Is Taxing Bitcoins Possible?

[Ris88]

I have been thinking of this for long and the reason being that a lot of bitcoin transaction is going online everyday in many countries and i think government can generate IGR from this if possible. I am not a programmer and i have a little knowledge about bitcoin technologies but i just want to know if it is possible.

In this world nothing is impossible, everything in the world of Crypto will be possible, because we know that the bitcoin community that is now, is very high and it will help what is expected, about bitcoin. ..

[dashchain]

I have been thinking of this for long and the reason being that a lot of bitcoin transaction is going online everyday in many countries and i think government can generate IGR from this if possible. I am not a programmer and i have a little knowledge about bitcoin technologies but i just want to know if it is possible.

In this world nothing is impossible, everything in the world of Crypto will be possible, because we know that the bitcoin community that is now, is very high and it will help what is expected, about bitcoin. ..

Your words are ready to be realized, and the United States is prepared to order a tax on Bitcoin, which no doubt recognizes Bitcoin as a legal, investable asset that allows Bitcoin to go underground.

[Barcode_]

Yes, it is quite easy for the governments to implement taxes on crypto-currencies trading if they wanted to do it. The South Korea authorities is one good example that shows the world how they can enforce taxation on crypto-currencies exchanges that operates in the country itself, that is also one of the reason that cause bitcoin price to drop dramatically recently.

[rh72]

I think that's so possible. According to me, the government will give tax for 'bitcoiners' after they makes bitcoin legal.

[barabut]

I have been thinking of this for long and the reason being that a lot of bitcoin transaction is going online everyday in many countries and i think government can generate IGR from this if possible. I am not a programmer and i have a little knowledge about bitcoin technologies but i just want to know if it is possible.

Virtual currencies like Bitcoin have attracted public attention in recent years. Some employees are paid by Bitcoin, few retailers are beginning to accept Bitcoin as a payment. In the recent past, the IRS has clarified the tax treatment of Bitcoin and Bitcoin transactions. In general if you keep your bitcoins as capital assets, you should consider them as a 'property' for tax purposes. The general tax principles applicable to property transactions apply. If Bitcoins are held as equity, such as stocks or bonds, any gain or loss arising from the sale or exchange of the asset is taxed as a capital gain or loss. The main question is to tracking the crypto currencies are not easy today.

[investerS]

Yes, it is quite easy for the governments to implement taxes on crypto-currencies trading if they wanted to do it. The South Korea authorities is one good example that shows the world how they can enforce taxation on crypto-currencies exchanges that operates in the country itself, that is also one of the reason that cause bitcoin price to drop dramatically recently.

Please do you have information on how south korea did this, kindly share with me, thanks?

[Granslam]

It would be hard because of the built-in security features that comes with bitcoins, this adds anonymity to the user which in turn makes it hard for the government to be able to tax that user. However, you can classify bitcoin as "property" because of its nature as a currency. taxing bitcoins will be hard, but it is possible.

[jhongzjhong]

I have been thinking of this for long and the reason being that a lot of bitcoin transaction is going online everyday in many countries and i think government can generate IGR from this if possible. I am not a programmer and i have a little knowledge about bitcoin technologies but i just want to know if it is possible.

Directly bitcoin to be taxed i think that's never happen, because bitcoin is decentralized coin no body big person behind this great blockchain technology.
But, if we converted our bitcoin into fiat then we are going to withdraw any company who accepted bitcoin just like remittances and some bank who recognized bitcoin, if you have noticed when we cash out our money we have an transaction fees either remittances or banks that's already being taxed by our local government.

[Alexnelepa92]

I think that's so possible. According to me, the government will give tax for 'bitcoiners' after they makes bitcoin legal.

Actually can be once and not the fact that someone can find out if you have Bitcoin or not, no wonder her Satoshi has created just one word anonymity. Great quote.
And in this terrible world comes the one. He rebelled against the system. He taught people to get money to bypass all of these financial bloodsuckers.

[dlhezter]

taxes can be implement out side the bitcoin blockchain, because no one can manipulate/control bitcoin, even the government cannot handle this blockchain. meaning the taxes can be implement outside these bitcoin blockchain, maybe outside transactions like withdrawing a huge amount of bitcoin into fiat. or fiat into bitcoin.

[tetyulfania]

Everything will be possible by using bitcoin as the payment for anything transaction we made, not only taxing bitcoin payment but also we can do more payment by using in another transaction like we made the payment from buying and selling drinkwater, food, electronic and many more. When the some country have accepted the bitcoin we can make many transaction by using bitcoin as the payment, but if your country still not allow fro using bitcoin as the payment like Indonesian, Malaysian you will not be able using bitcoin.

