Bitcoin Forum

More and more countries, like Chile or India, are trying to tax their citizen for the crypto they hold.

Please don't pay taxes on your coins.
You really don't need it, unless you are totally ignorant.

It's simple: they cannot prove you have the coins on your PC/phone , so you don't have nothing to pay taxes on, as far as they know.
It's just their attempt to trick the ignorants that don't know about that ;)

Even if they look for your wallet on your PC/phone ,
your wallet data is not accessible to them because it's  encrypted with password  ( uhm.... have you set the password protection on your wallet... right? ;) ).

Of course you are not going to give them the wallet password.

Oh.. they tell you that you withdrawn the coins from an exchange,  so that's the proof you have the coins?
Just say that it was an hacker that stole your coins from the exchange,  not you.
You got robbed, and you don't have to pay taxes on the money that was stolen from you, right?

P.S. for the geeks: use Veracrypt ;)

Does this mean you're willing to pay the fines or serve the jail time of every single person you encourage to this who gets nailed?

Either you stand behind your 'advice' or you don't. In most places the money needs to finish up in your bank if you want to spend it. Once it's in there you may have some explaining to do.

any aw abiding citizen will pay his/her taxes, you should, too.

maybe you can give an article about it, I think this is just a post that is not based on a trustworthy source

Have to admit I’ve never paid a penny tax on my bitcoin’s. I sold all of my free BCH last year too & nothing happened ;)

Soak your botty in vinegar in case you get the spanking of the century.

I think it's only the IRS who are flat out psychotic. Most other places it's taken on trust.

A pal of mine is a builder who's earned £800-£3000 a week for several decades and has never paid one penny in anything. Full marks for balls. I'd prefer a quiet life.

Why not pay any taxes? This is necessary in a growing country and I think I’d better to pay the taxes than to be punished later on. So i think you have to follow the law and make a good contribution to your government, its good to be good sometimes.

A small contribution can make a big impact in the future especially to the developing country. I know some government are corrupt but if you try to avoid taxes, maybe you can consider yourself as corrupt too.

You can just declare a small amount of money and be a good citizen to help the government to grow.. Taxes is fine for me, but I don’t know why cryptocurrency is not taxable in my country. Well, for sure it will happen in the future so just enjoy if its still not taxable but if there’s already law better to follow that one.

Absolutely right. Besides that the bankers can easily know that the money getting credited in our bank account is crypto related if we are withdrawing it from an exchange.
This is where the peer to peer exchange helps us out. I have been using p2p exchange from quite some time now without any hassles.
I am from India and there are no such rules here to pay any taxes fro crypto because the government hasn't made any decisions on crypto regulations in India yet.
But the banks have already started to seize accounts which has crypto related transactions. it's all a messed up situation here from the past few months.

Technically speaking what you say means you're paying taxes on the fiat, not the crypto you hold.

It's a grey area in my country too, once they see <<<<<real>>>>> money in your account, "where does this come from" questions start to be raised.

But this also means that if you can use your crypto instead, you're probably going to be just fine. That's why the OP is technically correct, you'll never have to pay taxes on crypto. Or in case you really need real life cash, try to use routes that won't be monitored by institutions.

OP may have no idea what it can cost to cheat the taxes department, if he is ok to pay a fine or go to jail then that's cool, but personally no thanks, I have better to do and responsibilities. OP is surely not a tax eligible person.

Yes sure, they can't know what wallet you own and where and bla bla bla. But did you forget then they do have access to your bank activities? Are you aware than bank accounts owned by the crypto exchanges are well know from the authorities?

I know in less than 5 years we will see some waves of threads from people crying they got busted and they're now in troubles.
Yes some people say they never paid any penny for the taxes, but don't forget the governments are still watching the industry to know how to tax it (assets, income, ...) it's inevitable that after this they will tax as others gain you may have and some countries are already doing it. If you think your governments will let you make money without getting their share, you're wrong.

Also, I would like to add, you may cheat the system for a while, but they will always come to you soon or later.

It is not that we need to pay any taxes directly for the amount of cryptocurrencies we hold but indirectly the taxes are been cut down unknowingly and we actually don't even come to know about it.
Any time i sell/buy some of my coins, a unknown tax is been always deducted from my bank account which i use to encash my coins.

I wouldn't suggest anyone taking legal advises here or anywhere online. In addition to what has been said above, one should take in consideration that an exchange might be forced to give user's info to the government so It's just better to simply follow the laws and regulations If you don't want to run into trouble afterward.

I know that you have a good intention in this post but some people that read this might follow you and might end up in big trouble. They have their own regulations pertaining Bitcoin and crypto currencies in their country and as a citizen of that country, they should follow it. We don't know what might happen to them if they followed your suggestion but all we know is that they should obey the rules.

It makes no sense to pay tax if you only hold some cryptocurrency, and I think it is quite clear and logical move. On the other side if you are active trader or you convert crypto to fiat on a regular basis, you becoming visible to the tax system. But it is also depends about the country where people live, some countries regulate this area, others have no law in that regard.

There is a saying that in life people can not escape two things, death and tax - but I would not entirely agree with that when it comes to cryptocurrency. It's all about how person comes into possession of crypto, so if you buy direct from some person by using LocalBitcoins then you can sell on the same way and avoid tax. Also good way is to buy things directly with crypto and then sell those things for fiat. But in this case you will pay VAT on product, which in some cases can be same or even bigger then regular tax - only benefit will be saving time on tax paper work.

Some countries like Germany are crypto tax haven, if you buy and hold your coins 1+ year there is no need to pay any tax after that. Denmark was also very open and liberal country towards cryptocurrency with no tax, but recenty they change their minds, and they went to hunt their citizens in order to collect some tax _ https://cointelegraph.com/news/denmark-targets-2-700-bitcoin-traders-for-tax-payments-after-tip-off-from-finland

Yeah, cryptoexchanges will be regulated and there is no other way to tax you aside from increasing the fees of that exchange. You may not pay directly the taxes but for sure the exchanges will collect it for the government. Follow the regulations and trade smoothly without experiencing any interruption from the exchanges.

Your post shows the ignorance of how the tax law works. One fact there is you are by default expected to disclose all our income when you are filing your returns whether its going to be seen or not and its for your own good because if you choose to not disclose, you better be able to have other means of getting money to support your lifestyle and a backup to have enough in your bank account because if you don't, there will always be a connection. You earn salary, which is paid in your account, you are expected to file a return, the same thing with your company. The same thing goes to every company you visited to buy as little as groceries. So, its all connected when they have your time, you wish you didn't hide anything.

Everything depends on your jurisdiction of course, but in many a place you don't need to be converting to fiat to be liable for tax. You could be earning in crypto and for many income tax applies. It's the same as earning in a foreign currency, just because it's not local money doesn't mean you're magically exempt.

The chances are high you'll get away with it, but we don't know how good surveillance will become in the coming years and in most places they can chase you for tax due many years in the past.

I think making regulations must pay taxes if we have bitcoin or cryptocurrency that is something that is not clear because the tax cannot recognize people who have cryptocurrency or not. if you are asked to pay taxes, then just say you don't have it.

What nonsense? None of the countries ask for tax on Crypto holding. They're asking for tax only when you are converting Crytp to FIAT. There's no way you can hide that unless you are solely living on cash.

“Disobedience is the true foundation of liberty. The obedient must be slaves.”
― Henry David Thoreau

I don't think he was purposely ignorant, those are just views of somebody that was given a chance to have and make them in to reality. That was the whole point of crypto wasn't it? To give us true financial independence. No one can be ostracized for utilizing that built in feature of cryptocurrency's technology.

“Quod timet servit.” (those in fear are slaves)
―Seneca the Younger

This brave fellow is just saying what you all* are only dreaming of!
Some members above already have implied and actively called for group responsibility...
You know that this is one way ticket, one way ticket to world totalitarian government, called nwo.

I partially agree with what you say. Countries cannot demand tax from anybody without a legal arrangement. After that, taxation will not be easy. Because cryptocurrencies are in a structure that cannot be traced. So when you determine how much money you have is not easy. Especially when the global crypto money exchanges are active.

Do you mean people that work outside and pay tax all the time are ignorant ? Yes they are maybe only if the leader of their country is corrupt but if you are sure that the president or the governant on your country is legit then your doing a good job because your helping your place to develop .  on crypto we arent paying a tax here but tx fees are more than just a tax so i think thats already enough .

I don't want to be in jail tho,but the fact you said maybe right no one can find which coins you were holding but every citizen need to pay taxes so if you are a good man then you will do it.If we completely move to crypto to crypto transaction then it is much difficult for a government to ask for taxes so consider about it as well.

If you violate the laws in your own countries, this can lead to bad consequences. I advise you to pay taxes if the state legalizes cryptocurrency

If your jurisdiction or the law of your country tells you to pay taxes on your crypto currency gains, then you should. If you hide your gains (that is not report them) and try to avoid taxes, then you are actually breaking the law of the country and you deserve to get punished. How long do you think you will be able to hide yourself and escape from those taxes? You will eventually get caught.

It's good advice if you just hold crypto in the wallet.
But, what if you need some money and withdraw some of the funds (after exchange) to your bank account?
Authorities will see your unreported income and punish you if you don't report it and pay taxes.
Please don't give advice which can bring legal problems to others.
IN my country is already very strict law about crypto and taxes.

What's been mentioned in the Op is true. Government try to profit out of the cryptocurrencies. Governments just want money, they doesn't want the good in it. Already there are countries like Israel that has got its taxation on bitcoin. They've added bitcoin along with the gold and other commodities. Upon the holdings one has got they're asked to pay taxes, but this isn't that effective as governments cannot trace the holdings of cryptocurrency belonging to a person.

I think it's better to follow the rules, and for certain countries that have applied crypto taxes, there's nothing wrong with obeying the rules for paying taxes, and I think it's better than having to deal with the law.

If you damage the laws in your nations, this can prompt terrible results. I encourage you to make good on regulatory expenses if the state legitimizes cryptographic money. In the event that you abuse the laws in your nations, this can prompt awful outcomes.

Are you kidding? I don't think what you said was smart, actually, if this action really happens, government might ban cryptocurrency more strictly, it's not good for crypto's development. Otherwise, cryptocurrencies are asked to pay taxes, personally speaking, it means government's admission for it.

