Bitcoin and Crypto Tax Implementation

[figmentofmyass]

I don't really get the article. Tax is already in place for crypto just like anything else and its status has been clarified by a few tax agencies. Maybe this is some way of forcing exchanges to share info with foreign agencies.

crypto transactions certainly fall under various tax laws, but exchanges are mostly flying blind regarding government reporting. so that's a big part of this IMO, yes. having uniform tax standards in place would do a lot to facilitate standardized and mandatory tax reporting, especially given the multinational nature of many exchanges. this is something governments uniformly want, so it makes perfect sense to take a multilateral approach. it's like establishing AML standards through the FATF rather than having a patchwork of wildly different national regulations. it gives exchanges a lot less excuses to keep dodging their responsibilities.

[Daniel91]

Tax is inevitable! However, if a government wants to impose tax on crypto, they they will have to create a legal definition for bitcoin. Which is good because it will give legal support to bitcoin holders within that country.

Right now, only a handful of countries have a legal definition of bitcoin. So if other countries too join the bandwagon, it will be great in terms of adoption. Many merchants are there who are willing to accept crypto as a payment method. It will only become a reality once bitcoin gets a legal definition.

I know a lot of people thinks, tax is a bad thing. But that's an individual choice! If we really want to crypto in our daily life, legality and tax are the most important parameters we should look for!

Many governments have desperately tried to stop the rise of Cryptocurrency, but they have miserably failed as the cryptocurrency has been gaining grounds day by day. Now, seeing no other alternative, they are trying to cash on Crypto by imposing taxes. I believe instead of creating hurdles if they take tax and legalize crypto, then it will be good for all.

Just as the Internet can't be stopped, so can't crypto 
As I follow the situation, more and more governments and states are starting to regulate crypto and enact tax rules.
There are even tax exemptions being created to avoid paying crypto taxes (in some countries like Croatia) which is good news.

[Mike Mayor]

The filthy government is greedy & afraid. The more "hardcore" they go with all this tax stuff and restrictions the further it proves they are afraid and are fighting a losing battle.
I'm not going to declare how many cryptos I have. Not a chance. They can't prove anything. I'm not paying tax on something that was not given to me by the goverment.
The only way I can think of that they can tax you is if you start buying lots of things with bitcoin they will ask where the money is coming from and most likely tax you on every purchase you made.

So like if you bought a new porche or something. Those don't just magically appear out of thin air you going to have to explain it. I don't even think you should be taxed at all because you not using fiat.

[Argoo]

First they tried to stop Bitcoin and crypto when they failed miserably despite all those threats now they are planning to benefit through crypto by taxing on crypto but it won't be possible to tax those who use DEX as government will not have any data about users due to anonymousity, but CEX users are exposed to danger of being reprimanded by government and hounded with taxes. Even this time regulators and government will fail on their unrealistic quench of greed.

States have yet to make a general decision on how to stop Bitcoin and other cryptocurrencies.  We are still not going anywhere from taxing income in cryptocurrency.  However, the rates of such taxation can be so high that then it will be unprofitable to engage in cryptocurrency and people simply will not pay.  This, in turn, will allow states to decide on a complete ban on cryptocurrencies.  We do not need such a confrontation and it will be much better if a reasonable compromise is found.

[Kakmakr]

These are the members of the OECD and its Centre for Tax Policy and Administration : Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, Netherlands, Norway, Poland, Portugal, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, and the United Kingdom.

So they are not representing the whole world... 

In any way, most countries have already defined Bitcoin as a Commodity and Capital Gains taxes are already levied onto Bitcoin profits. (In some countries losses can also be claimed)   There are some exceptions that allow Bitcoin to be used as a currency or a payment option.. where they then charge VAT on those transactions. 

[jademaxxiss012]

Crypto tax are already been a target by the government. This is another source of income for them. This is why exchanges usually centralized exchange applied for a licensed to operate. Here in our place exchanges had been placing taxes too whenever we do withdrawal in addition to the transaction fee taken from the mining fee. Well, we do not have a choice but to utilize the whats best for us when doing transaction.

[hatshepsut93]

First they tried to stop Bitcoin and crypto when they failed miserably despite all those threats now they are planning to benefit through crypto by taxing on crypto but it won't be possible to tax those who use DEX as government will not have any data about users due to anonymousity, but CEX users are exposed to danger of being reprimanded by government and hounded with taxes. Even this time regulators and government will fail on their unrealistic quench of greed.

DEX won't allow anyone to avoid regulations, they are using bank transactions or other centralized methods for the fiat side, and they report everything to the regulators. So, if you sell too much Bitcoin, which can be as little as a few thousand dollars, tax officials will be very interested where do the money come from and why you haven't paid tax on them.
Governments take tax evasion very seriously, after all, they won't be able to exist without taxes, so don't think there's some simple method to fool them by using crypto.

[btc78]

Bitcoin is already more than ten years of existence now and many changes in the development of bitcoin continue to occur today and as the day goes by, bitcoin become more valuable and useful. Government is always aware of that for sure that's why they always find away on how to take advantage of bitcoin despite its decentralization. Taxation is what they want to imposed. I think no body can escape if the tax for bitcoin and other crypto asset will become implemented by next year 2021. If one country start and become successful for implementing tax, then I think other country will follow.

OECD tax director says international crypto tax standards are coming in 2021.
Pascal Saint-Amans, the director of the OECD’s Centre for Tax Policy and Administration, has asserted that the 37-nation organization will introduce a common reporting standard, or CRS, for crypto assets in 2021.

According to Law360, Amans stated that the crypto tax standard “would be roughly equivalent to the CRS” developed by the Organisation for Economic Co-operation and Development to combat tax evasion.
https://cointelegraph.com/news/oecd-tax-director-tips-international-crypto-tax-standards-are-coming-in-2021

If they do then nothing we can do but to comply,I have read in article that in India the government is planning to Implement a 30% taxation for all Profiting from Bitcoin means People might go to Dex or other altcoins that is not covered by the Law.

This is much Frustrating than what other government may ask,so i think if the percentage is not abusive then lets comply because maybe this is the start of what we are waiting to happen and that is adaptation.

[Gotumoot]

Crypto taxation is a good idea especially for development countries, if citizens didn't cooperate and pay tax most of the developing nations will suffer the most.

How about the small time earner in crypto?
Do you think that they would agree with it?
Not everyone crypto earners are having a good profit and also those who are lossing money on trades how would they see it?
Some of us goes into crypto because we don't need to pay tax woth our profit or the money that we earn from it to have our financial freedom.

[#dhabitamartha]

Bitcoin will have taxes, if this will apply in my country maybe I can accept it may be a government decision and I can't refuse, but as a rule-abiding citizen I have the hope that bitcoin can be protected from hackers and guarantees of losing bitcoin and health and provide the best service. maybe bitcoin will be widely used to pay for public services, and health, buying goods online is more expanded, this will be a good thing for the government and society.

[Walterhank]

Rules are good but too many of them aren't. Day by day there are rumors of imposing more strict regulations which won't be good for the industry if it became a reality. Few gov. bodies do accept crypto while others see it as a threat to the traditional financial ecosystem.