptocurrencies in general, the world of funds has become better than before in terms of everything. just there are few problems, like, the total rejection of Bitcoin by the majority of countries (governments), and during this period, there is a big attack, that's why the price of Bitcoin in crisis and the same thing in all the market (cryptcurrencies).
Hope that the collective recognition of Bitcoin will be achieved in the near future, and why not one day, we will see Bitcoin as a single coin in the whole world.

We want that Bitcoin is a help to every nations economy so to do this we should pay the Bitcoin taxes as per regulation policy as this is our counterpart to the government of supporting it and making it legal. Now if some of the government officials are corrupt then that is another story because if we earned either thru Bitcoin or thru direct fiat earnings it will not change the fact that we as citizens of every nation should pay income tax in accordance of our laws. The good thing is not all government is corrupt but there are lot of government that they are in true service to their people like Japan, USA and Germany.

When speaking globally, most of governments are not actually diverting the money from taxes to those noble areas of humanities. Finally, the tax is coercive and thus shall be legally protested by all means. Governments shall be re-programmed so not to ask for taxes.

Imagine giving money to government officials who never do their job. You are supporting the corrupt government.

Generaly speaking when it comes to taxes this is really mainly need for economic growth but hence we are talking about taxes thru bitcoin then this would only be possible into countries which do consider up bitcoin and we do see not all countries having the same implementations towards it. No matter what we do earn we are still obliged to pay up taxes, if they dont accept bitcoin then you can simply pay up thru fiat.

Yeah that may be done but for now there are not many countries that apply this in their country, many countries still have not chosen the option to provide legitimacy and legalization to the crypto, so for now we do not need to pay taxes on anyone, because the system itself has not created yet..

I’m willing to pay my taxes and wanted to help my government to pursue projects financed by it for the needy,, but with all this corruption issue and priorities of each officials for financing weapons for wars is a big disappointment that changed my entire perspective towards fairness..

What is legal might not be right all the time and that’s make this government vesus cryptocurrency revolution started..

It's hard to track bitcoin, but there are some regulations that aplied for this, some exchanges site ask their customers to complete KYC process. But still, people can use bitcoin anonymously in some place that is ilegal.

If our government requires us to pay Bitcoin tax then, by virtue of no choice we should pay tax.  Else,  we might pay a serious penalty. Most of us are bitter with paying tax due to the corrupt government.  But I think,  we just have to do our responsibility. Let us just think that we are helping the others through paying taxes.

My answer is yes, we should do this.

That's a good perception when you paying tax to your country and think that you contributed a little for the sake of economic growth in which country you are. If your country needs to pay tax on bitcoin then pay that is a small amount that no need to run you can pay your tax.
But luckily here in our country, my government did not impose any law regarding bitcoin so we don't need to pay tax on it we can pay tax when we buy goods.

Now there are so many countries accept bitcoin as legal but still they didnt announce tax for bitcoin. Some countries legalize bitcoin with some rules and regulations. At the same time we have to insists to pay tax means it is well and good. Paying tax is good for us. If you go to local exchange to change bitcoin to local fiat means there they put some tax for transaction. Because that is government rules only. Pyaing tax is good for all in and future.

In sooner time we will must to pay taxes from crypto profit, just let to the government to organize it. We pay taxes from or salaries and from general profit by the law, so crypto profit is also going to be counted as financial profit and we will be pushed to taxation.

As today let's enjoy the moments wherein we don't have the right not to pay tax since my country is now building a law regarding it, so in the future we are required to pay now... But for now let's enjoys the free tax moment...

Time will come for this but for now, let’s just enjoy our tax free income from cryptocurrency, well government will find a hard way to monitor this market but I think taxation is very important. If its already taxable on your place you cano’t do anything about it but to follow the law.

True we can’t do it alone without someone who is highly influential that will help us to face and resolved this problem on our own.. A revolution against our government has been started a long time ago even before the existence of cryptocurrency,, but it doesn’t go stronger because the people in our generation doesn’t want civil wars.. We do wanted peace..

