Bitcoin Forum

In Ron Paul's view, bitcoin is money, and it should be taxed as such. How do you view this information?

Bitcoin is already taxed since few years ago in the countries that Bitcoin is legal, if you are from countries that banned Bitcoin of course they didn't tax it since they think getting source from Bitcoin is illegal etc. But I believe when they already unban Bitcoin, they will taxed Bitcoin because they can't control Bitcoin unless tax it.

I do think so too since there is a lot of money involved with bitcoin, although I would only be okay about it if I know that the taxes are going to a good place, if it's like my country where corruption is rife, I wouldn't think twice evading those taxes, might as well do the help myself.

In the US which is where Ron Paul is obviously referring to, but also in a number of other countries, bitcoin is classed as property for the purposes of taxation, not currency. This allows the IRS or other relevant tax agencies to extract the maximum amount of money out of bitcoin users, where otherwise they might not. Some countries don't tax currency to currency trades at all, whereas some only tax them beyond a certain limit or for businesses but not individuals. Classing bitcoin (and other cryptocurrencies) as currency rather than property would undoubtedly be beneficial for most users, but would result in the government losing revenue, so it's highly unlikely to happen.

In my country, bitcoin is seen as a financial asset.
When I exchange bitcoin for fiat I have to report and pay capital gains tax of 10%.
If I have kept bitcoin for more than 2 years I do not have to pay any tax.
This is actually a very good and fair rule and I have no problem with that.
Personally, I don’t think bitcoin will become money in the true sense of the word, because 99% of people will always invest in bitcoin as a long-term investment and not out of a desire to buy something.

Taxation is a way of recognizing Bitcoin as a legal currency, which also means that Bitcoin's scope of application will be larger than before. The chance of Bitcoin legalization is that money will flow into Bitcoin more often and make the market capitalization of the entire cryptocurrency market larger than ever.

I think this is necessary if the country has legalized bitcoin. And because bitcoin is money the state must provide a special financial institution for bitcoin. So that bitcoin users can feel more secure using it.

Tax is good for crypto as that legitimizes it as an asset. If the good ole USA see's it as another form of revenue then chances are they wont buck the crypto trend but rather adopt it.

In our country, the use of Bitcoin has still free of tax unless if we converted it to fiat money, may taxation applied.
However, the use of Bitcoin still limited, only a few establishments are accepting this and that just like we are paying taxes as we usually converted it to fiat money.
Well, I don't see any problem with that as the government just do their job and we have to obey the rules. As long as it was fair, everything will just be fine.

I’d love to get 0% tax on bitcoin I sell but unfortunately in the UK we get charged 20% capital gains tax on profits once we sell. Some countries have it worse than that but I know Germany is 0% if you HODL for 12 months or more.

Bitcoin is a type of money but it is totally different than fiat money. It is more like between fiat and investment tools like gold, silver etc. . We are not only using it for buying something but also for investment purposes. It can of course be taxed. But I think that they shouldn't impose an income tax on it. It is really not fair.

bitcoin doesn't have to pay taxes because the government doesn't legalize bitcoin in their country I haven't heard of any country legalizing bitcoin so talking 'taxes on bitcoin are too far.

Yeah, once you start taxing something the scope of applications goes down as everybody wants to fill a form every time he spends some coins he has bought 10$ cheaper. Also, if you would have paid attention Ron Paul's idea is that bitcoin is money so it shouldn't be taxed! Right not it's viewed as property and is taxed accordingly!

In case somebody wonders where this comes from here is the article:
https://cointelegraph.com/news/ron-paul-legalize-and-tax-bitcoin-like-money


But good luck with that, the last thing US lawmakers are thinking right now is exempting things from taxes:
U.S. Treasury calls for stricter cryptocurrency compliance with IRS (https://www.cnbc.com/2021/05/20/us-treasury-calls-for-stricter-cryptocurrency-compliance-with-irs.html)


Oh yeah, let's add some more bureaucracy, more laws and regulations, and pay more people for what?
What's the real need for any of those?


On what planet do you live?

depending on the policies of the country that legally adopts Bitcoin or only legalizes it for private users. because we heard that some time ago bitcoin was taxed. but whether the holder will feel very monitored for the wealth he has. simply because it eventually turned from Bitcoin to fiat money.

you are responding to "lets MAKE a story news"

MSM decided that ron paul needed to air his Opinion.  Bam more controversy thus more interaction and steering of narrative control.   

Fact.  Capital gains are already taxed.   End of story. 

A plethora of new policies regarding bitcoin are being debated as the virtual currency gains momentum. It's a topic that is under intense discussion around the world, with many countries either legalising cryptocurrencies or considering legislation to regulate them.

Regulation of cryptocurrencies is vital. There's no question about it. While I do not see any problem with taxing capital gains with cryptocurrencies, governments should do so in a fair manner, so the people who earn more do have to pay higher taxes.

tax for bitcoin is something that cannot be avoided in the future because if bitcoin is legalized then there will be certain fees that are intended for state revenue
but even then bitcoins used for direct transactions are different from global transactions most likely will not be taxed because of the anonymous blockchain system

if this can make it legal, all that is fine. what we need now is recognition from the government, and if taxes are one of those ways we have to accept it all. that way we will be one step ahead towards mass adoption.

