Not Declaring Bitcoin Income

[david_019]

Here in our place government does not care about the profit of anyone from btc, bitcoin is not legal but also not illegal so asking tax from bitcoin's community here is not existing. But if the government will do that someday and want to monitor the profit of someone I think the best way is to create a centralized exchange and don't let decentralised exchange control the area. This is the only way because government has no power to all decentralised system.

[1715033770]

1715033770

[1715033770]

1715033770

[1715033770]

1715033770

[stomachgrowls]

I am sure in my country the Government cannot trace the people who benefit from the Bitcoin transactions. Bitcoin is highly transparent and very difficult to trace when we have made transactions with Bitcoin.

Every government can trace Bitcoin transaction if they will regulate it by controlling the local exchanges in which we convert our Bitcoin to fiat. Our local exchanges is KYC compliant in which they are required by the government to screen out their clients by requiring them to submit government issue ID and legal documents in which if they will not follow then of course the local exchange cannot allow to operate. Therefore everytime we will convert Bitcoin to fiat it will be monitor by the government specially if Bitcoin is legal in the country.

At present we cannot expect to harshly intervene the government about bitcoin taxation because we need law that would govern crypto currency taxation, they need to provide and create a law so that they  have guide lines in collecting taxes.

That is why Government wants to regulate cryptocurrency, they say they want everyone who trades in a specific country to be safe from money laundering and other criminal activities that has a high possibility in the future. But behind the major purpose is the Government will take part of controlling cryptocurrency trading and through regulation they could implement a tax.

Agree on what you had said which i do see the same point on why government do really adopt or regulate crypto because they do see that they can able to get tax from it but i would rather choose up for them to regulate than to totally ban itself.As long taxes implemented arent too high then this wont really be a big problem. Declaring bitcoin income would either be known or unknown depending on which medium you would transact on.

[ricebit7]

I think my country doesn't care anyway if any individual here in our country owns many btc. As today, we are free to earn as much as we could without declaring it. I believe that it would 2-3 years before our government will take legal actions because the increase of btc users here is very slow.

[pareshnakar]

government needed tax but its not compulsory to declaring bitcoin income and its not a crime so its not necessary.

[Mamoot]

Here in my country which is now an upcoming tiger economy (though we are still classified as a third-world country), we are free to participate in Bitcoin both buying and selling as the government is treating Bitcoin just like any other foreiign money.

However, I am sure that only a very, very small fraction of us are declaring our Bitcoin income. It seems to me that the government is not that interested to get strict with individuals as long as they can tax the Bitcoin exchange provider for the service rendered.

I am then wondering the situation with other countries. Can your government really be able to track if you never declared gains made from Bitcoin transactions?

all cryptocurrency transactions can be checked by everyone including the government
in a ledger called blockchain, but because the blockchain system hides the sender and seller's personal data
so maybe the Government can only see the amount and time of the transaction only.
It is difficult for the government to find personal data in the blockchain system.

[ersmny1]

I will surely not declare all my earning here because this is how supposed to be, bitcoin is decentralized and Government will surely not know how much your profit is. Well i can easily convert my btc into fiat.

[VeronAncient]

In my opinion. the government can track all income and transactions of each of its people because their money is stored in the bank allowing the authorities to check all transactions if they want to find out. but to date in my country, nobody has declared their earnings from bitcoin because it's still not legal.

[tambok]

In my opinion. the government can track all income and transactions of each of its people because their money is stored in the bank allowing the authorities to check all transactions if they want to find out. but to date in my country, nobody has declared their earnings from bitcoin because it's still not legal.

If it really requiring in your respective country then for sure they will find a way for those people who are earning thru bitcoin they can actually make list of it just like if getting the data in the exchanges, so it it is better to declare it before it would be too late for us.

[VeronAncient]

In my opinion. the government can track all income and transactions of each of its people because their money is stored in the bank allowing the authorities to check all transactions if they want to find out. but to date in my country, nobody has declared their earnings from bitcoin because it's still not legal.

[Lang09]

Yes. Most will not declare it as it is also not being traced by the government. For now, since the government has not yet imposed specific tax on Bitcoins, the tax is paid through personal income tax. Which is filed and declared in an honest basis. Bitcoin earning is not only the one being evaded, but mostly all the business owners. There are a lot of ways to evade tax.

