do i have to pay tax on bitcoins ?

[BurtW]

to me i think those countries who do not have declare bitcoin as legal currency, they do not have to pay tax on bitcoin, and therefore i do not think that still a single country is collecting tax on bitcoin. may be in future when they will consider bitcoin as legal currency then they may start collecting tax on bitcoin.

You obviously don't know what the fuck you are talking about you piece of shit thread spammer.

[Amph]

Actually paying tax depends on your Government's policy. If they take external source of income in tax boundaries then you have to pay tax as you earn from bitcoins.

capital gain is taxed everywhere as far as i know, the same is true for your income per year, if it exceed a certain threshold, at least here in italy it work like that

but recently it seems that you have not to pay anything here, to exchange bitcoin in fiat, unless you don't exceed a certain amount per week, still not very clear, they don't even know how to see bitcoin...

i think i'll go ahead, and don't do any tax return for now, the amount i exchanged is very low, it should not arasi any problem

[Gelap]

Bitcoin is definitely taxable.  If you sell all of your bitcoin for USD you pay a tax on the profits.  Make sure to check with your local government tax office before failing to pay taxes. 

Yes i agree with that
Of course taxable bitcoin
Every one of our transactions must be a slice.

[noone000]

Lets say a decent portion of your income is earned through bitcoins, be it bitcoin trade, gambling, free lance stuff, etc. When filing for your tax returns and that kind of stuff, do we have to state how many bitcoins you have made through these methods? I know in my country, you have to let the government know how much money you make annually so they can place you in the appropriate tax bracket. If so, how would the government be able to verify that you are being truthful? I would assume the anonymity of the BTC would make this fairly difficult.

[BurtW]

Lets say a decent portion of your income is earned through bitcoins, be it bitcoin trade, gambling, free lance stuff, etc. When filing for your tax returns and that kind of stuff, do we have to state how many bitcoins you have made through these methods? I know in my country, you have to let the government know how much money you make annually so they can place you in the appropriate tax bracket. If so, how would the government be able to verify that you are being truthful? I would assume the anonymity of the BTC would make this fairly difficult.

Since you asked a question I will assume for the moment that you are not just another piece of shit thread spammer with a paid signature.

What country do you live in?

If you do not return to check for an answer to your question and answer mine then you are, of course, just another piece of shit thread spammer with a paid signature.

[noone000]

What country do you live in?

If you do not return to check for an answer to your question and answer mine then you are, of course, just another piece of shit thread spammer with a paid signature.

I live in Canada. I guess I'm not the piece of shit thread spammer with a paid signature you thought I was. I understand that since it is effectively unmonitorable apart from when you're withdrawing it to a bank, it might not be entirely necessary to report it but I'm not completely sure about it. Obviously if you're making a large sum of profit off bitcoins then if you want to start spending it on relatively large investments you would have to explain the origin of the funds. Do you have clarification on the legal perspective of bitcoins?

[BurtW]

What country do you live in?

If you do not return to check for an answer to your question and answer mine then you are, of course, just another piece of shit thread spammer with a paid signature.

I live in Canada. I guess I'm not the piece of shit thread spammer with a paid signature you thought I was. I understand that since it is effectively unmonitorable apart from when you're withdrawing it to a bank, it might not be entirely necessary to report it but I'm not completely sure about it. Obviously if you're making a large sum of profit off bitcoins then if you want to start spending it on relatively large investments you would have to explain the origin of the funds. Do you have clarification on the legal perspective of bitcoins?

Good to see that at least one person in this thread is not just another piece of shit thread spammer!

Don't know about Canada.  I am in the US.  In the US, mining Bitcoins is taxed as ordinary income and profit from trading is taxed as a capital gain.

In the US you are required to report all your income from mining and all your profits from trading.  There are no exceptions.

If you do not report these things that is call tax evasion.  All these people in this thread that say "Well I am just not going to pay the taxes" are just fine until they get caught.  Then they will find out they owe all the taxes they did not pay, interest on all the taxes they did not pay and fines for not paying them.

How will they get caught?  It does not matter.  We will just have to wait and see how they get caught.  At least some of them will get caught.

I paid every cent of taxes on all of my Bitcoin income and capital gains and I was still "caught" for something different - not having a business licence to use localbitcoins.com.  I faced 5 years in prison and a $250,000 fine for that.  All these people can bury their head in the sand and claim they do not have to pay taxes for some asinine reason or another but for at least some of them it will end like this:

Bitcoin tax evader: "But Mr. IRS agent, people on the interwebby thing told me that since it is not  legal tender I don't have to pay taxes"
Mr. IRS agent:  "You believed that total bullshit?  I guess we will just have to fine you extra for being such a naive idiot."

