Bitcoin Forum

Tax law is dependent on your country and locality. Recently in the United States, the IRS has declared that Bitcoin is to be treated as property, not currency, for tax purposes. All income in the US is taxed, regardless of what form it takes. If you’re paid in bitcoins, you’re supposed to pay taxes on your earnings at the BTC/USD exchange rate when you receive payment.

Is it a good decision or bad?

Mainly it deepens but for online goods you don’t need to pay taxes based on this btc is increasing day by day also many govt. are accepting this coin warmly also this have good future value and pay lots of profit to their customers and we can do many things with this currency.

Bitcoin is not designed for taxes to be paid on it. I beleive the best for government maybe to tax bitcoin users and make it more popular. Just that the charges should be considerate and proportional to the excesses.

I never pay taxes using Bitcoin, here the cryptocurrency assets have not been set in the law
although it has value, but it is what makes people in Indonesia afraid of the risks of bitcoin that could make a person poor quickly
Essentially, I have not paid taxes using Bitcoin

No. Bitcoin taxes depends on government permission and legality. Some countries don't permit bitcoin as legally so there taxes not count.

We don't pay taxes in every transactions made here in our country.I believe service charge were only taken during transactions made.I don't think in some countries if bitcoin is taxable or not but I guess some countries are already paying taxes on bitcoins.

Taking part of the economy by paying tax is always a good decision. Why would you evade your tax if you are earning good with bitcoin?

There are countries has no clear regulations about bitcoin but they don't ban it so you can voluntarily declare your tax income to the government and tell them that it came from bitcoin.

Declare how much you've earned and they'll calculate the tax.

The whole need for bitcoin is to be task free. Government will always find a way to task everything you own.
For all i know is that you can only be task on things that are ascribed to you.
IMO task or no task it doesn't matter, the fact is cryptocurrency is not design to be tasked.

In Indonesia bitcoin is banned but there are a regulation for paying tax from earning bitcoins, but the government can't track em, so people mostly not paying tax and hiding their wealth to bitcoin.

Well, I think it is not a bad decision. Giving tax is not bad at all. Tax is good for a nation and if people pay tax for BTC the government will also remain silent and the investor will be able to do business nicely in a good manner.

I don't agree with you. Governments owe nothing to people who voluntarily pay taxes. We all pay taxes in Fiat and that we live better from it? I think we need a different tactic. Governments should offer better living and business conditions. Only after that you can pay taxes. Practice shows that the government does not want to do anything without pressure from the people.

I don't think they have to because it does have any presents in the real world every thing is online based, I don't think any country goverment still demaded tax over electronic currency, so no taxes are need because the holder will never able to convert it in to real money

It can be good as there will hardly be any security issue if that happens. Besides, the demand may also get increased due to this.

If the government provides a positive contribution to the development of cryptocurrency I would strongly agree, this reason will make other countries that prohibit the use of cryptocurrency will at least rearrange in response to the problems that will arise. But if the government can not make a good contribution to cryptocurrency, in other words they only receive income from taxes alone I think it is the worst idea and only a fool will accept.

Making bitcoin as a property to get tax from it? Well government can really make their own laws if they do want to. In general sense if we do talk about tax then its good for the economy since this is the thing do helps out to give out progress and development on a certain place which i do consider it on having a big role on entire aspect and as a citizen we are obliged to pay but since we do talk about bitcoin taxes then if its said so then you should follow if you dont like to experience problems later on.

Thats the beauty of it where we can hide of ourselves from authorities when using up crypto as long you arent using exchangers or local wallet providers then you can really hide out yourself.

Bitcoin isn't an escape from tax. Quite some people believe that the lack of regulations means they are exempt from paying tax, but thats just nonsense. Legally all income is taxable. It's however up to the people to declare it.

If you are confident that everything you do and earn remains under the radar, then feel free not not pay any tax. What the government doesn't know won't harm you. Don't financially support them when it isn't necessary.

If your information is logged and saved on servers (exchange servers for example) for ever, then not paying tax will result in more problems than when you would have paid. Coinbase's IRS case speaks for itself.

Yes, this is correct.  No one escape from paying tax in terms of transacting the BTC . Other government also should impose proper regulations on BTC transactions.

A lot of thread asking paying tax is good or not, well, on my own if you are in the US you could not escape from paying tax because of that's our obligation to pay for the sake of our economic growth. In paying a small amount you contributed to the development in your country and USA now is the most powerful among all countries.
So, your question if it is good or bad for me, it is good otherwise it is helping as well.

No Bitcoin is independence currency and many countries considered it an illegal so Bitcoin taxes depends on government permission and legality. Some countries don't permit bitcoin as legally so there taxes not count.

I consider that it would be a right decision.

My local exchange apply tax when I try to withdraw and it's a good decision, IMO.

Why ?
We are helping the company paying tax , from us to us , so it's kind of win win solution !

If they know who you are then you gotta pay for what they have requested and i think it only exist when you are trying to withdraw your money from any exchanges. More over the government really don't know your wallet address, the only thing that they know if you make contact with the exchanges which is under in your government.

And i think it is good with just a small amount of your profit, it's not that bad to pay compared to your profit.

Paying taxes is indeed for a government because all our money is important to run the governments and whe they are asking for it you have no other option other than paying.But in my opinion paying fair amount of taxes from our earnings is good but many governments are asking for too much of taxes.

It is a good thing for Bitcoin, mainly because, it will protect the investors and future investors from money laundering and other criminal activities. Taxes on Bitcoin enables to take legal actions whenever there are stolen Bitcoin and retrieving it is possible with the help of the police cyber crime division.
Taxes is really necessary for cryptocurrency since it is considered as a form of investment that can generate profits.

LOL. Paying taxes in bitcoin doesn't mean that the government will relax on crypto crackdown. On the contrary, that's why they are putting tax on it, because they really wanted to stop and at least run at people who they think are hiding tons of money in crypto. As for paying taxes, if you are in a country wherein your taxes really go to a good cause, then I don't have any qualms paying it. However, it if would just go on the wallet of unscrupulous and corrupt politicians then that's a different thing.

You are actually conflicting the two types of tax here. One is income tax and the other is capital gains tax. If the US is treating bitcoin as property as you have claimed, then the issue of being paid in bitcoin does not arise. You can only be paid in bitcoin and taxed if bitcoin is subjected to income tax but in the case of property, it is when you sell your bitcoin for dollars that you will pay capital gains tax just like when you sell a building. In addition to that, you are then allowed to deduct the cost of buying the coin and other incidental cost incurred that can be proven to be essential to carry out the trade before the balance 'Capital Gain' is then taxed depending the on the CGT rate in the country or if a specific law is made to cover crypto currency.

It differs from country to country. Many country accept Bitcoin without putting any rules and regulations on it. There are some other countries who adopt Bitcoin but by putting some rules and regulations on it in the form of taxes.

I think that is the fair way of calculating the tax of what you owe to the government. You really supposed to convert it to your local currency in order to avoid any kind of discrepancies. It is the same way as a domestic company earning from its international branch, their foreign fiat currency earning is always converted to at the current exchange rate during that time. Converting it to a later date will only make their earnings also subject to capital gains tax which I don't think is an attractive option for any income earner.

It depends on how to look. For the state this decision is simply excellent, as the budget will be filled, and for taxpayers this is not a particularly pleasant innovation, as they will have to give part of their income.

Regarding the potential for tax revenues from digital currency transactions, such as bitcoins that are increasingly widespread but the article, bitcoin is not a legitimate means of payment So people do not use it as a payment system.

One of Bitcoins universal characteristic was not to be taxed on. But it is a different story once you regularize the use of it on a certain country. Once a the government legalizes the use of bitcoin in they country, they may now have the power to impose taxed on it.

In my country Bitcoin is most commonly used as investments even in the country of Japan and Germany in which Bitcoin was commonly used as investments too although some may use it in spending but they are only few compared to majority that hold it for investments to earn more fiat. So if the USA see Bitcoin too as investment then as law abiding citizens you should pay the income tax but anyway you will be entitle from the government to a full protection from scam, stealing and any activities that related to Bitcoin activities.