I think  in my country within the next few years all domestic exchanges will have to submit all user transactions to the government.
All domestic exchanges need KYC, and when exchanging crypto to fiat we need to use a domestic exchange.
In other words, the government will be able to easily know the benefits of our trades and it will be impossible to avoid taxes.

That would definitely become task evasion. If unfortunately you turn out to be in a country where cryptocurrency is been tasked it's best to abide by the law and do accordingly. I would never support anyone to go against the law

Just wonder how government will track each person in their country. Which one is have and which one is not. Maybe that thing will be problem again for government and we as investor only need to say like what you said, we don't have any crypto.

now the tax for cryptocurrency is still a very unique debate because some countries have banned the use of cryptocurrency and there are some countries that permit the use of cryptocurrency and without the need to use taxes, and the most true tax can never be collected.

The government can check mate any transcation withdrawal from cryptocurrency enable wallet to any bank account through that the can track the possible user

Is it just because paying taxes with crypto assets has such an impact?
I don't think that's possible, what about those who use crypto assets to shop, isn't that the same, the only difference is the name of the platform?

The only thing I’m really bothered about is when I come to cash in a certain big % of my bitcoin’s in the future I’ll have to pay taxes then because it’ll be too much to just sweep under the carpet & not be noticed.

I have a good accountant though.

Just a correction, it's tax not task.

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Anyway, if you're country mandates a law which states that you should pay tax according to your crypto income then don't hesitate to follow it because it helps your economy in the long run. Also, consider yourself lucky because the use of crypto in your country was regulated only and not totally banned (like in Bangladesh). And for those people who live in a country where crypto is legal or there's no concrete law rgarding this matter, just continue being a good investor and don't give your government reasons to prohibit the use if it.

People don't want to pay taxes but want a free hospital, free school, free house, free food, free everything and even get money from the govt. but still, complain.
If someone pays himself the hospital (a birth cost +$30,000 in total btw) and everything then he will be entitled to say, no taxes

In my view on this matter, as long as you are holding your altcoin or crypto/Bitcoin you are not going to pay any taxes. But in time that you are going to convert your profit here from Bitcoin/crypto into fiat I think in that way tax come in to the exchange who is legally registered under the government SEC, and since that we are already under that exchange we are also automatically deducted by tax in it.

To my knowledge in your country (Croatia) there is crypto physical store where you can walk in and sell up to 1000 Euros worth of crypto without any ID, you get cash in hands, is that true? https://www.bitcoin-store.hr/

Based on that I do not see any strict laws in your country, exactly the opposite of what you are talking about.


There is always a way if you want avoid tax - you can sell direct to people without involving banks or exchanges, but then you need pay attention to not spend to much money at once, especially if you have bad neighbors/friends who will tip you off to tax office.

If you don't like the tax laws in your country you can vote with your wallet and move to a different country.  I guess if every country eventually had similar laws you couldn't do much except outright refuse to pay.  I would have no problem paying taxes if the funds weren't used for wars and other evil purposes.

You got the answer :D
How can they prove that we have crypto in the exchange or our computer/phone? They need to have confiscated our computers, I mean all of the computers in their country and scan everything inside our computer to let them know if we have crypto or not. It will need a big effort to do that thing because they cannot imagine how many people have a computer and phone in their country and need to scan one by one to find what they want.

Besides that, we don't exchange bitcoin directly into local fiat in our bank account because we need the third party that will help us to send that money. It will difficult to search who is the citizen who uses crypto.

I feel you m8. It can be infuriating when you realise how many sheeple there are.
Worst thing is that in a way, it isn't even their own fault. They just don't know any better. They don't! its madness how badly informed most of the society is these days. IMO this solely is the key for socialism success.
But wouldn't you agree that defending this system of enslavement, just because one lucks the guts is pure evil?
Taxation is actually a very good example for such conversation, mostly because it is hard, or is it?
You know what, I very often provoke those kind of conversation in real life and in 9/10 folks, after some arguments, starting to state similar views. They don't want to pay for all this crap gov. is providing, because of the low quality, miserable efficiency and high cost of such services. Our nature is in fact opposite to laziness, opposite to being taken care of. "They" don't want us to talk about it, tahat's why all the distractions. Human nature is different than we were thought in school (even women's :-p).

I don't mind paying my taxes since I also want to use my BTC for purchases etc. Dutch taxes are extremely low on crypto so I don't see the issue at all.

I  do not agree with this totally. This isn't mentioned in Bitcoin Whitepaper... Not really why Bitcoin was invented. Cryptocurrency need some kind of support from governments. If they cannot tax it, they will probably not support it. They should be able to tax it when you use it for goods and services that is within a country’s control or registered/regulated within a country

In most but not all. You can buy gift cards, you can buy stuff for bitcoins like cars and real estate. There are countries with liberal tax policies and nothing will stop you from going there and spending your coins. I agree with OP that taxing bitcoins is a ridiculous law and impossible to uphold.

You can't even be sure that when you decide to spend your coins in 2 or 3 years the law will still be there in its current form.

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I 'll try to answer to most of your comments here.

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1) Paying taxes for helping your place to develop
These types of comments deserve a big Facepalm.
When you go back home tired from work, please relax on your couch and watch this classic that pretty much everybody knows of: Zeitgeist.
https://www.youtube.com/watch?v=pTbIu8Zeqp0&t=5776s
https://www.youtube.com/watch?v=HbvCxMfcKv4

You will learn a lot of things from that, for example that the taxes and the fractional reserve are big scams.

We will be turned into slaves more and more year by year.
The real development and scientific research gets hindered and slowed down by them.
They definitely spend most of our money for less legit purposes than "development" or "your well being".

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2) Cashing out to my bank account ( ... really? )

Some of you are incorrectly assuming that you MUST convert crypto into bank savings... why must you? There are many ways to cash-out, mostly anonymous:

- Restaurants/Shops/Services that directly accept crypto, are spreading out, even though at a slow pace

- Exchange crypto for cash by meeting with other people in your city (i.e. over-the-counter, LocalBitcoins, etc.).
Hint: check the banknotes' validity with something like this https://www.amazon.com/Dri-Mark-Counterfeit-Detection-Watermark/dp/B07F6PW69G

- [Caution with this] Get a crypto-enabled credit card like WirexApp , and cash out just a tiny amount of money at a time on it, just for small purchases at the moment you need to buy something. This is a handy way of cashing out, but it's traceable. Cash out a VERY limited amount per year in this way.

- Yeah, convert crypto into bank savings, but at a bank in a tax heaven so at least you pay very little taxes. Don't be a fool like some guy that keeps his bank reports at home, so that the dogs have the proof on a silverplate... ( some guys got caught for this naive move ).


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3) Going to jail
If there's no proof, there's no jail for you.
Do you want additional safety?
- Withdraw BTC from the exchange to your BTC wallet
- Create a new BTC wallet, and move all your coins there

Why?
In this way, there is a  proof on the blockchain that you moved all your BTC to another person (which is you, but there's no evidence, it can be anyone).
So it's like you have "cleaned" your coins from your name :)


What is the advantage?

They want to tax you on the FIAT money that you moved on the exchange for buying the coins, AND on the additional earnings you got from an eventual
 price rise if they know you hold the coins for, say, 2 years, and the price went up by 500%.

But if you followed the 2 smart moves listed above, you proved that you gave all your coins to another person right after you bought them, so there's no earning to be taxed due to the coins' value increase.
Thus, you will only pay the taxes for the FIAT money that you spent for buying BTC
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I agree with you. After all, this is the money that we earned ourselves without the help of the state. Then why should we pay tax on them? But on the other hand, you have to be very careful, because tax evasion is punishable by law and you may have problems.

I'm not going to pay taxes on crypto either. If you do everything carefully, there will be no problems. But if your country has strict laws on the use of crypto, it is better not to risk and pay tax, so that you do not have problems then.

I still don't know how the crypto tax works since it's not in my place in my country, but to me it looks like taxing people for the money they have already which makes no sense to me.

Posts like this seem to pop up here with great regularity.

Do most people not earn their own money themselves? Do they have to pay tax anyway? You bet.

Just because it's 'virtual' and 'on the internet' does not mean you can magically ignore the law. We keep seeing this playing out, ICOs being the latest one.

Continue feeling special all you want. The Man won't give a fuck if he catches up with you.

Wow? I guess I will only speak on behalf of my ignorant self as a person who has paid taxes on my bitcoin gains...
You make the assumption that we wouldn't know "how" to evade taxes? Tax evasion is not that complicated, not ever getting caught..?

In America we know better:

Al Capone Sentenced To Prison For Tax Evasion On This Day In 1931
https://www.forbes.com/sites/kellyphillipserb/2018/10/17/al-capone-sentenced-to-prison-for-tax-evasion-on-this-day-in-1931/#6904283c7c4c

The IRS doesn't mess around when it comes to getting "their money"
Go up against an entity with unlimited resources at your own peril.

Wonder how many years it will be for the --- "they froze my bank account" --posts?

I think there are so many flaw in your way to escape from the tax, its not that easy to escape from tax, the government got access from all over the place, and there are not a lot of stores that accept crypto yet, so we need to exchange the coin into fiat, if the government decided to tax the crypto just pay for it, don't because of some people try to cheat the tax payment the government ban all the crypto

You right, as long as the use of crypocurrency is released, in the sense that you can use it to shop anywhere freely, it is not a problem to pay taxes. there is no freelunch dude, there is always payback. if you want legalization, the tax must be applied

Nice try mate. That's now how this works. I bet that you really know do what you said in those. Most of the time, you will use those cryptocurrency to either pay bills or pay something, that way they could track you and you'll have some explaining to do.

It's the same old story...

Let's get back to the basics.

This whole Bitcoin thing has been invented for the exact purpose of giving the people an alternative to the banks: remember that a bank account is not the best thing for you , in that it's your money in the hand of another guy, not yours.

This guy may decide not to give back your own money to you (or say he can "freeze your account" if you want), for whatever reason , no matter if it is fair or not.
When you will close that account ... you'll kind of feel like a bird like many guys that have no properties to be distrained. I know a couple of them :)

The aim of this revolution is to protect the people from a possible distopic future made of slavery, and from the fear of losing their money which is not in their physical control.
But i don't know, maybe it is too early to think about these problems, in that we "just" live a financial crisis now, not a serious recession or distopic reality... yet.