[alex_gr_cc]

It all depends on whether the government controls the cryptoexchange, which is in their jurisdiction.

[Woolles890]

Here in my country which is now an upcoming tiger economy (though we are still classified as a third-world country), we are free to participate in Bitcoin both buying and selling as the government is treating Bitcoin just like any other foreiign money.

However, I am sure that only a very, very small fraction of us are declaring our Bitcoin income. It seems to me that the government is not that interested to get strict with individuals as long as they can tax the Bitcoin exchange provider for the service rendered.

I am then wondering the situation with other countries. Can your government really be able to track if you never declared gains made from Bitcoin transactions?

I personally also never declare my earnings from Bitcoin. I behave like this because I know the government in my country does not like Bitcoin and if I can get revenue from Bitcoin definitely use of Bitcoin will be increasingly prohibited. And of course, I do not want if Bitcoin is getting banned because I am looking for daily income from Bitcoin.

[BeGoods]

Here in our place government does not care about the profit of anyone from btc, bitcoin is not legal but also not illegal so asking tax from bitcoin's community here is not existing. But if the government will do that someday and want to monitor the profit of someone I think the best way is to create a centralized exchange and don't let decentralised exchange control the area. This is the only way because government has no power to all decentralised system.

Yeah you're right it's the only way for the government to provide taxes and give control to bitcoin users. make an exchange centralization, where verification of data id and so on will be required and bitcoin users will probably do that because they certainly have to convert to fiat to pay for their needs, but for now it seems the government has not done that yet or have doesnt cared about it yet..

[labhsikh123]

Bitcoin is a virtual currency in the world. In the world, every country will be thinking about bitcoin to make some rules in a country. Apart from this, If you want to convert with fiat, there is need to pay income tax in your country.

[Blondy12]

I don’t think that bitcoin itself is traceable not unless the government will hire a people that will monitor on the system. But actually for me personally, i don’t think that it is necessary for the government to trace the investors to collect taxes from them. All they need to do is to for the bitcoin to be converted into fiat because most of the bitcoin users do that converting btc to fiat since there are limited establishment still that will accept bitc as payments.

[ranman09]

Can your government really be able to track if you never declared gains made from Bitcoin transactions?

Your government, like every government in the world is monitoring all bank transactions, that's enough for now. With time and effort, I'm sure a government could also monitor the blockchain, but I guess this isn't a priority as of today. The European Union is already talking about it, though.

I hope they include deduction of this taxes in exchanges. So it will be easy for us to do taxes. But if that can't be done, I hope they release guidelines.

[Sandeep24]

I think various countries are making law on Bitcoin for acceptance and they are appling tax on Bitcoin income. If we are not declaring Bitcoin income it means we are going against of country law and government can collect tax on our income with penalty.

[Farahtenan]

I think the Government will not be able to track if we do not tell and not talk the income we get from Bitcoin. If I speak openly about Bitcoin's earnings in the country, I'm sure the government will not stay silent and will further prohibit the use of Bitcoin. While a small percentage of the people who are in my country, currently earn income from Bitcoin to meet the needs of his life.

[Sandeep24]

It depends on government law of your country, if you want to pay tax on your income then it would be legal money after deduction of tax.

[Blondy12]

Bitcoin is very trackable. But the thing is how do you decide whom to track? There is no good automated way to do it. Bitcoin is out of the purview of any country really, and should be treated that way. I wrote some about it here.

If you convert Bitcoin to fiat, pay income tax on it if your country has income tax. Simple.

Bitcoin ATM's bring up some legality concerns. Technically you are selling them for fiat, so you should also pay taxes like it's income instead of like it's a bank.

I'm in the United States. That's how it is here, as well as pretty much anywhere. It's just a question, is there income tax?

Yes mate. We have a different country that we live in but the same way on how the taxes can be collected from us. And i guess many countries does the same way as ours. We cannot use bitcoins in a lot of transactions everywhere, so what we need to do is to convert our bitcoins into fiat. In that way, we are all obligated to declare our income from bitcoin to our local currency. Therefore it is not true that bitcoin can destroy a country just because of thaxes issues.