Bitcoin Forum

Is to take taxes of each transactions automaticly some small  %


Its beneficial idea and smart and sustainable way.
And blockchain Technology can be helpful to make it this!


There is no need for tax office to take your tax declarations!!
As we all use internet bank so Every transaction we do the small% goes to government Automaticly.

And government will be on blockchain and Everybody will see the balance where the money goes and so.

Transparent Easy and sustainable

Think about how many transactions people do online each day?  If Even little% to be taken... The government will be Strong because more money Exchanges more transactions means more Economic actvity and more Economic actvity the more government will get taxes.

You can't avoid tax, the best way to avoid government and officials bodies problems is to pay that tax. Many companies have been ruin because of they chose to dodge tax. They need your tax to sustain the economy.
Some industries have fully adopt blockchain in different sectors, the problem is, the government will never approve a system that isn't favorable to the cycle of their system.

Taxing a decentralized network/system by governments that exist outside of the network/system isn't really a good idea. The best the "foreign governments" could do is to tax their own companies within the decentralized network.
If taxing most companies and transactions within the network becomes necessary, it should be done by the native Blockchain/decentralized-network Government.

I agree that things should be transparent.

Nice idea, but I think this overlooks the fact that (ideally) taxation needs to be progressive.
If say everything is taxed at a flat 20%, then someone on the breadline pays the same percentage tax as a billionaire.
You also have the issue of determining what is income (and how money in is balanced against money out), what is profit, etc.

They can actually add tax in every cryptocurrency income. There are governments that are actually implementing this law.
Remember that "when there is money, there is tax".
In our country, there are also proposed bill about those who are earning through cryptocurrency but with of course set minimum/maximum annual income.

However, take note that there are still bitcoin friendly countries that made it to non taxable like Portugal and France.
The solution?  Follow government laws for less conflicts.

With this I think you are talking about transparency and accountability. I think the whole transparency comes to corruption. A corrupt system will always find somehow to beat the system and this is bad for a nation. Even if it means not computing figures into blockchain , that can happen between two parties. Also where corruption thrives, even the figures reflected, the accuracies figures might not be given. Blockchain is good but it depends on the system to make it work

This will not work. every country has different government so how do you know in which country the transaction came from?
Taxes should be paid in fiat not in crypto currency the idea of  bitcoin is not to paid taxes to government but to use by the people freely without any restrictions need to follow.

If they want  that they need to create thier own crypto currency that they can monitor every transaction and know whos the owner of the address.

Quite ironic, bitcoin doesn't care about the sum involved but the amount of space used, so if we would impose taxes after the blockchain model they will be neither a fixed percentage nor a progressive percentage but a fixed sum for everybody. So no 1% of 1000 or 20% of 2000000 but rather 100 for everyone. Remember, Bitcoin is the total opposite of socialism or socialism measures. And just to hammer that idea once more, Bitcoin is the perfect tool for rich people to avoid taxation at all, so in your ideal world there would be no place for it.


In France, crypto trades are no taxable, or transfers between addresses but when you exchange crypto to fiat you're taxed, and if you try to purchase something directly with crypto you're also taxed with VAT just as with fiat.

You have to remember that there are different legal rulings for every country regarding the taxation of cryptocurrencies. One country differs from another when it comes to these things. Even if a successful implementation of your idea is to happen on the blockchain, governments would still be scratching their heads figuring out who sent what from where, and by how much. They still need their own centralized ledge for taxation, and taxation will only be orderly and systematic if the government will ask people to file their taxes accordingly. It is not a perfect system, yes, but it has worked okay since it was adopted on a large scale.

You cannot certainly run or avoid taxes as long as you are residing on a country and being ruled by a government. All of the goods and services have their own topped up taxes that are used for different purposes such as maintenance for the industrial needs and as well as construction of different highways and buildings to be able to develop the economy of the country which will provide better living supposedly for the people of the country. There are legal laws concern that must be followed so you cannot escape or run from paying taxes.

There would really be pros and cons but actually it do really resolved out when it comes to transparency yet it would really be seen if there are outgoing funds on said wallet
which would really be questioned out on where it being spent.

but to think up on the entire process or system like verifying on whose the one been paid out then it will really be still a hassle thing.

Also, not all government would really be positive on this idea specially to those who are on corrupted countries.This will truly wipe out their traditional shady stuffs.

