Please DON'T pay any taxes on your crypto!

[pooya87]

What nonsense? None of the countries ask for tax on Crypto holding. They're asking for tax only when you are converting Crytp to FIAT. There's no way you can hide that unless you are solely living on cash.

In my country(Japan), when I bought a item with Bitcoin which I bought for a cheap price than the item, that margin is also taxed.
However, I think that it is impossible for the government to grasp all these transactions, and it is also impossible for us to calculate each one.

i don't live in Japan to know for sure but actually everything that i have  read from mid 2017 until today is saying otherwise. meaning whenever you buy anything with bitcoin in Japan then there is no taxes since the government removed it in 2017 and only taxes you when you purchase or sell bitcoin not when you use it as a currency. and that has even created that discounts that the merchants offer when you pay with bitcoin.

[marcbitcoins]

Your words on how not to pay the Bitcoin tax is very impossible to apply in our country. Simply because every time we will convert our Bitcoin to fiat in our local exchanges it's already deducted for Bitcoin tax for the government therefore it is impossible to avoid not to pay the tax for us but even it is possible to avoid it but still i will not do it as i firmly believed that Bitcoin is a help to the nations economy therefore it is our obligation to pay the Bitcoin tax.

[Lionel]

Your words on how not to pay the Bitcoin tax is very impossible to apply in our country. Simply because every time we will convert our Bitcoin to fiat in our local exchanges it's already deducted for Bitcoin tax for the government therefore it is impossible to avoid not to pay the tax for us but even it is possible to avoid it but still i will not do it as i firmly believed that Bitcoin is a help to the nations economy therefore it is our obligation to pay the Bitcoin tax.

If you read the answers it has already been said that you don't need to convert crypto into fiat on an exchange.
There are many other ways to cash-out, even anonymous ones of course.

[trashman43]

Taxes are basically income that are used by a country's government to run some of the country's affairs. It is wrong to discourage people for paying taxes, everybody has his/her own rights to decide to either pay taxes or not. You are not the person to tell them to either pay or not. If you have decided not to pay taxes, please do that alone. Don't share anything to tell people what to do and what not to do.

[Snaic]

I do not think that tax evasion will be in defense of cryptocurrency. Quite the contrary: government agencies can determine the total amount of transactions in a cryptocurrency and the approximate amount of taxes that must be paid. If we do not pay taxes on the use of cryptocurrencies, states can begin to restrict or even prohibit cryptocurrency. In my opinion, we do not need it. It is not necessary to give a reason for the opponents of cryptocurrency to launch an attack on it.

[whiteblue]

I do not think that tax evasion will be in defense of cryptocurrency. Quite the contrary: government agencies can determine the total amount of transactions in a cryptocurrency and the approximate amount of taxes that must be paid. If we do not pay taxes on the use of cryptocurrencies, states can begin to restrict or even prohibit cryptocurrency. In my opinion, we do not need it. It is not necessary to give a reason for the opponents of cryptocurrency to launch an attack on it.

if the government starts to determine the rules as you mentioned by giving a total transaction limit to making tax payments that must be paid then it will only make bitcoin fail in the purpose of the presence of bitcoin, you should be able to see the proposal or whitepaper when satoshi nakamoto makes bitcoin the first time, it was implied that bitcoin had a purpose to make a currency that nobody could control because bitcoin can only be controlled which only has bitcoin.

[Lumi3004]

No one opposes the one-state policy regarding taxes, be it cryptocurrency or the other all according to the state's rules if they live in that country, violating the rules of imprisonment. so to make things easier for every country about taxes, do it according to where you live.

[Syakbrown]

very good advice and in accordance with my principles,
I will never pay a bit of my bitcoin tax to the government, because in this case the government doesn't contribute anything. so why pay for services that do not exist for us.

[pundit]

More and more countries, like Chile or India, are trying to tax their citizen for the crypto they hold.

Please don't pay taxes on your coins.
You really don't need it, unless you are totally ignorant.

It's simple: they cannot prove you have the coins on your PC/phone , so you don't have nothing to pay taxes on, as far as they know.
It's just their attempt to trick the ignorants that don't know about that

Even if they look for your wallet on your PC/phone ,
your wallet data is not accessible to them because it's  encrypted with password  ( uhm.... have you set the password protection on your wallet... right? ).

Of course you are not going to give them the wallet password.

Oh.. they tell you that you withdrawn the coins from an exchange,  so that's the proof you have the coins?
Just say that it was an hacker that stole your coins from the exchange,  not you.
You got robbed, and you don't have to pay taxes on the money that was stolen from you, right?

P.S. for the geeks: use Veracrypt

I think you have misunderstood something, I am from India and indian govt is not charging any tax on any crypto one is holding. I have paid tax from my crypto income this year but that is not on my holding but the amount received into my bank account. One need not to pay any tax for any coin he is holding in India or anywhere as crypto wallets does not reveal the identity of holders.