Right now, whether Bitcoin is taxed really depends on the country where you live. I think that Bitcoin itself shouldn't be subject to taxes, but that the income from trading or just getting BTC as a salary should be reasonably taxed in a way that's similar to fiat income taxes. So it shouldn't be anything crazy because then people will just hide it, and the procedure of filing taxes should also be as simple as possible. I think such conditions would move a lot out of the gray area, and it can be beneficial to countries economies.

In the USA it's already taxed.

As stated by CNBC Infonesia, the Director General of Taxes at the Ministry of Finance emphasized that all forms of income must be taxed, including income derived from profits from trending or buying and selling shares, or bitcoin. Countries that have legalized bitcoin definitely need taxes, like Germany which receives a 25% tax on all profits made from trading, Norway also receives a 25% tax, but if we suffer a loss our taxes will be withheld.

This is true because slowly everyone is starting to realize that Bitcoin has benefited the wealth of many people. then the institutional and government policies will impose a tax on Bitcoin. we all had a feeling this was going to happen. if so then be prepared who will be in charge of all this?

Confirmed, and I just think the tax will be realized by any government that legalizes trading cryptocurrencies including bitcoin and it is still in the good planning stage. This proves that the government has greater advantage than disadvantage even though it only legalizes bitcoin trading and enforce tax rule. This is what I call a win-win situation between the government and the bitcoin/ Cryptocurrency community. The amount of tax that will be set may be in the spotlight and debate later if it doesn't make sense.

Quite a few countries have imposed taxation laws for cryptocurrencies, in some degree, I'm fine with it. It's still money, income you are generating. Thus, I don't find it irrational. On the other hand, cryptos are supposed to be decentralized, providing liberties that fiat currency cannot, it's practically against their nature.

Here in Greece, there isn't any law regarding crypto taxation, however, you are expected to declare any income higher being deposited in your bank account, higher than 500 euros if I remember correctly.

It helps legalize BTC not as a currency but as an investment asset. Governments do not tax fiats like USD but they tax income derived from trading fiats or investing it to different assets that can generate revenue. Now replace USD with BTC.

Anyone advocating more taxes needs to have their head examined.  We are taxed enough already!

I don't like things being taxed too much, but i guess if bitcoin is being taxed, it might be easier for bitcoin to be acceptable by the governments. Since that way, government can gain something by bitcoin too. To be honest sometimes i feel like it's too much, people can get looooots of money and profit from bitcoin without needing to pay anything, it might be a bit dangerous, i guess as long as the tax are not so high and nonsense, having bitcoin taxed is reasonable.

Even if it isn't compared with money, as long as it has value, I believe that it should be taxed accordingly. This is not only for fairness itself but also for the purpose of helping bitcoin or any other crypto currency out there to have some sort of legitimacy to it specially on the eyes of the beginners. But most importantly, for the sake of helping it become legalized since we all know what the governments and banks want: to always have something to gain and to always have control. That is just how things are ever since I can remember.

Nearly everything is taxed as long as you make a profit from it. Hence, I'm not surprised to see that Bitcoin earnings are taxed also. But I don't support governments that imposes a tax which has a high rate (like 20% etc.).

Of course it should be taxes and people are paying taxes for their crypto earnings even from the country where the crypto is not regulated yet, but do we need to add an extra tax just for the crypto currency?

It is unfair because its just a money, we are not paying taxes when we use paper as money then it should be same for the crypto as well.

It's not only for the tax but we have government that accepts btc without forcing people to pay tax on Thier btc gains but I heard that in the u.s , btc tax is mandatory but it wasn't a nonsense move because there will be usage for our tax .
what only the tax payers won't like if if they are being charge too much because they will think that their government is corrupt .

To be honest I am not in favor of bitcoin will be taxed by the government because as far as I am concerned is where do the taxes of bitcoin will go? In the hands of the corrupt government? The thing that I am using bitcoin is just because there is no tax on it wherein I can get the exact amount that I've desired to withdraw no matter what happens, compared to those that are paying taxes there is a huge difference between those two but somehow I am getting the point of a certain country if they will try to legalize bitcoin and putting some taxes on it because as far as I am concerned is in order to control bitcoin and legalized it there is a certain criterion to pass.

No, not as an extra tax, but as an income tax, like in any other business, or as a capital gains tax, yes.

When Tesla Inc. and other companies, like them, make billions of dollars in profit from trading cryptocurrency, they need to pay taxes as well.

He is sort of right, no matter how much we shout about having a decentralized economy and things but in the end, you need to pay taxes so that you need to contribute something to keep the country running. Imaging a completely decentralized economy is a myth for the next 40-50 years and until then we can imagine bitcoin only as an investment and Investments can never be kept outside the purview of Taxes. Also, most of the countries are already collecting taxes from crypto investors so this is no surprise for anyone. The moment you transfer funds on any exchange you are yourself selling with the caveat of paying taxes as most of the exchanges now have complied with KYC.

We might not just be noticing but bitcoin is actually taxed already for some countries that allows the use of it. It may seem like it is a part of the scheme of the government but it actually helps it through making it look like a real currency or a potential currency in the future. The taxation might even help bitcoin become recognized by other countries as a helpful currency since many people are already patronizing the use of it. Either way, with tax or without tax let us hope bitcoin would get the recognition it deserves as well as the legalization of it on other countries.

Yes, bitcoin should be taxed, but only when it transfers hands.

There are several sticky points:

1) The amount of crypto that a person owns in total should not be taxed. For those early enough in a crypto space, this would be an impossible calculation, especially considering the number of forks with possible value which the user may never consider.