True enough, but instead of a percentage it'd probably instead be a flat amount if used directly in the blockchain. Of course, we can probably send it into multiple central groups first that split the amount into two, the taxed amount and the amount to be given minus the tax, and the taxed amount would be based on the wallet address given. Though there would be conflicts in the sense of "how much" tax one should give, especially in the middle-lower class since the definition of one would be sometimes vague and even if we use household income, it would still depend on the number of members inside that certain household.

Besides, if this were to happen additionally, it'd either be exchanges working with the government right now, or the government would create their own, and probably ask down to close those private exchanges, which is ofc absurd imo.

It is possible as what you have mention that taxes will be smaller percentage with the use of cryptocurrency. However, we know that banks services are being use when we transfer money to buy cryptocurrency and so does when we will going to sell cryptocurrency will be using third party service to withdraw the money we had during the exchange of cryptocurrency to fiat currency. Actually it did a double kill on getting transaction from the third party and the same time from bitcoin miners or cryptocurrency miners itself.

But if we could remove these third party and make a local trade with cryptocurrency that could be use in daily life living expenses then pretty sure cryptocurrency will be a great help. For now we are slowly heading towards adaptation of cryptocurrency and hopefully it will going to happen sooner that many people will going to adapt on this system.

This is the reason why the government earning money with the use of taxes. This is the reason why your country has a budget to use to build a different infrastructure. If all of the people today now are using cryptocurrency as a transaction with the use of blockchain to prevent the taxes for sure many countries today will ban the use of the crypto because the country is not earning. Also we are only using the blockchain like a cloud database or cloud storage to make more easier to access the information but at the same time this is secured.


There is a chance might happen because AFAIK there are a lot of countries have a centralized exnchage at the same time they are earning with the use of cryptocurrency so they don't need to worry about the taxes because they are earning with the use of transactions of their different users.

The government will ban cryptocurrency and blockchain technology if every citizen cannot pay their taxes because taxes are why a country has funds to create infrastructure and where the government earns money. So we cannot avoid paying taxes with the use of blockchain and cryptocurrency because it is mandatory for every citizen to pay their taxes. But I think we are already paying our taxes and fees in centralized exchanges when we make transactions or converting our cryptos into fiat and vice versa.

There is no solution to the problem of paying taxes no matter where you live because the government spends on improving the country's economic infrastructure with taxes and subsidies from the people. The national board of revenue sets the tariff price for all goods and services and this price later determines the vat revenue the best solution is to use crypto is not under the control of a decentralized government so there is no tax blockchain technology is improving.

This is all very well and really sounds like a sound idea - but you do understand that it is not profitable for any government to have a system of crystal clear taxes? How then will they Finance the "black" sectors of the economy (military industry, research in the military-industrial complex, and other things about security and weapons)? This is at least. And as a maximum - it's no secret that in any state in the world there is theft of budget money. That is why even the most kind and fair President in the world will never come up with the idea of making such a system - because relations between people, their support and votes under different laws will always be much more valuable than your desire to know where your 2 dollars of taxes went.

We can't get rid of taxes easily, if I am being honest impossible. Tax is the lifeblood of the state and that is the reason that tax evaders go to great lengths such as off shore accounts and shell companies. We can't do anything if the nation we are in imposes tax on cryptocurrency. Honestly, tax is a good thing if it is utilized with efficiency and without corruption in the officials handling this matter. Some countries have high taxes but enjoy free health care and less working hours. Also good roads and infrastructures.

Everything would really depend on what government you do had, lucky if you do have that those who arent corupt then that would surely benefit its citizens.
I cant blame out people on why they do evade taxes or minding on not to pay its neither on common two reasons, its just they dont like to pay up just because
they dont like for their money to be deducted or just not really like just because its useless due to corrupt government officials.
Blockchain on taxation system? It will really still pass on many debates and argumentations before it would go on such transition.

When I learned a bit about financial things including this taxes, I really thought that there is no way to avoid paying taxes when you are working and you have an income.
Although I don't pay any taxes right now for some reasons, most of the people are paying taxes and that is a help for the country so why avoid paying it?? I don't see any reason avoiding it.

Also take note that not all of the government are accepting anything related to blockchain or crypto.
Not all of the government are that knowledgeable when it comes to blockchain so why will they invest time and money into something that in the end will not help them either or.
If they will do this, they can't do the things that they are doing right now :D. I'm pertaining to the corrupt officials in the government :D.

Yeah, pay up your taxes, be a decent human being and contribute to the society, we need more good personality.

Tax evasion is a draw back to the economy. The payment should be made approximately. A country that is friendly with bitcoin and charge tax in bitcoin is more secured to get citizens to pay because blockchain is open to everyone access.

