Bitcoin Forum

Crypto-to-fiat transactions will be subject to taxation in Azerbaijan, local news outlet Trend reported Saturday
https://cointelegraph.com/news/azerbaijans-taxes-ministry-says-crypto-revenue-is-subject-to-taxation

Do you think this has benefits?

This has been already implemented in many countries and they are functioning well with it though in many of them the taxation is Preety unfair but one must understand that if it's getting accepted by the government it's something that they will do..it also means that it's taken as an important part of the economy as equal as other things .

I think it's important for It to be considered on a fair basis

Such steps are pretty much welcome because categorizing bitcoin in terms of taxation gives legal identity to bitcoin as an instrument in the country's jurisdiction. This makes it easier for the fence-sitters to make their move. It can also attract some of the bigger investors who hitherto, would have been unwilling due to the uncertainty in terms of legal and tax implications.

Internet has been the great leveller for the world and a truly international community has developed on the web. With bitcoin becoming the borderless, internet money, this opens up opportunities for a lot of people in these countries which have till now, been pretty low on the international trade radar. It gives choice and power to the individual. One of the most exciting features of bitcoin.

Such taxation means alot to the crypto world. If Azerbaijan succeeds in this pursuit, other countries will follow and this is great for digital currency.

Taxation on bitcoin within a country sounds unfair right but still we need to obey what the law is.Taxation of bitcoin means the government already accepted the crypto world its better than restricting or banning bitcoin.

It doesn't mean the government accepted the crypto world, but just that it updated everything to make it more specific. If you keep your taxation laws as they are and don't update them throughout the years, it will cause confusion amongst those dealing with crypto, and that confusion likely translates into less potential tax income for the government. It can be seen as smart marketing, especially with how this subject gains mainstream media attention.

I just don't understand why people keep seeing it as something new or bad, while in reality people have had to pay tax over their crypto gains for years already. Everything that involves fiat means you are by default subject to the related tax policies, which shouldn't be that difficult to figure out. It's the government's tool we use, so we pay them 'interest' for that. I can't wait for the moment we can put fiat aside, but this will likely take at least one decade.

Yes, to the government, of course, it's common sense. On the other hand, France lessen their tax to crypto capital gains from over 40% to 19%
This is good news for French people, they are becoming open and fair with cryptocurrency.

This will benefit both the government and the cryptocurrency investors because if they will tax cryptocurrency it means that the government are in good terms with it and investors/traders can freely use or trade cryptocurrency. But there might be some effects on the price of cryptocurrency because some people from that country will surely sell large portion of their cryptocurrency to avoid paying huge amount of tax, and lessen it, but the effect on the price still depends on how huge/small is the market on that country. We have seen some country like USA implemented this cryptocurrency taxation and it works pretty good so far, so I don't see any point that it will be bad for cryptocurrency except the sellout that will happen which is only a short time effect on the price.

It still sounds fair considering how everything is also taxed. Taxation of btc doesn't only shows government's acceptance of btc, it also shows their interest to benefit from the tech behind it(Blockchain).
Everything has benefits so taxation of crypto transactions in Axerbaijian is not an exemption. It will benefit all of crypto users there, since their transactions will be considered legal and not under the government's radar. Also, it is a good way to publicly promote Bitcoin(since some citizens hear about those news and information about BTC gets disseminated into them).

I think this is because more and more citizens are using cryptocurrency for as and they can not take photos that give taxes on people using cryptocurrency. This is a natural thing for me not to take money and want to profit

Countries such as Japan, Canada ... have developed legal and policy to control business activities, use virtual currency. is to set up a legal framework for managing and issuing tax policies for investment and trading of virtual currency, having policies to protect the interests of the owners of virtual currency,

CGT of this kind is pretty much worldwide already established throughout all crypto trades. Most countries already label the sale of crypto to fiat as a taxable event, and if a profit is made, taxes will have to be paid on these trades.

We're seeing clearer cut tax laws regarding crypto recently in a lot of countries, though, and governments are taking a clearer stance for sure.

