Imposing tax on bitcoin

[burner2014]

Imposing tax on bitcoin? Wht not? For me it's not a big deal since it is for the sake of many people and economic growth. Why worry for this. There are 2 things that is certain tax and death. Right?

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[deisik]

In many countries government already impose tax like service tax when you buy/sell Bitcoin from Bitcoin exchange so far it only imposed when you buy/sell it from Bitcoin exchange. But it will different thing if government impose tax on every transaction .
Will it be easy or posible for government to impose tax on Bitcoin transaction?

I think it will be easy for the government to impose tax. All they can do is communicate to exchange and give them law on how they will tax bitcoin that is been exchanged to fiat money and vice versa.  This way people have no choice.  It is a mandatory tax collection LOL.

There are a lot of exchanges out there

So they may have trouble going after every of them. Since they are mostly online businesses, nothing will prevent them from moving across the Internet and host their services where it is most safest. Further, there are many small islands which are thought of as tax havens, therefore the government may have issues trying to impose these taxes. Personally, I think they would fare much better if they chose to tax miners directly since miners always have physical presence

There are 2 things that is certain tax and death. Right?

Let's get rid of them

[lambdaE]

Good luck getting a penny from me that i don't want you to have lol

[doona38317]

Good luck getting a penny from me that i don't want you to have lol

Then you will go to jail and meet a big friend named 'I should have paid my tax' in the butt.

[Zadicar]

Imposing tax on bitcoin? Wht not? For me it's not a big deal since it is for the sake of many people and economic growth. Why worry for this. There are 2 things that is certain tax and death. Right?

Even for some tax wont matter since they do only pay a small portion on their money but there are really people would like to avoid such taxation and wouldnt pay to the said amount no matter what.It may not a big deal for us but on some it is. Tax does really play a big role on economic growth thats why we should not evade or not tend to pay it.Imposing tax on bitcoin is possible but thru exchanges only not on the system itself.

[burner2014]

Imposing tax on bitcoin? Wht not? For me it's not a big deal since it is for the sake of many people and economic growth. Why worry for this. There are 2 things that is certain tax and death. Right?

Even for some tax wont matter since they do only pay a small portion on their money but there are really people would like to avoid such taxation and wouldnt pay to the said amount no matter what.It may not a big deal for us but on some it is. Tax does really play a big role on economic growth thats why we should not evade or not tend to pay it.Imposing tax on bitcoin is possible but thru exchanges only not on the system itself.

yah. Absolutely. Good luck if you tried to escape tax anyway. It is not possible of course. Just be in the positive side that we need tax in return we are benefiting on it also. So we don't have to worry. A lot of things we should focus on. The government knew what must supposed to do with it.

[deisik]

Good luck getting a penny from me that i don't want you to have lol

Some have already tried to walk that path, but with varied success, though (for example, Wesley Snipes). Maybe, you will be more lucky than most of them, or you just won't get under the radar somehow (miracles happen too), but you should be aware of the possible negative consequences...



In any case, more power to you

[geopolisch]

i think its impossible to imposing tax on bitcoin currently first of all they need to adopt the bitcoin for their government and adopt the bitcoin in their banks then they can be imposing the tax on bitcoin.

They don't impose tax on transacting bitcoins but the government can impose a tax on how much money you earned from selling your bitcoins. So for example you bought it at the price today and you sold it at 100% more than what it is today, then you must pay for how much you earned from that. That is the concept of income tax.

But how they would know that the money that came to the bank has come from selling bitcoins or by selling goods ?
I mean there are millions of transactions per city and imagine for the whole country and then how would they know who has transacted for which purpose ?

[South Park]

Good luck getting a penny from me that i don't want you to have lol

If the IRS is behind you then it is better to just fork the cash than to risk going to jail, they even got Al Capone, so don’t mess with the IRS.

[deisik]

i think its impossible to imposing tax on bitcoin currently first of all they need to adopt the bitcoin for their government and adopt the bitcoin in their banks then they can be imposing the tax on bitcoin.

They don't impose tax on transacting bitcoins but the government can impose a tax on how much money you earned from selling your bitcoins. So for example you bought it at the price today and you sold it at 100% more than what it is today, then you must pay for how much you earned from that. That is the concept of income tax.

But how they would know that the money that came to the bank has come from selling bitcoins or by selling goods ?
I mean there are millions of transactions per city and imagine for the whole country and then how would they know who has transacted for which purpose ?

In pretty much the same way they track Bitcoin transactions

If they see that from some bank account there are a lot of transactions to many other accounts, and that account is not linked to a business or other institution, they will note it and check who is the owner and what he does for a living. In fact, going after fiat accounts is a whole lot easier than tracking Bitcoin users

Good luck getting a penny from me that i don't want you to have lol

If the IRS is behind you then it is better to just fork the cash than to risk going to jail, they even got Al Capone, so don’t mess with the IRS.

