Bitcoin and tax in your countries

[Daniel91]

I would like to hear about the situation with bitcoin and taxes in your countries.
I think it would be interesting to hear different experiences and compare results across countries.
Of course, I understand that in some countries you can't declare bitcoin tax.
I'm not interested in these countries but the ones where it is possible to declare and pay bitcoin tax.
I will start first.
In Croatia, several years ago we received clear instructions from the tax office on how to file a bitcoin tax.
In short, we must lead FIFO and if we can prove that we held btc funds more than 2 years, than we don't need to pay tax (long term investment).
If we have kept btc funds for less than 2 years, we pay 12 % tax plus surtax.
Can you share situation in your country?

[Lucius]

I will just say that anyone who pays crypto tax in Croatia (currently and in the past) actually donates state money. And why do I say that? Well, because you have the ability to change crypto (in FIAT) to a certain value per transaction (1000 Euros - daily) without ID, and also to buy/sell gold with crypto in a same way. You also have physical and online stores that accept crypto, which is also a perfectly legal way to avoid paying taxes (or at least it can get you save some time on keeping FIFO records) but you still pay very high VAT.

To be clear, I'm not for tax avoidance - but if there are legal possibilities for me not to pay that tax, then, of course, I will use them while they are available to me.

[agentx44]

I would like to hear about the situation with bitcoin and taxes in your countries.
I think it would be interesting to hear different experiences and compare results across countries.
Of course, I understand that in some countries you can't declare bitcoin tax.
I'm not interested in these countries but the ones where it is possible to declare and pay bitcoin tax.
I will start first.
In Croatia, several years ago we received clear instructions from the tax office on how to file a bitcoin tax.
In short, we must lead FIFO and if we can prove that we held btc funds more than 2 years, than we don't need to pay tax (long term investment).
If we have kept btc funds for less than 2 years, we pay 12 % tax plus surtax.
Can you share situation in your country?

Here in our country, the tax has been going up and down for the past few years because of the unstableness of the government. There was once recent issue that involves stealing the money of the people by those who are in authority. It was also evident here that not all of our tax goes to beneficial stuffs for everyone, some officials steal it and take it as an easy money. When it comes to bitcoin, the government is now silent about the use of it after what happened before where bitcoin was considered as a scam by those who are less knowledgeable about crypto.

[hello_good_sir]

I think Croatia is actually doing a decent job then, it's definitely promoting a lot of long-term investments, even though I think the 2-year mark is a bit too much (1 year seems more realistic), I understand it and respect those rules.

In Australia, there are a lot more complex rules regarding crypto-currencies, but the most painful part is that if you buy BTC for 5,000, then sell it for 20,000, you will need to pay tax on the 15,000, no matter what happens. From a website's guide, you will also need to pay capital taxes if you perform any of these actions with crypto-currencies

Sell or gift cryptocurrency
Trade or exchange cryptocurrency for another crypto or fiat currency
Convert your cryptocurrency to fiat currency (eg Australian dollars)
Use it to obtain goods or services

Here's the actual link - very interesting read.

https://www.finder.com.au/cryptocurrency-tax-guide#:~:targetText=Cryptocurrency%20transactions%20are%20exempt%20from,acquired%20for%20less%20than%20%2410%2C000.

[Asmonist]

I think those platforms or bitcoin exchangers were tax here. There are exchanges that has charges so more or less they also tax us everytime we exchange bitcoin to local currency. Thus, these platforms may have legal papers to operate then the government must already knew it. They do business with bitcoin and local currency and opened bank accounts. These are capable of taxes.

[boltz]

Well here in my country ( Romania ) the bitcoin adoption is really good I can tell that as you can buy Bitcoin from every local grocey shop on the ATM's which is a great option implemented by www.bitcoinromania.ro . We also have a partnership with Smith&Smith so you can buy and sell Bitcoin and Ethereum immediately after you make a simple account on them which takes 5 minutes and in 10 minutes you can already pick up your cash after selling crypto.

Taxes have been officially announced in this spring for my country and since then I avoid cashing out when I don't need urgent money and I think most of the holders are doing the same.

[Immakillya]

Here in the Philippines, there's no such law about imposing cryptocurrency taxation unless you declare it as income. The tax you are going to pay is the taxable income. The government is not strict on implementing taxation unless they found out that you earn from it.

[LTU_btc]

I'm from Lithuania and here you have to pay 15% tax from your profits if it exceeds €2500/year. For example if you bought BTC at €7000 and sold at €10 000, you have to pay 15% from €3000 - it would be €450 in such case.

I will just say that anyone who pays crypto tax in Croatia (currently and in the past) actually donates state money. And why do I say that? Well, because you have the ability to change crypto (in FIAT) to a certain value per transaction (1000 Euros - daily) without ID, and also to buy/sell gold with crypto in a same way. You also have physical and online stores that accept crypto, which is also a perfectly legal way to avoid paying taxes (or at least it can get you save some time on keeping FIFO records) but you still pay very high VAT.

To be clear, I'm not for tax avoidance - but if there are legal possibilities for me not to pay that tax, then, of course, I will use them while they are available to me.

Yeah, but it's not always possible to avoid taxes. If you cash out crypto and want to buy something big (car, house or something similar), tax is something what you can't avoid. Otherwise you will face some legal problems in such cases.

[goaldigger]

Here in the Philippines, there's no such law about imposing cryptocurrency taxation unless you declare it as income. The tax you are going to pay is the taxable income. The government is not strict on implementing taxation unless they found out that you earn from it.