This will depend on each of country's tax laws if they explicitly or impliedly view cryptocurrencies as matters subject to be taxed. From what I know, some countries have started implementing laws, specifically on the tax aspect, with regards to cryptocurrencies in their country. But as far as those who illegalize and prohibit the utlization of such, then no laws are mentioned with regards to taxing (although they are prohibited).


In fact, there are other services accepting bitcoin as an alternative payment for their services/products depending on the country. My wallet accepts transactions and payments for utility expenses and they are even connected to our various banks for online transfer of payment. This will heavily depend on the country if they allow such currency to be utilized or not.

Tax is bylaws of every country, it should be paid by all members . But in some countries bitcoin is not legal by government, there is no tax on bitcoin.

this depends on the rules and regulations of different countries. Many countries have strict rules while other are quite lenient towards it. So, if you are worried about the taxation and the rules related to it, you can always use the forums to get to know a better view and see what the rules are in your country.

May be it is a right decision. But at the same time we have to accept it that this decision will produce a bad effect on cryptocurrency market.

For the country yes, for us no, paying tax means we need to declare that we own bitcoin, and that makes admit that we got crypto and we are losing the freedom, but I think if we want the crypto to become big we need the cooperation from the government, most of the adoption got stuck in the government's hand

I don't understand how tax snatched our freedom.  Only we can help poor people by paying tax to the government.

Most of the bitcoin traders will not prepared to pay tax.We are already paying tax for our real job.So I don't want to pay tax twice for my single salary.Most of the people will inverse their salary in bitcoin trading.They won't like to pay tax for the investment in bitcoin and cryptocurrency.

But as we know the rich people only can buy BTC and most of the tax payers are rice people. Only rich people can help poor by paying tax. So, I think it is our duty to pay tax for good shake for our country.

People don't want to pay taxes of course, but we must understand that our government need this so we can survive in the future. If the Law requires you to pay taxes then so be it, for me this is a good decision by the U.S instead of banning this technology. The only problem with tax collection is the corrupt collector, the rest their purpose if great.

Yes, it is true that there are few corrupt personnel in the tax department but we don't have choice. We can not ignore paying tax in the name of some corrupt people. We have to cope up with this system for the shake of poor people.

We like it or not the taxation system,we should pay the taxes to the governments or we will be considered as criminals in the face of government.But most of the countirs don't have the tax for bitcoin but we all need to pay the income taxes for the governments.But it is still annoying that our taxes were just go to the pockets of the corrupted politicians so we need to pick the right leaders next time we can't escape by using some other criminal name.

The bitcoin was not created for taxation and was thought of as a decentralized system, it's already America that begins to smell to replenish its budget!

Bitcoin also wasn't meant to heavily speculate with, but it happens. Why? Because people are greedy. Governments are greedy as well; they don't care when you are using it, how you are using it, and for what purpose you are using it, they just want you to pay your due taxes, and to locate your wealth and cash flows.

All governments do that. Do you seriously think that Japan's friendly Bitcoin regulations are implemented to stimulate Bitcoin itself? Their main incentive is to scoop up billions and billions of tax income they otherwise wouldn't have. In other words, whether it concerns people here or governments, the main incentive is to fill up our pockets. It's something we have to accept since there is nothing that you can do about it. Just move on.

In this material world nothing is free. So, we should never expect a thing for free from others.  But taxation is a system by which rich people can help poor people.

If government want to legalize bitcoin, that's the only way.
Remember by paying tax, we also help our country generate revenue. But if you dislike to pay tax , there is a big chance for government to not legalize in the future that will impact on bitcoin demand !

I’m not surprised by the United state to implement taxation on bitcoin and I’m not against this as a matter of fact I’m supporting this actions for helping our countries economically..

Right now,, my country doesn’t have laws regarding bitcoin and no existing policy for any regulation of cryptocurrency..

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It purely depends upon your countries laws. Many countries now accepted bitcoin as legal but without taxes. Only trading exchanges collect the transaction charges from the people who change the bitcoin to local fiat or buying bitcoin. According to my knowledge there is no tax collect for bitcoin, maybe iam not aware of this rules. In my country people are using bitcoin without any tax.

So you're naive enough to believe that the taxes they pay on crypto transactions are supporting the country.
If they would really want thriving economy they wouldn't impose income taxes in the first place as people's gains end up boosting the economy anyway. To make it simple: wealthy people buy a lot of expensive things, they like to spend. They eat in restaurants, buy cars, houses, alcohol, jewelry. They go to the cinema, theatre, concerts.
Poor people who are drained by taxes don't do that. They buy cheapest food, walk or use public transport, and spend their free time at home, watching tv.

So you mean that all our taxes goes to corrupt officials then I’m not the one being naive and it’s you.. You being harsh to someone’s opinion is giving me the perception that all legendary member are like you,, generalisation is your end game..

Now if you totally disagree about a law in taxation then better not paying them and let see if BIR might knock in your door.. Don’t buy goods that has tax on it as a way of protest.. I know you can’t..

It is true that there are many countries where BTC is not legal yet. So, users of that countries don't have to pay tax. But there are lots of countries where bitcoin is legal and still they don't  need to pay taxes on BTC as well as other cryptocurrency. My question, should we pay tax on BTC transactions in the countries where BTC is legal?

Paying tax is depends upon the country which you resides.  Bitcoin has been legalized by many countries recently. But they are allowed people to use bitcoin in their without any tax. At the same time few countries accept bitcoin as legal but with some rules and regulations. So in your country your government ask to pay tax means then you have to pay it. No wrong in that, i think most countries accept bitcoin as legal but without any tax only.

Where did you see the word "all" in my sentence? Maybe a small amount is, but it's so insignificant and laughable that it doesn't really justify the system.
Taxes that you'll pay on your crypto gains won't help the country in any way, thinking that is naive and I'm sorry that you felt offended by this or that I was being harsh. Think about what I wrote again and decide whether that was really offensive or that it had anything to do with generalization.
I also see that you don't see the difference between income/capital gains taxes and the rest of it like VAT excise, duty, and so on. I'm against the former and believe that it doesn't do anything good for the economy, on the contrary, it slows it down.

Let me paraphrase your last sentence: It doesn't matter if you disagree with government's policy. Better shut your mouth or they will knock on your door and threaten you. Is that really your attitude?

Yes , many countries which has legalized bitcoin and other crypto currencies has also regulated it in a way of imposing a tax on the transactions just like fiat .
This is a policy that government has to follow to maintain the flow and record of the money an individual is making .
Moreover , it is just a way of acceptance by the authorities which is needed .

Paying tax on BTC, is a win win situation for us. There are some countries which do not want to legalise the bitcoin. So, they are deprived of getting tax. If they want to get more tax then they can legalise the BTC also BTC will get new market.

I don't think have to pay taxes on Bitcoin. In our country no need to pay taxes on Bitcoin.

Your talking about government officials having a lavish lifestyle and think that those taxes goes there and that’s loud and clear.. Unless your living in a communist country then that sad because I’m not.. We elected representatives to decide and vote for our laws and following it is our responsibility as a citizen..

Let me end this here.. I’m not perfect,, same with our government and its people,, but if a hundreds of them voted by million of our people think and decide that this policy//taxation is right to help my country then who am I to oppose it..

Bitcoin is stored in your private wallet or at exchange wallet where government can't track the records of your saving which means that if government doesn't know about your money then why will you pay taxes on that service on the other hand if you withdraw the money into your bank account then you may need to pay taxes according to laws in your country as laws for taxes are quite different in every country.

But we should keep it in our mind that cryptocurrency market is in initial stage. To add tax on this sector may have a bad effect.

Yes,it is depend on government rules and regulations.  But I am talking about bad effect on cryptocurrency market.  Don't you think it is bad for the bitcoin

It shouldn't be. In the end people will just look for ways to conveniently cheat the system, which has been happening for decades in the regular market. The wealthy elite doesn't do anything other than that to preserve wealth.

Local crypto markets around the world have been exploding due to all the regulations that people are sick and tired of, and I'm happy that the regular people with crypto have another option now.