AFAIU your comment has one assumption: you still cannot live without a bank account with all your money in it.

There are still too many with your mentality, maybe the govs are not repressive enough yet, so the people is still not enslaved enough to need a decentralized money system.
I guess the real crypto boom will happen when the people start to desperately try to escape from the jaws of a future tyrant, and want to close their bank accounts to move their savings in a safer place.

It is a matter of years or decades at most.

Who knows what Satoshi had in mind when he wanted to craft this technology?
Maybe he has been watching too many movies like Zeitgeist and got scared?
I guess he predicted a distopic future and wanted to "prepare".
Time will tell if he was right

In my country(Japan), when I bought a item with Bitcoin which I bought for a cheap price than the item, that margin is also taxed.
However, I think that it is impossible for the government to grasp all these transactions, and it is also impossible for us to calculate each one.

Yes buying item do have a taxed no matter what payment method you are using  . the seller can add extra fees whenever they like and they will say that it has a tax and vat included but actually it does not  .  not only for buying or paying but even on exchanging crypto to fiats we also pay excessive fee including the tx fees  . it sucks too much but we cant do anything about this matter .

i don't live in Japan to know for sure but actually everything that i have  read from mid 2017 until today is saying otherwise. meaning whenever you buy anything with bitcoin in Japan then there is no taxes since the government removed it in 2017 and only taxes you when you purchase or sell bitcoin not when you use it as a currency. and that has even created that discounts that the merchants offer when you pay with bitcoin.

Your words on how not to pay the Bitcoin tax is very impossible to apply in our country. Simply because every time we will convert our Bitcoin to fiat in our local exchanges it's already deducted for Bitcoin tax for the government therefore it is impossible to avoid not to pay the tax for us but even it is possible to avoid it but still i will not do it as i firmly believed that Bitcoin is a help to the nations economy therefore it is our obligation to pay the Bitcoin tax.

If you read the answers it has already been said that you don't need to convert crypto into fiat on an exchange.
There are many other ways to cash-out, even anonymous ones of course.

Taxes are basically income that are used by a country's government to run some of the country's affairs. It is wrong to discourage people for paying taxes, everybody has his/her own rights to decide to either pay taxes or not. You are not the person to tell them to either pay or not. If you have decided not to pay taxes, please do that alone. Don't share anything to tell people what to do and what not to do.

I do not think that tax evasion will be in defense of cryptocurrency. Quite the contrary: government agencies can determine the total amount of transactions in a cryptocurrency and the approximate amount of taxes that must be paid. If we do not pay taxes on the use of cryptocurrencies, states can begin to restrict or even prohibit cryptocurrency. In my opinion, we do not need it. It is not necessary to give a reason for the opponents of cryptocurrency to launch an attack on it.

if the government starts to determine the rules as you mentioned by giving a total transaction limit to making tax payments that must be paid then it will only make bitcoin fail in the purpose of the presence of bitcoin, you should be able to see the proposal or whitepaper when satoshi nakamoto makes bitcoin the first time, it was implied that bitcoin had a purpose to make a currency that nobody could control because bitcoin can only be controlled which only has bitcoin.

No one opposes the one-state policy regarding taxes, be it cryptocurrency or the other all according to the state's rules if they live in that country, violating the rules of imprisonment. so to make things easier for every country about taxes, do it according to where you live.

very good advice and in accordance with my principles,
I will never pay a bit of my bitcoin tax to the government, because in this case the government doesn't contribute anything. so why pay for services that do not exist for us.

I think you have misunderstood something, I am from India and indian govt is not charging any tax on any crypto one is holding. I have paid tax from my crypto income this year but that is not on my holding but the amount received into my bank account. One need not to pay any tax for any coin he is holding in India or anywhere as crypto wallets does not reveal the identity of holders.

The money you making also not from your government then why you are paying for fiat earnings? The government is a setup by the group of people and created by people if it is a democratic nation so you need to ccontribute yourself for the growth of your country's economy so its your duty to pay the taxes to your government if not then you are a crimial in legal view.

In the country where I live, everything is much more cunning, the government imposes a tax on unemployment. Those who do not officially work, will pay every month tax. In the future, the government may impose a tax on the withdrawal of funds from the exchange, that is, when we withdraw to a Bank card, we will automatically deduct a certain percentage, that's how not to pay?)))

I would rather pay tax on my crypto currencies than having the governments banning crypto. Let’s not give the governments another reason to disallow us using crypto. Anyway, it is good to contribute to nation building, isn’t it?

Yes. Do you want to take responsibilities for people's decision to not pay taxes from crypto? I think you don't.
I live in country where there is not any tax for crypto yet and I do not even imagine how it is going to work. But I suppose they are going to track where money on your bank's bill comes from. So you will not pay taxes for amount of coins you actually have, but from cashi g it out and moving it to your account.

I think if the subject is a citizen of that country and tax is implemented on cryptocurrency, it would certainly be through the exchanges. There would be high payments involved during the transaction of converting fiat to cryptocurrency or the other way. It is almost unavoidable not unless if such person would have to travel into a contry that does not tax through exchanges. But why would you want to evade taxes anyway? Is your taxes so high?

If you want to be stupid - then sure, don't claim your crypto's...

But, for the rest of us - It would probably be a good idea to pay taxes ;)

And, I'm not sure if the OP understands... Your not paying tax on coins your holding, It's only on the coins you sell and the profits made - Which all boils down to your personal trading and such.

But, yeah. If your doing transfers to your bank account. That is the 1st piece of information the Gov. wants when Auditing you. So good luck trying to conceil that, enjoy those fines!

Tax is charged on an exchange transaction when you want to exchange your coins for real money. This is done automatically when you make a currency transaction.  :)

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@Lyana  
For now the "automatic" taxation is only done in a few countries.
@Lyana  @shirackjs and everybody else thinking that you MUST convert crypto into bank savings sonner or later...
that has already been answered in this reply https://bitcointalk.org/index.php?topic=5102409.msg49439298#msg49439298
( why don't you read the discussions? :) )


@shirackjs I forgot... who cares if the govs "ban" crypto? If it is decentralized, it will continue to work as before, and the price will continue to grow without the need for the gov.
BTC doesn't need gov's decision to raise in value.
It already is revolutionary enough that the price will go up naturally, without the need for help by dishonest tricksters called the gov.

This is not a wise choice because you try not to pay taxes, the government will try to enact prohibitions against it. Pay rent even if it's a small amount, but this makes it easy to survive and find money.

Hey this is a very dumb advice and anyone following this will land in trouble for sure, and the op won’t come to bail you out. As you have mentioned the two Asian countries let me inform you, 90% of the transactions happen via exchanges, which send money in the bank of the person. If your advice is to be followed how will they explain when that money came from?. I prefer a good life, my reputation intact and no jail time so not following your advice if needed I’ll pay tax and live happily.

Yeah, I am your side, paying tax is a good practice of helping your country, imagine, by giving you a small amount you can contribute progress that possibly happens. Look at the country of U.S.A they were very strict on implementing tax and they are now a fully developed country. So, that is a small amount for us to pay tax and we could live happily and no worries.

Governments have the right to collect taxes for every transaction done with companies located inside their territory my friend.

In fact, trying to deny that due to greed is only trying to deny the possibility of mass Bitcoin adoption in the future and because of that limit it's potential exponentially.

It's pretty simple, the more places that accept Bitcoin as payment along the years the more real it will look for the people.

I think that ignorancy and lack of information are the main problems here, as always, and not cryptocurrency taxation.
As far as I'm aware tax is paid on transactions, which is quite all right if you ask me and not on holding Bitcoin or other cryptocurrencies itself. Besides to pay tax on coins in your wallet authorities would first need to have insight in your wallet and that is not the case. So don't spread fake news.

Everyone wants to make money and the state is no exception in this matter.As far as I know, at the moment it is actually impossible to tax cryptocurrency holders.And the whole thing is that many countries can not give a clear explanation and definition of cryptocurrency.

Goverments will force people to pay tax for belongings and it seems that governments are determined to add this list crypto currencies. You may prefer not to pay and take the risk of punisment at a later time but I wouldn't suggest to do that for everyone. Every individual should review his/her own situation and calculate the risks that may occur. What they will do next is their decision.

This is not good advice.

You know Japanese tax system very well! And I apologize for my lack of explanation.
Tax abolished against Crypto in 2017 in Japan is consumption tax.Income tax is still taxed.

In Japan, we have to pay income tax in the following cases.
① in case of profit by trading
② in case of profit due to purchase goods by crypto currency
    for example, if you purchase a $ 50 item with 1 BTC purchased by $ 40, it will be taxed for $ 10 margin.
③ in case of profit due to swap cryptocurrency to anothercrypto currency
④ mining
tax rate is 15%～55％！

This thinking is one of the reason why many governments are still against cryptocurrencies. Better keep this advice to yourself, someone in another country might get jail time and penalties for following this

In some countries there are legal ways around paying taxes on your crypto, I'm not even speaking about some legal grey area.
Here in Belgium for example, you don't have to pay taxes if you hold your crypto for more than 1 year.

It's the same for profits made on certain kinds of long-term investments, like investing in the stock market for more than 1 year.

I honestly don't mind paying taxes on cryptocurrency profits, as long as they're fair.

There may come a time when we'll have no choice. You see the trend of exchanges requiring kyc now? It'll be less anonymous and there will be a way for the government to pinpoint you if needed be. Though it'll also be another layer of security. If taxes are going to be used in a progressive way anyways i don't mind paying.

I observe that many countries have not been uniform in implementing cryptocurrency, where each country will look for loopholes to get income such as taxes so that it can be used for development in the country.
When in a country that applies crypto rules strictly, users must obey because that is a rule. If you don't want to follow the rules, it's better not to use crypto.

So what I hear you saying is: "Please everyone, pleeeease lie, and on top of morally compromising yourself, also take on the risk of whatever punishment the government may decide to inflict on you for not paying your taxes, if they find out."

No thank you.
Have a good day,
The Cyberius team.

But we all know that collection of taxes from Cryptocurrency holders is a task that is almost impossible, except of course it's to be collected Ted by exchanges.
The reason is that there are no known Cryptocurrency regulatory body and Cryptocurrency is decentralized .
So how will the tax collection be implemented and subsequently executed?