2) Americans receive capital gains taxes no matter where they live. So, there's 20% for the US, and 20% for the other country. This only encourages hodling, and decreases the cut that the governments get after bitcoin rises in value.

3) Cashlike transactions should have only sales tax for nominal goods and services. 20% plus sales tax is ridiculous, and encourages illicit use.

4) A person could start with 1,000 USD, and transfer between himself and himself between cash and bitcoin, using an exchange, 20 times in a day, but losing no money. According to many countries, that person now owes tax on all 20 transactions, losing significant value, although nothing meaningful was done.

Taxation is useful for many things. Rational policies encourage people to uphold the law, where irrational policies can spiral out of control.

what I know is that bitcoin has been taxing for a few years, but not all countries have implemented it and there are only a few countries that legalize bitcoins that tax bitcoin and for sure the countries that have taxed it are in the big countries that do. legalize bitcoin.
but there are still many who have not taxed bitcoin because the reason for this bitcoin is still not clear whether legalized or not.
but for the future I am very sure that many governments will start to tax this bitcoin, the reason is because there are so many enthusiasts of bitcoin besides that bitcoin is also starting to be taken into account in all countries

it is very difficult to check one by one the transactions in and out of bitcoin and also those who have bitcoin assets, because bitcoin ownership is not based on the owner's name directly but only a wallet address that may be more than one person has a wallet to storbitcoins..

Definitely a valid point I did not think about. Tesla and any other company can't make millions, if not billions in profit through Bitcoin and not get taxed. That would be outrageous. Any kind of income should be taxed, no matter where it's coming from.

Aren't paying fee every transaction already?
And how is it going to be tax if ever that would ever happens?
Would the small time earner in  crypto be considered?

Bitcoin is obviously tax, but it should be bitcoin transactions should be tax as it will not be useful if we will not move it or use it.

I guess big countries already had a tax framework on bitcoin, and the rest of the countries will just follow.
You know, there are only two things that would happen, either they'll tax bitcoin or they'll ban it.
Nothing comes with free now since we are living in a centralized world.

In US and other countries, they've been already taxing it. Bitcoin is classified not just as a money but also as an asset for which give gains to the person who owns and sells it. That's why every gain coming from bitcoin depending on the country where the person resides, there will be an income tax that shall be imposed even it's bitcoin. But IMO, it shouldn't be because it's decentralized but although the government cannot control and stop it, they're just going to put a tax on it because it gives gain to the people who are trading and owning it. So expect with your first purchase if you're living in a country that tax it, when the time comes to sell, you cannot avoid its taxation that's been said on your government's rule about bitcoin and taxation.

Paying the transaction fee is different from being taxed.

We already pay a lot of fees for making our transactions these days. This is like paying taxes to us, investors. But most countries are imposing an income tax for cryptocurrencies. And this must be really frustrating for people who live in such countries. I think that the tax rates for cryptos shouldn't be so high.

Ron Paul stated because he considers the Bitcoin status in his country. If Bitcoin is legal in the country, it can be taxed as the government support and guarantee the legality to have a business in Bitcoin. It is normal, just like other assets to have taxes as a form of appreciation to the country. And this means all crypto users in the country can be safe to trade or have an investment in Bitcoin. So, I don't think it is bad news for us!

each country's policy will be different, maybe the volume of transactions in that country is a factor in determining the amount of the tax. Big investors certainly won't mind if the regulation goes on

You are going to pay income taxes even when there is not tax rate for cryptos but in US like countries the tax rates are separate for crypto assets so users needs to pay huge amount as tax for their crypto earnings along with all other taxes what government is asking.

This is from personal experience having paid capitol gains tax on bitcoin that I've cashed out *U.S. citizen - it's already taxable


Ron Paul would have been a Libertarian if he could have won a seat that way-----he is for less regulation and more for "free markets"

Towards the end you can hear what he actually thinks

https://www.youtube.com/watch?v=RAS7YScbKSo

For those who can't watch the whole thing
summary:
You wouldn't tax a currency and in a free market the dollar should have competition

If you can see some improvements in your country when there is a tax raise and you are enjoying a free healthcare and you are paid to go to a university, probably a taxation on bitcoin is a good thing since you can see where your taxes are going.

if it has been legalized, of course it must be applied taxes like money in general in terms of advancing a country. I personally experienced that, well after all this is like getting income, then being obliged to pay taxes for the sake of the progress of the country in terms of the country's economy.

This is what politicians loves to have , to make money in everything like crypto market.

There had been taxes coming from place to place like in some countries , though in my place there are still none of it in acting.

Thats good, it must be legalized first before taking taxes.

It’s nothing new, it’s already happening in some countries where Bitcoin is legal, and has been classified as an asset that is similar to property. In countries like this whenever you do retail transactions, it is subject to being taxed (things like buying and selling  of goods). And also when you’re a Bitcoin miner you’re also going to be paying tax for it.

So there are taxes for bitcoin, and it depends on where you’re living and whether it is legal or illegal at that place. But there are still people who try to avoid taxes through one way or the other, and I don’t think those who make use of P2P methods will pay tax. Just don’t know yet.

why not, bitcoin is not completely anonymous anyway. The exchange has data for every bitcoin traded. so it could be taxed. but one thing the government should do, they should legalize the use of bitcoin and provide protection for crypto related issues. there are a lot of crypto fraud problems and so on, but the government doesn't seem to care about this just because crypto is decentralized.

