Bitcoin Forum

I suppose that this issue has been discussed a thousand times, but the other day I went to make a query to the Treasury and took the

opportunity to ask, "Do we have to declare bitcoins?" the reply was, "not clear?" He raised his head and asked the one next to him and the

same, he made a face to say, what does that freak say? Just curious...

Yes you have to pay tax. Depending on what country you're in and what they see bitcoin and Cryptocurrency as will determine what rate you ay. Most likely it'll be some sort of capital gains tax if you invest and sell at a higher price or earn and sell at a higher price.

Not really into taxation, but for example, there is no tax on a particular country before that someone trading and selling bitcoin, then suddenly imposed a tax on cryptocurrency. Will his record in the past should be process too? Or did some any scenarios where prominent or known users encountered a situation like this where their funds are being investigated or wanted to imposed tax even so law or regulations are not yet being implemented?

It all depends on the country in which you live. For example, a law on digital financial assets came into force in Russia. Now it is allowed to own cryptocurrency, but it cannot be used as a means of payment. Now you need to file your digital currency ownership tax return. It is also assumed that citizens are required to report to the tax authorities if their transactions exceed the amount determined by the government.
True, it is not completely clear how they will monitor those who do not pay taxes.

From what I have researched and found, in my country we have to declare a tax on crypto earnings but only at the moment when we exchange crypto funds in fiat.
10% tax must be paid on earnings from crypto trading, which is not so bad, especially if you want to spend your earned money without fear of the authorities.  ;D

While I understand you coming here asking about taxing laws (since we have a huge userbase there's a high chance that you might find someone from your country) the best recommendation that I can give you is to ask your government tax department. If if it's like my country they have offices scattered around the country and they are the best to help you with.

A quick example : My country (belongs to Europe) doesn't tax gains from BTC/crypto assets. Every gains that you have with the sale of crypto are all yours and will be for the foreseeable future. However that is not the case in Italy. They apply a 28 % tax on any gains that you might have with the selling of your assets.

TL:DR - Ask your government and, if possible, have a written reply by a tax representative so that you can have insurance in case sometime changes ;)

You have to either talk to some expert so that the actions you make do not go wrong (like completing the wrong form - the authorities will not care that you've made a mistake!) or you go the anonymous, off-grid route where the governments don't know anything about your cryptos. Obviously, the second one is a legal risk.

Guess that is mentioned in the new law's content. Here in Romania, we have something called "retroactive application" which basically means the law also applies for the past. A retroactively-applied crypto law would mean all your previous crypto actions are affected by it.

Obviously, if you have Bitcoins and you live in a country where they are taxed, you must pay them. You must get in contact with the person who makes your taxes for you and ask them what you need to do. If that person doesn't know either, find yourself another because cryptocurrencies will be more and more common in our lives, and people who don't know about them and do that sort of job should be considered inefficient at their job.

You must seek the advice of an accountant especially if the legal frame concerning cryptocurrencies is not very clear in your country, which is true for a lot of countries right now.

In fact, in many countries, in particular the EU, there is already clear regulation on bitcoin and taxation.
In my country, the tax office has already made and published an official opinion on how to report earnings from bitcoin and crypto.
Accountants still know very little about it because they have not had such cases or clients.
I know it from my own experience.

[Tutorial] Crypto taxes for beginners (https://bitcointalk.org/index.php?topic=5275952.msg55199485#msg55199485). Depends on the taxation policy on your country you must follow local taxation policy and rules.

How will he pay the tax if in the specific case Bitcoin is not regulated in any way and there is no procedure by which such a tax would be calculated at all? Also in some countries there are laws that say that if someone buys and keeps crypto for at least 1 year (in some countries 2 years), he does not have to pay any tax. Some countries do not have any regulations on cryptocurrencies, and there are no taxes on them.

For example, here is what they say on this topic in Chile :

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kulboi123, visit the link above, you may find some information that will explain the status of cryptocurrencies in your country.

That's good to hear and there should be clear rules to help citizens with their tax filings but as a resident of an EU country, my experience has been different. And Bitcoin is mostly unheard of when you ask accountants in my country. I've gotten more help from local telegram groups than accountants, which is not what I recommend by the way when someone is filing their taxes, but that's what happened.

It will be difficult to give exact answer to your question when we don't know where you're from. Everything depends on laws and regulations of your country. But usually, you don't have to declare Bitcoins and pay taxes for it. Everything begins when you sell Bitcoins for fiat and get profit. Then you have to pay income taxes. Let's say you bought Bitcoin at $10k and sold at $40k. You got $30k profit and let's say income tax is 15%. So, you will have to pay 15% from $30k.
And yeah, I know that people who are working in these government institutions often aren't familiar with Bitcoin. So, it would be good to consult with someone who is familiar with crypto and it's regulations in your country.

I live in Croatia and in our country the tax office has published very clear instructions on how to report and pay tax on crypto earnings, with concrete examples.
They can also be contacted directly and requested additional information.
As for the accountant, I agree with you here.
For them, it is something completely new and unknown, and in fact we know a lot more about crypto than they do.
I suggest you visit your local tax office and ask for help.