Taxes on Crypto Currencies and Mining!

[ss890]

How does it work guys?  Mining is completely legal and as far as I know there are no such % of tax that is taken specifically to the crypto mining. I think it all goes the same way as you would do with trading and gambling. When you will withdraw money into your bank account which you have gotten from the mining then it will be charged the same way as your salary gets taxed. With the different slots of income you will get charged different taxes mate. That is how it works. Also it depends on your country too. In some country's it is going to be taxed around 28% whopping price tag over the crypto earnings.

Any thoughts about this?

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[Hui8]

Yes I think that is the way it works in most of the countries. Because there is no way to track the earnings from the mining as long as miners do not take out their money into banks then its almost equal to untraceable. This applies to almost every way of earning as you have mentioned up here. Even I am paying my taxes according to what I earn in the crypto currencies. I have paid this for two consecutive years and happy with that one. This makes me feel good whenever I am making any transaction from the crypto to bank then I confident about it.

[magneto]

It depends on what country you are residing in.

In my country, basically both CGT and any income generated through mining crypto are taxed at the same rates under the tax brackets as income tax. It could be different in other countries, especially if they consider bitcoin to be a good instead of a currency or asset. 28% isn't really that bad, tbh, if it's just a flat rate.

Anyhow, you should check with the relevant tax agencies and seek professional advice. Every country is different on this matter.

[mostkey]

which countries charge taxes up to 28%? I think that figure is too big for the size of income tax. a rational tax is 10-15% of income. but I think for digital currency mining are just some countries that have set about the tax provisions. in asia income tax that has been registered only to be in kenai state tax

[Crypdon]

There is capital gains tax but that can be offset against expenses. Look at the running cost of a mining rig and then deduct that from the profits and that is what will be taxed. Although the law is still a bit grey in this area

[Idrisu]

Taxation on cryptocurrencies is good because this will enable governments to pick interest in cryptocurrencies market.  Investing into cryptocurrencies market should be tax as governments is the one that provides us with enabling environment to mining bitcoin and ever other form of bitcoin investments.

[AngelSky]

Taxation on cryptocurrencies is good because this will enable governments to pick interest in cryptocurrencies market.  Investing into cryptocurrencies market should be tax as governments is the one that provides us with enabling environment to mining bitcoin and ever other form of bitcoin investments.

Taxation is one of back bone for government but politicians will not sharing that money to the people. Then what is the fucking purpose for the paying the taxation for crypto currencies too bro.
Mining bitcoin is not a easy but you can mine the alcoins with the GPU cards with the help of electricity.

[taiwww]

Off course that might just help the government as well as people who are trying to earn thought those ways. I mean if they are getting money via mining and investing into the crypto currencies then that is not a problem at all. It is not illegal stuff as long as their source of income is very much trusted and straight forward in the government list. This can help them to get passive income and as far as government consider they surely can get money out of it in the form of taxes. Its a good idea but government should really agree upon this and implement some system for it.

[hase0278]

Taxation is one of back bone for government but politicians will not sharing that money to the people. Then what is the fucking purpose for the paying the taxation for crypto currencies too bro.

Politicians share money with the people. At the very least, they spend some of the taxpayer's money to finish their projects(a great example of this is road expansions and public facility development) and share the money they collect from us(even if some of it ends up in their pockets). The only purpose for paying tax for cryptocurrencies is for it(and transactions done in crypto) to be considered legal in government's eyes.

[ValerieBTC]

Yes I think that is the way it works in most of the countries. Because there is no way to track the earnings from the mining as long as miners do not take out their money into banks then its almost equal to untraceable. This applies to almost every way of earning as you have mentioned up here. Even I am paying my taxes according to what I earn in the crypto currencies. I have paid this for two consecutive years and happy with that one. This makes me feel good whenever I am making any transaction from the crypto to bank then I confident about it.

You cannot earn a fix amount from mining because it is related to the price of the coin you are mining. If the price increases you will earn more, but if the price decreases your earning will also downs and the government will not be satisfied with the ups and downs in your earnings. Fix amount of tax will be a burden on your shoulders.

[charlotte04]

How does it work guys?  Mining is completely legal and as far as I know there are no such % of tax that is taken specifically to the crypto mining. I think it all goes the same way as you would do with trading and gambling. When you will withdraw money into your bank account which you have gotten from the mining then it will be charged the same way as your salary gets taxed. With the different slots of income you will get charged different taxes mate. That is how it works. Also it depends on your country too. In some country's it is going to be taxed around 28% whopping price tag over the crypto earnings.

Any thoughts about this?

Some of the minings of cryptocurrencies is somehow hard and expensive. If the government takes taxes from mining then how would the miners and investors cope up the losses they will take when things gets down?

[Magister Magus]

I don't like this kind of discussion: bitcoin was born to free us from governments and taxes!