That be going to happen if every Bitcoin holder will voluntarily surrenders and tell the government that they are holding Bitcoin. But I'm not sure if someone will do that when we tried to protect ourselves and keep anonymous in the state. And the other thing is that this will only possibly happen if the government already declares Bitcoin to be taxed, other than that, it all remains free. Some country has already been imposed but the majority still on the negotiation.

Fees are not taxes, it is the commission. When you buy something at the store and pay with the card, store owner pays commission to the bank for money transaction.

If government wants to collect taxes from investment, how they gonna find out what was the price of Bitcoin, when a person has bought it? How they gonna find out that I have bought Bitcoin at the price of $20k, but not at $60k, compare it with current price and tell if I have profit and owe them, or I'm in a loss?

hello sir, I think if that's true it's possible that bitcoin will decline again with the tax, or without realizing it we've been trading on the bitcoin exchange has been taxed every day as an example of "fee" where every exchange will definitely cut a little for the cost of buying and selling

Thanks, I figured out the problem. Probably should only tax crypto-related goods and income.
Bitcoin is a currency, not a commodity. If taxing currency looks very absurd as you have explained. I hope the US government will soon finalize the regulations on cryptocurrencies so that the adoption of cryptocurrencies becomes faster.

It is very difficult for the government to impose taxes if Bitcoin owners do not report Bitcoin ownership, because only the government can get
the data from local exchanges that have implemented KYC procedures. And I doubt a Bitcoin owner will keep all his Bitcoins on exchanges.
They will keep it anonymous, so taxing Bitcoin is still a gray area for some countries. Only countries that have legalized Bitcoin, then the government
has officially imposed a tax on Bitcoin ownership, maybe the government can get a tax from Bitcoin.

That is a fee that we should pay for the exchange. The tax is something that we should give to the country and the government can use the tax to grow the country and the government control the tax. Maybe the government can apply the tax but not for bitcoin, but people withdraw their bitcoin to their banks account as the banks still use it. When people have fiat money in their bank account, the government can take the tax from them. But for bitcoin, the government can not control it but they can watch the transaction made to people's bank account.

Either way, Bitcoin and any other cryptocurrency are charged the moment you exchange it for fiat money. Each time you withdraw from the exchange to your personal bank accaunt, this must be reported as income that is charged with profit tax (in different countries it can be said differently).

The power to tax is the power to destroy.

The power to tax bitcoin means there is the ability (through taxes) to make it unusable and/or unprofitable. That gives them a way to destroy bitcoin without actually out-right banning it.   >:(

As long as governments don't see Bitcoin at another level, it will continue to be taxed. And the tax rates have been really high so far. If I'm not wrong, the USA is one of the countries that impose the highest tax rate on Bitcoin.

actually its not BTC that being taxed in the USA... Its the dollar   You dont pay any taxes on crypto currencies until you sell them for USD.  and then its only "IF" you made a capital gain.  So you are paying taxes on your USD capital gain on ALL cryptocurrencies just like stocks.

In my country, only centralize exchange taxed but for retail investor did not. I think that not necesary because crypto invesment is high risk, so investor are not burdened with tax anymore.

Retail investors earn a profit to so there's no excuse for them to be tax since for sure government will always think about profit accumulated by the investor, But I'm sure government will find ways that people will not feel about having it and maybe they will implement it on exchange and ask a little part automatically in every transaction you made on exchange platforms.

It is undeniable that the main reason why some countries are on the hunt for crypto is that they want to control it and impose taxes for the users and holders. Well, that won't be an issue, I know it will come, maybe not today but could be in the near future.
If it will happen that Bitcoin will be legalized, the more it gives the authorities the right to collect taxes and I find no excuse for that.

I am getting charged through taxes when I tend to cash out my Bitcoin to my local currency. Usually it is when I get into remittance centers to get the money out.
Too bad I am getting one when I use 3rd party apps.

Honestly, when I think about this topic, I personally think that bitcoin, or any altcoin, should never be taxed.
It is a high-risk investment, which will not pay off for everyone.
In most countries bitcoin is not fully legalized as money or even financial assets.
The second question is what should happen when bitcoin is exchanged for fiat money, that is, when we withdraw from the crypto investment.
It is often very difficult to prove to the tax office how much we have actually earned or lost on crypto investments, given that they are still trying to apply the rules from classic investments and stock exchanges to such investments.
Because of that, many investors in the crypto market avoid paying taxes and move to the "gray zone", which is an additional problem.
I think that for a lasting and fair solution to the issue of crypo taxes we need a dialogue between the crypto community and tax experts, and the government.

If this is to be taxed then be it , People will only follow what's the government will allow and this is including taxation though they will face big problem on how to implement this.
for how many years that this has been into process yet cannot be implemented but with all respect? i will pay tax when our government asked me to.

If we all want Bitcoin to be accepted in the world and be money, then it must be regulated and comply with international financial laws. Based on this, Bitcoin should also be taxed. I also do not mind this, since it will allow Botcoin and the entire crypto industry to be accepted all over the world, and as a result, it is cryptocurrencies that will be able to replace the existing financial system with a new, more practical one.

This is happening already, most countries that have accepted bitcoin are already taxing it, it's not new, a tax is a responsibility, it's the lifeblood of a county therefore we have to pay, if we evade tax, make sure we do it well so we will not face a problem in the future.