Then the government is abusing it for they think we don’t do foolish things..

To pay or not to pay taxes on profits in the Crypto currency is your personal business. Only it is necessary to take into account that evasion from payment of taxes practically in all countries is considered a serious crime. If you think that you can remain unidentified for the application of punishment, you can risk your freedom. Payment of taxes in general is necessary for the normal development of the state and the financing of budget structures and social programs. Without this, we will return to the world of chaos and the right of the strong.

My government has not given any circular to pay taxes on Bitcoin transactions but still, I am paying taxes because once they legalised the first question from the government is pay taxes on time. So it is always good to pay taxes even though government not legalised bitcoin.

Personally, I'm not going to pay any taxes from bitcoin transactions. Thanks to the decentralized bitcoin system, the tax service will have virtually no evidence that the transfer was made by you.

It will depend on a country you are presently residing. If your country had a law that requires you to pay tax in every bitcoin transaction then you must obey it for it is the duty of every citizen to do it according to their income. The tax that will come from cryptocurrency transactions may help a lot of people in your country.

Yah. I have come across so many threads stating that why can't we have banks tied up with crypto currencies. Crypto currencies were invented to eradicate the banking system and bring peer to peer transactions with more secured Blockchain system. Implying taxes for crypto earnings is the other same idea insisted i would say. When countries do not accept bitcoin or any Crypto currencies, why should tax be paid to them? Lets not merge fiat system into Crypto.

Taxation is still a broad thing to talk about. As I have observed, there are lot of perspective towards it negatively and positively.
People behind bitcoin creation made cryptocurrencies for financial freedom right? What could you buy with cryptos before?- not much right?
Cryptos are directly equivalent to money, they have fiat value and fiat is run by government so basically when you buy fiat, you need to pay taxes.
We can not say that all of the taxes are used in financing themselves, Everything in a community can be associated with taxes. If we want a society that can give possibilities or changes, then we should help by paying taxes. We can not live on our own here. We should see what they do for us than what they have done wrong. Would it be a better place to live in.

I am willing to pay taxes though it is not yet properly in process.

The issue is much about the legalization as if government will not legalize the asset in which we have our money then why they will ask their share in that assets of us. If they will want for tax in bitcoin then they will need to legalize bitcoin first as if it will not relate to government then they do not have right to ask for tax on bitcoin.

Government has no right to ask us for taxes, they only have the right to do so when they have regularize the use of it on its State. When we can see businesses/shop in our neighborhood/towns taking in payment through bitcoin, then at that time, the government may ask for taxes through that transaction.

whether or not the payment depends on where our country lives and depends on each country because there is a state that regulates to be obliged to pay taxes for its citizens who use bitcoin and adan countries that do not regulate these obligations.

Governments have the right to do anything with you. You're the one who allows it. Since bitcoin and all other cryptocurrencies became hostages of Fiat we lost independence. In all countries, governments do not fulfil their obligations but demand this from the population. I wonder who will return the tax for 2017? This year all lost money and have suffered losses.

People doesnt pay taxes by choice. The government require them to pay according to how large they earned. Actually, they have no choice but to pay taxes. If your government requires it then why would you not obey. It is also for our own good and means that they acknowledge the cryptocurrencies' existence.

Having to pay tax on Bitcoin or any other crypto, I feel is just another sneaky way governments use as a tactic to encourage people to do with means to gain some sort of regulatory control over what's supposed to be a decentralized system. And I'm sure the tax brackets many governments impose are not all that low, as of matter of fact I would think they'd be quite high, particularly by those governments which make tax legal as another strategy to deter or reduce the number of people adopting Bitcoin.

It seems to me that the problem of falling prices for all cryptocurrencies is due to the fact that in the crypto community there are many people with such opinion. Perhaps you do not understand the basic idea of creating cryptocurrency. Why do we have to pay taxes? The government do not do anything in order for this business to develop. More than that, they interfere with its development. I don't pay taxes and I won't do it.