I think that eventually when crypto becomes more mainstream than it is right now, that we'll see lower tax rates in an attempt to lower the bar for people to report their holdings and gains. It's only a matter of time.

The regulations governing the taxation of bitcoin and other crypto-currencies differ significantly in different countries. In some jurisdictions (EU), bitcoin is considered a currency, others (the US and Australia) regard it as an asset. Some countries (Japan) adhere to the intermediate approach, defining bitcoin as "equated to assets carrier value." In many other countries, the system of regulation and taxation has not been developed yet, and the representatives of the financial sector consider them to be high-risk speculative investments.
Initially, I think it's still necessary to fix the official status and fix the attitude in the state to the crypto currency, and then demand taxes for it. And do not forget that the idea was about anonymous operations in the first place. And the taxation system oppresses this idea.

If my country legalised Bitcoin and cryptocurrency, then surely the government would force people to pay taxes. And of course, I will agree and pay a full tax if Bitcoin was accepted in my country.

In our country it is mandatory to pay taxes on any income earned and if you fall in the category prescribed by the government then accordingly the % has to be given. And if you fail to do it then you will be liable to he punishment which they have it in the law.

In principle, nothing wrong with the fact that in the United States recognized bitcoin as property and tax it as a property, I do not see it. In any case, the tax must be paid, since if the state bodies see that people do not pay taxes from the crypto currency, then additional restrictions on the crypto currency may be introduced.

Then make sure the government won't find out that you own Bitcoin or gained whatever profit. If you avoid centralized exchanges and not openly talk about your holdings and profits, which seems to be a trend amongst those who entered the crypto space recently, you'll be fine largely. I made a mistake by completely verifying myself at Bitstamp which made me donate them all information they need when it comes to the coins I bought and traded there. That's why I don't have any option other than to pay taxes where due. I'm however glad that the majority of my coins are stored offline and haven't been bought through Bitstamp, and thus aren't 'affected' and I can manage to keep that part of my wealth under the radar.

It is true that people always try to cheat the system.  But only wealthy people can do that. General people have to follow the rules and regulations. I think it is better to have some tax on cryptocurrency.  So that government will find some benefit on cryptocurrency.  Also government will work for the betterment of BTC as well as for other cryptocurrency.

Yes, I am taking about it. I am against the tax on cryptocurrency.  Imposing tax on BTC will bring a real bad effect on cryptocurrency market for sure. It is time to think about this matter. Cryptocurrency supposed to be anonymous and decentralised.  If government impose tax on BTC then it will be centralised. 

I think it depends on the law of every countries to pay taxes but they have to make a good regulation first. But my question is how would they will know that you have a higher income because of trading when they don't really know what or how's the fluctuation works.

i dont think so. as far as i understand bitcoin is not design to pay tax. it maybe depend on the government. theres no law today about the tax of bitcoin.

I am even more confused than you. It is a decentralised system and it has fixed amount of coins. If government impose tax on BTC, it will take control the amount of BTC holding by their citizens.  As a result it will loss its decentralised characteristic.

You have to pay taxes only if you have cashed out your bitcoins. That means if you converted them back into dollars. Unless there has been an increase in your dollar balance due to cashing out of bitcoin since the time of investment then you have to pay taxes for the profit you made on investing in bitcoin.

That's just nonsense. I am not wealthy but I game the crap out of this system where I can. I am not going to follow idiotic rules and regulations meant to push me further into the hole.

Then go ahead and pay as much tax as you can. Good boy.

Governments won't do shit. It's not up to them anymore, but up to you to stand up and fight for your rights. If it was up to the governments you would stay their little passive income slave for ever. You don't help yourself by financially supporting criminals. You help yourself by solely using money they can't seize in any shape or form if you play it smart, which is Bitcoin.

I'm sure a lot people here will not agree with me, but that's okay; the mass is always the one sinking deeper down with the years.

What about the shopping.  Do we have to pay tax on our daily transactions.

I think that tax is good. Introducing a tax on something, we recognize the crypt and as a consequence we fix the status and rules. From the gray sector, the tax allows the bitcoin to go into the legal business process. We give citizens the opportunity to pay taxes in return to recognize their income as legal.

That depends on country but i cannot see world with crypto which will be legal worldwide without taxes cause goverments must find some way to earn profits from making crypto legal in their country.

 Hey Buddy,

Tax law vary from country to country. So it's all about local laws. I never pay taxes on bitcoin.
If you using bitcoin for online purpose such as online shopping then you never have to pay any single taxes.

It depends upon the country which you resides, in your country if government put tax for bitcoin then you have to pay tax it is necessary. I think most of the country couldn't put the tax for bitcoin. Few countries now put tax for bitcoin, so its purely depends upon the government of the country.
 

Thanks for the info. It is really sad to see bad effect on cryptocurrency market.  Tax definitely a good for Any state but this is not the time to impose tax on BTC or any other cryptocurrency.

If you look at things from that perspective, when will it ever be a good time to impose tax on crypto? Every attempt by the government to impose tax is bad timing for you and me. Just admit it, no one likes to pay tax with how unfair everything is set up -- there is no one other than the state that benefits from tax income. I'm not much of a believer in the theory of governments using tax income within the country to benefit the country. Maybe that a small percentage of it is put to good use, but what about the rest? The far majority of our money is being put to work in places we don't want it to be put to work. I haven't seen much improvement where I live in the last 2 decades -- everything is going backwards real quick....

As this is a virtual currency, does that mean I have to declare the sale for tax purposes? I've been told any gain is tax-free because the money doesn't really exist in tangible form.

I don't like the name virtual currency because it implies that it doesn't really exist. It acts like something that it really isn't. Cryptocurrency or electronic currency are much better names.
In most countries you don't have to declare unrealized income at all. You can understand unrealized income as something that is virtual (the word fits much better here), but does not exist in any fiat currency or tangible goods. Once you exchange it, sell it for something, that price times the amount of coins becomes your taxable income. The problem is that some governments (mainly the US) are trying to make you report unrealized gains. Thankfully I don't live in the land of the virtualy free :D

It may not exist as tangible form but it has value that you can gain after selling it and taking part of it into fiat money.

darkangel11 explained it very well so if you are living in a country that pushes you to declare a gain that came from crypto's then you are obliged to do so.

But in most countries, this isn't an issue it doesn't matter to them if your income came from crypto's or anything legit and legal online. I guess it's a matter of jurisdiction and your government's ruling about it.

I fit in the same category and I'm from Europe. If that isn't enough, I am also forced to pay tax over my total holdings on a yearly basis. Even if my wealth tanks hard I still have to pay tax.

It basically means that if you have €100,000 on your bank account, you regardless of the situation have to pay 1.5% over that capital every year. In other words, having money costs money, which is completely retarded.

I am not entirely against paying tax, but this form of taxation is actually theft. Calculate for yourself how much of that €100,000 is left after years and years of paying 1.5% in tax.

Paying taxes on crypto depends on your government, if you have a tax law regarding with crypto then you need to pay since its compulsory, but if there is nothing then why not enjoy the freedom of not having! because in the future all crypto might undergo surveillance for tax monitoring.

In my opinion, the owner of BTC or criptocurency may be taxed but the taxes are subject to taxes on sale and purchase transactions, because if the property tax is incorporated it is very difficult to detect ownership and it can encourage people to conduct electronic transactions and can stabilize BTC prices.

If you think about it in the legal sense then all your income should be taxable including income from cryptocurrencies but then some countries aren't that strict in checking the income of some people because they are busy with other things that are worth more so many people or shall I say majority of the cryptocurrency enthusiasts from our country do not pay taxes because there is no strict rule applicable to to it currently. The government may require the platform the people are using though so that it will automatically deduct taxes from the transactions and they wouldn't have a hard time tracing and collecting it individually.

Paying tax and doing charity  are great things. But we should keep it in our mind that cryptocurrency platform in a infant stage. Too much rules and regulations can destroy this industry. I don't think it is a right time to impose tax on cryptocurrency.