Bitcoin is regulated, therefore it should be tax, that's my view.

If your trading amount is higher you will be bound to pay your taxes unless you are able to provide all the evidence of your loss and then you can get away with the capital gain tax. If you are a small time trader then you can get away with it but usually everyone who is in the market for a long time made a lot of money and you are bound to file them if you are not looking for trouble at a later time.

^ Higher or a small amount it should be taxed if you are in the US. Either it is sold or spent, it should be declared any profit each year because that is taxable and you are entitled to be liable to interest and penalties. But there are countries that did not too strict on the tax, if you feel that BTC in your place did not require tax and only a small amount, it is up to you. I think the only UK and the US are very strict on this tax implementation, other countries probably will not and it is okay if you don't declare your gains in crypto.

Well, people can't really do much about it, they live in that country and they have to at the least conform to the norms and do their due diligence, honestly I am split into two with this one because taxation is a good way to improve public infrastructure if the government knows how to spend their money but if not then I wouldn't pay my taxes because they will only be pocketed by the corrupt officials.

I know that fees are commissions. I mean that there is no meaning to impose a tax which has a very high rate. I'm totally against governments' collecting it as income tax. The rate should be 1 or 2 percent the most, in my opinion.

actually a lot of news i saw around the internet and they want to put bitcoin taxed like literally because of the potential of it to all enthusiast. But until now i cant see any changes and news about such things wherein perhaps its not possible to happen on this kind of decentralised money.. I dont know in the future but for me its impossible..

- Taxes may be our responsibility but after we solve the tax problem, the government will take responsibility of someone who received money from us or they will try to delay the timing of many problems, usually here there are a lot of risks like being hacked and stolen and a lot of cases of scams, I still don't see the effect of government service, asking for tax would be relatively unreasonable. Fully catering to the participants will never have a story of possible tax evasion but unfortunately, the government has never done its duty to protect us.

I can agree with you Conected! But I must add one thing, a lot depends on the country where you live!

Saintough, we can say that Bitcoin is regulated, we know how coins are being created and distributed, and we know how to transact them... and some countries regulated it in their own way, and if you are cashing them out through the bank, depending on the country where you live, you will probably have to pay some taxes! While in some countries it's harder to cash out, maybe you pay more fees before you get to the cash, but nobody is taxing you!

It will be an interesting future... some governments and countries are speaking about higher taxes for crypto! This new bullish period made another bach of milionares and billionaires... and it wasn't hard to imagine governments trying to take a piece of cake for them!

Taxing currency is an absurd thing because I've only heard about taxing goods before.
If the tax on $1, what would be the value of $1? This is illogical so it shouldn't happen. We have a burn-in every transaction for every altcoin. Bitcoin doesn't have that mechanism, just the transaction cost and usually, it's very small. So I think that taxing cryptocurrencies can happen when they profit from trading. Taxing Bitcoin is the act of treating Bitcoin as a commodity, not a currency.

Is this even possible? i think the whole concept of decentralization is to avoid some of the financial practices that is currently unfair to the masses by giving them an open source currency that has no third party interaction and is completely anonymous.

You could probably get out with it if your not really earning a very big amount of money in trading or any cryptocurrency, as far as i know. But it was probably only in US or some other countries.

We could expect cryptocurrency or trading or bitcoin to be taxed but its not really a case for some countries since in my countries the government are probably already have a few plans about it, most of the time as long as there are big money involved government is gonna put tax on it.

Probably exchanges are already paying the taxes to continue their business, so i guess that's one way already. For now I can still trade freely in my country but if bitcoin or cryptocurrency continue to mass adapt taxes are surely gonna happen soon, but for me as long as its only a small percentage its gonna be fine at some point.

Bitcoin is already taxed. In IRS, they were able to build this type of tax system where Bitcoin holders will have to pay from their capital gains.
But technically, Bitcoin wasn't originally taxed but still every time you go and cash-out specially with big amount of it, you will be taxed as same as cash.

But you don't have to worry, you'll only get taxed with what you earned (if your capital is big). When your capital is somehow on the lower scale, then I guess you don't need to worry about it yet. There are exemptions with it and you might be included in non-taxable ones.

I can really be taxed but in forms of capital gains or when those coins had converted out to fiat and this is already happening at the moment on some country and once you are earning some money no matter what form then you are obliged to pay up a certain tax but i do highly believe that only a few
do still have this kind of set-up no where its been asked to pay up taxes but majority its just easy to avoid if they wanted too. Crypto earnings is really
hard to be traced nor to be determined so thats why its a bit no point on asking it out and this is why government do really hate up bitcoin.

I agree that this is money, but not really at the expense of taxes. First, let the government legalize Bitcoin and other alternative cryptocurrencies unconditionally. Will create clear, transparent rules of the game and then people will be willing to pay taxes and sleep peacefully. In the meantime, this is just another attempt to rip off money from people in the absence of a legislative framework against this background.

Well, the government can not impose tax directly on the bitcoin but when you sell your bitcoin or something you spend it, that the time that paying tax should be implemented and mandatory. But I think not all countries are strictly about the tax because here in my country, there is a minimum amount that you gain per annum before considering that you will pay a tax but if you do not exceed that amount, you are not liable to pay tax. I don't know the law of tax in other countries like the US. I have heard that you are mandatory to declare your gains either it is a small or big amount. So, all of these are depending on which country you live.

