Can paying in Bitcoin save tax?

[maxamus]

Soon there will be tax on bitcoin. Governments are now thinking of it to implement it under the taxes.

If we look at this situation from a broader prospectus it will workout for betterment of bitcoin if government start taking bitcoin then government will also gain profit from that and there is no way government will try to ban or stop bitcoin once it starts gaining profit from bitcoin but the normal users will be affected little bitcoin.

[coolstory]

I see that several governments are charging or thinking of charging tax on Bitcoin gains. I know that in the domain name industry several registrars and domain name sellers accept Bitcoin as a payment method. I am one one of them, and I am far from unique. I'm thinking of quoting domain name prices in Bitcoin to remove the currency equivalent. So that raises two questions. Will this help the buyer to save tax? Is this an incentive to buyers to switch investments from one appreciating asset into another?

If the spendings on it is relatively small like couple hundreds of dollars, nobody would attempt to tax it from government. but if you're talking for bigger sums of dollar equivalent, they may try to tax that spending.

[ss890]

I see that several governments are charging or thinking of charging tax on Bitcoin gains. I know that in the domain name industry several registrars and domain name sellers accept Bitcoin as a payment method. I am one one of them, and I am far from unique. I'm thinking of quoting domain name prices in Bitcoin to remove the currency equivalent. So that raises two questions. Will this help the buyer to save tax? Is this an incentive to buyers to switch investments from one appreciating asset into another?

Thats possible as long as bitcoin stays in the bitcoin and over the internet. I mean if user, the end user when buys or sells something over the internet and when he gets the money cashed out to bank account then it will be taxed for sure because it is in the bank account and at the end of financial year you will have to show up with the tax department if the amount of money that was raised or funded into your account was noticeable enough!

At least in India this is the thing we have to follow. Though the system here is not meant for bitcoin in anyway but IT department can easily raid the account and seal it if no tax info is provided for the foreign transaction, and here the foreign transaction is bitcoin itself.

[Ctn]

I think paying in the bitcoin won’t make much difference if considered or compared with the other forms of payment. The thing is we never think about the bitcoin from the basic steps. The bitcoin is not gotten into the system directly and before it could it has to be bought with money, the real cash or in simple word fiat. Now this fiat comes from the banks to the exchanger and then to the bitcoin. Now from here onwards whatever happens with the bitcoin is not traceable to the taxing department but when things will be exchanged for the bitcoin then you will get the products or services with it which will have the taxes to be paid which you will get from he ultimate customer only. So either you will have to incur higher prices from the users or just tax it in the simple words.

[judemarco1996]

some wallet have tax when you buy btc

[tutorroma]

It is suggested that you register a free company, in some small countries or on a small island registered on the Pacific Ocean, in general, there is a policy of tax exemption. Yesterday's news was that France had to levy a tax on the special currency, and I think it was difficult to implement, and there was a lot of ways to avoid taxes.

[penig]

Its heavily defendant on how your country and the country of the counter-party treat tax.  Bitcoin may be treated as an asset or a currency, local sales tax may apply to any sales or only to those in country/state.  Rules can change if you are operating as business/for profit.  In other words its complicated and changes for each country.

An issue i'm interested in is where UK CGT is applied to transactions that are assets to asset, i.e. no conversion to cash. If these are not liable to CGT, then there's a big tax saving from liquidating Bitcoin if buying large ticket items.  

[joebrook]

I think you are going to find quite a few loopholes. In my country, in theory, you don’t pay tax unless you convert bitcoin into fiat, but researching the subject I’ve seen some lawyers defending that when you buy something directly with bitcoin you should also pay tax because it is a way of cashing it in. Anyway, there is no clear legislation about it, at least in my country, but what is sure is that if you pay directly with bitcoins, especially to foreign companies, it is very unlikely that the IRS or equivalent of your country are going to be able to charge you.

In my country there isn't any law regarding bitcoins whatsoever and i doubt there is going to be a law in that regards for a long time. I want to know if the government in your country charges tax when people convert their gold in cash. If that's the case i think they should but if not then it's not fair because they are both likely the same asset.

[merlyn22]

in my country the goverment still finding a way to put tax on bitcoins maybe it was hard due to volitality of bitcoins. in other way like converted bitcoins into fiat money if you deposit on bank they applied tax on your account. but if you only keep bitcoins it was still tax free

[Troysen]

I see that several governments are charging or thinking of charging tax on Bitcoin gains. I know that in the domain name industry several registrars and domain name sellers accept Bitcoin as a payment method. I am one one of them, and I am far from unique. I'm thinking of quoting domain name prices in Bitcoin to remove the currency equivalent. So that raises two questions. Will this help the buyer to save tax? Is this an incentive to buyers to switch investments from one appreciating asset into another?

[Ailmand]

I see that several governments are charging or thinking of charging tax on Bitcoin gains. I know that in the domain name industry several registrars and domain name sellers accept Bitcoin as a payment method. I am one one of them, and I am far from unique. I'm thinking of quoting domain name prices in Bitcoin to remove the currency equivalent. So that raises two questions. Will this help the buyer to save tax? Is this an incentive to buyers to switch investments from one appreciating asset into another?

I think this is not a new concept at all. Almost all governments are aware of the business and trends that could be profitable or is currently profitable in their local markets, therefore, it's not new that since bitcoin has been gaining much attention and value for the last several months or years, it would be inevitable for government to try to make it work for them through placing taxes over it or somehow restricting its use in that sense that people have to pay fees in order to use it wherein the proceeds would go to the government. Other countries are already drafting their own laws on how to regulate it in order to gain some use for it, since they have been seeing its continued rise.

[Diecaut]

I see that several governments are charging or thinking of charging tax on Bitcoin gains. I know that in the domain name industry several registrars and domain name sellers accept Bitcoin as a payment method. I am one one of them, and I am far from unique. I'm thinking of quoting domain name prices in Bitcoin to remove the currency equivalent. So that raises two questions. Will this help the buyer to save tax? Is this an incentive to buyers to switch investments from one appreciating asset into another?

it’s hard to avoid income tax when using bitcoin only for software.

they can make legal office with high tax if want to make taxes from bitcoin