[ThePresident]

hmmm yeah? if the government said so it will have taxes else, a government can banned bitcoin in their country.

[Hirameki]

I think that's so possible. According to me, the government will give tax for 'bitcoiners' after they makes bitcoin legal.

Actually can be once and not the fact that someone can find out if you have Bitcoin or not, no wonder her Satoshi has created just one word anonymity. Great quote.
And in this terrible world comes the one. He rebelled against the system. He taught people to get money to bypass all of these financial bloodsuckers.

Ofcourse yes, though bitcoin transaction are anonymous, you still need cash and once you exchange your bitcoins to a financial institutions you will have a record and this record can be you use against you if what you withdraw is too much. They will accuse for tax evasion, so pay your taxes to eliminate this undesirable circumstances.

[1NV3ST0NM3]

I have been thinking of this for long and the reason being that a lot of bitcoin transaction is going online everyday in many countries and i think government can generate IGR from this if possible. I am not a programmer and i have a little knowledge about bitcoin technologies but i just want to know if it is possible.

Not until people or the tax payers themselves decide to self declare their income to the government. I mean the exchanges can be said to meet KYC compliance but you can't say the same thing for the private key wallets as they are public wallets with no central company owning them. So taxing your bitcoin in private key wallets is next to impossible. All they can do is monitor exchange transactions and tax them.

[Edraket31]

I think that's so possible. According to me, the government will give tax for 'bitcoiners' after they makes bitcoin legal.

Actually can be once and not the fact that someone can find out if you have Bitcoin or not, no wonder her Satoshi has created just one word anonymity. Great quote.
And in this terrible world comes the one. He rebelled against the system. He taught people to get money to bypass all of these financial bloodsuckers.

Ofcourse yes, though bitcoin transaction are anonymous, you still need cash and once you exchange your bitcoins to a financial institutions you will have a record and this record can be you use against you if what you withdraw is too much. They will accuse for tax evasion, so pay your taxes to eliminate this undesirable circumstances.

I would love to pay for a tax rather than banning bitcoin in our country, and as a citizen, I would be willing to do it since I know that it is for the goodness of many people so why would I become selfish about putting some of my earning in the government, besides I am also benefiting with their project such as bridges, school building and many more.

[drachman]

I have been thinking of this for long and the reason being that a lot of bitcoin transaction is going online everyday in many countries and i think government can generate IGR from this if possible. I am not a programmer and i have a little knowledge about bitcoin technologies but i just want to know if it is possible.

They cannot tax bitcoin directly the same way they do with your dollars, in my country the government already subtract your due taxes from your paycheck so there is nothing to do, but this is impossible with bitcoin, only when you try to cash out to fiat you will need to give an explanation of where you got that money and pay taxes on it but if you keep holding your bitcoin then you are safe.

[adetos]

I am not an expert in taxation but I think it is impossible, because the government can not calculate how many bitcoins are owned by its citizens, unless they have access to calculate and of course have to cooperate with the bank and exchange

Its not possible to tax bitcoin owners because the system is decentralized generally and all users have total control individually to their funds in bitcoins form. The government cannot also track the record of people who own what number of bitcoins how much more tax them for the number of bitcoins they.

[adetos]

They cannot tax bitcoin directly the same way they do with your dollars, in my country the government already subtract your due taxes from your paycheck so there is nothing to do, but this is impossible with bitcoin, only when you try to cash out to fiat you will need to give an explanation of where you got that money and pay taxes on it but if you keep holding your bitcoin then you are safe.
[/quote]

Yes I agree with you they only be able to tax local currency or FIAT but it is impossible to tax bitcoin. In my country its when the bitcoins has been converted and becomes local currency then the banks charges you for VAT (Value Added Tax) on your account balance in local currency. If you hold more than necessary in your personal account you are going to have answer some questions on how you come about the money. So bitcoin cannot be taxed

[Umar001]

Taxing bitcoin is not possible, because the system is decentralized, is not control by single administration authority, individual are in control his or her bitcoin, so who do government tax?  Do to this reason, it make it difficult for bitcoin to be taxable.

[investerS]

Taxing bitcoin is not possible, because the system is decentralized, is not control by single administration authority, individual are in control his or her bitcoin, so who do government tax?  Do to this reason, it make it difficult for bitcoin to be taxable.

but a lot can still be done if government is able to work with those companies that sells bitcoins, at least they can take the data of those who they sell to etc.