Hello,

Advicers are not the payer...

Each citizens have to respect their contries laws even if they are silly, unfair, too hard....

Even if theorically they could not access them on wallets, they could legiferate in order to have an obligation to declare and  you have also many people that have coins on exchanges.

As soon as something don't respect it, he could have trouble with justice and I don't think that you will take care of their defense.

Furthermore for the moment it is quite difficult to don't pass by FIAT/bank to spend the benefits in common life.

So give your opinion, give some informations or advice with not but strongly ask to don't respect the laws is really not the good advice.

The government likes to call people who aren't paying taxes thieves because it considers your hard earned money its money.
The taxpayers like to call the government a thief because it takes away money that it did not help earn.

Who in this case is immoral? Is preventing a thief from stealing your money immoral, or maybe by stealing from a thief you also become one?

That is the best answer. Gerard De Pardieu the french actor chose to become a Russian citizen just for that reason for example.

If you keep crypto in crypto then no tax applies.

If you transfer from crypto to fiat then capital gains tax rules applies unless you prove it is a Hobby: ask an accountant.

Yes the brave create liberty but also liberty means anarchy and hypocrites want to not pay their $2 tax and want billionaires to become poor overnight by paying all their money in taxes to fund their hobo life style. Paying tax is good it makes the society better.

I agree with many people who wrote above that it is not worth the risk. If it is necessary to pay taxes for it, you are obliged to do it to avoid problems. But I understand you. I would also not want to pay taxes for crypto, because I earned it myself, without the help of the state and I want to get the whole amount, without tax. But even if you do not want to, it is better to pay tax and sleep peacefully.

Exactly, why would we pay taxes for crypto in the very first place? government don't even accept crypto here in my country and taxes are already on top of the merchandise we bought, so for me it's no need.

Taxation is for the fiat currencies , therefore there is no point for the tax on crypto. No one controls the crypto and no one is responsible for it in case it is hacked etc. When government pay the taxes, they are responsible for the people loss,  how can government control the crypto loss ?
This is the main reason why government is not willing to use bitcoin as a currency.

For all the fiat exchanges I've encountered, there is a requirement to KYC before you can use them. This is to prevent money laundering and terrorist funding. It allows allows governments to do further data matching towards your tax liabilities in the future. They can backdate it for many years, so even if you've escaped their notice now, it doesn't mean they won't come after you in the future. Unless you're keeping it all and spending it all in Bitcoin or whatever cryptocurrency you've purchased (as it was originally intended for). I personally met one of the barristers representing the tax office for a case like this yesterday.

Users of encrypted currencies face a problem: previously, when banks and other institutions crossed the border, absolute sovereignty without state intervention prevented them from being protected by the government. But there is a price to be paid for acceptance, which is to hand over a certain degree of privacy and control to the government.

Previously, the government excluded encrypted currency from the definition of currency. The Chilean Internal Revenue Service even abolished the value-added tax on encrypted currency on the grounds that the encrypted currency was "intangible property". But now, this idea has changed, and investors are going to pay taxes.

One of the main concerns of the government is the use of encrypted money for money laundering and crime. But legal currencies are not exempt from this possibility. Why laugh at a hundred steps with fifty steps? At present, the Spanish government has identified 15,000 encrypted currency holders, which are monitored and taxed at the same time.

 

There is something to be said about governments taking what they did not earn. The Boston Tea party was, if I remember correctly, based on a fraction of the taxes we pay today, from the British Parlament across the pond ("No taxation without representation" is what they said I believe). However, that said, there is also something to be said about obeying the laws of the land in which you reside (so long as they're not requiring you to do something immoral).

Also, when Jesus was presented with the question of whether they should pay taxes, He asked for a coin, and asked who's image and inscription was on it, they said Ceasor's, and He responded by saying to give to Ceasor that which is Caesar's, and to God that which is God's. It is certainly an interesting situation if you were, say, to be paid in Crypto, and only spend it as crypto or some other non-government issued currency, but as soon as you take it out you're probably converting it into some sort of fiat, which the government prints, and they want what they deem to be their share. I don't particularly like it, especially when it is misused, but technically they own that fiat, they are the ruling government, and they, for the most part, make the rules. Now, if done well, and with the current structure of government we have, taxes can help with things like roads, etc - but then that gets into a separate discussion of the job of the government, and how much freedom and personal responsibility the individual States and the people themselves have. 

Fun discussion taxes can be :D
Have a good day, 
The Cyberius team.

And how can they forbid you? For example, you live in the Netherlands, you are engaged in crypto and if it is forbidden what prevents you to go to Germany to withdraw your money, or if you have friends or relatives can transfer money to Fiat and send it to you through the Bank. It is impossible to prohibit the use of crypto, they can simply create some difficulty for you to withdraw to Fiat money.

however, I will still pay taxes on that when it applies to my country. well, right, that is to avoid the problem that will occur. if I make enough profit in this case, I might still pay for it. it all depends only on the income we have.

well then prepare yourselves for a corrupt police, corrupt state and everything else corrupt too.

if someone steals your crappy bitcoins, you will have to pay to police to just "try" finding it again.

I am not against the idea of taxation because it is the source of revenue for the governments to develop our countries. Indirectly, every crypto user is charged tax during transactions because the exchanges are charged to pay taxes and this is distributed amongst all members through the transaction fees.

If my government requires me to pay tax on a bitcoin transaction then I'm willing to do it because it is the duty of every citizen. These taxes can also help improve the economy and services  of my country.Here in my country, the government did not yet put taxation on every bitcoin transaction because it is not yet legalized as a currency. But they are also planning to impose regulations on some crypto exchnages that are presently operatinghere.

of course you don't have to pay any taxes with the cryptocurrency you have, with cryptocurrency you should be able to be free from the world of taxation, and tax people can't know how many assets you have, so you have to be calm and don't spend money on cryptocurrency tax , because it's not important.

If we are required to pay taxes then there must be a guarantee or payback such as legalization, ease of shopping using bitcoin,
and so forth. of course we will be very happy to pay taxes, if nothing special is offered by the government, then no!

its not a good thing not to pay taxes for what we earn in crpto i guess its all about simple contribution is a good thing for government since they need to regulate it too for security purposes dont get me wrong sir, but if you dont pay taxes you might get punish something worst in the future

I am imagining people that will pay taxes because of cryptocurrency and it's funny, why do you need to pay to government on something they can't regulate? As far as i know, when you buy coins on exchange its the exchange that will pay for tax because of service they made and for legality also but you as a trader/user you don't have to pay.

This is quite a controversial tip, because in theory, bitcoin can not be taxed, since it is a decentralized currency. But you cannot fail to pay taxes since you are a citizen of your country. I think there are many nuances and there is no clear answer.

Here it is difficult to solve unambiguously, but I think that if I appeared in a similar situation, I didn't pay taxes to the state for what they have no influence and that doesn't belong to them. The meaning of bitcoin is just the same to limit us from government interference, which means it can not be taxed.

I find Bitcoin taxation unfair and cruel to the authorities as always. Why should I pay them if the country did not give me a single cent for investment. Of course, like all sensible people, I try in every way to trade in cryptobirds anonymously, for my own safety. The world finally got the opportunity to raise their incomes up, but they want to trample them again. It's a shame! Yes, and I think very few people want to pay these taxes, except those who have a very big and fat plus in income.

Payment of tax is a good thing because it is a source of revenue for the country's development. Indirectly, it is apparent that every cryptocurrrency holder pays tax. The government charge the exchanges tax and this is distributed among every trader on that exchange. This is why most of the exchanges are requiring for KYC of late in order to know and verify its customers in accordance with the stated laws of the country.

As a bitcoin trader, of course we must follow the rules in the country of trade. If you reject it, you will face a problem.
In countries that do not tax bitcoin, of course we do not pay taxes. But if the country that is the place of trade applies taxes, do we have to fight it? Of course not, because we still follow the rules of paying taxes.

Not a very wise advice I would say there's a big chance that people who go t encouraged by you and they didn't pay their tax and may get nailed hard by the government authorities which may also land you up behind bars for not paying your income tax. If I'm not wrong whenever you deposit some good amount of money in your bank account you have got to have some explanation about where did all the money come from because I know someone who has been in this situation where he was called up by bank officials and they demanded an explanation of where the money had come from

First off, people who don't pay taxes are bad. Second, bad tax laws are worse.

Let's hyperbolize this to the feudal system taxes where the landlord gets say 97% of the crop in exchange for a one acre lease.
I highly doubt you would agree that the landlord's tax qualifies as being good or just here as he sits in his castle raping peasants and sipping mead.
Crypto is not a 97% tax, but property taxes on it are baffling. Moreover the tax structure de-incentivizes major companies from using crypto payments.
Where do you draw the line?? I am lead to assume U.S. crypto tax laws were designed to implement economic censorship, not support social infrastructure.

It is our duty and honor to be positive, benevolent members in the societies (and entire universe) in which we live.
However, in some places tax laws on crypto are contradicting lunacy. I'm not convinced they are productive, even for the government itself.
Being a good citizen and obeying the law are two different things.

Tax is one of the state revenues that all citizens must pay without exception. While the wishes of crypto users are tax free, so transactions are peer to peer.
This is a dilemma that must meet, because if there is no agreement cryptocurrency is considered illegal. Though each country has different rules between countries. The government clearly has the authority to find out who the crypto owner is, through a crypto money exchange company

I understand that these countries want to start imposing tax on Cryptocurrency holdings.
I also know that Cryptocurrency has a decentralized structure and so no one has control over it.
My question is: how do this countries plan implemting the tax procedure?
I 'm literally confused about the method they intend too use.
Can anyone enlighten me please?
Thanks

Yeah you can say that. but in some countries, the government has implemented rules for crypto, some local exchanges are required to pay taxes, and the tax is taken from our withdrawal fees to cash, I think we should be familiar with that at this time

If a country has implemented regulations for every citizen to pay taxes, we must comply with these regulations. Because if you don't, then that means we violate state regulations. And as good citizens, we must obey every existing law. paying taxes only takes up a small part of our assets.

Yes there are countries that have implemented taxation of bitcoin upon their transactions. One among them that has made the taxation in a stepped manner is Israel. The main objective is to tax considering it same as digital gold. For the transactions made within crypto weren't taxed, transactions involving cash out is considered and taxed.

