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

[Omega Weapon]

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

Until bitcoin gets legalized and crypto currencies get regulated,we are free to earn from bitcoin or altcoin and it will not be taxed.

But in japan,where it is legalized,i hope that it would be taxed.In australia too,it would be taxed.But to avoid double taxing in australia,when bitcoins are bought or sold in exchanges or other trading platforms,it would not be taxed.

In our country india,still there is no legalization and regulation over crypto currencies,so i enjoy tax free earnings from bitcoin.But soon after four months,when bitcoin gets legalized,then things would change totally upside down.

This is not correct, all your income needs to be reported and you need to pay your taxes on it, even if you won the lottery you need to declare that income, in theory even criminals must declare their earnings but since their earnings comes from illicit acts then they do not do it and that is why some of them are caught, since their lifestyle does not match their declared earnings.

[Envrin]

As far as I know, crypto-currencies are not taxed yet in our country and nowhere in the world. And they will not be in the near future, because this is technically impossible. I'm not going to share with the state my passwords and logins from wallets with crypto-currencies, and such a willing person is also vryatly.

[Dilladupak]

then it is very clear that you should do it, because it is very clear that in tandem with bitcoin time travel that in my country where bitcoin we are not subjected to hire tax. and I have paid taxes through my salary from my daily world job. so this time at this time I also not taxed, and I am very excited and free to produce bitcoin without our profit limit. and they may not have written tax regulations.
 and whether in your country be taxed bitcoin ....
possible in tranding by get bitcoin every day.

[Zabrielle]

As what i read about it, its Yes. It says that income that you earn through services that will be include in gross income and obviously subject to income tax or self employment tax. So technically Yes, it is taxable.

[Ctstrphy]

As what i read about it, its Yes. It says that income that you earn through services that will be include in gross income and obviously subject to income tax or self employment tax. So technically Yes, it is taxable.

But I would ask, is the only taxable income are the coins that have been converted to fiat, or the total amount of coins purchased on fiat even if you won't convert and still hold some coins or you would use it to buy online goods/services, etc. ?

[Gaaara]

Depends on your country, in my country we lack of technology so governments can hardly manipulate things that have a relation with technologies. I believe in USA they have a income tax they pay no matter how much they earn regarding bitcoin and other altcoins.

[MyIdeas]

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

This is a good question though. I do not know if we are paying taxes with our gain in trading cryptos. But I think it has. I think the transaction fees that they are charging to us, one of the content of that TX is tax. Because if these trading is not paying taxes, for sure the Government won't allow this one.

Yes transaction fees are kind of tax in trading in bitcoin and if the bitcoin system is implemented on root level tax paying will be more easy online clicks will pay the tax and there is no need to go to the taxation office for the receipts and this will also gave ease to the government this will create a large revenue, on the other hand it will give benefit to e government as well.

[sheamus10]

For tax affairs better we leave it to government in our country.
if my country bitcoin is not too popular and its citizens do not really understand bitcoin, so there is still no discussion about the tax for bitcoin.

[bitterguy28]

depends on you if you want pay income tax if you declare to government revenue your income here in bitcoin but for me i can't tax for bitcoin because i pay taxes in my office job but also transaction fees for the bitcoin exchange into cash fiat have also including tax payment.

[ClvrGmr]

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

Nope. This is where the bitcoin's advantage kicks in. Bitcoin is free to be earned and transfered. That is why many popular personalities use bitcoin to transfer money because the only thing you pays is the fee of transfer. Nothing more nothing less, fast and reliable. Also some thinks that they must get taxes from it thats why government in other countries tries to control the bitcoin community in their place.

[danjonbit]

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

I think we dont need to, income tax are  from things that government holds, bitcoin is free as far as i know, that is why government pushes for it to control it, yes we have fees for our transaction  and it will be a fees for the private companyy who holds those coin.. this is just my view and opinion.

[justspare]

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

I don't know. because in my country there is no tax that must be paid in transactions bitcoin or allcoin.
every country has rules and laws regarding other bitcoins and cryptoes. to my knowledge, depending on the location and country where you live.

Yes you are right and it is actually the country in which you are living that will define whether you will be paying tax or not. Bitcoins or altcoins, if you are making some profit out of it, there will be a tax on you. But still story comes in government’s hands whether they have planned to impose taxes on it or they just relax you of it.

[HasHe]

Until bitcoin gets legalized and crypto currencies get regulated,we are free to earn from bitcoin or altcoin and it will not be taxed.

But in japan,where it is legalized,i hope that it would be taxed.In australia too,it would be taxed.But to avoid double taxing in australia,when bitcoins are bought or sold in exchanges or other trading platforms,it would not be taxed.

In our country india,still there is no legalization and regulation over crypto currencies,so i enjoy tax free earnings from bitcoin.But soon after four months,when bitcoin gets legalized,then things would change totally upside down.

[Omega Weapon]

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.

Many people in the forum think of the day they are going to become rich with crypto, and that is great but lets suppose that your dream comes true, how are you going to spend that money? If you begin to buy stuff that you cannot afford the government is going to come and ask where are you getting your money, you will need to pay your taxes eventually so it is better to be upfront and do it and then spend your money as you want.

[NelfiNovita]

depending on the regulations of a country because each country has different rules. you should make sure there is an income tax from the crypto currency for a certain amount, if any you have to pay it according to the rules, otherwise you do not have to worry.

[dificanovi]

if from my country there is no tax on bitcoin, but I get tax when selling coin that I have. I love having a job with bitcoin because I earn a lot with bitcoin.

[Omega Weapon]

As what i read about it, its Yes. It says that income that you earn through services that will be include in gross income and obviously subject to income tax or self employment tax. So technically Yes, it is taxable.

But I would ask, is the only taxable income are the coins that have been converted to fiat, or the total amount of coins purchased on fiat even if you won't convert and still hold some coins or you would use it to buy online goods/services, etc. ?

It depends but most of the time it is like this, lets suppose you buy 2 bitcoin for 5500 dollars if one year later bitcoin is at 7000 in theory you have profits but it is not until you materialize those profits that you are subject to taxes, once you sell you will need to pay taxes on your gains, in this example you will need to pay taxes on your 3000 dollar profits.

[Psalms23]

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.

[sukoon]

upto day no tax is involove in buying and selling of btc. but i think govts should legalize btc and impose tax to benefit nations from btc.

[eternalgloom]

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.