In my opinion bitcoin should be taxed like gold. We need to ensure that bitcoin is not used for illegal transactions and need to put in place investor protection. Therefore, it is very important to regulate organizations that deal in bitcoin and hold them to compliance with the related legal responsibilities. We will avoid a lot of risks from this virtual currency.

Some countries may receive taxes with bitcoin, but some also do not, however unstable bitcoin is, How can we calculate the tax, some countries that have bitcoin tax also start to stop it it looks like they are actually banning the circulation of bitcoin.

Yes but only in countries which didn't ban bitcoin. In my country government didn't recognize bitcoin as currency. So government didn't give any protection to their citizens who own cryptocurrency if they loss their cryptocurrencies, for example if they being scammed on fake website. In my country the citizens forced to use national currency, but for me it is okay as the citizens of my country has strong nationalism. And my country also only print money regarding the amount of gold, there is only one case which the president decided to print regardless the amount of gold and that was very controversial. But for now everything is okay.

For that bitcoin needs to be regulated by the countries. If crypto is illegal in some countries or there is no certainty on the legalization of bitcoin in some part of the world, people won't pay any taxes on it. Governments need to think and devise a mechanism on how can they tax on bitcoin and other crypto holdings.

To impose taxes, the government should first legalize Bitcoin, because currently there are still many countries that have not legalized Bitcoin.
Unfortunately the government is too afraid of Bitcoin which will replace fiat, even though Bitcoin can be used as an alternative payment,
no need to replace fiat. With negative thoughts towards Bitcoin, some countries have decided to reject the presence of Bitcoin.
Therefore, in some countries Bitcoin owners do not need to pay taxes, because Bitcoin has not been regulated by the government.

In the real world why do people get taxed? Because our governments do provide some kind of service to the community unlike in the crypto world were I think there have nothing to do with this....if you said services like electricity we already pay for that using fiat.

So why should I pay tax for my crypto when the governmenthas no hand in it?

That's the reason why some governments are now adopting bitcoin because they are benefiting in some transactions that we made.

There are really advantages in legalizing bitcoin in a certain country and it only depends on how to the government will regulate it just to allow people have financial freedom.

It is much better to live in a country that is open-minded about the existence of cryptocurrency and getting taxes from it is not that bad especially that if it is fair for the citizens.

Bitcoin is decentralized but again once you use a different platform that is supported by the government or someone who owned it there must be a fee on it because they are the know who makes more convenient for your use and transactions you only have a choice you will use without any payment but you need to find another way or just having more convenient use of the crypto or the bitcoin but you need to give a small amount on it.

Correct and in most countries that I know every conversion from crypto to crypto is also subject to taxation. It makes sense because giving away your Ether for Bitcoin is nothing else but a realization of the profits you made on the first asset.

But it is a delicate topic because the lack of global harmonization in taxation and generally taxation on crypto makes it difficult to push it into the mainstream because it has limited usability. If you buy smaller items and then have to take account of everything and calculate your tax, you can imagine what kind of mess is going to punch you in the face at the end of the year or at the beginning of the year so to say.

Gouvernements just don't want to give up their participation on the awesome profits that cryptocurrencies brought to their citizens and the only way to get their hands on that is by taxation.

Most of us don't have any issues in paying taxes on our cryptocurrency gains. But the problem is that Bitcoin is fully legal and regulated in only a handful of countries. In countries such as India, cryptocurrency still exists in the grey area and the legality and tax implications are not clear. So unless the government comes up with a mechanism to clarify the doubts on these issues, at least a section of the users will be reluctant to pay their taxes on time. Who will pay their taxes, if the authorities will use it an excuse to further harass them?

The users who are withdrawing Bitcoin profits to their respective bank accounts are already paying taxes to the government under Capital Gain tax mechanism if the income is more than the specified limit of country under taxation policies.Those who are evading taxes by not cashing out profits through banking system run away from taxes otherwise you have to pay tax even if it is not recognised as legal tender in any country.But if the government has put a complete ban on crypto usage then you don't need to file ITR for Bitcoin because you can't trade or invest in them as it becomes illegal in that prespective.But in other cases many are already paying taxes and government earning million dollars of revenue from crypto industry as well.

In our country, bitcoin is not regulated yet, that's why it is still not taxable. Sometimes, I think what if one day government impose taxation in cryptocurrency, how it will be? What is the process? Because we only have a digital wallet address, they don’t know our identity until we make a transaction like sending or making a withdrawal at banks or some remittance center. So, it means, Government will deduct the tax from our crypto earnings during the time that we are going to make transactions in any banks or remittance center.

TAX is the only difference b/w governments and BITCOIN. If bitcoin is taxable then governments have no objection in accepting it as payment system. Being taxable means it can be monitored and controlled by central entities. In short, anything taxable is just like FIAT.

Each country’s policy will be different. If Bitcoin is legal in that country, it can be taxed as government support and guarantee the legality of doing business on Bitcoin. The government recognizes the legalization of Bitcoin, and I think it would be fairer to tax Bitcoin.

Beginning in 2017, tax authorities began to take this unprecedented income seriously. At this point, you'd better make sure that you do everything related to tax filing right. It is now in the tax season in the United States, and the Internal Revenue Service (IRS) will not let go of this part of the income they deserve.

