Bitcoin vs Taxes

[radjie]

If bitcoin has been inaugurated in my country then the government will issue tax on each user, As we know that bitcoin does have properties that do not materialize so bitcoin only serves as property only but its value is so valuable that bitcoin users of course burdened with the existence of separate taxes not from Government because its existence can not be inaugurated.

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[BitHodler]

Here in my country, there is no tax when you buy bitcoin but there is a fees when you buy in bitcoin company like coins.ph, buybitcoin.ph. Thats why they earn a lot of profit / money because of they make a business that trade real money into bitcoin.

For you personally, the fees that you end up paying for using whatever service have nothing to do with tax at all.

In this case it's the service in question that is responsible for paying tax over their operational income (which obviously fee income is also part of).

But as always, they will have no problems with legally finding a way to avoid paying the full percentage of tax, which at the same time can't be said about regular users.

At most they can choose to hide a large portion of their holdings and profits, but that obviously isn't a legal way of avoiding having to pay the full tax percentage.

[deisik]

I've heared that in some countries people have to pay the income tax after buying fiat for their bitcoins. Anyone faced such problem? If yes then how you deal with it in your country?
At one point of view  bitcoin is an instrument for investment so ppl buy it willing to get income in their currency.
At the other point it is a currency and it might be used with a purpose of saving. In this case the tax would be stupid.

If you make a lot of money, like dozens of thousands USD per year, trading cryptos, Bitcoin included, I think taxes should be paid from that. But taxing every $20 worth of Bitcoin selling is ridiculous imo. Amount should matter, rich people have to pay more taxes, poor people shouldn't pay any. But that's just my opinion

There are different opinions

For example, I agree that poor people should not pay any income tax at all. In this way they will be prompted to earn more (well, at least, I think so). But I disagree that rich or wealthier people should pay more overall. There should be a flat tax for any level of income. Otherwise, rich people will be looking for "optimizing" their taxes (well, they will be looking for that anyway, but in the latter case there will just be more incentive). But since their wealth allows them to hire more experienced and skilled financial and tax advisors, they will do a lot better at this tax burden optimization than ordinary people. And the progressive income tax may in fact work in reverse in real life, and less rich people may end up paying more than wealthier tax payers

[hurain]

Here in my country, there is no tax when you buy bitcoin but there is a fees when you buy in bitcoin company like coins.ph, buybitcoin.ph. Thats why they earn a lot of profit / money because of they make a business that trade real money into bitcoin.

yes no tax even in my country on bitcoin. i think my country the government even do not know about bitcoin but still there are a lot of people who are using bitcoin, in future when bitcoin will become so much popular and become legal currency then may be government put tax on bitcoin.

[fullypak]

Here in my country, there is no tax when you buy bitcoin but there is a fees when you buy in bitcoin company like coins.ph, buybitcoin.ph. Thats why they earn a lot of profit / money because of they make a business that trade real money into bitcoin.

yes no tax even in my country on bitcoin. i think my country the government even do not know about bitcoin but still there are a lot of people who are using bitcoin, in future when bitcoin will become so much popular and become legal currency then may be government put tax on bitcoin.

OP is asking will you pay tax for your Bitcoin money. You people are miss understanding this without knowing you are paying tax to your governament. Yes, we all are paying tax to the government. How you know you will sell your bitcoins and that money will come to your bank account right. So this transaction will be noted in the bank statement. The government will check your yearly transaction if it crosses the limit you should pay income tax to your government this is the standard rule in all countries. So we all pay tax to governament.

[marcuslong]

Maybe the fee's are included when you guys buy bitcoin but if government included taxes those who gonna buy bitcoin then this is different questions people are using bitcoin because they don't want to pay high taxes in work eople don't want to pay taxes because its need they using bitcoin because they want it low fees whether they sending money or using it as their personal purposes .