I do not think evasion of taxes is beneficial to a country's economy. One should know that the economy of any country is sustained and maintained by the taxes paid by its citizens.
For the crypto earners, I do not believe the government would accept a decentralized system such as the Blockchain technology which is totally not in the control, just yet. They wouldn't accept a system that is out of their control, at least not yet. They'd only find a system to accommodate the crypto earners, at least over the coins they've converted to fiat until a better system is put in place to accomplish this

The optimal policy for taxes depends upon which of the following stances a person personally subscribes to.

Stance #1  Free markets and the private sector are better suited to solving problems, elevating standard of living and creating innovation than governments.

Stance #2  Governments are better at solving problems, elevating standard of living and solving problems society faces than free markets or the private sector.

If most of our progress, new inventions, innnovations and standard of living come from the private sector -- the logical environment to pursue is one of low taxation. Low taxes guarantee more money going to free markets and the private sector, which translates to greater progress and elevated standard of living.

If however governments are better sources of innovation and progress than free markets or capitalism, then higher taxes make more sense.

Not good for you to avoid those taxes since in the first place you are the one who will suffer since if many people will have the same mindset as you then provably the economy of the country where are you in will collapsed since the government cannot get any funds to use on developing the country. Just accept that it's your obligation to pay and help your country.

As human its normal for every one to pay taxes it is your obligation to your country it is also a good support for further economic growth . if you know you have the ability to pay your obligation pay them even no one see its your job to do don't you ever think about avoiding tax since if proven guilty you  will be charged here after.

As for OP he want to make it automatically deducted every time you send balance to an address which impossible to happen by now .

This sort of techniques is called tax deducted at source or withholding tax. But for withholding tax to be active we need to have a different blockchain or a different cryptocurrency as this is not possible on Bitcoin without a Hard Fork. But yes even then there needs to be seggretgstion between personal transaction and business transactions only then this idea would be successful why would I want to get tax deducted on a transaction or reimbursement that I send to my friend?

Never you try to avoid tax in your country because if you do it will be so difficult for you to make a good profit like the way others are making it in the environment because they paid their tax. Every government have tax force who are in charge of taxe collector in the environment. If you fail to pay your tax it will be difficult for you to make a good profit.
Many country use tax to develop their economy for the benefit of the citizens. Pay your taxes regularly according to the law of the country. I think pay your taxes regularly is the best solution not to find yourself in the hands of the tax forces in the country.

One way or another, I have a positive attitude to taxes and it is important that they are not disastrous for business and for an ordinary person. All taxes fill the state budget, which finances social programs, government services, and the army. And if we talk about taxes for a cryptocurrency user, then everything depends primarily on the specific legislation in the respective country. In Ukraine, where I live, there are certain minimums of funds that I can comment on with cryptocurrency in Fiat, while these transactions will not be taxed and I will not even be required to provide passport data.

This isn't about tax evading, OP suggested a new method of getting tax by the government which most of us think that will not work since there is more offline transaction than online transaction. We all want transparency due to massive corruption every where in the government, but the idea is vaguely pronounced. I guess it will not work.

Taxing bitcoin isn't friendly at all, imagine making a profit out of it from a long term holding and you need to pay for taxes  :D

Taxation is the government way to sustain the economy. If you are a good tax payer then you contribute for the development of the Country. If ever government put taxes in cryptocurrency ,we can't avoid it but for now I think  the government are still finding a way on how  to put taxes in a decentralized cryptocurrency.

Why on earth there are so many people on this thread that think OP was speaking about avoiding taxes? He was talking about an idea of automatizing them. But imho this is just oversimplified view on taxes.

OP definitely is onto something but paying taxes based automatically based on transactions isn't really the way. I mean if that would be a good way to do it we would now pay our taxes just from fiat money transactions.

Point from Cnut237 for example was good:

That's actually a good idea. But it would take time for developing country to adopt to these kinds of technology. Some countries just have enough resources yet to be able to implement this. And also, even after this, you can't still be sure if these taxes will be going to good use. As long as the management is greedy and corrupt, this initiative is still futile. We must focused first on the management of the before the tax implementation itself.

His goal on creating this thread is not to avoid tax rather to implement tax on blockchain transaction. You should read carefully what you are replying for.

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This is a good initiative but as already stated by many user above. We have different tax percentage based on our financial status. I believe its still better to annually summarize your tax because records is always available on the blockchain. If ever your wallet provider implement add the feature that already determines your right tax percentage then this will be possible because they can set the fee appropriate to your tax.

