Do traders pay income taxes?

[lotfipro]

It's very interesting question. It depends on where you live. If you live in country where crypto is not legalized, you don't need to pay anything to the government. But if crypto is legalized, you need to read laws about it.

[valnd]

It depends on country you are from, some countries like united states pays taxes for trading cryptos because of other countries like in the third world countries, they don't pay taxes for trading cryptos.

[Saint1990]

I don't pay taxes on cryptocurrency trading as in my country still there is need for clear regulation. But there are some countries where cryptocurrency traders need to pay taxes, read this article for more information about tax breakups
https://www.google.co.in/amp/s/bitcoinexchangeguide.com/top-countries-cryptocurrency-trading-profits-tax-rates-around-the-world/amp/

[Bobby park]

I'd like to start trading, but what happens when you get profit from a new coin? you pay taxes as individual (like capital gain) or you must open a registered company?

I don't think we need to pay taxes in trading. But actually, we pay tax indirectly. By paying a transaction fee everytime we withdraw or deposit is our tax however, it is not called as income tax rather a corporate tax. This is the goodness of cryptocurrency because even if we will not pay tax, we receive our money fully.

[RockBar0]

I have been involved in this market for a long time, but I do not see anyone paying taxes on electronic money, so it is very difficult for the state to manage these sources of income. They are also quite difficult

[bitcoinmar]

I remember that some of my friends in the US had to pay taxestaxes when they made a profit. And they are not shared that the coin should be bought, because if they share they will be punished by law. However, in my country, the trader still does not have to pay that fee, and I think it is bad if the trader has to pay taxes

[TastyChillySauce00]

I remember that some of my friends in the US had to pay taxestaxes when they made a profit. And they are not shared that the coin should be bought, because if they share they will be punished by law. However, in my country, the trader still does not have to pay that fee, and I think it is bad if the trader has to pay taxes

Every accumulated wealth that adds to your overall value will be taxed no matter what, such thing is what most of the government do.
Many people may see that as the most inconvenience thing especially if you live in a 3rd world country when you can't get the real benefit of being tax payer but well, that's life.

[Copod]

This might interest all traders, crypto investors. Be careful out there.

Tax Nightmare: Student Invested $5k in Ethereum & Now Owes $400k in Taxes
https://www.ccn.com/tax-nightmare-student-invested-5k-in-ethereum-now-owes-400k-in-taxes/

[WillyZ]

This might interest all traders, crypto investors. Be careful out there.

Tax Nightmare: Student Invested $5k in Ethereum & Now Owes $400k in Taxes
https://www.ccn.com/tax-nightmare-student-invested-5k-in-ethereum-now-owes-400k-in-taxes/

That's brutal. Time to declare bankruptcy?

[kiansantan]

I don't see anyone paying taxes on electronic money, so it is very difficult for the state to manage this source of income. I have been involved in this market for a long time. And I have never been taxed on me.

[bedford1972]

I'd like to start trading, but what happens when you get profit from a new coin? you pay taxes as individual (like capital gain) or you must open a registered company?

It is good that in my country there is no mandatory taxation on such activities. However, earning in this market, you will still give a small percentage of different actions. Interest will be charged for trading on exchanges, transactions between accounts and conversion to Fiat money. If you live in a country loyal to such activities, then you are very lucky)) the Deduction from your earnings will be limited only to these small percentages

[Bitknick]

As far as I know, everything depends on the country in which you live, but so far I have not met among my acquaintances those who have focused on this problem!

[anisoptera]

In Latvia, (that's where i'm from) I need to pay capital gain tax as a self-employed person form my earnings from trading. But as I know it depends on the country where you live, because some countries don't tax financial trading operations.

[vendy86]

there is no regulation about cryptocurrency tax in my country, so I don't pay tax at all so far. But in my opinion, it's a little bit hard to charge tax from cryptocurrency trading since its almost anonymous at dex exchange. The best way is charge tax at the centralized exchange. So Government doesn't need to chase every crypto holder. They just need to collect tax every year from the exchange.

[xOdiumNostrumx]

Dont screw around with taxes if you are from USA as you can rapidly find yourself in some IRS dungeon getting waterboarded. No but seriously, I am mostly holding so I am not that worried about it, especially because those crypto terms are still not firmly established in our country.

[shaheer001]

As individual in crypto trading you don't need any tax payment but in fiat money trading you may pay your tax though your banking system and if you open your own company you will also go it to register and ultimately you will pay it.

[Zythiphill]

I'd like to start trading, but what happens when you get profit from a new coin? you pay taxes as individual (like capital gain) or you must open a registered company?

Well I have friends who pay taxes I do not understand why, I for example do not pay , and I do not see the point in this, I use all the services paid for this better I will save the money for this

[viktoriya1945]

This might interest all traders, crypto investors. Be careful out there.

Tax Nightmare: Student Invested $5k in Ethereum & Now Owes $400k in Taxes
https://www.ccn.com/tax-nightmare-student-invested-5k-in-ethereum-now-owes-400k-in-taxes/

I think that with a good lawyer, he will easily challenge this in court, there can be no such the law under which the investor is obliged to fix profit in the reporting period, because it would collapse all the markets.

[honghe99]

Because countries have different policies and different tax forms, most exchanges need to pay taxes to the local government. This is the company's income tax!

[wareck]

I'd like to start trading, but what happens when you get profit from a new coin? you pay taxes as individual (like capital gain) or you must open a registered company?

I would gladly prefer to pay fixed income taxes. But, unfortunately, while in my country it is not even foreseen the legalization of cryptocurrency in the near future. Therefore, there is not even a legal opportunity to legally formalize such activities in order to ensure the payment of taxes.