Bottom line:  if you do not pay the taxes and you get caught, by whatever means, you will owe the taxes, interest and penalties.  It is tax evasion, simple as that.

[noone000]

Good to see that at least one person in this thread is not just another piece of shit thread spammer!

Don't know about Canada.  I am in the US.  In the US, mining Bitcoins is taxed as ordinary income and profit from trading is taxed as a capital gain.

In the US you are required to report all your income from mining and all your profits from trading.  There are no exceptions.

If you do not report these things that is call tax evasion.  All these people in this thread that say "Well I am just not going to pay the taxes" are just fine until they get caught.  Then they will find out they owe all the taxes they did not pay, interest on all the taxes they did not pay and fines for not paying them.

How will they get caught?  It does not matter.  We will just have to wait and see how they get caught.  At least some of them will get caught.

I paid every cent of taxes on all of my Bitcoin income and capital gains and I was still "caught" for something different - not having a business licence to use localbitcoins.com.  I faced 5 years in prison and a $250,000 fine for that.  All these people can bury their head in the sand and claim they do not have to pay taxes for some asinine reason or another but for at least some of them it will end like this:

Bitcoin tax evader: "But Mr. IRS agent, people on the interwebby thing told me that since it is not  legal tender I don't have to pay taxes"
Mr. IRS agent:  "You believed that total bullshit?  I guess we will just have to fine you extra for being such a naive idiot."

Bottom line:  if you do not pay the taxes and you get caught, by whatever means, you will owe the taxes, interest and penalties.  It is tax evasion, simple as that.

I looked into your situation and am amazed at the ridiculousness of the entire thing. I also did do some research into Bitcoin taxing in Canada and it seems like some state that Bitcoins are considered barter instruments - a commodity - similar to gold. I guess all transactions should be reported and taxes apply to them. It doesn't appear that bitcoin is considered a true currency for all intents and purposes in Canada  yet though that may change with public interest given the increasing price.

[Porte]

Hi,

I live in the United Kingdom, What is the situation in the UK?

Do I have to pay taxes? and how are they going to find out if I transfer money from an exchange to my bank account? The bank will not report you as that will give bad publicity and other people that deal with BTC will not deal with such a bank that report customers.

Anyway do you have to pay taxes in the UK and if so , do you have to declare it and how?

[Gaaara]

What country do you live in?

If you do not return to check for an answer to your question and answer mine then you are, of course, just another piece of shit thread spammer with a paid signature.

I live in Canada. I guess I'm not the piece of shit thread spammer with a paid signature you thought I was. I understand that since it is effectively unmonitorable apart from when you're withdrawing it to a bank, it might not be entirely necessary to report it but I'm not completely sure about it. Obviously if you're making a large sum of profit off bitcoins then if you want to start spending it on relatively large investments you would have to explain the origin of the funds. Do you have clarification on the legal perspective of bitcoins?

Good to see that at least one person in this thread is not just another piece of shit thread spammer!

Don't know about Canada.  I am in the US.  In the US, mining Bitcoins is taxed as ordinary income and profit from trading is taxed as a capital gain.

In the US you are required to report all your income from mining and all your profits from trading.  There are no exceptions.

If you do not report these things that is call tax evasion.  All these people in this thread that say "Well I am just not going to pay the taxes" are just fine until they get caught.  Then they will find out they owe all the taxes they did not pay, interest on all the taxes they did not pay and fines for not paying them.

How will they get caught?  It does not matter.  We will just have to wait and see how they get caught.  At least some of them will get caught.

I paid every cent of taxes on all of my Bitcoin income and capital gains and I was still "caught" for something different - not having a business licence to use localbitcoins.com.  I faced 5 years in prison and a $250,000 fine for that.  All these people can bury their head in the sand and claim they do not have to pay taxes for some asinine reason or another but for at least some of them it will end like this:

Bitcoin tax evader: "But Mr. IRS agent, people on the interwebby thing told me that since it is not  legal tender I don't have to pay taxes"
Mr. IRS agent:  "You believed that total bullshit?  I guess we will just have to fine you extra for being such a naive idiot."

Bottom line:  if you do not pay the taxes and you get caught, by whatever means, you will owe the taxes, interest and penalties.  It is tax evasion, simple as that.

I am a Filipino, and in our country (Philippines) there is no such thing as this, or maybe I am just not well informed but I don't seem to have any idea on how will they track you for tax evading? If its your ip address you can use vpn and there are so many ways to get away from it, another thing how do they calculate your total taxes?

