Bitcoin Forum

 I would love to read about this, but I can't find any discussions / research on it. Has this topic been researched by anyone yet? I think there is a great potential in this field as countries are not consistent in their cryptocurrency definitions. I was wondering if anyone has some ideas or suggestions of what should be researched or could point me to some already done researches?  Thanks!

As far as I know, in some countries in Europe, such as France. Last year they calculated personal income tax from cryptocurrency investments. However, digital money is nowadays hard to manage for any country. So in order to have the relevant taxes, I think firstly cryptocurrency and ico companies must be workers.

Europe does pay tax but their tax paying concerning crypto is complicated because countries like Switzerland and Liechtenstein (https://cryptoresearch.report/crypto-research/taxation-cryptocurrencies-europe/) pay tax through the VAT. But, the last time I checked cryptocurrency tax are only pay UK (https://blocktax.uk/guide/) per the amount crypto currency ones bought and profit made but any cryptocurrency receive as gift is not taxable.

Did you search in the "Legal" sub-forum,under "Bitcoin Discussions"?
For me,tax optimization means that you are free to not pay any taxes for your cryptocurrency holdings.
I think that only small island countries,like Malta, that are "tax heavens" have such tx policy about cryptocurrencies.

I can't say much on the facts of taxation in each country but I do not that it varies wildly across other countries. There is definitely great potential for people to limit their tax liability, either through investing in crypto or those who have made plenty of money already through cryptocurrency. It's a difficult field to research as of yet because most countries don't have set rules for cryptocurrencies and are applying old regulation/law. The difficulty with that is it's not specific enough and so at the moment there is a lot of subjectivity.

It could be really a big deal if the blockchain for taxes came out. I don't know if the digital currency can directly affect the tax optimization but the blockchain software could literally be used as a tracking device for all payments and all incomes so they could keep track of who has how much and has to pay how much in taxes. Digital currency after all is a currency itself as the name suggests and can't be used for tax optimization, it just creates more work for places like IRS in all countries.

Blockchain on the other hand is a technology and can be used to put all the info into the chain and it will never be lost, even if there is a huge natural disaster or something it will still be on the chain and whatever you make will be there so you can pay your taxes automatically. Maybe add in some sort of "tax coin" which will be taken from your account automatically to pay that amount.

in my opinion if you want to research about taxes that use digital money like crypto and other digital money, then what must be considered is the tax law that applies in every country and chooses the best digital money, if you want to use digital coins to pay taxes other than using bitcoin look for alternatives because there are many new digital coins popping up

As someone has said, you can check the Legal (https://bitcointalk.org/index.php?board=74.0) board so see if there's some discussions or researches already. As you have said, there might be a lot of inconsistency because of how different countries treat cryptos (whether commodities or securities or currency). For starters you may want to read this article as well: https://cointelegraph.com/news/here-s-what-you-pay-in-taxes-for-using-crypto-from-the-us-to-switzerland

in australia they mark it to market every year if you declare it as an asset. so every year, regardless of if you sell it or not you recieve a capital gain/loss value. crazy. very crazy if you invest in early stage ico projects and their value appreciate heavily in presale rounds

In my opinion, cryptocurrency has become a big problem for tax authorities in the issue of tax collection in this area. Many states, including the United States, have already noted the fact that people pay such taxes very poorly. If this continues, then the governments of these states will be forced to take appropriate tough measures not only to individuals who do not pay them, but also to limit the circulation of cryptocurrency as a whole.
I have met information that governments determine not only the total amount payable as such a tax, but can also determine the subjects of taxation.

Actually if our government fully supports blockchain technology to be fully implemented in the financial system, tax collection will be very optimal because the smart contract system will automatically carry out tax collection on each taxpayer according to the amount determined based on government regulations on the region itself. Of course this will make it easier for taxpayers to pay taxes without having to queue to make manual deposits.

No one could wonder anything to you because everything is depending on your country and its law and taxation system. If it is possible to do some service, get payed with crypto (or use crypto at any other way) and pay less taxes because it is classified as another operation then ofc it would be nice to use it. But generally is you want to stay inside of the legal field without any shady withdrawals then taxes would remain the same even with crypto.

Tax is just form of currency so we are not going to reduce the tax by using it,if you want to know how to reduce the tax then better read the book rich dad vs poor dad which can give you better understanding about taxes and how to get away from it.

Tax optimization has already started especially in Europe. I think that there is some positive signs in the US region as well.
Some countries have started thinking of accepting tax payments with cryptocurrencies.
Also, Malta is a tax heaven and it is very crypto-friendly so it is another way for tax optimization with digital currency.

If the government would accept tax payments through cryptocurrency, it will be more convenient to both parties to pay instantly.
However, we all know how the government works and moves when it comes to taxes. Cryptocurrency users might also get taxed if it happens.

Even though digital currencies are not something new, governments are still yet to decide where can they be classified to determine how they are going to apply tax for people that use them. From I know, most countries simply added bitcoin and cryptocurrencies to online earnings category and they are taxing people for that as a temporary solution until they determine where should cryptocurrencies be classified.

If you already found something you want to know in here, I think you need to search on another website and compare it so you can know what you need.
There is always a new topic related to cryptocurrency especially if you want to discuss tax in every country for using cryptocurrency.
But in my country, I don't pay any tax for using cryptocurrency, but I pay the tax for making a transaction with my fiat, and it's not related to cryptocurrency at all.
I don't know what happens in the other country since I never travel to another country.

I think it's easy for the government to add taxes from the cryptocurrency sector, of course there is essentially revenue to the government. but I think the one that is difficult is the legalization of crypto in a country, many of which must be reviewed before being legalized

what you say is very reasonable, tax payments will be very easy and very optimal when using digital currencies, but not with crypto currencies. because this coin is not stable so it will cause chaos in the economy if the crypto currency is used as a tax payment transaction tool.

Countries with good economic experts have tried to formulate tax policy that will cover digital currencies e.g France but this policy have not perform well when it comes to cryptocurrency due to it decentralized nature and unstable market price which makes impossible for cryptocurrency users to be taxed effectively. Before any country can be able to receive tax from crypto it has to first of all regulate the cryptocurrency market and regulations also is near impossible.

Some gross overestimations here. Countries may have good economic experts, but these are seldom the same ones formulating tax policies. How a country formulates any of their economic and fiscal policies generally has to do with leadership and type of government. Which is why you get wildly differing tax policies for Bitcoin all across the world - if at all they exist.

Tax policies in these cases also seldom react to Bitcoin. Instead, how Bitcoin is categorised will determine how it is taxed. In cases where it can be categorised as an untaxable personal property, for example, sure, it can be a means to optimise tax. Bear in mind, tax optimisation or "avoidance" is barely legal, definitely frowned upon, and with time and legislation on its way, will soon become completely illegal.

cryptocurrencies is also consider as a digital currency and using crypto as a medium to pay tax  is okay  . being volatile is not a problem because cryptos were even use on stores/shops  .  but i think crypto users wont only agree if working here on the forum or working on a crypto related job will also get charged by a tax  not unless if you are living on a country that have that kind of law  .

It is unlikely that a cryptocurrency can help to optimize taxation in some state. On the contrary, taxation of owners of cryptocurrency will create a lot of problems for the tax authorities. After all, a cryptocurrency is relatively anonymous and many of its owners will evade paying taxes. In addition, even with a great desire to pay such a tax, it is very difficult to calculate, based on the high price volatility of cryptocurrency. Legal entities will have even more problems, especially if there are a lot of transactions and for small amounts.