[jrrsparkles]

very good advice and in accordance with my principles,
I will never pay a bit of my bitcoin tax to the government, because in this case the government doesn't contribute anything. so why pay for services that do not exist for us.

The money you making also not from your government then why you are paying for fiat earnings? The government is a setup by the group of people and created by people if it is a democratic nation so you need to ccontribute yourself for the growth of your country's economy so its your duty to pay the taxes to your government if not then you are a crimial in legal view.

[arkawa040]

More and more countries, like Chile or India, are trying to tax their citizen for the crypto they hold.

Please don't pay taxes on your coins.
You really don't need it, unless you are totally ignorant.

It's simple: they cannot prove you have the coins on your PC/phone , so you don't have nothing to pay taxes on, as far as they know.
It's just their attempt to trick the ignorants that don't know about that

Even if they look for your wallet on your PC/phone ,
your wallet data is not accessible to them because it's  encrypted with password  ( uhm.... have you set the password protection on your wallet... right? ).

Of course you are not going to give them the wallet password.

Oh.. they tell you that you withdrawn the coins from an exchange,  so that's the proof you have the coins?
Just say that it was an hacker that stole your coins from the exchange,  not you.
You got robbed, and you don't have to pay taxes on the money that was stolen from you, right?

P.S. for the geeks: use Veracrypt

In the country where I live, everything is much more cunning, the government imposes a tax on unemployment. Those who do not officially work, will pay every month tax. In the future, the government may impose a tax on the withdrawal of funds from the exchange, that is, when we withdraw to a Bank card, we will automatically deduct a certain percentage, that's how not to pay?)))

[shirackjs]

I would rather pay tax on my crypto currencies than having the governments banning crypto. Let’s not give the governments another reason to disallow us using crypto. Anyway, it is good to contribute to nation building, isn’t it?

[Taki]

Yes. Do you want to take responsibilities for people's decision to not pay taxes from crypto? I think you don't.
I live in country where there is not any tax for crypto yet and I do not even imagine how it is going to work. But I suppose they are going to track where money on your bank's bill comes from. So you will not pay taxes for amount of coins you actually have, but from cashi g it out and moving it to your account.

[PlusOne88]

I think if the subject is a citizen of that country and tax is implemented on cryptocurrency, it would certainly be through the exchanges. There would be high payments involved during the transaction of converting fiat to cryptocurrency or the other way. It is almost unavoidable not unless if such person would have to travel into a contry that does not tax through exchanges. But why would you want to evade taxes anyway? Is your taxes so high?

[Mr.Ease]

If you want to be stupid - then sure, don't claim your crypto's...

But, for the rest of us - It would probably be a good idea to pay taxes

And, I'm not sure if the OP understands... Your not paying tax on coins your holding, It's only on the coins you sell and the profits made - Which all boils down to your personal trading and such.

But, yeah. If your doing transfers to your bank account. That is the 1st piece of information the Gov. wants when Auditing you. So good luck trying to conceil that, enjoy those fines!

[Lyana]

More and more countries, like Chile or India, are trying to tax their citizen for the crypto they hold.

Please don't pay taxes on your coins.
You really don't need it, unless you are totally ignorant.

It's simple: they cannot prove you have the coins on your PC/phone , so you don't have nothing to pay taxes on, as far as they know.
It's just their attempt to trick the ignorants that don't know about that

Even if they look for your wallet on your PC/phone ,
your wallet data is not accessible to them because it's  encrypted with password  ( uhm.... have you set the password protection on your wallet... right? ).

Tax is charged on an exchange transaction when you want to exchange your coins for real money. This is done automatically when you make a currency transaction. 

[Lionel]

I think same as you my friend.Way how we can avoid country fees are:
1.Be safe when you transfer your money because your country will be able to know where you are using your crypto when they know your bitcoin address and if they know website address.
2.Do not use exchangers where it is necessary to confirm identity with id card.
3.Do not buy bitcoin with your fiat money where they are asking you for id card,own identiy number,...
4.Do not talk to much to other people that you are not paying crypto fee even if they are your clostest part of family.
5.When you cashout big money,dont buy own house,car, go rent a car,rent a house ,rent everything,or buy it and then fast sell it to closest part of your family and then use it like it is yours.

Big tax which we have now are robbery we are traveling back to the past but now there are couple of kings,queens,queens and kings support=corrupted goverment voters,police and army,priests,people with small income and people which have small chances to survive.

^
THIS

I would rather pay tax on my crypto currencies than having the governments banning crypto. Let’s not give the governments another reason to disallow us using crypto. Anyway, it is good to contribute to nation building, isn’t it?

Tax is charged on an exchange transaction when you want to exchange your coins for real money. This is done automatically when you make a currency transaction.  

@Lyana  
For now the "automatic" taxation is only done in a few countries.
@Lyana  @shirackjs and everybody else thinking that you MUST convert crypto into bank savings sonner or later...
that has already been answered in this reply https://bitcointalk.org/index.php?topic=5102409.msg49439298#msg49439298
( why don't you read the discussions? )

I 'll try to answer to most of your comments here.

