Do we need to pay income tax if we earn through Bitcoin or Altcoins??

[noorammak]

rightnow in my country, the government is trying to control bitcoin, if they let us use bitcoin, of course they will charge taxes on Bitcoin because bitcoin is money, how can they let us go.

[Rishabh riyz]

I don't think that people would need to pay income tax if they earn through bitcoins or any others crypto currency.
Income taxes are charged after observing our income which we get through offering our services to others. Government would no the able to check out earnings so how can they charge us taxes .!?
Maybe in future after legalising BTC , government would put fixed amount of charges on everyone who uses crypto.

It is also that government would want to control BTC for charging taxes , that won't happen because BTC is decentralised.
Due to this problem on charging taxes the acceptance in facing a friction in many nations.

[Omega Weapon]

Do we still need to pay income tax if we earn through trading/investing in Bitcoin or Altcoins??

Well if it is just a little amount then  I dont think you need to pay taxes for it since it is negligible. But eventually, if someday you are going to earn a lot and maybe buy some properties, it would then be hard to explain and you will have trouble with your government. So, before that happens, I suggest if ever you earn big, just go legal and settle taxes first to avoid trouble in the future.

Technically speaking any income needs to be reported to the tax authorities but if the amount of money you are getting is low then they are not going to pursue you since it is not worth it, but if you invest in an altcoin and it skyrockets and you have hundreds of bitcoin as a result you are going to have to declare that or you are going to get in a lot of troubles with your government.

[shimbark123]

Do we still need to pay income tax if we earn through trading/investing in Bitcoin or Altcoins??

This is the greatness in bitcoin and on other cryptorelated cryptocurrencies. We do not need to pay taxes once we received or get one. It is great that we do not need to pay taxes because it is just like an online job, in which people who do this do not need to pay their taxes.

[Almat]

If you're in a country which has tax regulations in place, then yes. They have no way to enforce or trace them though. You'll be filing out of honesty.

[qwertyup23]

Technically, you are mandated to pay income tax despite earning through bitcoins or altcoins but it mainly depends on the country that you are staying especially if they are both regarded as 'legal ways' earning. Some countries though, have their respective views on cryptocurrencies and does not see the need to pay any tax through its decentralized nature. Like here in the Philippines, bitcoin is regarded as property, and not as currency, therefore it is not subject to legal tender. It is a case-to-case basis and you have the obligation to know it.

[Omega Weapon]

I don't think that people would need to pay income tax if they earn through bitcoins or any others crypto currency.
Income taxes are charged after observing our income which we get through offering our services to others. Government would no the able to check out earnings so how can they charge us taxes .!?
Maybe in future after legalising BTC , government would put fixed amount of charges on everyone who uses crypto.

It is also that government would want to control BTC for charging taxes , that won't happen because BTC is decentralised.
Due to this problem on charging taxes the acceptance in facing a friction in many nations.

It depends on the kind of earnings we are talking about, if you are earning your bitcoin through some kind of work, product or service you are offering then you are subject to income tax but it is likely this is so low you do not have to pay anything, the real action is in capital gains which is the income you get from trading your bitcoin for altcoins and then to bitcoin again.

[meliodas]

Do we still need to pay income tax if we earn through trading/investing in Bitcoin or Altcoins??

I don’t think so. Only government achknowledged earnings are being taxed such as when working to a private company. Since bitcoin is not yet legalized by the government, it is not entitled for tax.

[Rossy Akbar]

Awesome question, it looks very strange when you have to pay the taxes for something unknown who is going through a program or project in bitcoin world. because I know bitcoin is an anonymous, then to who we must pay the income tax.?
but for me personally with paying taxes etc, it will be useful for us also for the next step.

[notyours]

As far as I know there are no such thing as taxing when it comes to all cryptocurrencies as a whole and I don't believe that its possible to tax them unless you government has legalized all cryptocurrency exchange sites and wallets which will be pretty hard to accomplish thanks to the blockchain.

You're completely wrong on that, it depends on where you live, but most countries do have some sort of law that requires you to declare your income from cryptocurrency and pay taxes on it.

It won't mention crypro-currency in the tax law, but they usually lump crypto earnings together with something else.

Yes we have a tax bill here it is the exchanger we use to replace our altcoins with bitcoins. But this is only a very low cost compared to the traditional exchanger of dollars in our money. So it's better to trade and not to work

[kenkoy]

Do we still need to pay income tax if we earn through trading/investing in Bitcoin or Altcoins??

