Do people have to pay taxes on Bitcoin?

[izanagi narukami]

My local exchange apply tax when I try to withdraw and it's a good decision, IMO.

Why ?
We are helping the company paying tax , from us to us , so it's kind of win win solution !

[Oceat]

Tax law is dependent on your country and locality. Recently in the United States, the IRS has declared that Bitcoin is to be treated as property, not currency, for tax purposes. All income in the US is taxed, regardless of what form it takes. If you’re paid in bitcoins, you’re supposed to pay taxes on your earnings at the BTC/USD exchange rate when you receive payment.

Is it a good decision or bad?

If they know who you are then you gotta pay for what they have requested and i think it only exist when you are trying to withdraw your money from any exchanges. More over the government really don't know your wallet address, the only thing that they know if you make contact with the exchanges which is under in your government.

And i think it is good with just a small amount of your profit, it's not that bad to pay compared to your profit.

[Thanasis]

Paying taxes is indeed for a government because all our money is important to run the governments and whe they are asking for it you have no other option other than paying.But in my opinion paying fair amount of taxes from our earnings is good but many governments are asking for too much of taxes.

[Oasisman]

Tax law is dependent on your country and locality. Recently in the United States, the IRS has declared that Bitcoin is to be treated as property, not currency, for tax purposes. All income in the US is taxed, regardless of what form it takes. If you’re paid in bitcoins, you’re supposed to pay taxes on your earnings at the BTC/USD exchange rate when you receive payment.

Is it a good decision or bad?

It is a good thing for Bitcoin, mainly because, it will protect the investors and future investors from money laundering and other criminal activities. Taxes on Bitcoin enables to take legal actions whenever there are stolen Bitcoin and retrieving it is possible with the help of the police cyber crime division.
Taxes is really necessary for cryptocurrency since it is considered as a form of investment that can generate profits.

[Kemarit]

Well, I think it is not a bad decision. Giving tax is not bad at all. Tax is good for a nation and if people pay tax for BTC the government will also remain silent and the investor will be able to do business nicely in a good manner.

LOL. Paying taxes in bitcoin doesn't mean that the government will relax on crypto crackdown. On the contrary, that's why they are putting tax on it, because they really wanted to stop and at least run at people who they think are hiding tons of money in crypto. As for paying taxes, if you are in a country wherein your taxes really go to a good cause, then I don't have any qualms paying it. However, it if would just go on the wallet of unscrupulous and corrupt politicians then that's a different thing.

[audaciousbeing]

Tax law is dependent on your country and locality. Recently in the United States, the IRS has declared that Bitcoin is to be treated as property, not currency, for tax purposes. All income in the US is taxed, regardless of what form it takes. If you’re paid in bitcoins, you’re supposed to pay taxes on your earnings at the BTC/USD exchange rate when you receive payment.

Is it a good decision or bad?

You are actually conflicting the two types of tax here. One is income tax and the other is capital gains tax. If the US is treating bitcoin as property as you have claimed, then the issue of being paid in bitcoin does not arise. You can only be paid in bitcoin and taxed if bitcoin is subjected to income tax but in the case of property, it is when you sell your bitcoin for dollars that you will pay capital gains tax just like when you sell a building. In addition to that, you are then allowed to deduct the cost of buying the coin and other incidental cost incurred that can be proven to be essential to carry out the trade before the balance 'Capital Gain' is then taxed depending the on the CGT rate in the country or if a specific law is made to cover crypto currency.

[MichaelMiranda]

It differs from country to country. Many country accept Bitcoin without putting any rules and regulations on it. There are some other countries who adopt Bitcoin but by putting some rules and regulations on it in the form of taxes.

[Harlot]

I think that is the fair way of calculating the tax of what you owe to the government. You really supposed to convert it to your local currency in order to avoid any kind of discrepancies. It is the same way as a domestic company earning from its international branch, their foreign fiat currency earning is always converted to at the current exchange rate during that time. Converting it to a later date will only make their earnings also subject to capital gains tax which I don't think is an attractive option for any income earner.

[pavka]

Tax law is dependent on your country and locality. Recently in the United States, the IRS has declared that Bitcoin is to be treated as property, not currency, for tax purposes. All income in the US is taxed, regardless of what form it takes. If you’re paid in bitcoins, you’re supposed to pay taxes on your earnings at the BTC/USD exchange rate when you receive payment.

Is it a good decision or bad?

It depends on how to look. For the state this decision is simply excellent, as the budget will be filled, and for taxpayers this is not a particularly pleasant innovation, as they will have to give part of their income.

[Tigorss]

Bitcoin is not designed for taxes to be paid on it. I beleive the best for government maybe to tax bitcoin users and make it more popular. Just that the charges should be considerate and proportional to the excesses.

