Tax on the crypto currency! What do you think?

[hometester]

I know that many can report on income for what they trade in the cryptocurrency market. this from real life

[Ranly123]

There are several tax options today, and all of them can be applied to crypto-currencies, depending on how the latter are defined in the state. Most often, the following taxes are introduced:

• Value Added Tax (VAT). It can be levied by trade operations made with the help of crypto currency as a means of payment, as well as currency exchange. Basically - the exchange of crypto currency for fiat money, but in theory VAT can be levied on the exchange of crypto currency between each other. It operates mainly in those countries where crypto-currencies are recognized as a payment instrument, for example, in Japan. When buying goods and services for cryptocurrensies, VAT will also have to be paid to the residents of the UK, but they can exchange the crypto-currencies for fiat without paying VAT.
• Tax on goods and services. A kind of analogue of VAT for those countries that have recognized crypto-currencies are not a means of payment, but a commodity. Acts on the same principle as VAT. Only in the case of VAT, the taxpayer is in fact a buyer, and in the case of a tax on goods and services, a supplier of goods and services, in this case a holder of a crypto currency. He has been working in Singapore for several years. At the beginning of this year, a similar system was adopted by Israel with respect to the mining, which was equated with the production of goods.
• Personal income tax. Personal incomes in crypto-currencies are taxed, for example, the salary paid by the employer in bitcoins. Implemented, for example, in the US.
• Profits tax. They are subject to any companies that make a profit. Also, they are subject to profits earned as a result of trading on the exchange and the performance of other currency transactions. In the cryptosphere, this system is used specifically to tax the crypto traders and various crypto-currency organizations (from the exchange of crypto-currencies to the pools for mining). Mining may also be subject to profit tax. In the US, for example, take into account the profit from crypto-activity in the tax declaration will have to be traders and miners, and all people who somehow earn on crypto-currencies as a result of speculation. The same tax is levied on all crypto-currency transactions made by legal entities in Australia and Japan.
• Capital gains tax. They are subject to income of individuals and legal entities obtained as a result of investing in shares, bonds, securities, valuable assets and so on. In the cryptosphere, it starts acting as soon as the crypto-currencies are equated to valuable assets. Not only investors fall in, but all holders are also crypto currency. This system is implemented in the US, where it matters how long the holders of crypto currency keep them and in what quantity. He also works in Australia, Brazil, Canada and in many EU countries - Bulgaria, Finland, Germany, Spain and others.
• Property tax. For the cryptosphere, it becomes important when the crypto-currencies are recognized as property, a valuable asset that is owned. As soon as such an amendment is made, the holder of the crypto currency is required to notify the tax service of all transactions concluded with this asset. Such an amendment was introduced in the US tax legislation, where the crypto-currencies in this case are presented as a valuable asset, and in Australia, where they are recognized as property.

What do you think about the taxation of cryptocurrencies? Which model fits best?

Everything that we owned has to be taxed as what the Constitution of our government has implemented. But when we say taxation on cryptocurrency, I doubt it would be done due to the fact that we are anonymously having it. In these case, we can only give tax when we are able to convert it to Fiat currency.

[reil2014]

Tax on cryptocurrency? I doubt this, we as small miners this really hard for us, paying tax plus transction fee or gas. I think if we put tax then its end of small traders like me.

[Astra2127]

Do you see government support for all participants in the cryptocurrency market? What to pay tax for?

Precisely, what to pay tax for even government did support bitcoin as a currency to use. Some reason why some countries are quite on cryptocurrency because they know that this is not controllable with someone else and having a forcing to tax those who have earned in bitcoin. Well, to make this long story short luckily in my country did not implement a tax on crypto we pay tax when we buy goods using our money from bitcoin.

I think you're mistaken. The fact that you pay taxes when you purchase goods, the government is not enough. They want to take away part of the income from people at any stage of Fiat turnover. Once you change your bitcoin to Fiat most governments will consider this your income and require payment of income tax. This requirement is postponed to the beginning of next year. You may still have a nasty conversation with the tax authorities of your country.

I agree, ofcourse the government finds a way to have some of that money that others worked for.   That's why we have different kinds of taxes.

[Shimmiry]

I don't think about taxes. I have an opportunity not to pay them and I won't do it. The government should make the tax but not to extort him. Do you see government support for all participants in the cryptocurrency market? What to pay tax for? I hope that someday I will have the opportunity not to use Fiat and I will not interfere with the government at all.

I agree with this. And also government cannot control it. At the same time the taxes can be on the goods that people buy and also im the property an individual has, those are when the government has to implement tax even though it was bought through crypto. But not the crypto itself became it is decentralized.

