Bitcoin and Tax?

[MIT2K]

It is the matter of jurisdiction of the country in which you live or cash out your Bitcoins. Since Bitcoin is not legal yet and hence not classified under forex or commodity trading, the tax rate for those activities won't apply for Bitcoin.

However, in my country, I pay tax for converting Bitcoins into the fiat currency but that applies to the transaction fee and not the transaction amount.

Unocoin | Fee Structure.

As per the current tax rate, it is 18% of the transaction fees in my case. However, when it comes to the income tax, I do have my investments in Tax savings schemes so I never cross the minimum taxable slab when it comes to the final income.

Thanks Dudeperfect, very interesting to hear

[ningrum]

i dont think bitcoin can be taxed, it is anonymous and untraceable to all of us, so it is not gonna easy for any one and government to tax bitcoin, if the government can file the way to tax bitcoin, i can sure our privacy will be in governments control.

it could be if the bitcoin is taxed, if over time many know bitcoin and the government agrees that bitcoin is circulated in countries, then it is likely that bitcoin will be in taxes.

[ajmapalo22]

Well there's really an issue with regards to imposing tax in bitcoin especially if the government who want to implement it doesn't support bitcoin market in the first place. They can declare tax with our earnings provided that they will give equal support to bitcoin the same way they support their national currency because as for now they did not consider bitcoin as a legal currency in fact in some country bitcoin transaction is banned. Some issues must be settle first before this tax implications.

[brainape]

in some bitcoin countries it's already applying taxes and that's great because bitcoin belongs to income. but there are still many countries that have not applied taxes because the country has not officially acknowledged bitcoin in the country.

Interesting, Bitcoin seems like an asset so id imagine only once you cash it out and its no longer 'anonymous' money it is traceable and must be declared.

Bitcoin and tax I think they didn’t have a relation because once you earn bitcoin then you shouldn’t forces to give tax etc that’s why according to me there is no tax seems on bitcoin. Bitcoin is a digital currency and people all over the world invest and they didn’t complaint about the features of bitcoin so if there will be tax on it then people didn’t want to point out that.

[Lowleary]

Whats the deal with Bitcoin and paying tax? How does it work?

bitcoin banned in my country so i pay some taxes as exchange taxes for exchange sites .

also have some friends pay cash for me so in may cases not pay taxes

[Bruno77]

Bitcoin generates income for many.  I am pretty sure that government has a vision already of how bitcoin will be a big part of the future and it is the duty of government to generate also taxes from any income generating activity. At present, bitcoin is considered as an asset and tax are collected only from buying and selling. Actually, our government collects double taxes which I really opposed,   they make their people pay a lot and suffer.

[MIT2K]

Bitcoin generates income for many.  I am pretty sure that government has a vision already of how bitcoin will be a big part of the future and it is the duty of government to generate also taxes from any income generating activity. At present, bitcoin is considered as an asset and tax are collected only from buying and selling. Actually, our government collects double taxes which I really opposed,   they make their people pay a lot and suffer.

interesting, what country are you from? It certainly is a pain! It should be tax free like Forex as its essentially a currency!

[maaydin]

Until now as I know governments has not applied a tax onto bitcoin but so many countries are gathering their financial advisors in order to regulate this market and put a tax.

[Alns]

When are you all going to stop trying to avoid taxes? I have a friend who lives on the United States and he is paying taxes each month for everything, and everytime that he withdraws some bitcoins he is doing exactly the same.

Do not try to avoid them, there could be a huge number of consequences if you keep doing so.

And there a lot of cases of people who ended being in jail just because they wanted to avoid $1000 worth of taxes.

[MIT2K]

Yeah well lucky there aint many taxes to pay after days like today!

[rickadone]

Yeah well lucky there aint many taxes to pay after days like today!

One of the major reasons of this much increase in the number of investors who are investing a huge amount of money into bitcoin and that too in such a short span of time is the tax free nature of bitcoin which makes all the investors of bitcoin not to worry of paying anything to the government in the form of tax. Moreover, this also helps the investors to make more money by investing in bitcoin.

But, when we are depending on bitcoin to be converted into fiats through exchange services then taxes will be automatically applicable and there will be no point of having bitcoins for saving tax benefits.