Aren't you by a chance in Switzerland? I'm asking because what you've said fits their policies perfectly. In Switzerland you have to pay taxes even if your coins get stolen, so If you do some trades, earn some money, and the exchange gets hacked a couple months later, you still owe money to the government. Fucking leeches!


I always say that taxes should be just and just is asking the same fixed amount of every citizen, preferably in the form of property tax. You live in the area, you pay for the infrastructure, services, and so on. Demanding money from people who have money forces them to invest, take risk and possibly suffer losses.
Percentage based income tax is pure theft, just like social security.

I'm not from Switzerland, but your example also applies to my jurisdiction. It's theft for sure, but governments don't care what happens as long as it is within the current fiscal year.

I contacted my attorney to have him figure out what happens if someone miraculously gains back access to his old backups, which is a very important matter for me as long term hodler.

The point was that as long as you can prove that the coins haven't been moving, you can freely declare the value of your holdings at the 1st of January. In other words, you don't have to pay tax over the previous years.

It would suck badly if you was forced to pay tax over the last couple of years at once. I however don't know how long they are willing to keep that up if people suddenly claim to have gained access back by large numbers.

Virtual or physical,it is a currency then it has value so we need to pay taxes according to the rules of your governments.But basically decentralized means we don't need anyone's permission for using it still all government needs taxes to work properly so it is important to pay taxes to our governments even if it is crypto currency.

the day will come when the bitcoin or the crypto will be available to the goverment of the different countries of the tax. especially and this is gradually being observed by the countries, the government will not be deceived.

I hope you won't ever decide to declare your holdings. I certainly won't. I'm not going to fund criminals.

If people start declaring their sleeping holdings together it means more income for governments, and more (extremely valuable) information about people's wealth flows.

In that regard they will not try to prevent it but even further stimulate people to keep doing it. Governments have the option to make life difficult for people and not get any tax income at all, or to make the process more easy and less stressful which results in a massive influx of tax income the government otherwise wouldn't have. It's just a matter of logical thinking in the end; governments want your money and your information.

Need to accept when the government offers other things to its citizens on its cost. Hence citizens have to contribute to the growth of its nation as well. But the percentage can be considered and looked at. I am sure earning bitcoin is not going to cost the government. So the earnings comes through without nations intervention. Even 1 percentage of tax paid to the government on bitcoin earning is a good revenue for the government. Hence if your government asks for tax pay it. But the percentage can be considered.  

Percentage would always be considered, I agree with that. We dont let the Government take advantage to the popularity of Bitcoin. These was the common issues from the other country which is why people are contradicting the idea of bitcoin regulation. 10% is already pain in the ass, which majority of the people bawled for, how much more if the other countries would put more than that.

Many government agencies have gotten into the potential of tax evasion from bitcoin and crypto. Any transactions you send with bitcoin or other cryptocurrencies are taxed by default. It is very difficult to avoid taxes but for the sake of our security what can be made because this is also in our own interest because our income is still far from our spending for taxes.

In some countries you need to pay tax from every earning that you got so bitcoin is an earning only after selling it for a "normal" money but law is different in every country.

..at First, Bitcoin is a crypto currency not an asset..the implementation of imposing bitcoin taxes depends upon on the country that you belong..you need to abide to the rules on paying your taxes in your country and respect their regulations even if it is against your will to pay your tax when you have Bitcoins..

I don't think I have much choice but to declare at least a certain percentage of my coins. How else am I supposed to use these coins to legally buy a property in the far long term if Bitcoin goes over $100k?

Maybe there are tricky and bumpy ways to get it done alternatively if I dig deep enough, but I'm not really interested in too much hassle. I know it's the easiest way out, but at least it's my decision.

Owning a property where I live has actually some tax advantages as well, so it's not that I am only losing out by swallowing a tax hit over my to be reported coins. Maybe I can even use Bitcoin to pay for that property.

Spending Bitcoin means I'm not subject to direct capital gains that would occur if I convert it to fiat.

The thing is for now you won't see you are paying any tax on Bitcoin coz it's not securities. However, unless Bitcoin is added to assets it won't be taxable. Notwithstanding, once governments begin to tax all exchange sites, then they will also add it to the fees we pay when we assess their sites and that will mean we will be paying tax on Bitcoin indirectly.   ;)

today is not yet but the day is coming, when the government of each country sees the bitcoin or crypto it will have the tax. so while we have nothing to do with it.

I think No we should not pay tax on bitcoin rather we should not pay tax for nothing it not need to pay taxes on bitcoin...

So if someone gives me Bitcoins, then I am supposed to pay income tax on it? I don't think that this is a good idea. The IRS must first clarify whether they are considering Bitcoin is property or currency. If it is not currency, then we are not liable to pay income tax.

I think there is nothing wrong with paying taxes as you and your family will benefit from it. I think what is wrong here is that they treat bitcoin as an asset but you used it to pay a product that is payable in fiat? I don't know it doesn't makes sense for me. Looks more like they don't want bitcoin for the masses to use.

Ehm.... You and your family lose a chunk of wealth and that's supposed to be a good thing according to you? You won't ever see one single penny of that money back. It also won't be invested in education, healthcare, infrastructure, etc. I'm paying so much tax over my regular income (close to 50%) and other things, that I would expect to see it reflect the environment around me, but that's not happening. Even more precise, nothing but a major decline has happened in the last 10 years. We're paying more in tax than ever before but the government is still busy trying to cut costs everywhere? Makes no sense at all....

Bitcoin prices are dynamic which makes taxing a bit complicated and unfair especially that the accounting for it id at the exchange rate you get paid at but if this is the only way the USA will allow the ctryptocurrency to be used then its not a bad idea...we just need to get used to the system.

The regulations governing the taxation of bitcoin and other cryptocurrencies differ significantly in different countries. I think we must pay only for transactions, but not more.

Yes and no.

Yes, if you are a law abiding citizen, you must feel grateful that you are part of the your country's living source of taxation. That what should a tax payer feels but...

No, because we know on where our taxes go.

Well my say on this is it also depends on the country if you can really see that taxes are being used properly.

Pay as long as your respective country has accepted bitcoin and has created doors to earn bitcoin on its expense. If bitcoin is not accepted in your country then you can obviously think about paying tax to the goverment. Its not necessary to pay when bitcoin is not accepted. Few countries do have rules in tax. Abiding would not disturbe you earning bitcoin further. So think on it.

I don't believe is a good decision to pay task on bitcoin and to be treated as property. Bitcoin does not occupy any space physically and should not be task. In another development, paying task on bitcoin give a very good ground for the people in that country to transact using bitcoin without restriction.

If it will be regulated, it needs to have tax so that the development of the economy will grow and become more helpful in our society. But if it will stays in anonymous, I guess it's hard to implement it sinced there are no regulating bodies that managed this kind of investments.

Былo peшeнo oблaгaть нaлoгoм в 13% кpиптoвaлюты.

Totally depending on the country you are living in. Before it was totally tax free.Thats what bitcoin is famous for. Its just a digital money and taxing it is somehow unfair in my opinion. But no, in the USA , they started considering bitcoins like our usual properties. So they are charging tax on it as well. Hence, depending on how much you are paid through bitcoins or how much bitcoins you make, you have to pay tax in the USA. But please do concern your tax advisor to play it safe.

There is no tax for bitcoin normally, it depends upon the country which you resides. The government announced any tax for bitcoin in your country means then you have to pay it. That's unavoidable, many countries didn't announced any tax for bitcoin eventhough it is legalized. If the government announced tax for bitcoin means then the economic growth of the country will be more wealthy than now.

We do not have to pay taxes for bitcoins.  It was created in order to bypass the tax system and use people.

This is situational only on which country you are, there are some countries having strict policies in paying tax by their government and lucky those countries did not have any implementing rules of paying tax. Speaking of paying tax luckily we are exempted here because my country did not put any regulations in cryptocurrency money. So, the only thing we pay tax is when we buy goods.

It depends on the country how they assess bitcoin for  the economic impact in their country, in my country bitcoin has a big impact for the remittances bitcoin as a medium of remittances is fast  and economical, that's why our government support bitcoin and apply taxation in a reasonable and accordance with the law.

the need for clear regulation of bitcoin in order for the relevant authorities to monitor its sale so as to avoid tax evasion, because to minimize the actions we do not want such as theft and murder.

