Bitcoin Forum

Do I have to pay Tax on Bitcoins?

Seriously, there are dozens of threads here answering this question, BUT, you haven't even told us what country you are talking about!

As mentioned above, read the other threads. But to find a real and specific answer you will need to talk to a tax consultant in your country. The short answer is yes, I am not aware of any nation that does not have an applicable tax on bitcoin.

whether the currency Bitcoin has become the first in your country or not if bitcoin is not the first currency in your country, you do not have to pay taxes. it seems to me

Depends what taxes are we talking about. Bitcoin is free of VAT tax in every EU country. Also in some countries, like Germany it's also free of income tax, if you held it for over a year and it's not your regular source of income. On the other hand it's best to pay taxes if you're planning to buy a house or a car with your coins, because most countries require the sellers to report civil law transactions and the revenue office likes to keep an eye on those. ;)

Shortanswer, A Big YES if you ever convert it to fiat. For a more detailed answer refer to this thread: https://bitcointalk.org/index.php?topic=1631867

depends. in germany as long as you've held for over a year there's no capital gains. kind of strange but there you go. i guess it might well change soon.

This confused me, in my country income in bitcoin not wearing VAT, and to work into bitcoin miner and farmer in his status is still in question, but if BTC redeemable it will have its own taxes every year

First of all it is important which country you are. Another issue is that it is possible to find answers in other topics instead of opening a new topic that has a lot of topics related to it. There is no tax on bitcoin if we come to the roll.

if so blessed bitcoin businesses ,, due to the absence of tax regulations on bitcoin

As none of the government have accepted it so for them bitcoin is not a currency yet and for that they are not lawful to impose tax on bitcoins. But at the time when you will exchange your money to fiat then on its withdrawal to your banks the banks are liable to impose tax on that.

For temporary it will be no in my country because there are no regulation yet about bitcoin, but if you exchange it to fiat then the exchanger will charge you with the tax and in that case you need to pay tax, but i believe in the future the government will try to taxed bitcoin

I thought she might as well just focus on one country he himself is not to some other countries.

Of course yes, you must pay the taxes if your country wanna it, but depend on your country is there taxes for bitcoin's usage or not.
If you love the country you must build it with pay the taxes.
And i think the taxes of bitcoins is not too expensive, if your country will apply it.

It is really up to you if you are a law abiding citizen because here in our country we have to pay or declare it if not if they have seen this to us we will pay tax consequences. As per me, it is not that big amount because I have a child which I claim as an additional exception to pay tax.

Taxes is an obligation for every citizen of a country which obligating their citizen to pay taxes. However, if you avoid paying taxes then you might be punished so it's always better to be a good man and always pay those taxes. If you are still having intention on avoiding taxes then it's you the one who will be responsible for everything you have done
But so far I haven't seen country which taxing directly onto bitcoin but only taxing you when exchanging your bitcoin to your local currency so, lucky you.

You don't pay tax by holding bitcoins, but you will need to pay tax if you sell it for fiat and make a profit, in which case it is like you sell a stock and same capital gain rules apply. This is the situation in US.

Say for example you bought $2k worth of bitcoins with fiat. Over the next two years you trade those bitcoins vs other alt coins and eventually it grows in value. Even though you never converted to fiat the entire can you claim long term capital gains when it comes time to cash some of that out?

yes i have to pay tax on bit coins. if we are buying legally then why should we feel fear. in most country's people buying bit coins illegally once tax may pay then more people facing problems.  i thinking to keeping tax is good. it is help to that country's economical growth.

To pay taxes is really a duty of every citizen, but you forget that this is a road with two directions. There is still a duty of the state to fairly distribute the taxes and to deal with the embezzlement. People see that the state does not fulfill its obligations and therefore do not want to pay taxes. What's wrong with that? I did not pay them. I take nothing from the state and do not feel obliged to him.

If the government directly established a profit tax on operations with bitcoin, then the tax would have to be paid. Now such taxes are introduced by states that recognize crypto currency as a means of payment. Otherwise, you can be criminally liable.

Of ourse, you must pay taxes on any capital gain you realize on Bitcoin or any other currency. If you buy and hold, you do not have to report anything until you sell. Keep in mind, the IRS treats digital currencies as property for the sake of taxes, so all of the same rules apply.

Since earning bitcoin is not included as regular income of one citizen, I guess it's great because it was not included as taxable income of each person. Otherwise bitcoin is not regulates by the government of some country that's why they cannot obligated to pay taxes.

However if the bitcoin started to adopt by the government of each nation I think crypto currency are need to follow the rules and regulations of respective country.

Moreover earning income of people from digital world will be lessen due to tax deduction from their income.

When I was studying tax, any form of income is taxable. Even the second market or just like simple selling your pen to another person for small amount of gain. So basically yes, you have to pay tax. Income tax to be specific. Which you can file yearly.

However, given that Bitcoin transactions is hard to track and transactions and earnings can be in anonymous form, many do not file and pay earnings from bitcoin.

btc cannot have tax because of its volatility..not like paper money where it has its own fix value..not unless you convert it to taxable goods or convert it to local currency..as long as it is no stable value I don't think that there are no government that can implement a tax on it..

If you live in US, yes you have to pay tax for capital gains. But in most countries, there is no tax for capital gains and the only thing you have to pay is withdrawal fees through an exchange.

I was not agreed if bitcoin will become taxable, because if it is happen our small amount income from digital world will decrease due to taxes from the government. However, since bitcoin are not covered by the leader or law of each country, I guess giving taxes to the income of users will possible to happen for now.

In relationship of Taxation and Bitcoin there is a good benefit between to each other.
The tax will recommend the bitcoin for well systematic and monitored system in commercial transaction; while the bitcoin will accumulate lots of final tax which will remit to the government.