[sieemma]

Tax on crypto will mean a support for crypto by governments which will help to maintain crypto's reputation in the world so I think tax will be okay for us and not any harm for any of us crypto enthusiasts.

[cryptocurrencyguru]

If govt wants to tax cryptocurrencies then they should tax nominally but some countries are charging more which is not good for their country citizens and as investor they loose

[slocker]

Believe that legal status of bitcoin or any other cryptocurrency varies substantially from country to country and from government to government not to mention monetary system individually.
Most of the countries do not make the usage of bitcoin itself illegal (or any crypto at all), cuz it represent money. While we have some countries have explicitly allowed its use and trade, others have banned or restricted it, and they made strict law to how to use crypto in global.

So in global this is from country to country.

[thresher]

Tax could be implemented if bitcoin must be regulated worldwide.  If other countries would not favor in regulating it then it is difficult to implement taxation on it. Transactions would not be easier because regulations are not centralized. That's why it is not possible to implement taxation.

If your government will allow you to start using banks for your transaction, then I think that it become traceable and it is our responsibility to pay on our income either it comes from any source. If you  are making income you have to pay income tax on your income.

[aeternus]

Still, we don't have much clarity about the Taxes from the government but how far they will start collecting the taxes we have to wait and see. One thing i can say paying taxes on trading assest is always good because so that government will start legalizing the crypto currency in their concerned countries.

If governments begin to tax bitcoin and other cryptocurrencies they are doing it for their own benefit, after they realize that they have lost the monopoly of currencies that they have held for so long, once it's over they will try to tax it as much as they can only to find out that even that measure is going to fail since you cannot force bitcoin uses to pay their taxes.

[hilawnasaging]

They will only have more money to spend with. Let's just admit it that only few of the government in the world are transparent. Some are very opaque to the point that they have a lot of money but the people are still blinded with their statue. If they put tax just to legalize the crypto, well, I can say that the crypto world would weaken because of them.

[jack wira]

Menurut pendapat saya tidak pelit untuk membayar pajak asalkan bitcoin adalah dukungan dari pemerintah Indonesia.kemajuan bersama.kepentingan juga bersama.. mungkin saat ini orang malas membayar pajak karena terlalu banyak korupsi di Indonesia.

[lauder_larger]

They will only have more money to spend with. Let's just admit it that only few of the government in the world are transparent. Some are very opaque to the point that they have a lot of money but the people are still blinded with their statue. If they put tax just to legalize the crypto, well, I can say that the crypto world would weaken because of them.

I think that it will be in favour of bitcoin and other crypto currencies, I think bitcoin need to be legalize by government and it can only be possible if they will put tax on bitcoin, may be in Japan they are collecting tax on bitcoin income because they have already legalize bitcoin.

[sevenjoy]

They will only have more money to spend with. Let's just admit it that only few of the government in the world are transparent. Some are very opaque to the point that they have a lot of money but the people are still blinded with their statue. If they put tax just to legalize the crypto, well, I can say that the crypto world would weaken because of them.

I think that a government runs on the taxes that we pay to them. But it is also right to say that once they will impose tax on bitcoin I think that then they will manipulate the system and will increase the tax amount from time to time which will not be in favor of the investors and bitcoin holders.

[kerremy]

Cryptocurrency values have been extremely volatile since its inception. Treating cryptocurrency, such as Bitcoin, as property creates a potential accounting challenge for taxpayers who use it for everyday purchases because a taxable transaction occurs every time that a cryptocurrency is exchanged for goods or services.

The IRS's guidance in Notice 2014 clarifies various aspects of the tax treatment of cryptocurrency transactions. However, many questions remain unanswered.

[Renampun]

I really hope that it will happen, people who have Bitcoin will be taxed, if it's applied then Bitcoin is automatically recognized by the state legally and it's very good for the price of Bitcoin  

[Experia]

How it will be done? Since it is decentralized I think it is very hard to do. But for me it is not good if they will put tax here because we do not used anything that is made by the govt.

[romantic007]

I think capital gains tax apply the best. But to be honest I think that taxing crypto is very hard to do right now. Nevertheless, if that makes crypto more accepted globally, it'll be a good thing.

[realcrypto]

Normally I am anti taxation agent. like in my country I do not know what our government is doing with the taxes that is being collected from the masses, they are in charge of the central bank. The money can be mint at anytime if they like. My country is so corrupt to the extent that the people in power mint the money and hide them in tanks in their houses. They should leave the poor masses with taxation. It will be difficult to tax all cryptocurrency transaction.

[Elseye]

I think that one day we will surely encounter that because this is unavoidable as for me... However this theme must be created with big accuracy because it will affect whole world economics in future.