[botany]

Hi,

I live in the United Kingdom, What is the situation in the UK?

Do I have to pay taxes? and how are they going to find out if I transfer money from an exchange to my bank account? The bank will not report you as that will give bad publicity and other people that deal with BTC will not deal with such a bank that report customers.

Anyway do you have to pay taxes in the UK and if so , do you have to declare it and how?

You are in luck! The UK is one of the few countries which established guidelines very early on the taxes involved in cryptocurrencies.
Have a look at this site
https://www.gov.uk/government/publications/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies

[BurtW]

What country do you live in?

If you do not return to check for an answer to your question and answer mine then you are, of course, just another piece of shit thread spammer with a paid signature.

I live in Canada. I guess I'm not the piece of shit thread spammer with a paid signature you thought I was. I understand that since it is effectively unmonitorable apart from when you're withdrawing it to a bank, it might not be entirely necessary to report it but I'm not completely sure about it. Obviously if you're making a large sum of profit off bitcoins then if you want to start spending it on relatively large investments you would have to explain the origin of the funds. Do you have clarification on the legal perspective of bitcoins?

Good to see that at least one person in this thread is not just another piece of shit thread spammer!

Don't know about Canada.  I am in the US.  In the US, mining Bitcoins is taxed as ordinary income and profit from trading is taxed as a capital gain.

In the US you are required to report all your income from mining and all your profits from trading.  There are no exceptions.

If you do not report these things that is call tax evasion.  All these people in this thread that say "Well I am just not going to pay the taxes" are just fine until they get caught.  Then they will find out they owe all the taxes they did not pay, interest on all the taxes they did not pay and fines for not paying them.

How will they get caught?  It does not matter.  We will just have to wait and see how they get caught.  At least some of them will get caught.

I paid every cent of taxes on all of my Bitcoin income and capital gains and I was still "caught" for something different - not having a business licence to use localbitcoins.com.  I faced 5 years in prison and a $250,000 fine for that.  All these people can bury their head in the sand and claim they do not have to pay taxes for some asinine reason or another but for at least some of them it will end like this:

Bitcoin tax evader: "But Mr. IRS agent, people on the interwebby thing told me that since it is not  legal tender I don't have to pay taxes"
Mr. IRS agent:  "You believed that total bullshit?  I guess we will just have to fine you extra for being such a naive idiot."

Bottom line:  if you do not pay the taxes and you get caught, by whatever means, you will owe the taxes, interest and penalties.  It is tax evasion, simple as that.

I am a Filipino, and in our country (Philippines) there is no such thing as this, or maybe I am just not well informed but I don't seem to have any idea on how will they track you for tax evading? If its your ip address you can use vpn and there are so many ways to get away from it, another thing how do they calculate your total taxes?

Maybe you guys don't have an income tax?  In the US "they" don't calculate my tax.  It is up to the me to report all my income, calculate how much tax I owe and then pay it.  "They" give us all the forms to fill out but it is up to us to fill out the forms.  How they track your income for tax evasion charges is up to the government.  They have many ways to do this.  Sure you can evade paying the taxes until you get caught.

[RodeoX]

Maybe you guys don't have an income tax?  In the US "they" don't calculate my tax.  It is up to the me to report all my income, calculate how much tax I owe and then pay it.  "They" give us all the forms to fill out but it is up to us to fill out the forms.  How they track your income for tax evasion charges is up to the government.  They have many ways to do this.  Sure you can evade paying the taxes until you get caught.

Perhaps this is part of the confusion? I know many (most?) countries do the calculations and hand over a bill to the taxpayer. In the U.S. we have an unusual system that has the taxpayer prepare their own return. So if you are not used to doing your own taxes it could get quite complicated.

[Gaaara]

What country do you live in?

If you do not return to check for an answer to your question and answer mine then you are, of course, just another piece of shit thread spammer with a paid signature.

I live in Canada. I guess I'm not the piece of shit thread spammer with a paid signature you thought I was. I understand that since it is effectively unmonitorable apart from when you're withdrawing it to a bank, it might not be entirely necessary to report it but I'm not completely sure about it. Obviously if you're making a large sum of profit off bitcoins then if you want to start spending it on relatively large investments you would have to explain the origin of the funds. Do you have clarification on the legal perspective of bitcoins?

Good to see that at least one person in this thread is not just another piece of shit thread spammer!

Don't know about Canada.  I am in the US.  In the US, mining Bitcoins is taxed as ordinary income and profit from trading is taxed as a capital gain.

In the US you are required to report all your income from mining and all your profits from trading.  There are no exceptions.