I think it will depend on your country. Though, most countries don't require to pay income tax for Bitcoin/Altcoin trading. In our country, where Cryptocurrency has not yet being legalize. Though, widely accepted digital currency.. Income tax is not required for Bitcoin gains. Rules and laws have not set in place for this.

[malikusama]

Do we still need to pay income tax if we earn through trading/investing in Bitcoin or Altcoins??

Every country have their own rules and regulations, as far i know bitcoin is only taxed once when converted into fiat in my country and there isn't any trading/investing tax over it.
It is quite difficult to tax cryptos ove their trading on the network becasue the transactions are anonymous and are in bulk.

[nidacoinlove]

Do we still need to pay income tax if we earn through trading/investing in Bitcoin or Altcoins??

Every country have their own rules and regulations, as far i know bitcoin is only taxed once when converted into fiat in my country and there isn't any trading/investing tax over it.
It is quite difficult to tax cryptos ove their trading on the network becasue the transactions are anonymous and are in bulk.

Taxes are paid only on legal income if bitcoin is legal in a country you live then you may pay income tax on it on what you earn from bitcoin. If bitcoin is not even legal in your country then there is no need of income tax payment because you are involved in illegal activities according to your countries laws and you may be charged for it.
Simply people in Japan may be paying tax on bitcoin earning while in China those who are involved in bitcoin earning may be charged to jail for it.

[Bekoultra]

Good question. Yes at the moment that you turned it into real money, you need to pay money.

[Visbay]

As far as I know there are no such thing as taxing when it comes to all cryptocurrencies as a whole and I don't believe that its possible to tax them unless you government has legalized all cryptocurrency exchange sites and wallets which will be pretty hard to accomplish thanks to the blockchain.

You're completely wrong on that, it depends on where you live, but most countries do have some sort of law that requires you to declare your income from cryptocurrency and pay taxes on it.

It won't mention crypro-currency in the tax law, but they usually lump crypto earnings together with something else.

You are right it’s not possible to put tax on any crypto currency including bitcoin because any government can get tax from any organization when its registered so bitcoin is not registered in any country so no law can be implement on bitcoin until is not going to registered first but I believe tax is very important for any country because country economy is running through taxes.

[Marucya]

To pay or not to pay income tax from activities with crypto currency is, in fact, the issue of the legislation of the country of residence. If such a tax is established in your country, then it must be paid. If such a tax is not legally established. then everything here depends on your discretion. If your country has not yet adopted any laws at all about crypto currency, then no tax on activities with it can be paid, since the state has not yet recognized the Crypto currency as a financial asset subject to taxation.

[Omega Weapon]

Technically, you are mandated to pay income tax despite earning through bitcoins or altcoins but it mainly depends on the country that you are staying especially if they are both regarded as 'legal ways' earning. Some countries though, have their respective views on cryptocurrencies and does not see the need to pay any tax through its decentralized nature. Like here in the Philippines, bitcoin is regarded as property, and not as currency, therefore it is not subject to legal tender. It is a case-to-case basis and you have the obligation to know it.

It is better to consult a tax attorney in your country to know what kind of taxes you need to pay for your bitcoin earnings, if the earnings are small then it is not going to be a big deal if you do not report that you earned 0.1BTC or something small like that, but if we are talking about many bitcoins then the best thing to do is to pay whatever taxes you are due and enjoy your profits.

[Sasuke102001]

Yea that is what the governments don't agree. If we earn and spend through bitcoin or any alt coins and as they are decentralized the governments aren't gaining any taxes. Then we don't have to pay the income tax as well because the government has bo track of oyr income if it is through bitcoin.

[ClvrGmr]

Do we still need to pay income tax if we earn through trading/investing in Bitcoin or Altcoins??

It still depends on your place or location. Cause in some countries they don't really have that huge knowledge about bitcoin and they don't even know bitcoin exist. But some other countries, countries that want to control bitcoin, wishes to tax it because it's value is so large and they want some part of it for their government which is not easily to do. Also most of tradings are not taxed by the government that is why many people are attracted to bitcoin tradings because of high profits.

[zombie6]

Only after bitcoin is determined by something specific, securities, assets or electronic money, after I think the tax will be introduced and it will be fair.