In some cases it's actually better to pay taxes because it's not worth the problems you'll be going through later on. I was exactly like that in the beginning, but everything that happened with Coinbase confirmed my thoughts about how authorities will force exchanges to hand over information. That's why I decided to pay tax over the coins that I traded with and bought from centralized exchanges. The only case where I don't pay tax is over the coins that I bought externally -- no centralized service has been used to purchase them. Why else do you think that private trades are starting to become more popular? People are sick and tired of regulations.

I think it's safe to say that the Coinbase versus IRS saga was meant to be a warning sign for traders to pay taxes where due. It seems that it worked out well as a warning if it made you pay tax, just in case.

If the next to be released statistics show an increase in tax declarations, then it had a major impact globally. Governments see how the market booms but there is barely anything coming their way.

If it's not coming their way they will come to you and get it. They will use every unethical form of behavior to make you pay everything they think you owe them. When it concerns tax governments don't fool around.

Only if the help does really go to the children and stuff... But unfortunately, the government could charge the tax for everything claiming that it is the good of the country, but we all know, they could help those children to be educated without charge taxes on Cryptocurrency.

I think yes. Accepting taxes for bitcoin is a must. If we pay taxes on bitcoins, then the government will never forbid bitcoins because they will get tax dollars when we invest in bitcoins.

Apparently, some government started to take the tax from cryptocurrency and trying to control it. In my country, there is an announcement that is required for the cryptocurrency trader as well as mining to pay tax on this separately from their tax income...

Depend on your government whenever they applying tax or not. Usually it's become the fundamental rule to apply tax because tax is from people to people ,right ?
If you won't to pay tax , it means that you won't to use great condition of public service such as road

Well. If I am living a good life in a good country like most of Europe or Singapore or Japan then I don't mind paying my tax well. But isn't enough that governments will only impose tax on exchanges and other trading companies?

You can't do anything if your government wanted you to pay taxes on Bitcoin and other cryptocurrencies. You must be aware there are countries (ex. The USA, South Africa, etc.) that tax bitcoin along with other cryptos, although they don't consider it to be money or legal tender but treat them just like gold as property so it can be subjected for tax purposes.

If our government has taxation system for the crypto currencies then we should pay taxes because tax fraud is one of the biggest crimes in most of the countires so we will get punished if we get caught.But most of the countries don't have taxes for the crypto currencies still we have to pay the income taxes for the earnings of crypto currencies since all of them will be recorded in our banks.

You don't pay taxes on Bitcoin, you pay taxes on profit. So it's not accurate to say you paying taxes.
At least as far as I know, since haven't chance to pay for anything yet :)

Why not if we have a system that allows financial freedom and yet we should choose to pay their taxes from it and support our government.

Obviously not. Why would governments take one cut of your pie when they can take it all?

Exchanges are just one single aspect of a market/industry that is far larger and will continue to grow larger. Everything related to crypto and the blockchain right now is similar to how it was back in the very early internet days. Barely any use but still plenty of speculation, where after a while actual useful tech and purposes started to pop up that managed to stay up even today.

With every tech and purpose popping up there are plenty of different uses that governments are eager to impose tax on. It should be clear by now that governments are tax hungry sluts. Nothing will change for the better in that regard.

Bitcoin is created to be free and not be controlled by anyone, and due to law creation and implementation, we are obliged to follow it but so far if your country doesn't have one then we not forced toto do so.