Does it have benefits? Well, it does for the government and theoretically for the underprivileged. But it's not just crypto that is getting these taxes, pretty much all assets or investments that can grow in the positive direction will be liable for CGT.

I'm looking for someone. For those who earn money in a crypt currency, it is not profitable for them. But the amount of funds coming to the state budget will increase. That is, it is beneficial for the state, and not for a specific individual

I guess taxation on cryptocurrency will affect us hard and the exchanges specially they are the one whose regulating the cryptocurrency, buy and sell. If this would happen, the fees and rates will soar so high that you will be needing a lot of money to withdraw or even trade their crypto.

These things will come sooner or later. Personally, I think it's okay for the governments to tax gains made from crypto as long as the taxation is fair and just, and not just some random numbers drawn out of the conclusion that every person who handles crypto makes a lot of money. This could also scare away money launderers to do such nefarious acts since there's a high chance they could be caught after some careful audits and checkings were made. Hopefully though, governments wouldn't take their powers into oppressing people who work hard for their money and crypto taxation is one of them.

if crypto team allow the government to have some plowed over it, I think the team are seeing some advantages of this system. So there is nothing to worry aboutand this can help the crypto currency to introduce its important and use. So sometimes we should learn to see much greater out of something that seems disadvantages on our side.

Taxes should be reduced because some taxes like import duties are too expensive.Import duties retires development because some traders will refuse to import because of high charges.

Yes the taxation should be fair to everyone,some government impose high taxes on the crypto currencies in the though of killing it and making some revenue to them this is not good to the crypto currencies.But taxation has good side too,it will make the people to invest more on crypto currencies without any fear so the adoption rate might be increased a lot.

I do think ti's fair and I have nothing against it. Fiat traders, or stock market traders, pay their taxes as well or they should at least, so the same should happen with crypto. I don't it's fair to see crypto as property however, as this would make the use of crypto to purchase goods very expensive, and that is a bad thing. Germany is not doing that for example and I would say their approach is much better than the one used in the US.

I live in India and I have been paying tax since last 3 years while buying or selling Bitcoins against the fiat currency. It's not the tax of using crypto or fiat but in my case, we are availing the service of the exchange (registered under the Companies Act of India) and it is the tax for using the service of exchanging funds, even if Bitcoin is not recognized by the law.

"This is formalized as corporate income tax and income tax for an individual If someone buys cryptocurrency and then sells it after the price goes up, this amount is recorded as income and therefore should be interested in taxes."

I say this is helpful. Because if the State Tax Ministry they impose taxes. This means they have legalized the use of bitcoin. It is very nice. There is no prohibition for people in their country to use bitcoin.

That's one of the benefits that the government will get if crypto will be adopted to a country, there's also a benefit to the citizens.

They will have another source to make money and that is through crypto's unlike other countries who banned it, you don't have any chance to make money with crypto or trade with it so that's the counterpart of letting a government support crypto.

In my own opinion, cryptocurrency should not have any taxes because people who invest are already paying for transaction fee's which compensate as a tax.

I would consider it to be good, taxation is necessary in society but it needs to be fair
and that is a totally different discussion.

The fact that Azerbaijan are applying taxes on crypto means they are not banning it
and that is positive, they dont seem to be applying any extra tax on it either just
Treating it the same as capital gains tax, this will be easy for any other country to
do also. It might also mske a minority if people think twice about cashing out to FIAT.

It is true that crypto can provide many solutions for a country and its citizens if adopted to be used as a payment method other than fiat currency. In addition, blockchain technology used crypto can work for various sectors, especially processing and data storage that can be utilized by the government of a country to run various services that have so many problems related to it.

Yes, blockchain and crypto's are separated if the government will take advantage of it and many sectors will be able to upgrade their systems in terms of data processing and storage.

But taxation is different from technology adaptation

I think it's useful. After all, it was not forbidden. At least it can be said that it became legitimate with the tax option. That's what I always think; Tax forbidden is a more useful solution. Everyone will be pleased with a rate agreed on both sides.