It purely depends upon the country which you live. Because as far as i know there is no tax for bitcoin. If the government announced to pay tax means then you have to  pay only. Paying tax is good for economic growth of the country. Once it is legalized by government then automatically tax will be compulsory. At the same time U.S. government collect tax from the people for bitcoin.

How difficult it is to understand that Bitcoin doesn't need to be legalized or categorized in order for people to pay tax over their crypto holdings and profits? It's a common misconception that will end up making people run into legal problems with how they use their exchange for trading and storage purposes. It won't take long before governments will make sure that every centralized exchange shares user data on a daily or weekly basis with them. It's a threat not many people think about, but it's going to happen, and maybe it has already happened but we don't know it yet....

Precisely, but all of these are base on which country you are. It is not forcing us to pay tax even country implementing tax like the US there is an alternative way you can't pay tax. But I think paying tax is a just a small amount that you may contribute to the government that makes economic growth. Like in the US the fully developed country, so, that is not a big deal for me to pay the tax out there.
Well, luckily here my country we free using crypto without paying tax.

Yes, they do: usually they have 2 ( 1 for buying and 1 for the mining fee). In cryptocoin pro for example you have different fees based on the type of operation you are doing but most of them are free so i suggest you start with this platform
Type   Fee
Execution of Buying Order   Free
Execution of Sales Order   1,5%
Transfer of virtual currency to user wallet   1,5%
Payment in FIAT via SEPA transfer for buying operation   Free
Payment in FIAT via Credit Card for buying operation   3,9%
Transfer in FIAT via SEPA for selling operation   Free

Every government wants to sell money for free. So in the future, they can create some system and we all will be must pay taxes for our Bitcoin. But I will still believe that it will be not created.

Most countries haven't assessed it yet that they can tax bitcoin but it will come so why they aren't doing it, enjoy.
But if there are regulations and announcements that came from your government and you have to pay attention to it.
Then the simple thing that you have to do is to pay your tax accordingly.

It depends upon the country where you reside. Its rules and regulations may differ from each country. We have countries who accepted bitcoin and have set up rules on taxing citizens. Its then the citizens who have to abide by the rules. But where as we have countries who have not yet accepted bitcoin. In this case citizens earn from bitcoin is not needed to pay tax to the government.

May I ask how old you are? I'm asking this because if you have ever paid tax, you know that there isn't anything in the world the government can't tax you for. Even if it concerns your shoelaces, taxation applies.

I however do believe that governments will rewrite certain areas of their tax brackets to make it easier for average joes to understand. Even the people buying and selling Bitcoin in 2011 we're legally obliged to pay tax.

Most of them probably didn't bother to pay tax, which is entirely up to them and perfectly understandable, but there is just no way to get around it. The government is everywhere with their taxes.

They'll tax your breath if they could. I think that the government has had its eye on bitcoin for as long as we've known about it.

It's interesting that they determine it as property. That's probably an excuse to tax it without determining it as an actual currency or money. It's like they want to collect from it but they won't admit that it exists. That's a bit hypocritical if you ask me.

I guess we'll have to see where things go from here and what the government has to say about crypto.

regarding the bitcoin tax depends on where we are settled and there is a government policy, but in every country there must be all things that have a tax that applies if the item is received in that country, and if bitcoin has been taxed in the transaction subject to tax so it can be said that the country has accept bitcoin and acknowledge the existence of bitcoin.

If you don't use any services provided by your country such as roads and highways, health insurances, or even the security provided by your police officers, theb you might think that declaring btc as a property is wrong.

You were born American, so you should abide the laws of the country. Paying taxes is one of the obligation of an american citizen, and once you earn from btc, you have an obligation.

Paying taxes is always a good decision. It supports the growth of your economy for your future family or your child's family.

In my country government regulate bitcoin but I'm really not sure how they tax us or if they even do. Because I don't see the summary on my orders.

I think it's a good thing to pay bitcoin taxes if your country has these rules, in addition to avoiding violations of the law, paying taxes on bitcoin will show that bitcoin can also follow the rules of a country, and of course, that thing will change the bad perception of many people to Bitcoin so far.

I've been a tax payer since then, all of my properties and even my salary were taxed. Yes, I know that thing where everything can be taxed by the gov't.
I'm saying that they are still in the stage of knowing the process and if they will adopt it or not. And a person that isn't sure of it has free will to file his income tax.
But as a law abiding citizen, we are obliged of doing so.

Personally i would say it is both a good  and a bad decision based on how the tax is treated. In the US, you have to file your tax report and everything related to crypto currencies. You don't only have to report when you receive bitcoin as payment (income tax report), but also all the gains you get from the rise of the price of bitcoin (property tax report, not sure though). This surely sucks and is not actually a good thing.

I don't think government will have that kind of technology yet to keenly monitor online assets. Specifically, bitcoin prices moves every seconds.

Maybe they'll record the amount you purchased the bitcoin. It's quite too early to say it yet.

I don't see how you can legally avoid paying tax over your gains in the US. The only thing I can think of is that you spend your coins instead of cashing out to fiat, which makes sure that tax doesn't apply, but once you have cashed out to fiat there is no escape. If people think they can safely trade on centralized exchanges without being noticed they are delusional. Coinbase has been a warning sign that people should be really careful about how they use exchanges. I seriously wouldn't be surprised to see authorities force exchanges to hand over user information every month in order to see what everyone is doing. If people don't pay their due taxes, authorities will come and take it from them.

Before paying taxes the government should give some clarity on Bitcoin is legalised in those countries. If you pay taxes on Bitcoin buying and selling then it is always good that you will never face any problems with the government, so paying taxes to the government will give us the opportunity to get loans from the banks even though they didn't legalise the bitcoin.

Need to accept when the government offers other things to its citizen on its cost. Hence citizens have to contribute to the growth of its nation as well. But the percentage can be considered and looked at. i am sure earning bitcoin is not going cost the government. So the earnings come through without nation’s intervention on employment. Even one percent of tax paid to the government on bitcoin earning is a good revenue for the government. Hence if your government asks for tax , please pay it considering the percentage.

Bitcoin is Not Money for Tax Purposes. Although Bitcoin can be used like money, they are not considered to be money (legal tender) by the IRS or any other country. Instead, they are personal property, much like gold or corporate stock.

Before paying taxes the government should give some clarity on Bitcoin is legalised in those countries.Some countries don't permit bitcoin as legally so there taxes not count.

Bitcoin was decentralized no law that bitcoin imposing tax on every transactions we've made.If bitcoin was in legal there is a possibilty that government can impose tax on it and if we have rules and regulations on crypto.

PAying taxes is not a bad choice. İf goverment legally require tax from earned profit citizen should pay. It is my opinion. Most of countries not accepted crypto legally yet. So paying tax for BTC is not necessary issue right now.

I think it is good. It is not a simple matter to legalize Bitcoin. So the government to impose a tax on Bitcoin is the right thing to do.

Depends on the government but in the United States, the IRS treats virtual currency as property for federal tax purposes. General tax principles that apply to property transactions apply to transactions using virtual currency.  It would also be prudent to check state income tax regulations.

Huong Lam, Esq.
http://www.attorneybitcoin.com/

As long as I use bitcoin I have never paid taxes, because in my country there are no regulations or tax collection on cryptocurrency, because the government still has not adopted and legalized the crypto currency therefore I hope to process digital currency because economic and development benefits will be good for country

I think people don't pay taxes on bitcoin but I don't know about the country that already accepts bitcoin whether they need to pay the taxes or not. but I think if the governments want people to pay taxes, then we need to obey the rule because we lived in that country and we are the citizen of that country. this will give a support for the economy of the country and I think with this way, cryptocurrency will be legal in that country because the governments can take something from the bitcoin user.

What I know, there are various laws in many countries that can cause income, sales, payroll, profit, or other forms of tax liability to appear with Bitcoin. And when your country requires it, then I think you have to do it, you have to pay taxes for that.