[Betwrong]

I've heared that in some countries people have to pay the income tax after buying fiat for their bitcoins. Anyone faced such problem? If yes then how you deal with it in your country?
At one point of view  bitcoin is an instrument for investment so ppl buy it willing to get income in their currency.
At the other point it is a currency and it might be used with a purpose of saving. In this case the tax would be stupid.

If you make a lot of money, like dozens of thousands USD per year, trading cryptos, Bitcoin included, I think taxes should be paid from that. But taxing every $20 worth of Bitcoin selling is ridiculous imo. Amount should matter, rich people have to pay more taxes, poor people shouldn't pay any. But that's just my opinion

There are different opinions

For example, I agree that poor people should not pay any income tax at all. In this way they will be prompted to earn more (well, at least, I think so). But I disagree that rich or wealthier people should pay more overall. There should be a flat tax for any level of income. Otherwise, rich people will be looking for "optimizing" their taxes (well, they will be looking for that anyway, but in the latter case there will just be more incentive). But since their wealth allows them to hire more experienced and skilled financial and tax advisors, they will do a lot better at this tax burden optimization than ordinary people. And the progressive income tax may in fact work in reverse in real life, and less rich people may end up paying more than wealthier tax payers

I agree and that's why I am averse to the progressive income tax. Taxes should be high for rich people, but they shouldn't be progressive because, apart from what you've said, progressive income taxes suppress initiative and thus we can get stagnation we all don't want.

[deisik]

I've heared that in some countries people have to pay the income tax after buying fiat for their bitcoins. Anyone faced such problem? If yes then how you deal with it in your country?
At one point of view  bitcoin is an instrument for investment so ppl buy it willing to get income in their currency.
At the other point it is a currency and it might be used with a purpose of saving. In this case the tax would be stupid.

If you make a lot of money, like dozens of thousands USD per year, trading cryptos, Bitcoin included, I think taxes should be paid from that. But taxing every $20 worth of Bitcoin selling is ridiculous imo. Amount should matter, rich people have to pay more taxes, poor people shouldn't pay any. But that's just my opinion

There are different opinions

For example, I agree that poor people should not pay any income tax at all. In this way they will be prompted to earn more (well, at least, I think so). But I disagree that rich or wealthier people should pay more overall. There should be a flat tax for any level of income. Otherwise, rich people will be looking for "optimizing" their taxes (well, they will be looking for that anyway, but in the latter case there will just be more incentive). But since their wealth allows them to hire more experienced and skilled financial and tax advisors, they will do a lot better at this tax burden optimization than ordinary people. And the progressive income tax may in fact work in reverse in real life, and less rich people may end up paying more than wealthier tax payers

I agree and that's why I am averse to the progressive income tax. Taxes should be high for rich people, but they shouldn't be progressive because, apart from what you've said, progressive income taxes suppress initiative and thus we can get stagnation we all don't want.

But there are still a few caveats

More specifically, you can't make taxes high only for the rich, and set no taxes for the rest of the population. That wouldn't be much different from a progressive income tax in its effect. Basically, it would still amount to setting up a tax ladder as is the case with an outright progressive tax. No progressive tax policy should limit itself only to really poor people who actually need it, and which doesn't raise any questions in respect to its fairness. Everyone else should pay the same tax burden (in percentage terms, obviously) or doesn't pay any income tax at all

[Betwrong]

I've heared that in some countries people have to pay the income tax after buying fiat for their bitcoins. Anyone faced such problem? If yes then how you deal with it in your country?
At one point of view  bitcoin is an instrument for investment so ppl buy it willing to get income in their currency.
At the other point it is a currency and it might be used with a purpose of saving. In this case the tax would be stupid.