Any state has the right to tax any activity of citizens that brings them income. Cryptocurrency in this regard cannot be an exception. Therefore, I do not see anything unusual in the fact that profits from cryptocurrency will be taxed. Anything that is taxed is recognized by the state as a legal activity and this is very good for a cryptocurrency, since in this case the state takes it under its protection, including protection by the judicial authorities.

If Bitcoin pays tax, it means that the country recognizes Bitcoin, which may be a good thing. However, I am wondering how the country collects tax, since Bitcoin is anonymous, and I am confused about how to check the bill and how much tax to pay.

You know that the U.S. didn't even have income taxes till the early 1900's right?

Most people, even in America, are so naive about taxes they actually believe that our streets and highways are paid for out of income taxes. They are not. They believe income taxes pay for public schools. They do not. And yet look at all of the money printing going on in the federal government for infrastructure which supposedly includes paying for schools, roads and highways. It's a freaking joke.

Taxing peoples work/wealth away doesn't make a country better. If you believe that, i'd think you'd like to buy the Dollar. The massive inflation coming is a tax on everyone. Will this make the U.S. more wealthy? Better off? Is that Helping solve the counties problems? I don't think so.

Your post is self-contradictory. Currencies can't be taxed. If Bitcoin is classified as a currency, then it can be taxed only at the source (i.e income tax). Only assets comes under capital gains tax. In a way, you earn no real profits from a currency, irrespective of whether it is a fiat currency that is not protected against inflation, or a cryptocurrency such as Bitcoin that is protected from inflation. Do you pay tax on your savings bank accounts? Suppose you are having $10,000 in your bank account, do you need to pay a monthly or yearly tax on this amount?

Taxation can only make the price of Bitcoin higher. Taxation means that the country officially recognizes that the income of Bitcoin is legal. Since paying taxes in accordance with the law, the country has the obligation to protect Bitcoin.

It is extremely impossible to check each and every transaction in and out of bitcoin, as well as those who own bitcoin assets, because bitcoin ownership is determined by a wallet address, which may belong to more than one individual.

Taxes applied on the currencies that are legal bitcoin is not legal in developed countries like America, China, Russia etc so it is impossible to tax an illegal currency. When bitcoin is accepted worldwide then automatically taxes will be applied on bitcoin like fiat.

Exactly right, the tax will apply if you will sell your bitcoin into fiat no matter how small or big the transaction, it should be taxed by the government.
Most well-developed countries are very strict when it comes to taxation because the reason their economic growth is just because of the tax that they collected and I guess gambling businesses was a big part in it.

yes, it is, if the transaction is bitcoin to a bitcoin address, but when you convert your bitcoin into fiat and you are using centralized exchange, a high chance you will be caught it.

I guess OP rather means that it shouldn't be really taxed because money itself isn't taxed. Unless you have to pay tax on wealth, but that is a different story. If I understand him correctly he is a proponent of Bitcoin being used on a daily basis without running into taxation issues because you buy a bagel with your crypto and now actually triggered an event that now entails an event which is subject to taxation.

That is one of the biggest problems cryptocurrencies still face when it comes to using them on a daily basis. It doesn't matter whether you use a card or whatever, in almost any case you have to pay tax or realize a loss by using your cryptocurrencies.

Yeah this is the biggest impediment to using Bitcoin to buy things. Just the headache of figuring out your tax liabilities. Since the IRS considers Bitcoin an asset and not a currency it forces people to generally treat Bitcoin as an asset instead of a currency. Hopefully eventually there will be a law passed that excludes small purchases with Bitcoin, I know at some point a bill to exclude Bitcoin purchases under $600 was introduced but went nowhere. Current tax law on crypto makes it easier to just decide how much Bitcoin you want to sell for spending purposes and sell it for fiat, figuring out the taxes more easily on a single big sell order, and then spend as you wish with the fiat from that.

if it is taxed then every country must relieve the company, this will both have a positive impact. what's more, considering that so much money is spinning in bitcoin, the results will be so large that it will go into a country's  positive considering the very beneficial impact for business actors, especially those digital money investor

That bill alone would have given Bitcoin a tremendous boost! Think about it if you can spend your Bitcoin for purchases under $600 without having to pay attention to tax implications, that would make using Bitcoin so much easier and attractive that it would find its way very quickly into the economy and therefore into the society. The tax for the government wouldn't be lost completely. It would perhaps be like a stimulus because there is is still enough tax involved when you make a purchase under $600. VAT, corporate tax and income tax.

Beyond the topic of tax, if the USA would take the lead in passing such a bill, I think they might also see an influx of highly talented people from all over the world who are seeking to advance the cryptocurrency industry within the US. There are so many implications that I believe many of the political decisions regarding Bitcoin have been short-sighted recently.

As other users already mentioned, bitcoin should pay tax only if it's considered a coin on that country, just like it happens in El Salvador, there now people can use Bitcoin to pay their taxes, and that's possible because bitcoin is not a legal coin for them.

In my county Bitcoin is a Digital asset and you have to pay taxes only if you made a profit trading it, let's say you buy at $100 and sell at $110, only the $10 profit has to pay taxes.

In most countries so far, bitcoin has been seen as a speculative and risky asset and there has been an obligation to pay capital gains tax.
In the EU, such decisions followed a ruling by an EU court.
However, once bitcoin has become official money in El Salvador, and it is possible that other states will soon make such a decision, it seems to me that there is a real possibility that lawmakers will change the legal definition of bitcoin.
It is difficult to speculate but it is possible that bitcoin could be taxed in another way in the future, perhaps as an income tax.