I am against the fact that the crypto currency has been taxed and I think it's wrong.  It is good that there is no tax in my country yet.

Taxes should be paied when you turn Bitcoin into cash at least in my country.

I personally have no problem with that.

On the one hand, I think, if your country does require you to pay bitcoin tax, then you have to pay it. but, on the one hand, maybe people will disagree because some people go to bitcoin to avoid taxes.

In my country I only have to pay a tax when I exchange my bitcoin for cash and make a profit. Other than that any transactions with Bitcoin are not under taxation.

Any taxes are not the most pleasant thing for taxpayers.Americans amaze me at all)))They still do not understand their attitude to bitcoin,but have already imposed its biggest tax)))I believe that you have to pay tax if you cash it in the state.If you just earned it and transferred to another business, the tax is not necessary to pay.Actually nowadays everything is taxed,even find the treasure and win.I think that bitcoin aside, they will not leave.But it may help to speed up the process of its legalization.

That is true only in some point cause if we put money in crypto and get more it is just easy to say that we are earning so you need to pay tax from money that you have earned no matter how.

It depends upon the government of the country, normally there is no tax for bitcoin. If the government announced to pay tax means then you have to pay. There is nothing wrong in that, because the government wants to prevent the people using bitcoin money as illegal. But people change their bitcoin to local in local exchange for that only they have to pay transaction fees. Other than that there is no taxation for bitcoin. At the same time some countries ask their people to pay tax.

I've always been against paying taxes to the government for crypto currency, because I think it's wrong.

If you are staying within the crypto-space and not going through centralised Legal entities to convert to and from FIAT (TENDER FOR LAW), then they have absolutely ZERO jurisdiction to impose any taxation on your private crypto holdings or earnings.

There is no need to hand over jurisdiction when not needed and it is quite clear to anyone with a working brain that the Babylonian Legal system including governments/banks and other bankers masquerading as public corporations are completely corrupt and commit crimes against humanity including poverty and war crimes on a daily basis. Why on earth anyone would want to voluntarily hand over their assets when there is no need to is beyond me. I'm against funding criminal non-transparent organisations myself.

pay taxes for bitcoin would lose the essence for which this cryptocurrency was created. Bitcoin should work as it has done so far, as it has been a great opportunity for people not to be run by a government.

Personally, I am against the government imposing taxes on transactions with bitcoin.

We have to follow the rule of the government if they impose taxation.

You have to be a law abiding citizen, I'm also not in favor of putting taxes to bitcoin but what can we do if the government steps in and intervenes with cryptocurrency.

I know that many people here doesn't really want to pay taxes but if the return is that the government will guarantee bitcoin is a good and safe investment to the citizens, it's a fair decision.

This is a good solution only for the state, because in this way they will improve the economic situation in the country. For US residents who use bitcoin, this is only an extra cost.

I do not agree if BTC usage is taxed.
If they use BTC, but they don't have BTC in their wallet, do they have to pay taxes?
I think the government is enough to receive building taxes, vehicles.

Many countries did not allowed any cryptocurrency to be used by their people so there is no need for taxation even some of them buying and selling cryptocurrencies in the underground exchanges. When a government legalized bitcoin, taxation will surely follows with the addition of crypto regulation. If there is a law that requires you to pay taxes in your bitcoin transactions then you should follow it.

I would love to pay tax if my country accepts bitcoin and imposes any rules on paying tax to the bitcoin earnings. When you have rules on it, just abide by it as the one who set this rule knows how good they should be to their citizens. Its ok to pay the tax but there should be a limit. I had to come across few of my friend from different countries expressing how much they are taxed. They really expect thier country to decrease the percentage. Always, based on one's income, the tax rate differs. But still the citizens do expect to reduce the percentage on tax.

My opinion is bitcoin has to be taxed as the same ratio where we buy shares from the stock market. So that legality for the bitcoin market can be resolved and it can be widely used for all sorts of transactions.

@maarx
You are confusing something. No matter if your country doesn't accept bitcoin, you are supposed to pay your tax related to your income. How do you pay it is another story that they let you deal with

@savioroshan
You are comparing it with the stock market and propose to tax Bitcoin the same since you are only watching for the "investors " side.
But what about those who are working and paid in crypto, mine a crypto and have the infrastructure to pay, etc should they be taxed like a worker or as an investor?

That is the way of government to make their country rich, with taxes. but it can be very helpful for developing countries, at least regulations and taxes can accelerate the development of bitcoin too right? and you are still free to pay taxes or not, because I think regulation will not remove decentralization from the internal.

I suppose that it is not a good news. since bitcoin is not legal in some countries, of course there's no regulation for it, and automatically tax is invalid. Whereas, most people avoid to pay tax, I guess. Unless, government legalized it and bitcoin are accepted as the currency, of course different thing will happen, probably.  ;D

I do not have any info on hearing about that issue, that's how taxing bitcoin is a bit complicated. but if this is the way for a country to accept the crypto in their country there is nothing wrong with that talk.

In order to get legal security and some guarantees from the state, you need to pay taxes. I think so.

For a developing country, collecting taxes is very crucial and its really important so I think if you live on that country its better to pay taxes which can help your country to grow economically. If there is already a law like this on your place, better to comply with it.

IMO, this is a good decision from U.S because of growing cryptousers on their place they can possibly collect more taxes and also this is a good for every cryptousers in U.S simply because they can enjoy cryptocurrency without thinking about banning cryptocurrency because U.S support this technology.

Yes they have to pay for taxes if they spend or sold crypto.

I think if bitcoin legalized in a country the government will apply taxes in every transaction we will make. Taxes is very important to the economy of a country. why? because it can be a fund to the government to used in building a hospitals, schools, education assistants and so on. Our taxes is distributed in may sectors of the government down to its area. Many people will rely in bitcoin and its good source to the government to collect it. And I think they will keep to control the crypto price after they legalized to provide a regulation for it to follow so that they can implement it well.

 As we know, Bitcoin is popular in the crypto market and it can be a advantage in the government because some people are engaging bitcoin that is why they will got interested to it.

 Yes, people should pay taxes on bitcoin since if someone buys and sells a bitcoin token and it appreciates or depreciates in value between buying and selling, the gain is taxable and the loss should be afforded tax relief.

Investors will only do that when his country is obliged to give the tax the crypto. but now it's difficult because first of all not all countries are crying crypto. and there are bankers to block it.

Bitcoin tax depends on the government of any country. Some countries are paying taxes on Bitcoin where as some are not. So it totally depends on your country.

It's an easy way for IRS to handle this, like anything else, if you gained value when selling it, you have a capital gain like real property, stocks etc. So this is reasonable.

Surely everyone will pay the bitcoin tax, maybe everyone has a different way to do this. Because it is impossible for bitcoin to be disbursed, there is certainly little to be the admin fee. Like a bank for other costs, bitcoin is well managed so the results will be more profitable.

We have to pay taxes according to the laws of our states. If you think the laws of the country on taxation are unfair, you can not pay them at your own risk. You have to make a decision anyway. However, it should be remembered that if we evade paying taxes on profits in cryptocurrency, the state can not only tighten the responsibility for such a violation, but also tighten the rules for cryptocurrency in the country.

We have already arrived in Russia legislation on Bitcoin taxation, so it is not far off that most countries will impose taxes on digital assets.The state will not miss the moment to get extra money.

People wants to pay tax for bitcoin if it is implemwnted in their country. It depends upon the country which you resides. If the government announced tax for bitcoin means then you have to pay. But still there are so many countries use bitcoin without any tax. At the same time some countries announced tax for bitcoin to avoid people using bitcoin in illegal way.

When a country adopts a law on cryptocurrencies, in most cases they are assigned the status of ownership / property. And accordingly, they are subject to tax. It is good or bad everyone decides for himself, but it is clear that no one is people who would be happy with taxes. I put up with this situation, because it is inevitable and I can not influence the decision of the state. In our country, cryptocurrencies are also regarded as property and are taxed.

I asked an attorney in my country and he said that anything that we make profit from is subject for tax and trading cryptocurrency is included. I was scared when I knew that but I know there isn't a clear law about so I'm still not going to pay my taxes.