Same question is being asked time and again on this forum. And I always have the same answer...why the hell not?!? If we are paying taxes on all the prescribed incomes in the law...then why not bitcoin income. But my question is does the bitcoin income fall under the purview of income stated under the Income Tax Act. In my country India, income tax is levied on incomes divided under 5 major heads: salary, house property, business or professional income, capital gains and income from other sources. So bitcoin income can be categorized into capital gain income only if it meets the definition of capital asset under the Income tax Act, 1961, which is:  http://yourfinancebook.com/capital-asset-defined-section-214/
It cannot be categorized into other heads like, salary, house property and business and professional income. So the question of tax ability of bitcoin is somehow dubious for us here, while some schools of thought it can be taxed under income from other sources. However there is no legal statement issued on this matter until now!

Recently wrote that in South Korea introduced a 10% tax, for a currency transaction that was not put into circulation and did not recognize - this is a good tax rate, but not more.

Yes..

There is a lot of confusion surrounding Tax and it is different to every country. Overall I would say that BTC is not really anonymous and that the government is tracking its movement so don't be fooled that this is anonymous and safe and no one needs to pay taxes

Why don't you consider income from commercial or professional activities? Where do you get bitcoins? Any way of earning can be attributed to this definition. It is not possible to get tax in bitcoins from you, but once you exchange it for Fiat this transaction will completely fall under this definition. If you're a proponent of paying fair taxes, pay.

i dont subscribe to the school of thought that suggest we pay taxes from bitcoin, there is no taxing system that support it. yes it is good to help street children and give back to the society in terms of individual social responsibility, but that could be achievable without paying taxes from bitcoin, a visit to any ophanage home is a way of reaching out to the street kids.

Who knows how much of our taxes goes to good use? Why do people believe that taxes are the kids? It seems to me that most of the taxes go to the maintenance of the bureaucracy, no unnecessary receptions and flights of politicians, their pensions, etc. Maybe you need to reduce these costs and then the money will be enough for everyone?

Why the state should receive taxes if they do not act as guarantor of the transaction.  No, we do not have to pay taxes until the state has adopted a crypto currency.

Why pay taxes on operations on crypto currency if they go only to the pockets of officials.

Many will not want to pay taxes.  In principle, it is very difficult to do, but respectable citizens still pay taxes.

Better question -- why do people continue to pay tax on everything concerning their non crypto activities? It's exactly the same. Money ends up there where it shouldn't end up. People just need to understand that with everything they do they directly financially support a system that doesn't deserve to be supported. We pay for wars, we pay for corruption, we pay to have ourselves continue to be suppressed by a monster. If you don't pay tax on your crypto gains and whatnot, also try to find out how you can avoid paying tax on non crypto activities. There are always loopholes you can exploit.

Well. Perhaps, many are reluctant to pay the taxes, but it's a matter of conscience for everyone. Methinks, BTC wasn't invented for that purpose. It's rather some sort of investments.

The answer will vary depending on the jurisdiction of each person.

In my country the most rampant and a big problem for common people is our corrupt government. Poverty is abundant,  the poor become poorer while rich people who are usually  holding higher position in the government are enjoying all the luxuries in life.  Our  leader declares higher taxes in all commodities and government services.  People like me knows that it is not already fair and just but we have no other options but to follow because that is what the government declared.  Her in Bitcoin, I feel contended and relax because nobody can taxed my earnings.  I know that government cannot tracked or traced it and taxed it,  they have no control,  it is mine and mine alone.  For me, I do not want my income here in Bitcoin be taxed.  They can taxed other tangible income but not my income from Bitcoin.  This is my only escape from all corruptions they are always implementing without people's knowledge. In my own understanding,  Bitcoin was created to change the world and free people from corruption, tyranny, dictatorship, and etc. Bitcoin is the future of mankind minus corrupt government.

I would pay yes. If my country do accept bitcoin and i earn a lot of money from bitcoin which crosses my threshold income, then obviously i would pay the required tax amount. i am sure these tax amounts collected from every citizens are used for the welfare of the country. If these things happen, the respective country's economy will get developed. So with crypto a country can grow their wealth without depending on their citizens' employment.

