Bitcoin and Tax?

[MIT2K]

in some bitcoin countries it's already applying taxes and that's great because bitcoin belongs to income. but there are still many countries that have not applied taxes because the country has not officially acknowledged bitcoin in the country.

Interesting, Bitcoin seems like an asset so id imagine only once you cash it out and its no longer 'anonymous' money it is traceable and must be declared.

[Nylelyn]

Bitcoin generates income for many.  I am pretty sure that government has a vision already of how bitcoin will be a big part of the future and it is the duty of government to generate also taxes from any income generating activity. At present, bitcoin is considered as an asset and tax are collected only from buying and selling. Actually, our government collects double taxes which I really opposed,   they make their people pay a lot and suffer.

[ron_mexico]

This post might be helpful: Bitcoin, Cryptocurrency and Taxes: A Crypto tax guide with examples

[Kprawn]

In most countries people pay VAT on any purchase, so they are not avoiding paying taxes if they pay with Bitcoins. You can

also only receive value from your Bitcoin investment, when you spend it or convert it to Fiat. If it is used as a commodity, then

Capital Gains taxes come into play. {You only pay for the gain, not the amount you spend to acquire the commodity} In my

country a specific exemption comes into play, before you start paying taxes. 

[bribed]

Many countries have no proper regulations on Crypto taxation so far. But I guess one can rest assured that at the very latest, even in countries with zero regulations about it, if one converts his money to fiat and suddenly gets a big fat transaction to his bank account, than somebody will come and ask questions and want their share of the cake. But in countries that already regulated it, you have to pay taxes for bitcoin gains according to the local law.

[dasdo]

Whats the deal with Bitcoin and paying tax? How does it work?

It does not work. Bitcoin is not taxed, because it is decentralized technology. To tax bitcoin taxes, the government must release its exchange platform, on which no one will carry out transactions.

[blozo]

I guess almost each country has a different policy (and often not really clear) on how to tax bitcoin and criptocurrencies.

Also the legislation is likely to change quickly (in good and bad ways) since is a relatively new asset

[ankurguta87]

Yes, it's taxable in many countries. As per research I found in India it will be counted as income and will be taxed accordingly.

[jack8989]

i really dont think bitcoin can be taxed by governments, how can they tax us without any information or address about us because bitcoin is anonymous to all of us, bitcoin is untraceable so many governments can not control bitcoin or charge taxes on us.

[posoa]

Bitcoin are tax in countries where it been  legally accepted. In such countries Bitcoins are taxed, because it is used for buying and selling as well, it is Recognized by the Government and every member of such countries. So on every bitcoin earned a certain amount of it is taxed. But in other countries where both the Government and the citizens did not recognize any thing called cryptocurrency, even Bitcoin as well, every holder of bitcoin manage their accounts tax free without interference by government agencies responsible for Tax enforcement. It really does not really matter the amount of bitcoin you have. The Banks even goes to the extent of advising people against investing in Bitcoin.In such countries no payment of Tax on Bitcoin.

[demit8900]

Btc never have a tax, coz BTC not regulated by country or legal goverment thats why BTC is free from tax.

[irienoodles]

every country has a different tax rate and procedure, hence, taxing policies regarding bitcoins depend on what country they are being transacted.

[riskarcher]

in my country bitcoin there is no law including tax. because our government believes if bitcoin is not a safe investment and the government is not responsible for what will happen to bitcoin owners

[Astvile]

Taxing bitcoin will not be good i think.Exclude the fees in each and every bitcoin transactions you send and add the tax in each transactions that would be a hell of a cost specially for small users

[stompix]

i really dont think bitcoin can be taxed by governments, how can they tax us without any information or address about us because bitcoin is anonymous to all of us, bitcoin is untraceable so many governments can not control bitcoin or charge taxes on us.

Bitcoin is not untraceable.

And the governments will not tax bitcoin as property, you are not taxed for your computer or for your laptop.
BTC is considered in most countries a commodity and when you exchange a commodity for fiat you have to pay income tax.
Simple as that.

Taxing bitcoin will not be good i think.Exclude the fees in each and every bitcoin transactions you send and add the tax in each transactions that would be a hell of a cost specially for small users

Again, is not about taxation at tx level.
You are getting taxed when you pay for a product in most countries (that's VAT) whatever you choose to pay with cash/cc/bitcoin/paypal.

No government (as far as I know) is taxing transaction between people that don't involve exchange of goods or property.

Whats the deal with Bitcoin and paying tax? How does it work?

It does not work. Bitcoin is not taxed, because it is decentralized technology. To tax bitcoin taxes, the government must release its exchange platform, on which no one will carry out transactions.

You have no clue what you're talking about.
Ever bought something with bitcoin? Surprise surprise, you have been taxed!!!
Also, check the news about Coinbase and the IRS. 

[wjchong]

It's simply depends upon your country and your country's law.

[dipok07]

Bitcoin is now popular in many countries of the world. Tax and Bitcoin are two separate issues. The government does not have any rights to these coins. Many countries have not got the legitimacy of Bitcoin. The government's tax evasion also plays a major role. In this case.

[balacklava666]

to tax the bitcoin I think is impossible, because it is very difficult to know who is using bitcoin

[DannaWonder]

Whats the deal with Bitcoin and paying tax? How does it work?

Same rule on how your government is taxing your trading stocks investments. Taxes will be applied once you converted it into your fiat currency. I just don't know how exactly are they going to compute your exact earnings if they don't know how much you spent to get that coin.

[audrey12]

Bitcoin should not be taxed if the government will not consider bitcoin as a legal tender besides whenever we used our earnings there is already taxed imposed to the product and services we acquire. Government does not have any control in bitcoin so they don't deserve to collect tax out of our earnings unless they can have their own coin in the market.