It's a terrible decision. It's good that I am a citizen of another country! In my country, people only pay income tax on successful trades on the stock exchange. to equate bitcoin to the property - it is idiocy!

At present, an investor does not describe a tax for his transactions, and that may happen in the future because the government wants to control it.

knowing that there is no tax deduction for bitcoin use, and I also know this is a reason for the goverment of another country that bitcoin is not yet acceptable in their area.

Transaction tax is automatically imposed on every transaction from your local exchanger, because they already have official regulations that require this.

But this tax is still minimal and has not touched a larger tax regulation, I will continue to adhere to the rules that apply as long as it is positive for the development of the country.

If you will ask me about if its good or bad to pay taxes, well it is good if in your country bitcoin is legal and all of your paid taxes will go to a government funds that will helped your country to their needs. Bad if at the first place it is not legal its just a waste of money to pay then they will not allowed you to happened. Hopefully, some countries are getting an idea on how or ways to accept bitcoin.

With the tax imposed on Bitcoin, the state indirectly recognizes bitcoin and is not an illegal item, about the bitcoin tax which is usually subject to buying and selling taxes or property taxes, but in my opinion the tax that will be worn is a positive thing, it is for obedient people law.

I think there is no need to pay taxes because bitcoin has not been legalized by the government. And when the government has legalized bitcoin and bitcoin is used as a means of payment, then new taxes can be applied to bitcoin.

Why don't you want to pay taxes in digital currencies? Why are you so critical? Thanks)

I see nothing wrong of paying Bitcoin tax to the govermment except is that your income will going to ne reduce but still its ok as long as the government will use it for the benefits of the country not by corruption. Bitcoin is also a currency like fiat therefore it is right for the government to collect tax from Bitcoin earnings as they are the same currency but only not the same appearance.

yes, for now Bitcoin is still used as an investment tool, only a few countries have legalized Bitcoin so I think Bitcoin is still tax free. except if Bitcoin is legal and has been managed by the government, Bitcoin can be taxed.

actually with the state implementing a tax on bitcoin this is a strong signal that bitcoin is recognized by the state, this can have a very good effect because the bitcoin traders will feel safe and unlike prohibited businesses, I personally strongly support it if the government wants to register and start implementing taxes, if this happens then in the future bitcoin can become an alternative currency in the world, and we can be separated from the bondage of the world currency now, namely the dollar.

I agree that bitcoin is not designed to pay tax but can it make bitcoin really populer because of tax? Paying tax makes decentralized system owned by bitcoin lose, it won't be your own again because the government interfere on your 'room', so that bitcoin will not be fully under your control again, it's with government's interference.

the law says that all incomes should be taxed specially the big incomes, but as you guys say its not easy for the government to determine if you have funds and how much you have, but when you use it tho they might have a clue

I partly disagree. It's not depend on country, bitcoin is designed not to pay tax because it's decentralized. If government make bitcoin legal, of course it will have impact that is taxes because tax is how they interfere on bitcoin. So, it sounds egoist, but if government accepted bitcoin, I hope it wouldn't have to pay tax in return, and bitcoin remain the same, that's decentralized and free from such kind of duties. Why? because bitcoin, as you said have good future and it offers many things come  with ease.

It depend on what country you are residing. Some governments required their citizens to pay tax if the bitcoin transactions is already taxable. Here in my country, the government has not yet legalized the bitcoin and other cryptocurrencies but we are free to use it without tax. Government usually legalized cryptocurrency first then imposes regulation before imposing taxes.

Where is you position actually? You said bitcoin isn't designed to pay tax, but the best way is applying tax. Do you agree or disagree about taxing? If it's best way for government to apply tax for bitcoin just to make it popular, bitcoin should be legalized first. When it's legal, it becomes similar to other currency. Then, perhaps people will sell their coins because they get no plus point from bitcoin, it will lead to the end of bitcoin, I guess.

so do you think all the time that bitcoin is an illegal type of currency ?  not it is not . bitcoin or cryptocurrency in general is already legal although some countries are restricting the use of it maybe because they have other reasons but not because  cryptos are illegal and should be avoided  .  and speaking of legality , you dont need for a thing to become legal if you really want to pay for tax because even illegal things like drugs are have been already taxed  and lastly its all up to you if you will pay tax just to support your country or not  .

very good, because if you want bitcoin to be advanced and recognized throughout the world, one of the best ways is to apply a tax, taxes can be of various kinds, one of which is income tax, entrance tax, buying and selling taxes and various kinds of taxes, but basically tax will make an item considered legal, and things like this do not need to be confused, we just follow the existing system.

Honestly, i dont want to pay taxes. Who wants to give the government the money who you hard earned for? Its just an extra income and a digital currency and maybe taxing it isnt necessary. But anyways, if the government told you to do that, you should do it. Tax is based on the percentage of your earnings. The higher the earnings, the higher the tax and vice versa. Gladly we dont have to pay taxes in the country.

I believe that being a person living in one state or country has rhe obligation to pay taxes when we gain profit by any means,and that includes cryptocurrency..we are entitled for our freedom to find ways of income but we have no freedom to not pay for taxes,and even in caesar’s time according to bible all the people live in rome required to pay taxes,so what more in our time that infrastructures and building are being built continuously to help us,and become comfortable

Ofcourse all of us don’t want our earned money in crypto to he taxed since many of us are just doing this for extra income and not as main sources.but it wasnt possible if the government requires us to pay so,and even if we are not convinced yet we are obliged but lets hope with reasonable percentage and not more than 20% i guess?what you think guys?

It depends on the law of a country, and most of the countries haven't imposed any kind of taxes on Bitcoin. Many people are afraid to take the risk but the reality is that Bitcoin is free from government taxes.

when it has become a rule, we are obliged to obey the rule, if you hear the income in crypto is given a tax, then you must pay it. whatever your purpose is like a side income or whatever, You must pay it. but if there are no rules, then you have no requirement to pay

if it's legal in your country, and it's regulated in government, that might be a good thing because it only sets aside a part of your money to pay for it and that has become a law in your country, so it's impossible to avoid or violated.
if in my country, the Crypto currency is not legal, so what will happen in the future is unknown, if it is legal and there are tax rules it might be the best and I will follow it.

Taxes for holders of cryptocurrency need to be paid so that the cryptocurrency can develop further. The state will only accept the cryptocurrency and will take measures to its use by citizens if it sees that the cryptocurrency brings income to the treasury. If citizens evade paying taxes, states will be forced to retaliate
and limit the circulation of cryptocurrency.

In stock trading, people already pays their taxes when they put their buy and sell orders so I think it should be also that way when it comes to btc. Now on the services and business that accepts btc, I agree that there should be taxes on their profits.

If the tax on profits from operations with cryptocurrency will be established in our country of residence, we will have to pay taxes, although it is possible that we will not be able to pay it due to the fact that these operations cannot be traced. Taxes must be paid so that the state does not take retaliatory measures aimed at restricting circulation, or even prohibiting cryptocurrency. If a profit is marked from the circulation of a cryptocurrency in a state, this will facilitate its speedy legalization and the emergence of an infrastructure for the development of its function as a means of payment.

..the implementation of tax payee depends on the government you belong,,many countries threated bitcoin as assets,,so that they can impose tax to those people who uses Bitcoin,,but other countries dont accept bitcoins,,but instead threated it as a crypto currencies,,so they are not imposing taxes to those people who are earning in crypto..But in my opinion,,Bitcoin is not an asset to pay taxes on it,,so there is no need for you to pay your tax while you have Bitcoin,,because it is decentralized that can never halt in earning on it.

All people who enjoy the benefits of a trade transaction must pay taxes, including the owners of bitcoin. Because taxes are used for the country's prosperity and the country's operational costs.
So, more and more users of bitcoin will also have more tax revenues for the country so the role of bitcoin for the country's progress is very real.

I have never paid the tax of BTC ever
But I guess in most countries BTC get taxes

The payment of taxes from BTC depends on the laws of the country in which the owner of BTC lives. It is logical that if Crypta is legitimate and you have a cryptocurrency income, then you have to pay the tax.