This will be possible if the government or a 3rd party create a crypto wallet dedicated for tax extraction. An official crypto wallet for a certain country.

If the processing and tracking of data for transacting users is to determine the taxes carried out by the government, then at least there will be a large-scale KYC process that must be carried out by the governments of each country. Only if the tax is withheld when Bitcoin is in the state.

For the problem of varying the tax percentage for each country, it can be solved by hitting the average value for each country. This of course does not require KYC because the tax transaction process will not be carried out through the government, but what happens is that no trusted agency manages the money from the tax. And this is dangerous

It's actually a good idea to impose taxes using blockchain technology, but the problem is not all countries accept a decentralized
system such as blockchain technology. Although it is true that tax payments using blockchain technology will be more transparent.
But it is better if in order to be optimal in its implementation, the government needs to create their own cryptocurrency. Although
I am still not sure that this will actually be realized.

Overall, the most daily transactions made by the crypto community in my country are around $ 78 thousand-110 thousand, this is included in all existing exchanges, official.

Indeed it is small, with a potential of around $ 1000 in state revenue from crypto transactions in one day, if multiplied annually around $ 260 thousand annually, that's the current reference if multiplied by the percentage 0.01%.

From an economic point of view, the government has an additional tax that increases, since the tax on crypto in the country is based on Law No. 99/2018, with a provision of pph estimated at "0.01% currently in effect.

Now 100% accepted, both CEO and community, any cryptro exchange operating in my country welcomes the current government policies, although, there are some who argue that 0.01% is too big, however, it is not a serious problem at the moment.

Our government will not participate on this one, they can't be transparent easily because they are all corrupt so this solution wont work in the first place. We are paying the taxes through exchanges and some are declaring all their income including the crypto profit, they have to pay the taxes.

Blockchain technology can help the government a lot not just by imposing and be transparent about the taxes, it can also help the economy grow. If there's a faster way to transact with the government, blockchain technology can help us and can lessen the paper works being asked by the government every time you transact with them.

The problem about this is how will the government keep track of the owner of each wallet and which transaction came from what country. If this will require KYC and you needing to provide your identity before being involved in crypto, this will beat the purpose of crypto which is privacy.

What a poor topic!

With me living tax-free for 23 years, I was expecting to find here some new trick to screw the taxman... I'm always surprised to see that some people enjoy paying tax. I'll them a secret: paying no tax is better. I'm paying property tax on my houses, that's more than enough.

Another issue is that by addressing transactions, we are penalising the free flow of capital. The more times it's moved, the more it gets taxed. This disincentivises spending, and encourages hoarding. It also creates issues for large companies where money may flow between different departments or sub-companies, getting taxed again at every step.

The fundamental issue I believe is that income tax does not work effectively as a reducer of inequality, partly because the rich have (legal) tax avoidance schemes, but more so because the rich have existing assets that are earning them money that is not taxed as income. It has been argued, by Thomas Piketty amongst others, that in order to address inequality we need to start taxing wealth as well as income. It's a truism that the distribution wealth across a population is much more unequal than is the distribution of income. This issue worsens when - as now - the rate of return on capital exceeds the GDP growth rate. The rich get richer faster than workers, because their investments give them a higher annual % yield than the annual % increase in worker pay. This is exacerbated by the fact that the richer you are, the better the investment opportunities available to you.

Taxation of transactions won't address this. Taxation of wealth will - however this is obviously beset by practical issues such as how such a scheme could be implemented on a global scale, because the people we need to tax are to a large extent the same people who determine how those economies function. Convincing billionaires to vote against their own self-interest is always difficult, but perhaps this may be viable if inequality reaches such a level that it provokes widespread civil unrest.

There are 2 ways and opinions about this usually:

● There are people who say of we are living in a particular country we must abide the taxes and pay them if even they are not forced.

● On the flip side there are people who say they should be paying no tax because the money they earn is their own and government has no right to decide the tax on our hard earned money.

I believe we should save as much tax as we can save because tax saving is another form of income but saving tax does not mean evading it, there are ways with which you can minimize them and avoid being in trouble.

There’s a lot of ways to be legally not liable to pay taxes, and we already saw this one on the news where big companies didn’t pay any taxes, same as Trump he was able to minimize his tax obligation. The government is just imposing this law so they can at least get some funds from you, but they can’t force you to pay if you legally declare your all income and yet you are qualified not to pay the tax. Exchanges are doing it already through the fees we are paying for, i don’t know how they can pay the taxes but its their job to compute and pay on our behalf.