You really do not need to provide your password to give the declaration, once you declare that you have how much coins in your wallet then can verify it in the blockchain without giving out any sensitive data, when it comes to government you never lie unless you want trouble, how are you planning to cash out the coins other than through banks accounts, either you have to find a user who provides cash for your coins or only through bank account and how are you planning to over come that situation. If a government ask me to sign a declaration form about the amount of coins i hold i have no other choice than to provide the details rather than facing punishment.

Thank god our country isn't like this, they just tax us when we convert our bitcoin to our local currency which is not that much i guess, we only need to comply for KYC, i guess that's better than get taxed for owning it, i hope more government will become more open for crypto.

Any country that is serious with taxing the citizen on their crypto do not need the permission of the citizens. Cryptocurrencies have not gone to the meanstream to extent of using it directly to pay for goods and services in most countries, so the citizens can easily be taxed during the process of exchanging it to fiat in our traditional banks.

I dont want to pay any taxes for my cryptocurrency, though if it is a law on my country i will do so,
Any country has their rights to have their citizen some taxes, it is for the good of the country and their economy.
Remember that the Gvoernment get the tax to its people for the development of their country.

dont use crypto as an excuse to avoid tax payment. Taxes are meant to help government bring development to all. Even though the government have messed up in the past, we still have to keep supporting them and one of the ways to do that is to pay our tax. so pay up whether its in crypto or fiat, just do the rigth thing as  a law abiding citizen

Well, in the country where I am living now, the government are not asking for taxes. But if we think about paying in taxes to those people who are using crypto currencies, that is so unthinkable because they don't even know who are people that are using crypto unless the individual will tell it.

We still have to pay taxes on our profits in cryptocurrency. The government can determine the approximate amount of taxes payable. At the same time, it will be seen that citizens deliberately evade paying such a tax. I read that such a problem existed in the United States. With regard to the individual citizen, this is difficult to do, but not very much on a state scale. If tax evasion from cryptocurrency is recorded, the government can take measures to limit circulation and even ban cryptocurrency. We do not need this. It is better to pay taxes in order for the cryptocurrency to develop and be faster legalized by the state.

yes, I am also confused by all the taxes that need to be paid if it really does exist. of course there are several assets that I have in different coins. however, for now, I still have not much assets, so I might not pay anything, besides government regulations there is also nothing like that.

I dont figure government can assume control and control bitcoin, if so happens the above all else thing is they will impost tax on them. At that point the client of bitcoin will decreased which may influence the potential and estimation of bitcoin. Still now we dont have a news thusly.

There is even no problem with paying tax but why pay tax what the government are fighting against or what they don’t don want to legalize? This is what we need to answer. So I don’t think it’s possble to tax anyone at this stage because the tools to do this has not been installed yet so no one can tax you for holding any coin of our choice .

Well said, until they give legal support they doesn't have the right to levy tax upon our crypto holdings. Also most of the governments around the world just corrupt the tax money and they never tend to do to the needful citizens of the country.

Impossible for me, unless all people, businesses, and any other establishments uses crypto for payments( we say BTC or Ether).
By the time I will withdraw my crypto currencies into fiat it will already be taxed (on the third party app that I am using). Also our  government won't tax you directly if you are only withdrawing certain amounts, not more than millions.

That'd raise the AMLA warning and we'll get taxed the moment we explain the gains are from crypto.

Smart way is to do so in smaller amounts, but larger holdings will have to bear the price movements. Sucks if they tank though.

Absolutely pay your taxes on crypto, this brings legitimacy to the space.  If you filed your gains in 2017 you can file your losses for 2018.  Here in the US we are required by law to report all crypto transaction whether it was a gain or a loss. 

Huh.?you are generating money inside crypto and you wanna deny paying taxes because the government cannot prove that you are gaining?do you know what are you saying?

Being a responsible people we must pay taxes everytime we gather profit,not unless you are a loser then i ca understandably agree with you.but if not then you are definitely a cheater

dont me .  im not like you  . you maybe a rich guy and wont mind paying a tax but me ( most of us ) we are only poor . we dont even have a regular jobs outside  ,  we only depend on crypto  .  now when the market falls , our income are greatly affected and the sad part is that we are paying expensive fee from the network and on the platform that we are using  .   how much more if we pay taxes  ?  cant imagine if what will be left on my income   .

If this really happen, I'll do what the OP said and yeah it's true that they don't know if I have nor how much I have, so why the heck I'll pay tax? Though this is for economy but I just see this unjust.

I know government's eye are very keen in whatever they see fit to squeeze money from people but maybe they should just spare this.

I think rather than being a ban and a criminal threat, it is better to pay taxes if it can make it easy for the ownership of cryptocurrency.

What are you talking about? What expensive fees? Segwit fees are very low and it's hard to get any cheaper than LN.

It doesn't matter if someone is rich or poor because taxes are a percentage of your income. That rich guy will pay 10k USD every month when you only have to pay $100 or even less if your only crypto income is a signature campaign. In proportion you're paying the same thing, he's even in a worse situation because he might be working harder for his money and paying more than you.

We should pay tax if it is implemented in our country, just a small amount from your earning to pay tax or rather than you serve that in jail due to not paying tax. That is just a small amount that might contribute to having economic growth in the country. Just like happen in the U.S. they are very strict on implementing the tax, they are now the number one of the most fully developed country.

hmm, i think you are right, but we should know about it first, lets things that india want makes the people to pay the tax, because they afraid because of the inflation in their country, they should know about the money that people have to prevent the inflation in their country, because if its happen it will be crisis on their country

Personally I wouldn't buy into your idea because in my country crypto tax defaulters are liable to 21years imprisonment or $3000 option of fine. My advice to OP is that he should not get involved in the defaulters group to avoid been jail.

trying to run form paying tax clearly shows you are not a law abiding citizen. The government is bad and we are all angry but then we should pay our tax as it is needed to keep a country running. If government says pay tax on your crypto, then do the right thing and pay, doesnt take anything from you.

well, if a country gives a regulation, or a regulation about it, I think I have to pay if I fulfill the requirements. however, for now, it is very difficult to apply tax payments to every crypto asset we have, moreover it is not stable. but to avoid danger, I will pay for it when it applies.

States are very eager to receive taxes.. the value of the coins we received fell. If we try to pay tax on the price we buy coins, we will be destroyed. If the states are going to get taxes when I make a profit,   they pay for my losses.!!

Apparently the tax agencies in Europe have started to ask for additional information from people that have been using localbitoins. I suggest not submitting anythiung and if responding at all, ask them what info they have on you first.

LOL, that's correct, I guess people with Crypto Currencies won't get rekt when they do this. ;D Some governments are really trying to milk out money from people that use Crypto Currencies and it is a sad thing to hear but we don't have control over it. But I think the government has the right to get some taxes especially for a law-abiding citizen that citizen of that certain nation will pay his/her taxes because taxes are used by governments to improve their respective countries unlike in my country where taxes are directly stoled by government official and the quality of life of the majority of the citizens are not improving but the quality of life of any government official is improving dramatically. 8)

Tax rate which too high can become a nightmare, but honestly I think pay tax of our bitcoin is still okey because government use the fund to build infrastructures for us. Low rate tax for bitcoin is okey but if it's too high then this can make cryptocurrency holder think twice to declare about amount of cryptocurrency they have.

We will need to pay taxes on our profit in cryptocurrency. It is necessary to proceed from the fact that states will be able to determine the total amount of tax payments that must be paid by the population. If taxes are not received, government agencies will be very happy to limit circulation or even prohibit cryptocurrency. I think that we do not need it. The state should make sure that the circulation of cryptocurrency is beneficial for him, only in this case it will, if not support cryptocurrency, then at least allow it to circulate on its territory.

They would really don't if you have coins in your pc or phone only if you don't have plans in using those lol. If you don't want to pay your taxes then its up to you but I always go with the right method. If you don't pay taxes you should not be allowed to use all the facilities that was made because of the taxes given by other citizens. A good example would be the acess roads

I think we have paid the tax because when we do withdrawal to fiat money from the the market, they have paid the tax for the government be collectived by the market of course small amount of tax, so our money is clean. That was my experience and i think all of regulation around the world is same and in my own personal opinions it is money 10% because we have paid the tax via market.

How to get over a tax evasion 101. Yes you dont need to pay taxes on coins you are already holding because its still not considered as profit not unless you withdraw it. In this you need exchanges or banks that are traceable by the government. If thats the law then you should obey it. No exemptions. Dont run from it or it gets worse in the future.

According to my estimation, these countries are trying to get tax on the trade, not on the crypto money which people are holding. As you already mentioned, it is very difficult to get taxes in other ways.

Stupid idea,just because the government cannot prove you are holding coins meaning you will not obey the rules?i dont know what kind of people we are having right now here

We are obliged to oay taxes in every profit we made put that on mind,even if they cant prove it but your conscience will tell you to do so

For as long as you are not detected, then probably you can shirk from your tax obligations. But if you are caught, then you will definitely be sorry for it. At the end of the day, you are violating the law of whatever country you are from. And then there is the fact that you cannot actually avoid them. I think buying with your cryptocurrencies in legal stores and restaurants already involves taxes. Or if you opt to convert them into fiat and withdraw them through legit banks and other centers, you will also be paying taxes.

So you better stick within the legal boundaries.

You have a point about that but there are some countries that insist that a person possessing Crypto Currency should pay taxes depending on the amount of Crypto they have but it is really hard to implement this kind of ruling and Crypto Currencies are very volatile and imagine you are paying taxes yearly while your asset is not moving or progressing.

Yeah, rules are rules and it should be obeyed by any citizens of a particular country especially if they are law-abiding citizens that respect the rules and regulations of their countries. I guess some people are becoming so greedy and only think about themselves and does not think about other people. But still, it is up to the person in any country to pay their taxes or not and they already know what right or what is wrong. 8)

That's bad if there are some countries apply the tax for the bitcoin while our assets is not moving or progressing, do you can give us more information about it? It will make clear to be discussion on here. Which are the countries that apply tax for our assets in cryptocurrencies. For the people who live at there they must increase financial intelegent if they won't losing their money in cryptocurrencies.