I think it is necessary to work in this spirit and find a way to escape the state robbers.

Unfortunately people are scared, and do not have the courage to go to a different society, free from ties and corrupt politicians.
But I think that the bitcoin - used correctly - is really the key to a new world: if we really can take away from the states the monetary power, what else will remain to them?

[btc78]

How does it work guys?  Mining is completely legal and as far as I know there are no such % of tax that is taken specifically to the crypto mining. I think it all goes the same way as you would do with trading and gambling. When you will withdraw money into your bank account which you have gotten from the mining then it will be charged the same way as your salary gets taxed. With the different slots of income you will get charged different taxes mate. That is how it works. Also it depends on your country too. In some country's it is going to be taxed around 28% whopping price tag over the crypto earnings.

Any thoughts about this?

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For me 28% is not bad to pay for taxes since we are earning good profit here in crypto,but i dont think it's applicable on mining because it has smaller amount of income since electricity rate are too expensive

This tax value should be implemented for thoses joining ico investment because they are the good earning or most special is on gambling

[Ctn]

I don't like this kind of discussion: bitcoin was born to free us from governments and taxes!

I think it is necessary to work in this spirit and find a way to escape the state robbers.

Unfortunately people are scared, and do not have the courage to go to a different society, free from ties and corrupt politicians.
But I think that the bitcoin - used correctly - is really the key to a new world: if we really can take away from the states the monetary power, what else will remain to them?

Its bitterly true but we cant escape these state robber without giving them any robbery at all. Do your really think there is way to hide all the assets from the government. The crypto currencies might be pseudo anonymous but that doesn't mean we can hide our assets and save our taxes. If we are doing mining then we are using heavy electricity for it and thus paying the bills for it. Government will always ask for what we are using such heavy electricity and thus we have to tel the truth, pay the taxes for what we earn from it. You see, its unimaginable to escape.

[gambitcoin53]

yes, you can mine all you want, you can acquire more bitcoin all you want and whenever you want, there is no tax but when you convert it to fiats, then you will have a problem with tax, when you transact it on an exchange, there will be fees that are subjects to tax but it was being shouldered by the exchange sites, then they pass it on the users covered by high fees and expensive conversion fees. 

[jseverson]

Where are you based? In the US specifically, Bitcoins are taxed whenever a taxable event takes place. These include: using them for payments, selling them, converting them to other cryptos, etc. I wouldn't know how to compute for the initial cost, but that may just be operational expenses for the period.

I'd personally say it's fair for as long as it's being taxed the same way as everything else. There shouldn't be higher tax rates specifically for crypto earnings, at the very least.

[boyshx]

Where are you based? In the US specifically, Bitcoins are taxed whenever a taxable event takes place. These include: using them for payments, selling them, converting them to other cryptos, etc. I wouldn't know how to compute for the initial cost, but that may just be operational expenses for the period.

I'd personally say it's fair for as long as it's being taxed the same way as everything else. There shouldn't be higher tax rates specifically for crypto earnings, at the very least.

That sounds really fair while making the stuff here charged with tax. I think it is more or less good because we can pretend the crypto currencies as part of daily life. There should be no wonder, surprises from the government side while using it and we can just make it our part of life. I think that is sufficient enough and it doesn't matter if they tax it or not. But in my country as responsible person anything you earn have to be looked after its tax payment. This is important because that can make me go green every time I will earn anything from the crypto.

[Btcschool]

How does it work guys?  Mining is completely legal and as far as I know there are no such % of tax that is taken specifically to the crypto mining. I think it all goes the same way as you would do with trading and gambling. When you will withdraw money into your bank account which you have gotten from the mining then it will be charged the same way as your salary gets taxed. With the different slots of income you will get charged different taxes mate. That is how it works. Also it depends on your country too. In some country's it is going to be taxed around 28% whopping price tag over the crypto earnings.

Any thoughts about this?

No I don’t think that mining is legal in the whole world. In my country very small number of people mine crypto because it is banned in my country. When a currency is not allowed how its mining is allowed no possibility of that. If I mine bitcoin I will never pay tax on that because the government has nothing to do with crypto, so why I should pay taxes?

[googs84]

Why not it is also a type of business which use space, energy and work force all the time. All these processes takes up cost and this cost is always taxed by the government as everything happens under the jurisdiction of the government.

Its far better to have VAT, TAX on such things as it also validates the income and gets us white money. We can then expand everything with full surety that what we are doing is having legal status and no need to be worried about raids and stuff life that. Fundamentally!

[Slash61]

Depending, but there are also many miners who are charged with very high taxes under these market conditions, it is not a good policy for greedy governments to set a tariff on mining taxes, inevitably something that is recognized to be taxed, as well as home and so on, do not can be avoided anymore, many miners are outnumbered by this condition with exorbitant taxes and spending too much on other needs.