In my country, the government is going to impose a 5% tax on profits from activities in cryptocurrency, which should be defined as the difference between the cost of buying a cryptocurrency and its selling value. Of course, the state has the right to impose a tax on any profits of citizens, regardless of whether it somehow contributed to the receipt of this profit by us. If this law is passed, then I would rather observe it and sleep peacefully, since 5 percent is almost a symbolic tax. The draft states that after filing the declaration, the tax authority has the right to require the provision of wallets to verify transactions and the correctness of tax payment. Hope this will be a public key.

yes it's good if bitcoin is taxed. Before investing you must really understand the basics first. don't try to be consistent and concentrate in trading. This is the main key so that you get abundant profits. Seeing the fantastic price of bitcoin makes people confused, should bitcoin really be taxed after this. whatever the decision because I still support number 1.

In my country there is no tax regulation regarding bitcoin yet, but although I kinda don't like having to get my profits taxed, I guess it is important to tax bitcoin. Why? Because for my experience, before, I can get a lot of money, $1000 or even $2000 without needing it to be cut with tax. Crazy right? Meanwhile in my country, if you're single and your salary is around $320 a month, you need to pay tax for your income. While that time, I can get all of my money. I think taxing bitcoin will be beneficial for the governments as well, and we as citizen should be willing to get taxed for our income, so I don't really mind. Especially if after having any tax regulation, the government might think positively to bitcoin, supporting it and even legalized it, then it will be really great. Just make sure the tax won't be so high and backwards to us instead, it'll be quite upseting if so.

it is possible that the tax on cryptocurrencies is calculated based on the profits earned by investors. For example, when an investor invests Rp. 1 million and then gets Rp. 3 million, the investor gets a profit of Rp. 2 million. This advantage will be studied by the scheme and the taxation system, as I know countries that have legalized bitcoin, have long received taxes from bitcoin..that's information I know, if wrong please correct it.

as i know bitcoin is not legal currency in my country, even many countries it's not yet considered a legal tender,
the government does not have the opportunity to collect taxes in any way,
even if it is legal, it will be very complicated for the government to collect taxes

bitcoin cannot be controlled by any party, including the government itself so far has not been able to control bitcoin, if you say bitcoin must be taxed, I think bitcoin has long paid taxes to countries that have legalized bitcoin, now there are still many governments that still prohibit use bitcoin, so by itself we can't even give taxes to them..

If the government taxed Bitcoin, it would be legal. In my opinion, Bitcoin must be taxed. No immoral anti-social activities will be done if it is brought under the tax. So as far as possible.

To be able to impose taxes on Bitcoin users, the country must first legalize Bitcoin. But the fact is that there are still many countries that still reject
Bitcoin, so most Bitcoin owners don't pay taxes to my knowledge. Even in my country where the government has legalized Bitcoin, even though it is
only a digital asset, it is still difficult to impose taxes. Actually it is not easy to impose taxes on something that cannot be controlled like Bitcoin,
but there are also some countries that have succeeded in imposing taxes on Bitcoin users. So in the end it all depends on the rules that each
country applies, because every country has different rules for Bitcoin.

Of course, a lot of us are still not paying taxes here from crypto earnings.
Because most countries don't have their regulations in place towards crypto.
So enjoy the moment while you can still freely enjoy tax-free earnings.
Maybe, we will see how El Salvador will formulate tax laws on bitcoin as it is soon to be legal tender on their country.

For the US Internal Revenue Service, this part of the income comes from Bitcoin assets and has been converted into non-Bitcoin assets, such as cash or goods and services.
  The bitcoin assets you hold do not need to be taxed (at least for now), but as long as you use bitcoin to sell bitcoin or buy other things, there will be a tax return.

Here in my country cryptocurrency is not considered as a legal tender but what good about it is that the government didn't announce it illegal too so in short I am enjoying now the privilege of earning while there's no hidden charges deducted on my earnings. So far I am enjoying because the tax imposed here in my country was set so high but you would only see that the government body didn't used it in a wise spending or in short corruption circulates all the way. I didn't think so how the government could set a regulation to imposed taxes on crypto earners however I didn't set aside the possibility of this scenario one of these days.

Bitcoin has been included in tax laws for countries that accept bitcoin as a net asset listed in the money source category.  Some of my friends in the US say the bitcoin/crypto tax is around 19%, apart from being tested and strictly followed, the tax laws make no sense when you just buy and hold them but you let them.  Go change and transaction, it will be taxable.  Country-by-country regulatory compliance for bitcoin would be a good indicator of how bitcoin has evolved into a particular quantifiable standard.  But that doesn't mean the US will be able to improve legislation that imposes increased taxes on cryptocurrencies that risk the balance - raising $28 billion in crypto investment. Lol

I think bitcoin should be taxed and legal in all countries but the ratio of tax should be very small . in this way bitcoib can be legal in most countries and also this tax will used for development of countries which can produce positive idea toward bitcoin.

I am very grateful for the current situation, where I can still make money from crypto without paying taxes. That's not because I violated my obligation
to pay taxes, but indeed my country has not imposed taxes for cryptocurrency owners. I agree with you, it is possible that El Salvador is an example
for other countries that want to tax Bitcoin owners. Because currently El Salvador is one of the countries that legalize Bitcoin as a legal tender,
so they will regulate Bitcoin in order to get tax from Bitcoin.