I think it depends on them ,
For example what if it is really against the rules in their country?
Then you are telling them to break the law,
I think paying for your crypto isn't a bad thing specially if it is just a small amount to pay,
And besides if you could continue earning from it then the rax that you are paying is just a small amount compare for your freedom.

Sounds like you are not a law abiding citizen because if you are, you won't ask people not to pay tax. For the fact that government cannot confirm your ownership of your bitcoins doesn't mean you should not pay tax. The money generated from tax is used to fund so many things including infrastrutures, police etc. Pay your tax whether government comes for you or not. It is the right thing to do so do it.

Since 2009 no one has asked for tax on the crypto assets that we have. Because they don't know how many of our assets are in the wallet. So keep it a secret, because the tax for bitcoin hasn't been worn.

You don't need to pay any tax on your crypto holdings (at least until now). If you are not converting your coins to fiat, then you are not legally obliged to pay any taxes. You need to pay the taxes only if you convert the coins to fiat, and there is a profit. Depending on the duration of holding, either the long-term capital gains tax or the STCGT will be applicable.

Absolutely my thought, they can't know how much crypto you hold but they will know when you have to convert in a bank. The government will question how do gain such amount and basically they could trace it where it came from. The thing here is, India is not yet a country who accepts btc as form of payment, that is why they need to have a third trusted party which is a bank for them to be able to use their coins.

Yes there are some exchanges doing that, especially in countries that allow crypto to circulate with certain conditions such as taxes, and local exchanges are required to request tax for each trade or withdraw to fiat, that is not a problem as long as the tax is not too large for me

In my country especially, there are minimum amount of asset (either crypto assets or another assets) required to pay tax for each persons. If someone hasn't reach the minimum of amount they don't need to pay tax, it's just they have to keep reporting the assets they own to government. Tax problems is indeed constantly troubling to investor cryptocurrency, in one hand they don't need to pay tax because cryptocurrency cannot be use in daily lives for them and there are not government role which benefited to them but in the other hand government have a power to make everything they want unless you will accept the risk afterward.

That is not a tax, you can only call that as tax if you file a tax return.
That is most likely a fee, we have to know the difference between tax and fee from exchanges so we will not face tax liability in the future.

Withdraw fees are mostly for miners and the exchanges so i don't think we're paying taxes at this time. Not just yet. With exchanges and online wallets now starting to require kyc, there may come a time where the transactions we're making will actually be taxed.  Not that i'm complaining though, but i'd prefer not to let the government take my crypto money if it'll be possible lol.

It is up to the individual to decide whether he want to pay the taxes, or risk going to the jail for tax evasion. Although none of us are very fond of taxation, I don't think that there is a choice regarding it.

Hmm, i think you have a point since if you were just holding that coin even if the price increases and you already can have your profit. It is still not yet to be considered as an income.

I am not sure tho if we can consider it to the long term capital gain. Laws for cryptocurrency market are still not yet established unless you are committing an obvious crime like money laundering which is obviously  punishable by law.


This is maybe the main reason before why the US government can't force the coinbase to give personal infos from their users

I just wondering who gave you merit for such comment

"..In most places the money needs to finish up in your bank if you want to spend it. Once it's in there you may have some explaining to do"

Well, i guess you are still newbies when it comes trading with btc if, you don't how to move money safely  money from most online bank without the need of question(s) especially now we have abundant resource to do so.


Note  : the other day i saw link on this forum requesting that member's should submit their tax info's.Maybe they might have started pressurizing the admin of this forum.

Thanks

Why should they? Everybody in this world needs to pay his taxes. It is against the law if you are not paying your taxes it could get you jailed. And if we are talking about growth of bitcoin, if this thing could help in the growth of btc then it's a good choice to pay in btc.

Whilst what the OP says is true if you sell any half decent amount of coins you’re not going to get away without paying taxes.

Asking to pay taxes for cryptos is totally unfair. Goverments do not recognize cryptos, and prefer to keep asking for loans from private bankers and FIAT money, but at same time they want to get taxes from the cryptos, as if it were real money.

Totally unfair, even hipocrite.

Taxes are for the betterment of the individuals and should be given on time. However i am not sure how will anyone can pay taxes on the crypto as it is not centralized and no one can monitor how much crypto you hold.  Maybe you can pay taxes on the amount of bitcoins which you converted into local fiat currency.

I wouldn't want to risk not paying taxes myself.  We need more services to accept Bitcoin and then maybe it would become a little easier.

If government put a tax on crypto you don't have no choice you need to pay tax every time you use crypto or for your every crypto wealth. I'm sure that time will happen because government will see that we are really have a good profit in investing crypto and we are not paying tax but right now if we think we already paying in continously increasing of charge in our bitcoin transactions.

reading through certain journals a couple of months ago and saw where john Mcafee  was  being charged for tax evasion on his crypto related asset and then i smiled. you have no prove of crypto being an asset and yet you want to be paid tax on the said non asset classified property. i o not see how that sells.

As of now wherein bitcoin and cryptocurrencies are very young and starting to develop and shape the financial industry, taxing bitcoin is different in countries around the world depending on their respective taxation laws. There are bitcoin friendly countries such as Germany and New Zealand. As a citizen of your country, you need to follow your laws.

Countries have got different laws in the taxation. Even though countries have levied tax on each and every activity relative to cryptocurrency. There isn't any effective form of collecting the taxes. Even some countries have begun to accept bitcoin on the same, even with that it isn't that effective. This is because it is hard to calculate the transaction of an user that has been done in terms of cryptocurrency.

If that has become a rule that has been set by the government, I think it is better to obey the rules to pay the taxes that have been set, than it will be difficult behind.

In my country, regulations regarding cryptocurrency taxes have recently been established. According to the current state, the profit from the sale of crypto on Fiat or the purchase of material goods for crypto is taxed.

In other words, as long as I keep cryptocurrencies or trade them - I exchange one cryptocurrency for another, nothing is taxed here. The tax may appear only when the funds leave the "crypto ecosystem".

While the taxation of profits when exchanging cryptocurrencies for fiat is simple, the profit when buying goods for the crypto is already problematic. If I put $ 1,000 on the crypto market and after a few transactions I collect 2btc and then buy from someone at the auction the old carpet for 2btc what amount should be taxed - convert btc to fiat according to the exchange rate of the day (but wait after all the btc course is not stable - what if btc will jump or fall on this day by 30%) or maybe you should check the actual value of the old carpet only how to check the actual value of the thing used ...

As you can see, despite the fact that the regulations are fixed, their use in practice can be very difficult ....

Nope if my country demands for it then I should pay for it,
I don't want to end up in jail just for tax evasion.
And also I don't think that they would implement it.

Then I might still consider that the regulations with regards to taxing your crypto is not efficiently build. Why? it is because as you have stated taxes are only being perform when it involves FIAT. Therefore the regulations are still basing on the FIAT ecosystem and not specifically on the crypto's ecosystem.

Therefore I can also still conclude that the regulations for taxing crypto incomes or profits are still not yet established and as of the moment the government is only linking their current regulations from FIAT to crypto so they could atleast get something from the crypto holders and  still doesn't have a control on the other things. Which is actually good in our part since this is exactly the reason why most of us are using this technology. It give us   a lot of benefits and one of that is the bias control of government

As soon as they will implement, we have no choice but to comply.
We don't have to pay taxes if there it's not required, that's the advantage of using crypto since it has to be fully regulated first before they can
demand tax from us, and if we are living in a 3rd world county, regulation could be late and therefore we have more time to enjoy our tax free income.

@Xenrise, 

".....It is against the law if you are not paying your taxes it could get you jailed. And if we are talking about growth of bitcoin, if this thing could help in the growth of btc then it's a good choice to pay in btc...." 

Well, they should come and collect the tax from my wallet!!

Oh i never knew we have so many good & civilized people on this forum !!

Well, FYI, being good is not enough because paying tax on money generated from sale/trading of btc could end-up getting people into financial prison. Unfortunately, most people prefer to be financially broke to go to prison.

*I prefer to go to physical prison but, get my wallet fill with coins, no payment of tax of whatsover afterrall, our society is not getting any better for being simple & good citizen which those folk's expected from us.

Bitcoin has come to librate the people because we are living in time when the world economy will keep sliding donw. This is also one of the reason why there are lot of article's in regard's to crypt-currency.

Thanks

You've right but today I can't imagine any different solution. The world of cryptocurrencies is not independent and does not work in isolation from the real world. The only tax that can be applied is the income tax. And a relatively stable reference point is necessary to determine the income. Today, cryptocurrencies are subject to high fluctuations and their use as a reference is debatable. After that, we have thousands of them so what solution to take - choose one of them, for example bitcoin and refer to it profit or loss. And if we gain 50% in bitcoin and at the same time bitcoin will fall by 90% (that is, we will actually lose 85% in dollars), we should still pay tax on our loss - then we would lost everything we put in crypto and should add some more extra funds to pay tax.

You probably read an article about a student who invested $ 5,000 in ethereum and in November his cryptocurrencies were worth $ 125,000 but he had to pay as much as $ 400,000 tax - it's insane.

https://www.ccn.com/tax-nightmare-student-invested-5k-in-ethereum-now-owes-400k-in-taxes

So in fact today's cryptocurrency taxes connect to the Fiat system, but any other solution is unacceptable. Maybe in the future, when the cryptocurrency world will develop very much and it will start to function independently - in a complete separation from fiat, other solutions will be possible ... but not today ...




Yep for example if you live in Europe first you pay tax from your income, then you pay another Value Added Tax buying any service or goods, (and some of them includes in their prices also some other taxes like road tax in gasoline price, or excise tax in price of cigarettes or alcohol  and many others) so today you pay taxes many times while buying one good/service.

Well, they can't except for individual or some group of people who might just want to declare any transaction associated with btc

just like the tried banning btc a few year's back only to find out that such action may lead to inflation within the market.
From series of comment(s) above it seems most people, i donot fully understand how bitcoin work!!