Its really good here in our place and I hope that it will remain forever, a tax free investment is always good for us. The law doesn’t required us to pay any taxes, our country also support cryptocurrency and many exchange are planning to do business here. The fees with the exchange are the only tax we are paying and the rest is free of tax.

[Cryptomiles1]

I would like to hear about the situation with bitcoin and taxes in your countries.
I think it would be interesting to hear different experiences and compare results across countries.
Of course, I understand that in some countries you can't declare bitcoin tax.
I'm not interested in these countries but the ones where it is possible to declare and pay bitcoin tax.
I will start first.
In Croatia, several years ago we received clear instructions from the tax office on how to file a bitcoin tax.
In short, we must lead FIFO and if we can prove that we held btc funds more than 2 years, than we don't need to pay tax (long term investment).
If we have kept btc funds for less than 2 years, we pay 12 % tax plus surtax.
Can you share situation in your country?

So far in my country were btc is not legally proven and acceptable as other countries does. No tax and you can invest in any platform without paying tax to government. But any other investment out of digital money required tax as the income is being generated.

[kawetsriyanto]

Here in the Philippines, there's no such law about imposing cryptocurrency taxation unless you declare it as income. The tax you are going to pay is the taxable income.

Nice regulation from the government, mate. It is quite the same as my country, there is no specific law about crypto taxation. We just need to pay income tax, including the income got from crypto business. However, as the crypto asset has been officially allowed in our country, I guess there will be a deeper assessment related to taxes in the future.

[diahsw]

waaw 12% is pretty big .. !! in my country there is no such regulation, even bitcoin still feels strange to be heard, especially to impose a bitcoin tax, maybe for the next few years our country could have followed that rule, but who knows when it will start .. !!

[samcrypto]

Right now there is no regulations about tax on bitcoin income, maybe out government is not that strict and didn’t care if we earn a lot of money from bitcoin. Your tax percentage is pretty high, I’m so lucky with my country because its tax free but politics here is not that good. There are also some countries who don’t impose any taxes yet it will be hard to transact bitcoin, so it is still good mate to you that bitcoin is legal on your place.

[malevolent]

In Poland there is a 19% tax on profits made from selling, that includes buying goods or services, but it does not include cryptocurrency-to-cryptocurrency transfers. It used to be more complicated in the past.

I will just say that anyone who pays crypto tax in Croatia (currently and in the past) actually donates state money. And why do I say that? Well, because you have the ability to change crypto (in FIAT) to a certain value per transaction (1000 Euros - daily) without ID, and also to buy/sell gold with crypto in a same way. You also have physical and online stores that accept crypto, which is also a perfectly legal way to avoid paying taxes (or at least it can get you save some time on keeping FIFO records) but you still pay very high VAT.

To be clear, I'm not for tax avoidance - but if there are legal possibilities for me not to pay that tax, then, of course, I will use them while they are available to me.

That's all nice and fine until you want to buy real estate or a car, unless Croatia is different in this regard, which I doubt.

[Wintersoldier]

In my country, the Philippines, cryptocurrency is legal that the taxes are fully regulated through our local exchange which is the coins.ph. In terms of us having a transaction on E-Commerce, we can pay using bitcoin in Lazada, and the tax will be through the value of our fiats. They are not limiting us through the use of crypto, thus, we are free to encourage our colleagues to know cryptocurrency more, and some ways on how to earn it through working or investing their fiat to bitcoins.

[Edraket31]

In my country, the Philippines, cryptocurrency is legal that the taxes are fully regulated through our local exchange which is the coins.ph. In terms of us having a transaction on E-Commerce, we can pay using bitcoin in Lazada, and the tax will be through the value of our fiats. They are not limiting us through the use of crypto, thus, we are free to encourage our colleagues to know cryptocurrency more, and some ways on how to earn it through working or investing their fiat to bitcoins.

Good thing, that here in our country they don't strict their people in using crypto, they don't even require and making demand that we need to pay taxes with our income from crypto as there is no law yet regarding this matter. So, for now we are enjoying the benefits of it as we can cash out our fund without any thinking of tax, it just depends on the person if they will declare it in their income tax or not.

[gabmen]

Not taxed yet here. I think as long as any government doesn't recognize bitcoin entirely, it would be difficult to tax it. Plus the fact that it'll be hard to monitor transactions that are anonymous. For that to work, there has to be a common ground and that can't be achieved unless crypto is generally accepted like a common commodity.

[maxreish]

For now, our country is very open about cryptocurrency like bitcoin. Though some of the countries requires a tax for crypto earnings, ours not yet implemented that. They are very optimistic about this and since we're still few that are patronizing bitcoin, our governments not need to add up tax, yet.

But local crypto exchanges from our country that had a permit and licenses from the BSP requires them to pay taxes.

[crossabdd]

there is no bitcoin tax in my country, maybe the only one who pays taxes is the exchange of bitcoin (cryptocurrency only). Until now the crypto currency in my country is still controversial, bitcoin has been accepted, but there are no clear rules about someone who has bitcoin.

[Eclipse26]

As of now, there's no tax in cryptocurrency being implemented here in my country which is the Philippines. Though we are not really exempted from taxes since we cannot escape from tax. It only depends on how we use it. When you sell things even with the use of bitcoin, you still pay taxes especially when you have a bigger business. Buying things with bitcoin seems like we don't pay tax but actually there's a VAT in everything we buy. So basically we're still paying taxes but the government here was not actually strict with cryptocurrency so there are no many regulations.