Only if the government is making this for a good purposes. I would also do the same thing because cryptocurrency changed my life financially and now its time to share some of my profit to the government so they can make projects to support for the needy. Tax on cryptocurrency may happen soon as some of the government are really making attention on this technology.

Same in my situation if here our country required to pay tax then I would say yes, that's a small amount to pay tax and it will help your country to contribute a little amount just for the growth of the economy. It's better to obey the regulation to the government and did not bypass on it or if you caught you might be going to the jail.
Remember with your small amount that to contribute to your country as paying tax a big help to the improvement of the economic crisis.

I don't see any problem of paying Bitcoin tax as long as they will use it to serve the people thru basic services and emergencies. If we pay Bitcoin tax this mean that Bitcoin is legal in a certain country that the governments shoul protect us from scam projects, hackers and other crypto related issues that will need the support of government. Bitcoin tax will also help the economy to become stable that is why we are in favor that all countries shall support Bitcoin and not to declare it illegal.

we should pay taxes to the Goverment but not on Bitcoin. BTC is a zero-profit -game.

I would recommend anyone to pay tax on crypto currencys, if the government demands. In the country where I live, crypto currencys are accepted and you have to pay taxes for it when you make profit through trading with it. But if I keep coins for over a year, they are tax-free afterwards. Everyone should check if they have to pay taxes on crypto currencys in the country where they live. The governments will catch up and the blockchains will keep track of everything. You should not forget that. But that is only my advice.  ;)

For me yes if our country will implemented the rules. We can't hide from the government because I assume that the country vwho asking for taxes are those who centralized the system of crypto. Whether we like it or not we are required.

Paying or not paying taxes is the business of each individual person. However, it is necessary to take into account that criminal liability is usually established for non-payment of taxes, and the more the amount of non-payment, the higher the responsibility. If you do not want to sleep peacefully, you can take a chance and not pay tax. However, in my opinion, taxes still need to be paid. Of these, the state finances various social programs and salaries for people in budgetary specialties.

You need to really be brainwashed to think that your conscience should be affected by not paying taxes. The government is doing what it can to influence young people's view of the world and make them feel obliged to work like slave for the benefit of others. To feel guilty for not sharing with the parasites in suits. Why? Because without your hard work there would be no suits, no fancy dinners, no lambos and private jets, no swimming pools and no yachts. Someone has to be forced to work like a slave so others can live like kings.

I fully support your point of view. The government made the tax service. It's wrong. Taxes is a payment to the government for the fact that they make our lives better. I don't see it therefore I don't pay taxes and I am not tormented by conscience. I find it funny to see people become slaves and ready to punish themselves for mistakes in their tax calculations. LOL.

The advantage when the government legalize bitcoin is bitcoin value still significantly increase.

Applying tax will generate revenue for the government, legalize bitcoin will make more demand for bitcoin so it's great advantage for me !

If you don't want to spent few years of your priceless life, then pay it and live stress-free. This gonna be my one and only suggestion. Imagine how many good opportunities you will miss if you there 1 year in prison, maybe it's good to avoid being weak hands now, but cmon...

..if you belong to the government that legalized bitcoin and imposes tax on your bitcoin earnings,,then pay your taxes according to the rules and regulations of it..but if it is not required in your government to tax your earnings in bitcoun,,so be it..just donate some of your profit to those who need helo..like orphanage or home of the agent..don't donate money in some of the foundation that government own because we all know that they will just corrupt some of the donations that they solicited.

I think a corrupt government is unavoidable. In some countries, the people are also the ones who elected some of the countries' leaders and who's to be blame by that?
Government can be as functional as everyone but first thing is first, it needs people too to move mountains. It is just a mater of support system. It will be for our benefits too in my opinion. Or even if it is just for our security, we will be needing that practically.
We should not just think about the negative side of it. Though I agree that sometimes taxes are funding those corrupt people's trips. I would still see the goodness it could bring to us.

True. I just cannot imagine a world without government managing people. The government purpose is suppose to be good though there are places that it is not working because people elected the wrong officials.