If you do not report these things that is call tax evasion.  All these people in this thread that say "Well I am just not going to pay the taxes" are just fine until they get caught.  Then they will find out they owe all the taxes they did not pay, interest on all the taxes they did not pay and fines for not paying them.

How will they get caught?  It does not matter.  We will just have to wait and see how they get caught.  At least some of them will get caught.

I paid every cent of taxes on all of my Bitcoin income and capital gains and I was still "caught" for something different - not having a business licence to use localbitcoins.com.  I faced 5 years in prison and a $250,000 fine for that.  All these people can bury their head in the sand and claim they do not have to pay taxes for some asinine reason or another but for at least some of them it will end like this:

Bitcoin tax evader: "But Mr. IRS agent, people on the interwebby thing told me that since it is not  legal tender I don't have to pay taxes"
Mr. IRS agent:  "You believed that total bullshit?  I guess we will just have to fine you extra for being such a naive idiot."

Bottom line:  if you do not pay the taxes and you get caught, by whatever means, you will owe the taxes, interest and penalties.  It is tax evasion, simple as that.

I am a Filipino, and in our country (Philippines) there is no such thing as this, or maybe I am just not well informed but I don't seem to have any idea on how will they track you for tax evading? If its your ip address you can use vpn and there are so many ways to get away from it, another thing how do they calculate your total taxes?

Maybe you guys don't have an income tax?  In the US "they" don't calculate my tax.  It is up to the me to report all my income, calculate how much tax I owe and then pay it.  "They" give us all the forms to fill out but it is up to us to fill out the forms.  How they track your income for tax evasion charges is up to the government.  They have many ways to do this.  Sure you can evade paying the taxes until you get caught.

Yes of course, we don't have a income tax by using bitcoin why do I even think that there is, in fact your technologies is way far ahead from our country, we adopt things here late. I am sure that even our governments are not well informed about bitcoin, and they are too lazy to create a steps for it so as far as I concern we can enjoy our no income tax while using bitcoin. Thanks for the info tho.

[HeroC]

It depends on your jurisdiction. Some consider it property, some currency, some don't have rules about it. Your best bet is to lookup some local financial laws; or better yet, if you have a large amount of bitcoin, a lawyer.

[Amph]

Maybe you guys don't have an income tax?  In the US "they" don't calculate my tax.  It is up to the me to report all my income, calculate how much tax I owe and then pay it.  "They" give us all the forms to fill out but it is up to us to fill out the forms.  How they track your income for tax evasion charges is up to the government.  They have many ways to do this.  Sure you can evade paying the taxes until you get caught.

Perhaps this is part of the confusion? I know many (most?) countries do the calculations and hand over a bill to the taxpayer. In the U.S. we have an unusual system that has the taxpayer prepare their own return. So if you are not used to doing your own taxes it could get quite complicated.

we don't calculate tax we just report our income per year here in italy, you can delcare the false, yes but they are going to check if what you claim is correct or not and if not you are in trouble of course

they calculate the tax based on the income you have, on your job, if you have family, and many other stuff, there rules are different case by case, i think it's the same in usa or sligthly different

still under a certain threshold they don't care, like if you receive 5k only per year, assuming this is true of course, they don't bother taxing you on this, you can ignore and don't claim anything in that document

[fuer44]

Is bicoin the same as paypal? In paypal there will be a fee or tax every time a transaction. Because I have never used bitcoin so I also do not understand whether there are taxes or other fees or not at all
Thanks

[leminerale]

Bitcoin is not an official currency. That is, most countries still require you to pay income taxes, sales, payroll, and capital gains tax on anything that has value including bitcoin. It is your responsibility to ensure that you comply with any other tax and legal rules or policies issued by your government and / or policy makers in your area.
Thanks

[leminerale]

Bitcoin is not an official currency. That is, most countries still require you to pay income taxes, sales, payroll, and capital gains tax on anything that has value including bitcoin. It is your responsibility to ensure that you comply with any other tax and legal rules or policies issued by your government and / or policy makers in your area.
Thanks

[btcdiggingmaster]

Bitcoin is not an official currency. That is, most countries still require you to pay income taxes, sales, payroll, and capital gains tax on anything that has value including bitcoin. It is your responsibility to ensure that you comply with any other tax and legal rules or policies issued by your government and / or policy makers in your area.
Thanks

Bitcoin is not official currency but many people are making a transaction with it and only a few people are paying taxes on it. It is very good for us if we pay taxes to the government for usage of bitcoin so that government will start recognizing the Bitcoin as a legal currency.