If you make a lot of money, like dozens of thousands USD per year, trading cryptos, Bitcoin included, I think taxes should be paid from that. But taxing every $20 worth of Bitcoin selling is ridiculous imo. Amount should matter, rich people have to pay more taxes, poor people shouldn't pay any. But that's just my opinion

There are different opinions

For example, I agree that poor people should not pay any income tax at all. In this way they will be prompted to earn more (well, at least, I think so). But I disagree that rich or wealthier people should pay more overall. There should be a flat tax for any level of income. Otherwise, rich people will be looking for "optimizing" their taxes (well, they will be looking for that anyway, but in the latter case there will just be more incentive). But since their wealth allows them to hire more experienced and skilled financial and tax advisors, they will do a lot better at this tax burden optimization than ordinary people. And the progressive income tax may in fact work in reverse in real life, and less rich people may end up paying more than wealthier tax payers

I agree and that's why I am averse to the progressive income tax. Taxes should be high for rich people, but they shouldn't be progressive because, apart from what you've said, progressive income taxes suppress initiative and thus we can get stagnation we all don't want.

But there are still a few caveats

More specifically, you can't make taxes high only for the rich, and set no taxes for the rest of the population. That wouldn't be much different from a progressive income tax in its effect. Basically, it would still amount to setting up a tax ladder as is the case with an outright progressive tax. No progressive tax policy should limit itself only to really poor people who actually need it, and which doesn't raise any questions in respect to its fairness. Everyone else should pay the same tax burden (in percentage terms, obviously) or doesn't pay any income tax at all

I agree with you in general and I wasn't saying no taxes for the rest of the population, I was saying no taxes for the poor. I know that in some cases progressive taxes eat almost all the profit and I think that is ridiculous.

[jpoker272727]

Here in my country, there is no tax when you buy bitcoin but there is a fees when you buy in bitcoin company like coins.ph, buybitcoin.ph. Thats why they earn a lot of profit / money because of they make a business that trade real money into bitcoin.

yes no tax even in my country on bitcoin. i think my country the government even do not know about bitcoin but still there are a lot of people who are using bitcoin, in future when bitcoin will become so much popular and become legal currency then may be government put tax on bitcoin.

Yup exactly there is no taxes on bitcoin. There is no need taxes on bitcoin in our country. If there are taxes allowed on bitcoin then the demand of bitcoin will decrease so there for taxes are not better. I would like that say that no just in your country there is no taxes in our country also there is no taxes so yes bitcoin is decentralized and we are happy with that.

[Quadast]

Here in my country, there is no tax when you buy bitcoin but there is a fees when you buy in bitcoin company like coins.ph, buybitcoin.ph. Thats why they earn a lot of profit / money because of they make a business that trade real money into bitcoin.

yes no tax even in my country on bitcoin. i think my country the government even do not know about bitcoin but still there are a lot of people who are using bitcoin, in future when bitcoin will become so much popular and become legal currency then may be government put tax on bitcoin.

Yup exactly there is no taxes on bitcoin. There is no need taxes on bitcoin in our country. If there are taxes allowed on bitcoin then the demand of bitcoin will decrease so there for taxes are not better. I would like that say that no just in your country there is no taxes in our country also there is no taxes so yes bitcoin is decentralized and we are happy with that.

As far as I understand, Bitcoin users will still suffer from what they want to legalize Bitcoin. The point is that the entire government as soon as the process of implementation begins, will be in other ways to control financial matters. Therefore, there is no question of anonymous crypto currency world. And you will have to pay taxes like that already by itself.

[stompix]

If bitcoin has been inaugurated in my country then the government will issue tax on each user, As we know that bitcoin does have properties that do not materialize so bitcoin only serves as property only but its value is so valuable that bitcoin users of course burdened with the existence of separate taxes not from Government because its existence can not be inaugurated.

Honestly I have no clue what you just said here.
Can you enlighten us in a proper earthling  language?

As far as I understand, Bitcoin users will still suffer from what they want to legalize Bitcoin. The point is that the entire government as soon as the process of implementation begins, will be in other ways to control financial matters. Therefore, there is no question of anonymous crypto currency world. And you will have to pay taxes like that already by itself.