--------------------------------------

1) Paying taxes for helping your place to develop
These types of comments deserve a big Facepalm.
When you go back home tired from work, please relax on your couch and watch this classic that pretty much everybody knows of: Zeitgeist.
https://www.youtube.com/watch?v=pTbIu8Zeqp0&t=5776s
https://www.youtube.com/watch?v=HbvCxMfcKv4

You will learn a lot of things from that, for example that the taxes and the fractional reserve are big scams.

We will be turned into slaves more and more year by year.
The real development and scientific research gets hindered and slowed down by them.
They definitely spend most of our tax money for less legit purposes than "development" or "your well being".

-----------------------

2) Cashing out to my bank account ( ... really? )

Some of you are incorrectly assuming that you MUST convert crypto into bank savings... why must you? There are many ways to cash-out, mostly anonymous:

- Restaurants/Shops/Services that directly accept crypto, are spreading out, even though at a slow pace

- Exchange crypto for cash by meeting with other people in your city (i.e. over-the-counter, LocalBitcoins, etc.).
Hint: check the banknotes' validity with something like this https://www.amazon.com/Dri-Mark-Counterfeit-Detection-Watermark/dp/B07F6PW69G

- [Caution with this] Get a crypto-enabled credit card like WirexApp , and cash out just a tiny amount of money at a time on it, just for small purchases at the moment you need to buy something. This is a handy way of cashing out, but it's traceable. Cash out a VERY limited amount per year in this way.

- Yeah, convert crypto into bank savings, but at a bank in a tax heaven so at least you pay very little taxes. Don't be a fool like some guy that keeps his bank reports at home, so that the dogs have the proof on a silverplate... ( some guys got caught for this naive move ).


--------------------------------------

3) Going to jail
If there's no proof, there's no jail for you.
Do you want additional safety?
- Withdraw BTC from the exchange to your BTC wallet
- Create a new BTC wallet, and move all your coins there

Why?
In this way, there is a  proof on the blockchain that you moved all your BTC to another person (which is you, but there's no evidence, it can be anyone).
So it's like you have "cleaned" your coins from your name


What is the advantage?

They want to tax you on the FIAT money that you moved on the exchange for buying the coins, AND on the additional earnings you got from an eventual
 price rise if they know you hold the coins for, say, 2 years, and the price went up by 500%.

But if you followed the 2 smart moves listed above, you proved that you gave all your coins to another person right after you bought them, so there's no earning to be taxed due to the coins' value increase.
Thus, you will only pay the taxes for the FIAT money that you spent for buying BTC
--------------------------------------

@shirackjs I forgot... who cares if the govs "ban" crypto? If it is decentralized, it will continue to work as before, and the price will continue to grow without the need for the gov.
BTC doesn't need gov's decision to raise in value.
It already is revolutionary enough that the price will go up naturally, without the need for help by dishonest tricksters called the gov.

[Micerker]

This is not a wise choice because you try not to pay taxes, the government will try to enact prohibitions against it. Pay rent even if it's a small amount, but this makes it easy to survive and find money.

[Juggy777]

More and more countries, like Chile or India, are trying to tax their citizen for the crypto they hold.

Please don't pay taxes on your coins.
You really don't need it, unless you are totally ignorant.

It's simple: they cannot prove you have the coins on your PC/phone , so you don't have nothing to pay taxes on, as far as they know.
It's just their attempt to trick the ignorants that don't know about that

Even if they look for your wallet on your PC/phone ,
your wallet data is not accessible to them because it's  encrypted with password  ( uhm.... have you set the password protection on your wallet... right? ).

Of course you are not going to give them the wallet password.

Oh.. they tell you that you withdrawn the coins from an exchange,  so that's the proof you have the coins?
Just say that it was an hacker that stole your coins from the exchange,  not you.
You got robbed, and you don't have to pay taxes on the money that was stolen from you, right?

P.S. for the geeks: use Veracrypt

Hey this is a very dumb advice and anyone following this will land in trouble for sure, and the op won’t come to bail you out. As you have mentioned the two Asian countries let me inform you, 90% of the transactions happen via exchanges, which send money in the bank of the person. If your advice is to be followed how will they explain when that money came from?. I prefer a good life, my reputation intact and no jail time so not following your advice if needed I’ll pay tax and live happily.

[Capt00]

Hey this is a very dumb advice and anyone following this will land in trouble for sure, and the op won’t come to bail you out. As you have mentioned the two Asian countries let me inform you, 90% of the transactions happen via exchanges, which send money in the bank of the person. If your advice is to be followed how will they explain when that money came from?. I prefer a good life, my reputation intact and no jail time so not following your advice if needed I’ll pay tax and live happily.

Yeah, I am your side, paying tax is a good practice of helping your country, imagine, by giving you a small amount you can contribute progress that possibly happens. Look at the country of U.S.A they were very strict on implementing tax and they are now a fully developed country. So, that is a small amount for us to pay tax and we could live happily and no worries.