You're welcome

[FLoving]

First of all if any government will impose tax on bitcoin then before it they will accept bitcoin as a legal currency for their state and state affairs so in that case the government will support that currency so everyone in that case will rely on bitcoin without any fear and in that case the value will increase much higher so if the government will impose tax then it will not affect the price much.

[Yuuto]

First of all if any government will impose tax on bitcoin then before it they will accept bitcoin as a legal currency for their state and state affairs so in that case the government will support that currency so everyone in that case will rely on bitcoin without any fear and in that case the value will increase much higher so if the government will impose tax then it will not affect the price much.

Yeah. If they were to tax bitcoin then they are recognising it as legal tender, which I don't think they would be willing to do. However capital gains tax on bitcoin could potentially be implemented however is quite impractical.

Bitcoin is digital cash. Cash is hard to tax, just like bitcoin.

[Pattart]

Imposing tax on bitcoin? Wht not? For me it's not a big deal since it is for the sake of many people and economic growth. Why worry for this. There are 2 things that is certain tax and death. Right?

I think when the tax applied to all users bitcoin instead it will be a problem, because when you pay taxes of identity as bitcoin users would look, so of course this will be a problem?

[Shiroslullaby]

The United States is already starting to look into this.
They will get whatever information they can from US based companies like Coinbase,
go after the larger buyers/ sellers and see how much money they can get.

Whether they keep this up for the long term probably depends on how much they get back and the laws related to Bitcoin that get passed over the next few years.

[propcorn]

I think polish gov already tax bitcoin mining with VAT

[deisik]

First of all if any government will impose tax on bitcoin then before it they will accept bitcoin as a legal currency for their state and state affairs so in that case the government will support that currency so everyone in that case will rely on bitcoin without any fear and in that case the value will increase much higher so if the government will impose tax then it will not affect the price much.

Yeah. If they were to tax bitcoin then they are recognising it as legal tender, which I don't think they would be willing to do. However capital gains tax on bitcoin could potentially be implemented however is quite impractical.

Bitcoin is digital cash. Cash is hard to tax, just like bitcoin.

Bitcoin is not digital cash

Since to transact in cash you don't need an intermediary even if the latter is a decentralized Bitcoin network (payment system). With cash, you transact direct without any "man in the middle" (whatever it might be). Further, taxing Bitcoin doesn't mean recognizing it as legal tender, else otherwise foreign currencies should also be recognized as legal tender. Though the currency conversion operations are perfectly taxable in many jurisdictions, for example, in the US

[icecube45]

If the government imposing tax on bitcoin was sure to happen is bitcoin transaction costs will be greater, and there will probably be routine costs to be incurred. Imposing tax on bitcoin I sure do not apply in all states because each state has different policies. I believe imposing tax on bitcoin will be imposed for countries that accept bitcoin.

The government can't impose the tax into the blockchain . Hence the transaction costs (or you're more likely referring to miner's fee ) aren't going to be affected and will remain the same. But, if the government are imposing the taxation onto merchant whose payment options are also accepting bitcoin then it would affect the bills you're going to pay because it will merged with the tax

The only possible option for Bitcoin taxation is Merchant Taxation, on purshase. They can't tax the blockchain as it is used worldwide, unless the UN passes a motion regarding cryptocurrencies. Even in this case, the blockchain can't be taxed as it is decentralised, the merchants are not decentralised, so they are the only one to be taxed.

Yes may be true in blockchain there is no tax by the government and it was not possible. But bitcoin wallet for currency exchange there are taxes to be paid. In my country, Indonesia, as of 9 November 2016, all costs for transactions and withdrawals that occurred in Bitcoin.co.id already taxable 10%.

[boyptc]

I think polish gov already tax bitcoin mining with VAT

I didn't knew about it and there is no news about this one. If this is true, would mind to put the link about this so that we will know that the polish government is already using and adopting bitcoin their system or else they are just using bitcoin but they are not imposing tax for it.

[robelneo]

What if the Internal Revenue service of the US decided to tax bitcoin transactions, what would be the possible effects on its price and the bitcoin community. Will the other governments follow?

They can only tax merchants operating within their territory and if that will be the case many US merchants will choose to operate using vpn and underground where they cannot be trace,I don't know if they have the means to trace and tax each transactions ,bitcoin works very much different from all the other payment processor.

[deisik]

What if the Internal Revenue service of the US decided to tax bitcoin transactions, what would be the possible effects on its price and the bitcoin community. Will the other governments follow?

They can only tax merchants operating within their territory and if that will be the case many US merchants will choose to operate using vpn and underground where they cannot be trace,I don't know if they have the means to trace and tax each transactions ,bitcoin works very much different from all the other payment processor.

You are talking not so much about merchants as service providers

And only about those services which can be rendered remotely, including online services. But what about merchants and service providers that offer tangible goods and services such as, for example, hairdressing services? They need certain physical presence, so to speak, and they could be easily taxed or caught if they choose not to be taxed