I agree on it . i hear that some countries are not force to pay you taxes especially if you are only working from home .  most have been taxed are the ones that own a business and a business establishment on public places  . unfortunately here on our country , there is a law about taxing in which people that work online are now not exempted to tax  . idk exactly how it works and how i can be charged by tax , maybe its a self serve  .

just curious, why you feel paying tax is always a good decision.
I have not seen many people into bitcoin sharing that sentiment, so i am curious about your outlook.

it is not wise thinking, if you do not pay taxes, your country will not be able to get income and certainly they will not be able to move the wheels of government to build infrastructure, help the poor, and other countries interests. if the rules have been applied in bitcoin, then I will pay taxes

In Brazil, we need to declare Bitcoin and other cryptocurrencies as properties as well. We only pay taxes if we sell more than 35k BRL in profit. If we have 30,000 BTC for example and sell less than 35k BRL per month, we are free to pay taxes. :D

In conducting transactions through cyberspace, the government cannot impose taxes, because everything is internet, bitcoin transactions are one of them.
The government is looking for loopholes that can attract bitcoin ownership taxes, including through bitcoin exchanges when withdrawals become cash. Because all bitcoin owners must show KYC when withdrawing for administration.

Well, this is a case to case basis. Bitcoin taxation will depend on what country you are living in. You can't deny if your country having implemented taxation on crypto because usually bitcoin holder now will submit KYC/AML verifications through their wallet. But we are so lucky here in our country, so far Bitcoin has non-taxation to the government here in we are enjoyed cash in cash out without deducting tax.

Some participants in this forum deny the need to pay taxes on cryptocurrency to the state, explaining that the cryptocurrency is decentralized and no state has the right to interfere with its existence. we still need to pay taxes because for the further development of the cryptocurrency needs to be legalized by the states. Without legalization of cryptocurrency, it is impossible to develop the infrastructure for its circulation as a means of payment. therefore, so that the state does not restrict or even prohibit the circulation of cryptocurrency, we will need to pay state taxes on this type of activity.

Exactly, taxing is done by the exchanges in my opinion and when the fund gets credited in your Bank account, they bank takes subtle charges which the customer will in many cases be unaware of or in most cases know.However, taxing is important for the development of every society.

It's a bad decision for me, it's a currency for me and it was made intended to be an online currency where you will pay someone with no third party involved, this is debatable, it seems your IRS does not know what Bitcoin is intended for, they think its like gold.

All countries have not system to pay tax in bitcoin. But i think it's a best way to pay texes on bitcoin because in this system is good.

I agree that taxes are very much needed by the government to be legalized because they can be a source of state income that can be used for prosperity and infrastructure development which in turn can make bitcoin increasingly used in this country.
Because using bitcoin illegally certainly makes the growth rate very low, besides that the calm factor in making transactions is also lacking.

There are some countries that charge a tax on bitcoin, particularly the Estates Tax, since it is considered a property.
But that will happen once the owner will die and all his/her properties will be transferred to his/her heir.

I have asked a random lawyer that I crossed upon online if I need to pay taxed on my btc or crypto profits. He said yes because any economic gains is subjected to tax. But I did not follow that because there still is not a clear law regarding with btc and it is still not fully recognize in our country.

In many countries, Bitcoin is not accepted as a mainstream currency as cryptocurrency is not yet set in the law, some places Bitcoin is 0% taxable.

And as part of the verification, theoretically, the tax authorities may ask to show the contents of the wallets in order to ascertain whether the amount of income received is under-estimated. In practice, we are not aware of such monitoring cases.

In my country (India), the tax laws regarding BTC are very vague. And on top of that, the government is trying to ban cryptocurrency altogether. I have talked to a few chartered accountants here, and they told me that I don't need to pay any taxes unless I convert my BTC to fiat and I am profiting out of it. I asked them about the coins that I get from airdrops and signature campaigns. The answer I got was that they are not taxable, as the government hasn't recognized them either as a currency or as an asset.

But the posts in this thread suggests otherwise. I am a bit worried now about my tax liabilities.

Either we like or not we will pay the Bitcoin tax if it was required by the government as there are countries that still imposed free tax on Bitcoin. As citizen, we need to comply with the law or face the consequence and as we believed that Bitcoin will help our economy then it is right that we will give our share without hesitation.

To pay tax there is minimum amount in your income. In my country cryptocurrency will be taxed if my assets has been reaching around $5000, but if my assets doesn't reach the amount then I am not required to pay taxes. But recently, my country is making a new rule in the pay tax thing and I heard that ,y country will be taxed everyone who use cryptocurrency base on transaction, and it is bad for me.

Paying up tax isnt really bad for us yet we are earning some money here on crypto market just like on having a typical job you would really still need to pay up some taxes.On my side, im still on the side where
cryptocurrency is still on neutral phase on my countries jurisdiction thats why theres no certain law being imposed on having that mandatory tax.It would just
depend on a certain earner do live on a country which do have strict compliance with this.

We will need to pay taxes on activities in cryptocurrency, but not before the government of our country of residence accepts the relevant rules about it, which will oblige us to do so. This is necessary so that the cryptocurrency is legalized by the state and developed as a means of payment. If state bodies see that the population is evading tax payment, it can take a series of measures aimed at restricting or even banning circulation of cryptocurrency on the territory of this state. We do not need it.

If the tax cannot be withdrawn, of course the government will not legalize bitcoin, because all types of businesses must be taxed with one purpose, namely as a source of state income that will be used to pay the salaries of government employees and carry out development for the welfare of society.
Therefore, the gap continues to be sought to get tax revenue from bitcoin transactions, with the intention of monitoring how much potential can be obtained from bitcoin, which means that if bitcoin can be optimized it is better facilitated for trade and investment.

And how they are going to do that? Are they going to shut down the entire internet? Banning cryptocurrency is next to impossible and that is why none of the developed nations have done that. Even the Chinese government is aware of this fact and they have only banned the conversion of CNY to crypto and vice versa. At the most they can arrest a few users and try to frighten the remainder from using it.

If it's required then they have to pay, it will be a criminal offense to evade tax.

There are still country that people are not required to pay taxes on their crypto holdings, and I am one of those who experience that, but I am not expecting this will last forever as I know eventually the government will look into this earning generation opportunity.

As a good citizen, whatever income should be obtained from Bitcoin should pay income tax properly, but in fact there are still many countries that have not recognized bitcoin itself so it might also be certain that there are no binding rules for paying taxes. actually the implementation of taxes can be done when every bitcoin exchange becomes fiat.

This is a good signal for the future of bitcoin, I myself have never paid taxes when owning bitcoin in any form because in the country I live there is no legal framework that regulates bitcoin as a legal products.

LOL you came as approver and confirming that you are not paying taxes for your earnings in crypto.

Most of the countries have the minimum earning taxation level. That even your earning bitcoin lesser than estimation tax limit then you can be free without any tax issues.
Here in my country for bitcoin trading or service based works you need to pay 10 percent as tax, if your earning is 15k USD/year.

Every country will have a lot of differences to address bitcoin, what you say is that the legal framework does not yet exist for bitcoin regulation so it can be ascertained that there will be no tax withdrawals to be imposed. indeed it's good that bitcoin is taxed like income received. obviously with the existence of taxes, the existence of bitcoin will be recognized, so that anyone dealing with bitcoin can be calm.

As far as I know, in the United States are still determined by the legal identity of cryptocurrency. However, if the cryptocurrency is now recognized as property and the state has established rules and amounts of taxation, then taxes will have to be paid. If cryptocurrency holders ignore tax payment orders, the state will have the opportunity to tighten the rules of cryptocurrency circulation, up to its prohibition. I do not think that this should be allowed.

There is a very difficult question some of us are facing right now. In case Bitcoin is illegal in a particular country, are we liable to pay taxes on any profit that results from the trade of BTC? I asked this question to one of my friends (who happens to be an advocate). He told me that we need to pay the taxes on any profit, irrespective of the legality of the act.

But how practical is that? Paying taxes in a country where Bitcoin is banned. How are you going to define it in the tax returns?