Regarding the potential for tax revenues from digital currency transactions, such as bitcoins that are increasingly widespread but the article, bitcoin is not a legitimate means of payment So people do not use it as a payment system.

[lokanot0]

One of Bitcoins universal characteristic was not to be taxed on. But it is a different story once you regularize the use of it on a certain country. Once a the government legalizes the use of bitcoin in they country, they may now have the power to impose taxed on it.

[marcbitcoins]

Tax law is dependent on your country and locality. Recently in the United States, the IRS has declared that Bitcoin is to be treated as property, not currency, for tax purposes. All income in the US is taxed, regardless of what form it takes. If you’re paid in bitcoins, you’re supposed to pay taxes on your earnings at the BTC/USD exchange rate when you receive payment.

Is it a good decision or bad?

In my country Bitcoin is most commonly used as investments even in the country of Japan and Germany in which Bitcoin was commonly used as investments too although some may use it in spending but they are only few compared to majority that hold it for investments to earn more fiat. So if the USA see Bitcoin too as investment then as law abiding citizens you should pay the income tax but anyway you will be entitle from the government to a full protection from scam, stealing and any activities that related to Bitcoin activities.

[qwertyup23]

This will depend on each of country's tax laws if they explicitly or impliedly view cryptocurrencies as matters subject to be taxed. From what I know, some countries have started implementing laws, specifically on the tax aspect, with regards to cryptocurrencies in their country. But as far as those who illegalize and prohibit the utlization of such, then no laws are mentioned with regards to taxing (although they are prohibited).

Bitcoin is not designed for taxes to be paid on it. I beleive the best for government maybe to tax bitcoin users and make it more popular. Just that the charges should be considerate and proportional to the excesses.

Regarding the potential for tax revenues from digital currency transactions, such as bitcoins that are increasingly widespread but the article, bitcoin is not a legitimate means of payment So people do not use it as a payment system.

In fact, there are other services accepting bitcoin as an alternative payment for their services/products depending on the country. My wallet accepts transactions and payments for utility expenses and they are even connected to our various banks for online transfer of payment. This will heavily depend on the country if they allow such currency to be utilized or not.

[anchaldhiman15]

Tax is bylaws of every country, it should be paid by all members . But in some countries bitcoin is not legal by government, there is no tax on bitcoin.

[ShawnJessie]

this depends on the rules and regulations of different countries. Many countries have strict rules while other are quite lenient towards it. So, if you are worried about the taxation and the rules related to it, you can always use the forums to get to know a better view and see what the rules are in your country.

[imrul5]

I consider that it would be a right decision.

May be it is a right decision. But at the same time we have to accept it that this decision will produce a bad effect on cryptocurrency market.

[Indrawan77]

For the country yes, for us no, paying tax means we need to declare that we own bitcoin, and that makes admit that we got crypto and we are losing the freedom, but I think if we want the crypto to become big we need the cooperation from the government, most of the adoption got stuck in the government's hand

[imrul5]

For the country yes, for us no, paying tax means we need to declare that we own bitcoin, and that makes admit that we got crypto and we are losing the freedom, but I think if we want the crypto to become big we need the cooperation from the government, most of the adoption got stuck in the government's hand

I don't understand how tax snatched our freedom.  Only we can help poor people by paying tax to the government.

[AnonBitCoiner]

Tax law is dependent on your country and locality. Recently in the United States, the IRS has declared that Bitcoin is to be treated as property, not currency, for tax purposes. All income in the US is taxed, regardless of what form it takes. If you’re paid in bitcoins, you’re supposed to pay taxes on your earnings at the BTC/USD exchange rate when you receive payment.

Is it a good decision or bad?

Most of the bitcoin traders will not prepared to pay tax.We are already paying tax for our real job.So I don't want to pay tax twice for my single salary.Most of the people will inverse their salary in bitcoin trading.They won't like to pay tax for the investment in bitcoin and cryptocurrency.

[imrul5]

Tax law is dependent on your country and locality. Recently in the United States, the IRS has declared that Bitcoin is to be treated as property, not currency, for tax purposes. All income in the US is taxed, regardless of what form it takes. If you’re paid in bitcoins, you’re supposed to pay taxes on your earnings at the BTC/USD exchange rate when you receive payment.

Is it a good decision or bad?

Most of the bitcoin traders will not prepared to pay tax.We are already paying tax for our real job.So I don't want to pay tax twice for my single salary.Most of the people will inverse their salary in bitcoin trading.They won't like to pay tax for the investment in bitcoin and cryptocurrency.

But as we know the rich people only can buy BTC and most of the tax payers are rice people. Only rich people can help poor by paying tax. So, I think it is our duty to pay tax for good shake for our country.