Regard's

I better pay taxes. I don't want cryptocurrencies to always have a bad image by not paying taxes. isn't tax avoidance a criminal act. avoiding and not reporting taxes can face a prison as punishment. you should be careful in dealing with tax law. at least it can still help state costs in continuing to support development by paying taxes.

if someday there are policy that makes all people in the world to pay a tax by using bitcoin and holding bitcoin i think we should do that, we should pay the taxes like the policy. and we should honest because i believe that bitcoin and blockchain system can't traceable and maybe it will missed tracking by system

It's possible to pay taxes in bitcoin if you live in Ohio, lately they accepted it. Bitcoin and blockchain technology isn't traceable? Well, don't you know that every transaction is recorded and stored on blockchain? Also OP is far from actual idea, you have to pay taxes anyway if you have crypto business like exchange or etc but if you own wallet at home, believe me no one will ask you to pay any tax.

The IRS has increasingly sophisticated tools to track cryptocurrency transactions, so it's best to just pay what you owe. Besides, if you are a long-term holder and make a profit, the tax rate is pretty reasonable. There is no point in risking jail time and fines just to save a small sliver of your gains.

Even you dont want to pay tax and so many reason in your mind to tell to police. they can know that your lying because on the last part you cryptocurrency will go to bank and can detect where your money comes from and this will give you a lot to explain and in the last part you will be caught for not paying taxes much better to pay it because in the end you will suffer on the consequences.

Agree with you, but this depends on one government to another. There are a lot of governments in this world who steal our taxes for their personal needs!

This is highly misleading as tax evasion is a serious crime that could lead to being sentenced in jail for years including a fine. Whatever the stipulation of the rules or laws in your country regarding cryptocurrency, you must faithfully adapt and embrace its texts and follow it religiously. Regardless of what the nature of bitcoin may be, it is not an excuse for someone to disobey the law.


The stigma about cryptocurrencies started when people utilized it for that illegal means, which also includes tax evasion. People have been spreading fake news which contributes to its reputation being a scam to the public. Unfortunately, these spreading of news affects the price in general in attracting investors.

well, maybe this will apply when the government has given regulations regarding this matter. however, as long as there are no rules regarding taxes to be paid from bitcoin, or altcoin users, I think it's natural that we don't pay them. moreover we do not know what the tax is for.

Base on what you are saying, you are evading paying taxes and you might get to jail because of tax evasion. Is jail is just a room for you? Pay your taxes. Follow the rules, it's just a simple tax.

I am not against the idea of tax but I don't know how the governments will track every crypto user and all the transactions in order to tax them. But for indirect tax, every crypto user cannot escape it because the centralized exchange sites are taxed and these taxes are indirectly paid by traders through the trading charges on the exchange.

I think that most of countries don't request paying taxes on Bitcoin itself, only on transactions. But even if the law is different I don't think that you can decide whether to pay taxes or not, it's then the legal obligation and for avoiding it you might get punished.
But because of the lack of regulation about cryptocurrencies in many countries this area still isn't designed properly and Bitcoin users don't have much obligations to the authorities.

Then if I will be directly using bitcoin or any crypto funds to by goods that I can consider as my assets, I can now simply evade paying my tax. That is the main reason why I have told you that the laws with regards to cypto taxation is not yet established.



That only solidify my statement that even if we are using the current FIAT system this are still not being properly enforced or performed. The person who actually computed the tax that was given by that student is purely proves their ignorance with this technology.

Everybody is speaking about taxes, but still, I have not met any person who pays this money. I will be not surprised if most people will try to avoid these payments and succeed in it.

I think there are many countries doesn't make regulations for their people who are involved in crypto to pay tax. But people only pay tax when they got an income in their bank account and the tax that people needs to pay in every month. So far, I only pay my monthly taxes because I got an income. But soon, if there are regulations is apply, we need to pay the tax because we don't want to get any illegal things that can cause us to get a problem.

I was thinking about the same thing but unfortunately you are not more powerful than governments in order to fight with them. Crypto taxes are just like normal taxes and this means you will get fines for not paying them or even face prison in some countries and I don't think you want to risk that.

If you are living in a country where tax regulation is not so strict, then you can avoid it.
There are a lot of ways to avoid, some are legal and some are illegal, but you should be careful if you do it illegally as the consequence is hard when you are violate the law of the government, that's jail time or you have to pay a big penalty for not abiding the law.

@sakokinak, most of them can't stop preaching about tax on this forum. ok,while trading with an anonymous currency which will be almost difficult for govt. to track while you can trade and do biz with fiat in order to remain transparent? ooh, i don't like womeeeen, i only love enjoy watching them from behind when necessary to avoid payment of tax!!

Thanks

I've done a bit of research on crypto taxes and in most countries the 'taxable event' occurs at the point where crypto is converted to fiat (and probably also recorded when converted from fiat to crypto).

So unless you never plan to convert your crypto to fiat than you'll probably be made to pay taxes.

The good news is that with all these new dapps coming out, and 'defi' such as makerdao you won't actually need to convert to fiat in the future to use the value of your cryptocurrency for banking, and can therefore avoid taxable events.

That's correct. I think every local exchange has to send a copy of their transactions history to the government so that they could check if everyone has paid their taxes and fine those that didn't. I didn't expected governments to take action against crypto this early but seems they don't want to waste any single penny they could get from people.

well, maybe you're right that the tax for crypto is the same as the tax that is usually done. however, each country has its own regulations regarding this, moreover crypto is always changing. Well, for now, I think tax is not really needed for the crypto world, but when the rules are in place, of course we are obliged to follow that.

Okay so basically it's okay for you to go to jail without thinking twice that jail time is hard time? Is jail is just a room to you? Dude, think twice, ignorance of the law excuses no one. You should be aware of every law in your country particularly. Jail isn't just a room. It's hard time.

It's all talk and no action. No one want to go to jail. I don't think any of us commenting here has experienced prison life. But from what I heard, it destroys you completely. You will never be the same person again. So please don't count me in when someone says that he'll prefer going to jail rather than paying taxes on crypto profits.

If the law states so, I think it's better to abide from it. There's a lot of way to check it, if the law asks you to send them your wallet address and detail, you have no  choice but to do so, or else, you will face some consequences for not abiding.

Well on my country they say will tax only profit from crypto, but not now, so if i can't make a profit in a year there i should not have any tax to pay, i not like the countries who want to pay tax for crypto if only hold crypto and not have any profit.

do you mean the Chilean and Indian state systems, do not occasionally pay taxes with crypto money, if they pay with crypto money from that country know if they pay with crypto money and the tax party will ask for their wallet password that pays crypto?
is it like that?

It's hard to say that publicly, man
If taxes are imposed by law, we must be complied with
Unless you want to discredit btc trade

If taxes are imposed by state on btc trade, it means that the state recognizes this trade and that is positive
The percentage of taxes and how to prepare its law in terms of technical
it must be subject to community dialogue
We do not want to repeat Japan's experience.

The same thing applies for my country but one thing I don't understand here is how they can be sure on how much profit I am making from my investments? I mean, I have to pay taxes for the whole amount of bitcoin/crypto I am exchanging and that's because they think all of it its a profit. I think they should have waited a little longer until they could figure everything out and not create stupid laws just to get more money from people's pockets.

And also, the tax that he might be talking about is when such government impose the tax regulations to those local exchanges. You have nothing to do with that but comply. How can you exchange your crypto to fiat without them? Unless, you have your local exchange running illegal operations and not bound by the Central Bank. But I won't deal with this exchange in case. You won't know if your money is safe with them.

Agree. Here in my country cryptocurrencies are regulated through local exchanges that is why we can do nothing about tax as it was I think automatically be deducted during transactions but there is also a positive side in terms of regulation like our funds safety from exchanges. Most traders are hesitant to store their funds on exchanges but now governments are taking part into this industry.

It is absolutely wrong for you to encouarge law abiding citizens to shy away from payment of tax. Even if the government has no means in knowing who owns bitcoin for now, that does not mean one should not do the needful. Taxes are used for the development of our society, payment for security and so many other things. The tax is needed for the growth of the nation so it is not cool asking people to avoid paying tax.

It should be ok to have taxes since there are money transactions between 2 partners.
Take for example Coinbase or any other exchanger: you pay fees for bank transactions (a.k.a taxes where some of the fee you pay goes as tax)

If you don't want fees for those transactions just use Stellar.

I wish it was that easy, paying fees considered for taxes is quite very convenient to our part.
My interpretation on the fees we pay is that it includes blockchain fee and the rest is the income of the company or exchanges, and they will
pay taxes for the income they earn, so where are our taxes on that scenario? There was non IMO, we also have to pay taxes if we have income, just like exchanges, but fees are not taxes automatically.

Maybe we can do it but when the day comes when you need money how can you turn it into fiat money? I'm sure you need to cash out your money how do you put it out if you know you are going to jail when they find out you have a crypto curenncy that has not been taxed.

You can't even sell it to person in person because there is definitely a risk to your life. So it's best to comply with the law, you can also not mention your other portfolio if you don't want to pay big tax.

My country still don't have any laws about crypto, but when they appear I will try to be prepared for that. Its easy to hide coins in some offline wallet, to store private keys on some place and move that from the house, or to make some secret stash for usb.
I don't plan to pay any taxes on crypto ever, I will try my best to avoid them and there are good ways for that, everything about that can be learned for free around the crypto world.
But in the end I'm ordinary man, and that will be a easy task I believe, but for people who plan to open some businesses that will not be possible, they will have to pay the taxes for sure.

It's good that your country stays neutral, they don't take any actions to counter the appearance of bitcoin.

Hiding it from the government is easy if they make a move like prohibiting its use, but using it will be hard and you will not be able to spend or convert it to fiat

Paying taxes is unavoidable, if ever that your country will issue the taxation for income coming from crypto, anyone is required to abide the law.

Paying tax in unavoidable, as we are paying taxes anywhere, so for now, since Bitcoin is not mandated by the government and we are not forced to pay taxes then as much as possible, I am not paying income tax, I am not declaring it. I am already paying taxes because of Value added tax, tax from saving your account thru the interest income, taxes everywhere, so for this one, I am avoiding for now unless we are required.

I know that some people disagree with governments that impose taxes on citizens who invest in cryptocurrency.
But in our lives it is very difficult to avoid taxes, everything has tax costs. Including cryptocurrency, then
from that most governments cooperate with the owners of local exchanges to impose taxes on their users.
Local exchanges in the country where I live, for all users are taxed. So it usually requires the KYC procedure
in every exchange.