The government isn't about us, they are about them so they will make it a requirement sooner to force us to pay our taxes from our bitcoin profits. They need money more than the poor people around who have nothing to eat. What a shame.

Although it's a fact from the negative side, but I do not think that far, first bitcoin is still free in use in many countries without any rules and taxes. so you do not have to pay taxes to the government. I don't know. whether in the future the rules will change or not

I fully support your view point.

And it depends from country to country.

Taxes are legalized coerced extortion, it is crime in itself to take something from you what does not belong to the taker. But we are living in such brainwashed society, that it is fine and acceptable.

Majority of the laws of countries on this Earth do not take taxes to make life better of a citizen. Example is Germany where taxes are taken without nothing in return as obligation. So there is no obligation of a country to make anything better for citizen. Just take basic tax law of any country and review it and see it yourself. If it would be true, it must be something written about it.

Politicians are managers and they don't produce, work, provide service, they just talk, talk, and do nothing. And spend all the taxes in corrupt government.

You are mistaken, and you should rather advise with tax consultant in your country.

Now, you compare Bitcoin to some paper money and in that context you say how there is no tax on Bitcoin. But that is mistaken concept that you have.

The tax is not on money. Tax is on income, or transactions, importations or similar. Governments are not taxing money. They are taxing income. That is not the same.

You can receive to your account 10 million dollars. It is not money that is important, but the income.

Maybe 10 millions was a loan? There is normally no tax on receiving a loan.

Maybe 10 millions was insurance payment? Maybe in your country insurance payments are not taxed.

Maybe 10 millions was sales of services? Then it may be income, Now the tax come into question.

And income comes always after expenses. What if you had 9 millions expenses? Then 1 million is the income to be taxed.

In majority of countries, the law is such that gives to the citizen the obligation to report taxes, regardless if the money came to bank account or not. And it is not all just about money, many countries are taxing any kind of capital gains. For example, in many countries, if you would receive gold, or gifts, or any kind of stuff which is not money as gift, you could be taxed. And if government does not know about it, they made a law to say it is your obligation to report it.

So the statement that Bitcoin is not taxable in many countries is simply not true. Because laws don't say "We tax Bitcoin or we tax US  dollar", those tax laws don't speak about any particular currency. They speak about income, gain, capital, wealth,  that is what governments of the world are taxing.

They don't want to be limited to one currency, they want to take anything from you as much as they can take it.

The previous response was very detailed and has amazing arguments. I would pay taxes if I had some massive income of Bitcoin, or in case I had many Bitcoins. That would make me rich, and then I would be able to help others. It is a duty, and too bad that many aren't fulfilling it.

Taxes are already being imposed on bitcoins once exchanged and reached the bank. One good thing about paying taxes (declaring the money that was deposited in the bank), it can avoid questions for possible money laundering.

Bitcoin is decentralized and you don't have to pay the taxes untill and unless you convert your Bitcoin to the fiat currency of nation under which you fall. Fiat currency comes under the government regulations and so this comes under the tax category. One must be ready to pay the taxes if the user will not pay tax and suddenly government will find lot of amounts in your bank account that what will you say to them???

We should pay taxes if we had some handsome income from Bitcoins. It comes under the government regulations so they decide this comes under in which tax category. We must be ready to pay their taxes If we need to go long run. Taxes provide you legal track to go on without tension according to me we have to pay taxes and support our government.

A good government and good tax paying citizens go hand in hand, even though the model isn't perfect.
You pay taxes because you are gifted enough, lucky enough to thrive with money in a society where many others suffer financially. Even if not for them, you need a better surroundings to live, that is the very basic need of a human being and you alone can not work towards making your surroundings better, a collective effort of government and citizens make it better. So pay up the taxes, with a hope for betterment of the world. Be it bitcoin or fiat, taxes must be paid, thats how the world works and it's not wrong, its only wrong when tax money is spent in corruption (solution to which is NOT "not paying taxes") but improving the system. 

