Signature campaigns and taxation.

[tranthidung]

My country isn't yet has this kind of clarification

In countries where taxation on crypto is unclear or not composed and implemented yet, even if you proactively submit documents and want to pay personal income tax, they will reject it.

It happened in my countries because staffs in governmental tax agencies even don't know how to do that. To make their works and lives easier, they reject it. So it's happy and win-win solution for all. 

[GeorgeJohn]

You only be taxed if you sell your Bitcoin and if you let your government knows about that.

Lol...is not possible to infom government agencies that you have sold your cryptocurrency and they should come and take their tax..no.. shall, it depends on the country everyone belongs, because in my domain we do not let government know that we are transacting with bitcoin for them to come and take a tax revenue, and we hardly pay taxes to the government to start with. I think all this taxation occur to countries that always care for tax.

[unclelucky]

Yea the account wearing signature its not a child's account because you must work and aim your merit and base on the taxation it depends on where you are coming from my side we hardly pay tax and to report to the government its not possible.

[Eureka_07]

I see so many people wearing signatures these days.
How do you state the cryptocurrency income from signature campaigns in your tax return? The tax authorities in Europe want to provide them with a document for the purchase of cryptocurrency, I guess it's the same for USA & Canada with the AML laws.

I've been on signature campaigns for a long time I guess, but there is no law here that we should include the earnings from these side jobs on our tax return. Also there are no policies regarding this, I think it could be only applicable to those who are earning higher than me from this cryptocurrencies. As far as I know it is not mandatory. I live at PH.

[Daniel91]

In fact, we had a very interesting discussion on this issue in the Croatian part of the forum.
Most of us thought that we should not pay taxes on crypto funds earned through signature campaigns.
We thought that taxes should be paid only when we transfer crypto funds to fiat.
However, to be completely sure we contacted the tax office and sent an inquiry.
The answer was that any crypto income must be reported within the legal deadline of 15 days and pay taxes.
I have to admit that this was a big disappointment for us and I don’t think there will be a lot of local members who will do it, especially for small amounts.
It is an income tax and it is quite high, about 25% as far as I remember.
I hope that in the future this will be resolved in a better and more logical way.

[Dripstoil]

The truth is that, there shouldn't be any worry on paying taxes on Crypto revenues. The choice is totally in your hands, that's the beauty of decentralization. You move, spend, and hold your wealth without government interference.

The only thing that would make you pay taxes on Crypto is, probably, sense of patriotism. Else, you have no reason to worry about as you can easily make your Bitcoin untraceable.



The above diagram explains the beauty of decentralized blockchain transactions  in contrast to the centralized financial flows controlled by the banks and governments, and why it's difficult to trace Crypto. More reason you shouldn't worry about taxation to your Cryptocurrency earned revenues.

[DdmrDdmr]

<…>

It's not that simple though. The diagram does, on the other hand, miss out all the links that exists between both worlds, where often KYC is required (banks, merchants, Exchanges, etc.), and that therefore, opens the door for traceability to a variable degree, depending on the person’s habits and real life possibilities of using one’s own crypto without leaving a KYC trace at some point.

[Daniel91]

The truth is that, they shouldn't be any worry on paying taxes on Crypto revenues. The choice is totally in your hands, that's the beauty of decentralization. You move, spend, and hold your wealth without government interference.

The only thing that would make you pay taxes on Crypto is, probably, sense of patriotism. Else, you have no reason to worry about as you can easily make your Bitcoin untraceable.



The above diagram explains the beauty of decentralized blockchain transactions  in contrast to the centralized financial flows controlled by the banks and governments, and why it's difficult to trace Crypto. More reason you shouldn't worry about taxation to your Cryptocurrency earned revenues.

I totally agree with you when it comes to smaller amounts.
However, when it comes to very high amounts of crypto funds, which you want to exchange in fiat and buy a new car or house, for example, then you have no choice but to pay taxes.
You can't hide such big transactions from the tax office, and if you can't prove the origin of the funds, all your money will be confiscated and you will be punished.
Most of us don’t really care about the small amounts of crypto funds we withdraw, and that’s no problem to hide from the tax office.
 In fact why bother with it at all when according to the tax law in my country, in case we keep crypto funds earned by trading for at least 2 years on a trading account,  we are exempt from paying taxes 

[Pffrt]

Any income which is a source related to cryptocurrency is normally out of taxation as cryptocurrency is illegal here. There's only one way to make them legal. I convert them into Payoneer and show this income as a freelancing service fee. So, I'm not subjected to paying tax on this income as freelancing income is tax-free up to 300k BDT. Usually, I don't convert a lot of money into Payoneer. Most of them are in cryptocurrency unless I need a big amount. Sometimes, I use the local exchanger and mobile banking to sell cryptocurrency.

[BITCOIN4X]

If I'm not mistaken it looks like this issue was also discussed in my local board but I forgot who posted it. I don't have to pay taxes on signature campaign revenue and I don't think this is a reasonable amount to report to the government. I know that my country has rules regarding taxes, but so far the legality of crypto is only limited to commodity assets where the government will only target taxes from investors and traders with high amount of assets.

However we will probably know about the tax rules will be different in each country. While at the moment my country does not yet have clear rules regarding the taxation of crypto income although on several occasions I have read the discourse from the news. But I believe the government has set taxes that must be paid by every exchange that runs its service in my country, so the case may be different for crypto users themselves.

[JoyMarsha]

I see so many people wearing signatures these days.
How do you state the cryptocurrency income from signature campaigns in your tax return? The tax authorities in Europe want to provide them with a document for the purchase of cryptocurrency, I guess it's the same for USA & Canada with the AML laws.

In countries that crypto is illegal, they don't care whether you got your crypto earning from signature campaigns or not. Any crypto assets in your portfolio are illegal to them. You must omit it from their reach to avoid being jailed for it

[Daniel91]

I see so many people wearing signatures these days.
How do you state the cryptocurrency income from signature campaigns in your tax return? The tax authorities in Europe want to provide them with a document for the purchase of cryptocurrency, I guess it's the same for USA & Canada with the AML laws.

In countries that crypto is illegal, they don't care whether you got your crypto earning from signature campaigns or not. Any crypto assets in your portfolio are illegal to them. You must omit it from their reach to avoid being jailed for it

In my country, cryptocurrency trading is an accepted way of earning and capital gains tax is paid, 10% plus surtax.
When earning from signature campaigns the rule is a bit more complicated and we should after each payment within 15 days report it to the tax office via the tax form and pay tax on other income, about 30%.
For small amounts it’s actually too complicated and no one does it, we just withdraw funds anonymously through a crypto exchange and that’s it 
When it comes to a much larger amount I will probably seek the advice of a tax advisor.
Complete FIFO records should be prepared for each tax report, but in practice I do not know of a single case where the tax office actually requested it.
Even if they did, I don't know if they would understand crypto fifo records at all 

[yazher]

They were asking where my funds came from and I just put some answers that will not make them doubt about it and until now they really think it was the valid answer. I haven't gotten any further questions but as soon as they ask about receipt or transaction records, that's when the problem occurs because I don't know how to answer them in a sense where they don't take it as I hiding something from them. Taxation is really a pain in the back where you need to pay them your hard-earned money but they only use it for personal gains which kinda seek when I give it to them for free.