I think maybe you think that tax officials are too naive. It's true that I have never acknowledged paying taxes at that income which you haven't even realized into your bank. But once you have realized it then I think there is no use or way hiding it they will be caught today or later. You can look for some tax avoidance using some expenses but complete concealment of Income can be very dangerous as it can attract fees and penalties. The hacker excuse however was quite lame government demands proof of such things and proof is a FIR to the local police which won't be available.

We don't pay taxes but here in my country if you don't pay them since this year you could find yourself in big trouble in the next year or two years...so why would I assume this risk ? I prefer to hodl and never cash out here in my country only if I need some urgent cash and I hope it won't be the case. Regulations sucks ...we can all agree with that and in Romania they we're all against cryptos until they saw they can make money from it and they regulated all cryptocurrencies when it comes to pay taxes so long live dex I guess.

actually its not ignorance paying taxes from our earnings in cryptocurrency because the true ignorant here is you.we are obliged to pay taxes from whatever profitable ways we do inside country we live.this is our obligation and just because we are in crypto and anonymous means we are safe from paying taxes?i'm afraid mate that this is the right manner to treat our government.yes our country still not putting taxes for crypto related thing but once its become a law?for sure i will pay as a citizen .

In my opinion, if you are using cryptocurrencies regularly, you should abide by the rules in your country and pay your taxes on your cryptocurrency. Maybe you won't get any punishment in the near future but it is possible any time as long as you live.

I really do not think that is the best Idea. Here in the United States I believe that you do not have to pay taxes unless you sell. I also believe that you should have sold atleast $10,000 worth in a specific year before you have to pay taxes. They may not be able to prove you have any coins in a specific wallet that is yours. But if you purchase your coins through coinbase or coinmama. It gets documented they can see what debit cards you used to purchase said coins.  If you do everything 100% anonymous then I do not believe you have to worry to much. But even then if you are caught depending on the country and consequences you could get in severe trouble.  It is not worth loosing everything you own. Be smart about how you do it if you do.

If you decide to not pay taxes make sure you purchased you crypto for CASH and sold it for CASH otherwise the consequences may involve you being audited and loosing everything you own and more!

There are many ways to hide our wealth in crypto so we don't have to pay taxes on it. And of course there should be other sources of income so that the authorities do not investigate us because of our questionable wealth from which we obtain it. So they don't pay attention to us anymore because we can answer their questions. And they can't blame us.

If the country that you live in has some rules about cryptos and if that rules say that there are taxes for cryptocurrency usage, then I absolutely recommend that the citizen of that country should pay his/her taxes.

I think that in majority of countries that have some regulation about Bitcoin you don't have to pay taxes on coins itself, only for transactions.
But I don't agree with advice not to pay taxes if that is the law, every citizen needs to obey law and order in country they live. Otherwise you send the message that Bitcoin users are some kind of rebels that don't respect legal rules and that only puts bad light on crypto users.

For someone like me, I don't have any problem paying taxes actually. The government use tax payers money to construct roads and bridges for rural areas and build schools and hospitals. Why would I fail to pay my taxes? In fact, you are helping your country to move forward by paying your taxes. You have to choose either your pockets or the development of your country.

In my country there are no regulations regarding crypto ownership tax, except for the purchase of goods or services, usually there is already a tax calculation. In my opinion if there is an official crypto ownership tax, you must pay the tax, but if it is not official you have the right not to pay it. It's a matter of your obligations and the rights of the government in your country.

Even if your government is not doing anything you are bound to pay your taxes and if not you will get into trouble, just follow the Federal tax rates and pay them without any delay, i got a notification from them about my trades i did a long back and i had to clear everything about the profits and the loss i made during those period and if you are not following the rule then you will get into trouble and i am not taking any risk regarding that.

You thought of one aspect but you didn't think of the other, you have forgotten that eventually, the coin would have to enter your bank account or do you never plan to ever sell any of your cryptocurrency? When the funds enter your account, you would have to explain how that fund got there, even if you use that excuse you mentioned once, you cannot use it everytime you have to withdraw, I would just advice everyone to do the right thing, if Cryptocurrencies are being taxed in your country, pay your tax and stay in the right side of the law. John McAfee is a testimony about why you shouldn't evade taxes.

Correct, but it is not enough that you have to cover it with simple businesses and another small income if you spend many times anywhere and anytime. because we know that government will sill investigate you because of your wondrous moves. and beware of your jealous friends that might state your wealth inside crypto. just trust who are positive in crypto and earn crypto. don't just spread it. if you don't want to lose much and regret it eventually. be wise enough and earn a lot of knowledge to control your emotions because of your wealth. 

every country has different rules regarding crypto, if there are countries that require crypto users to pay taxes on their assets, just obey because maybe then you will be protected from applicable legal entities.
do not try to fool your obligations, because good citizens obey the applicable regulations.

its hard to taxed the cryptocurrency on hold because government know nothing on how much we are holding right?

so basically it wont happen unless you will declare in Central banks about your cryptocurrency in wallets
yeah never fool the government because it is our obligation to pay taxes,but the problem us how would people do that?specially crypto being anonymous and volatile.but if our government declares taxation?surely i will obliged.

Why will you pay a tax for holding  cryptocurrency? Its like telling me to pay tax for the money in my wallet. This doesn't make sense and it is robbery to tax someone on the money he/she is having in his/her pocket or wallet. They are just trying to find a way to discourage people from owning a cryptocurrency using taxes as their element of scare.

That’s exactly what’s on my mind right now after I read the OP. I don’t get it too. Maybe the taxes that he mentioned on those countries taxed those companies who are involved in cryptocurrencies. Also there should be a minimum amount of the earnings required for it to be taxed. Because if what you are saying is true then that’s messed up.

I dont actually paying taxes on my cryptocurrency because the government in my country cannot regulate the cryptocurrency. The banks are the ones who can give taxes, if you want to withdraw your crypto you are converting your money into fiat and you are paying their service. It is not good if the government will give taxes to those who are earning cryptocurrency since there are no organization and group of people who are running crypto, we all know that it is decentralized, that is the reason maybe they cannot regulate it.

It is not completely understandable what are you talking about, are you talking about.
1. The tax on your gains?
2. Tax on your crypto in general?

If it is the second one, it is unacceptable but the first one is right thing to do. If it is the 2. one then, I would suggest not to use local crypto exchanges in the first place.

Governments can't really regulate bitcoin and cryptocurrencies because they can't control it, that is why they cannot put taxes in our every transactions. It's true that we are only paying taxes when we are about to withdraw our crypto in banks because in my country for you to be able to withdraw your crypto and convert it into cash there will be fees or it may be taxes, but it is a small amount of money.

We cannot let this foolishness and abuse keep on going. We all know crypto is a decentralized currency, the government or any other organization doesn't have any control over it or any right to put a tax on it. The fees on exchages are already consuming some people's investment and adding up taxes would be another problem to many. Let us not stay blinded and know our rights. We should not let them steal the money we are working hard for and start making an action.

Why? He's not asking you to stop paying taxes at all but not pay taxes for holding. Some countries want you to check the value of your held crypto every year and pay taxes based on what it gained vs fiat. This is idiotic because it forces people to sell their precious crypto to cover taxes. Say you have 1 million dollars worth of bitcoin and aren't planning to sell at all. You also don't care what the value in fiat is. One year it triples in value and you have the same number of coins but worth 3 million which makes you owe something like 500k USD in taxes. Most people don't have that kind of money. Why would the government force people to trade vs their local fiat all the time even if they don't want to.

I agree it's best to keep your crypto in secret and pay taxes only when you sell.

For as long as it is not required by your government then it is fine, although income from crypto whether from trading or from any form of campaigns still part of our income that we should be declared, but as per me too, no need to declare yet as they will just question everything for now, so I am just declaring the income from my small business and from my small time lending company.

It seems to me that every cryptocurrency user could quite rightly pay taxes in the form of interest for cashing cryptocurrency in Fiat funds.  But when it comes to cryptocurrency trading, then every legal cryptocurrency exchange will pay its taxes to its state, and each user will pay a percentage to the exchange from each transaction, as is happening now.  Cryptocurrency is a valuable asset that users store in wallets and no one should demand taxes for these assets, because only a real business that receives daily, monthly profits must pay taxes.

I think we can't pay tax on our side when we have to hold our cryptocurrency in our portfolio. To pay tax when we are going to cash out fiat that comes to form our crypto asset. The government will not enforce us to pay tax because Bitcoin or the entire crypto was anonymous. I won't and I will never pay taxes on it unless if there is still on exchange. They will never know that I am earning bitcoin so there's no need for me to pay tax and they don't have any access to bitcoin so they won't track me if I do have a bitcoin or not.

It seems there are many holders that do not want to pay their taxes when they exchange their bitcoin to fiat but if you want to sleep well knowing that nothing will happen to you then it is better to pay your taxes and forget about it.

In some countries without a regulation in place then you could even be able to not pay any taxes in a legal way but in order to be completely sure about this consult a lawyer that specializes in such topics, after all you do not want to be told you do not have to pay taxes only to discover this is not the case.

so what are those "MANY WAYS"? how to hide our wealth for us not to pay taxes?Mind sharing it with us here?

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i was just thinking about why need not to pay taxes?because we don't want to lessen our profit?does not paying tax will help our economy?if yes then lets not pay taxes,but if not then please care for your country and help the government by paying taxes

If your government charges a tax for using or storing a Cryptocurrencies then that means this technology is already allowed in your constitution and I thinks it is reasonable for them to charge taxes. These collected taxes could help to improve the economic status of one country so your payments will not in put in vain. Luckily, I'm on the country that doesn't charge any tax with regards on my crypto funds but it doesn't mean its illegal in my place, perhaps they don't have an issue upon using this technology.

You should pay taxes if you have earned money from bitcoin. Such as you bought it from 10k and sold it for 14k. You have earned 4k and it should be taxed. Nothing more

so if I lose 4k, the taxing company will reimburse part of the loss?

I think there are no regulations about it that taxes are being imposed. There are people that may take advantage to those who have no knowledge but its so stupid to let them take taxes without even permission to do so. It should only be the government who can collect taxes. But in cases like that they will check your account etc. is beyond their limits or trespassing your privacy.

im sure thats a very comforting thought. perhaps you may even get away with it.

but several years from now, when blockchain analysis will show even the smallest mistake  that can link addys and transactions to you... well, if they allow you internet access from jail while youre serving time for tax evasion, let us know what happened.