We should pay taxes on bitcoins.  Because it  will help us to increase our income without any problem and without any fear of government agencies to take any action about our  income and government will also declare it legal and the value of bitcoin will increase. People will take more interest in using bitcoin

Bitcoin never set himself any political goals, including the goal of freeing us from corrupt officials. It's absolutely impossible. Governments will always exist, and there will always be corrupt officials in it.

Taxes on profits from operations with bitcoin and other crypto currency will have to be paid, since if the state structures see that people do not pay taxes on activities in the crypto currency, they can generally prohibit it, citing exactly that it is hard to control taxation. On the other hand, if the state does not react in this way, failure to pay taxes will lead to underfunding of social programs, spending on budget professions, including the army and the police, chaos will begin. Payment of taxes will then seem to you not the greatest evil.

It is the duty of every citizen in every country to pay taxes in accordance with their constituion or any other laws that require people to pay their taxes. Several countries like United States and Japan requires its bitcoin holders to pay taxes when they use the coin in their transaction. But here in my country, the bitcoin transactions are still tax-free but the government might already planning to create regulation for the the cryptocurrencies.

No matter how badly we treat our governments, we should not forget that the government does not need a decentralized crypto currency. It will reluctantly legalize it. If we do not pay taxes, then governments necessarily use this fact to limit the circulation or even the prohibition of crypto currency. Who will be worse off from this?

Perhaps in the future, when the government takes control into its hands, then it will be right to pay taxes, but now this is absurd.

We should pay our taxes if this is required to pay,we need to pay tax because this is our obligation,taxes is for the government,for the street children,public hospital and public school for the poor people who can't afford the private hospital and school,taxes is for the progress of our country.

How paying taxes is something absurd? Citizens want to get free school, free everything but don't want to pay a tax? The same people who complain about the system in their country. We have to participate in the system because as far as I know money still not grows on trees.

It's funny too, to see people agree with crypto regulations but not to pay crypto taxes. Well you asked regulations so here we go...

It depends upon the government of the country, if your government collects tax for bitcoin, then one needs to obey and to pay the same. The countries who have not yet accepted bitcoin, do not need the citizens to pay the tax for bicoin earnings. I would say its good practice to pay tax to the government who accepted bitcoin. This would seriously encourage other countries to look into the options to accept Bitcion and other crypto currencies.

Saying that likely won't help you as you will have to prove it one way or another that the key was actually stolen. That would be a whole story worthy of a separate thread in Legal. Now to your point. People pay taxes not because they are willing to do so (while some are but they are in absolute minority and beyond the scope of this post). They simply don't have choice. Yes, they can choose not pay taxes but then they are exposing themselves to the risk of being caught for tax evasion, and in some countries, that may mean a term in jail and severe punitive penalties (the US and Canada seem to be most atrocious in this regard)

In other words, people prefer not to mess with the IRS (an abstract and exemplary Internal Revenue Service)

Income tax is absurd and I'd like you to prove to me that it isn't. Like I always say, let's not put all taxes into one basket. Sure, citizens want free schools, but schools are usually financed from their local taxes, the ones they pay on the property they own and that goes towards maintaining the roads, lamps, parks, schools local services like fire dept, and so on.
Income tax goes to the general budget and ends up being spent on social services, army, government buildings, transport and security for the MPs and so on...

Most of us aren't against contribution, but are against the government trying to suck people dry and ride on their backs until they die.

http://forgifs.com/gallery/d/274846-2/Wild-pig-hog-ride.gif
Do you want to be that pig all your life?

Yes, now in most countries, if you monetize your profits by converting them to fiat then you have to pay direct taxes or income taxes.

Although Bitcoin is not a currency that is bound to one country, today many laws regulate Bitcoin and require you to pay taxes.