You understand wrong:)
There will be no taxes on bitcoin.The taxes are on earnings made from bitcoins.
Just like stocks and forex.

Nobody will tax you if you buy bitcoins and spend them with no earnings in between.

[Rizky Aditya]

I think as long as you can still do bitcoin transactions and there is never a problem in the transaction, legality is certainly not very necessary. And probably still have a good chance because it is not obliged to pay income tax from bitcoin.

I think legalization is not so important if at this time you can still make transactions easily and without any hindrance, Besides with legalization of course the government will give some conditions such as paying tax for bitcoin users for their earnings in bitcoin

Why would tax from government I mean why would government take taxes now a days on bitcoin.
As we pay high fees through internet is not enough that government is also taking taxes from us. I would recommend to government stop taking taxes when we transfer our bitcoin to banks then yes we will ready to pay taxes after that.

[joebrook]

I've heared that in some countries people have to pay the income tax after buying fiat for their bitcoins. Anyone faced such problem? If yes then how you deal with it in your country?
At one point of view  bitcoin is an instrument for investment so ppl buy it willing to get income in their currency.
At the other point it is a currency and it might be used with a purpose of saving. In this case the tax would be stupid.

I think this is really absurd, I believe there shouldn't be any taxes when one currency is exchanged for another, If on the other hand bitcoins is used to buy products and services then and only then should they become taxable. In my country i dont face that kind of situation.

[smurfik32]

I've heared that in some countries people have to pay the income tax after buying fiat for their bitcoins. Anyone faced such problem? If yes then how you deal with it in your country?
At one point of view  bitcoin is an instrument for investment so ppl buy it willing to get income in their currency.
At the other point it is a currency and it might be used with a purpose of saving. In this case the tax would be stupid.

I think this is really absurd, I believe there shouldn't be any taxes when one currency is exchanged for another, If on the other hand bitcoins is used to buy products and services then and only then should they become taxable. In my country i dont face that kind of situation.

In my country, I also did not encounter the fact that taxes were taken from transactions with bitcoins. But this is due only to the fact that the government has not adopted such a law. As soon as the government turns attention to bitcoin, operations with it will be taxed.

[JL421]

Tax on bitcoin is not a problem for now as countries still plan to legalize bitcoin and until they don't legalize it in front of the tax department bitcoin is nothing for them so how can charge tax on something which isn't legal yet. And even if they try to charge taxes there are many ways to escape

[Sweetbtc]

The good thing is that there is no taxes with bitcoin, no matter how much you earn. But the point to be noted is that in case if you convert your coins to Fiat through legal means, then govt can charge you taxes on the Fiat. 

[oegarod]

In the beginning when bitcoin was gaining popularity little by little most of the bitcoin users were high volume fiat holders who use bitcoin to escape tax and for high volume transactions. Now this has decreased a lot, as people has started to give importance as a investment which too is taxable.

[flower1024]

The good thing is that there is no taxes with bitcoin, no matter how much you earn. But the point to be noted is that in case if you convert your coins to Fiat through legal means, then govt can charge you taxes on the Fiat. 

While converting our bitcoins to fiat currency, we have to pay 2 tax amount. One for exchange site they will charge some amount to exchange our bitcoins to fiat. And next to that amount will deposit in our bank account. Here we have to pay income tax to our governament.

[ghostunicorn]

The good thing is that there is no taxes with bitcoin, no matter how much you earn. But the point to be noted is that in case if you convert your coins to Fiat through legal means, then govt can charge you taxes on the Fiat. 

While converting our bitcoins to fiat currency, we have to pay 2 tax amount. One for exchange site they will charge some amount to exchange our bitcoins to fiat. And next to that amount will deposit in our bank account. Here we have to pay income tax to our governament.

I pay my income tax after bitcoin withdraws. This is forced with law and not paying this tax in unlawful. It would be great if there is zero tax, but we pay tax everywhere on the world.