Well, that's the reality, currently Bitcoin is a taxpayer. Now most of the regulations on cryptocurrency in some countries categorize Bitcoin as a commodity and capital asset, therefore, there is a tax obligation from business income and capital gains.

Are you sure about capital gains?

This is a very specific notion which may mean different things in different countries. For example, in some countries it is a tax levied on the increase in the price of a specific type of an asset. But it is not like a property tax as you don't have to pay it annually just because you own some asset and its price has appreciated during the year. You only pay it when you sell the asset and in that case it is pretty much like income tax with the difference being that a capital gains tax is always specific while an income tax is indiscriminate meaning, that you pay it on any income earned

Another difference is that with a capital gains tax, you pay the tax only on the profits or positive difference between the price at which you sold the asset and the purchase price, while with an income you have to file a tax deduction application if you don't want to be asked to pay it in full, i.e. without taking into account the purchase price. Besides, if you hold an asset a certain amount of time (like 1 to 3 years and beyond), you may not have to pay this tax at all. This is different from an income tax

Well, as you said, Bitcoin was created to liberate us from our governments. But, over time, many regulations and laws related in various countries can cause taxation on Bitcoin. There is no other choice but to comply with the law, otherwise it will only cause bigger problems, I think, because of this, many Bitcoin holders are willing to pay taxes on Bitcoin.

Its possible dude, because at the moment we see how intense the government is in verifying IDs for bitcoin users in various exchanges,
of course with the aim that crypto users can be controlled by the government, and in the future taxes may be required?

since bitcoin isn't dependant on any bank or governmental system there is no MUST to pay tax for it!

Sorry to disappoint you, but this is not how the tax system works

As the task of reporting your income lies exclusively on you. You may choose not to report it and probably you will get away with that, for a couple of times or even years. Then your envious and overall wicked neighbor reports on your new sports car and you have to face some serious issues standing tongue-tied in an effort to explain where all this money comes from and, more importantly (for the tax authorities at least), whether you paid an income tax on it that you so thoughtlessly wasted on all these useless things so carelessly betraying your income

In my opinion we should not pay taxes on bitcoin since we are all risking our money to invest in it.

The taxes should be paid if its regulated in your country for crypto currencies. But, one thing Im sure, that right now the laws and regulations for that are on such a raw level in many countries.
And actually it is your own obligations to do so. If you trade a lot and are officially unemployed, that will be noticeable.

If the law require us to pay then its our duty to pay it. And if we pay the tax. Just put in our mind that we can help allot of people by the tax that we pay.

If the government wants to pay it must. But if the government does not want it then there is no need to pay it. Bitcoin legalize countries governments may take bitcoin tax fee that is govt. wish and this usd spend to improve in any country sector.

Taxation without representation is what the call it. Why should these non elected political hacks get taxes from us?  They don't protect our assets from criminals. They haven't developed the concepts.  8)

I say. We should only have a reasonable fee when exchanging for fiat currency. They get something like 1-4% if I turn it into fiat government currency. Then you wouln't have to figure anything out. It would be done automatically without a hassle.  :)

It is the same risk as investing elsewhere

For example, when you buys company stocks, you are risking the company in question going belly up, and thus losing your investment entirely. In this manner, the risks are essentially the same. If you are a venture investor, the risks can in fact be even higher as Bitcoin is an already well-established and trusted investment asset, and your risks are quite manageable no matter how much you invest. That said, if you sell your stocks for a profit, you have to pay either an income tax or a capital gains tax, depending on jurisdiction. Obviously, if you book only losses, you don't have to pay anything, and again in some jurisdictions you can use these losses as a tax deduction for the next few years if you later earn profits on the stock market. But no one is going to pay you a negative tax on you losses, i.e. compensate them, fully or partially, of course

Maybe on salary and products but they should leave the profits from trading. Trading is not always guaranteed so it would be more depressing for a trader who keeps paying his taxes even he is currently experiencing losses but maybe if only cashing out then I might agree to it.