Crypto Taxation

[target]

The KYC is really making it hard for us to escape all these taxation, although they were not getting crypto from us but only fiat, its still a form of tax that they wanna get from owning crypto. We got what we want though. We want adoption and they need to regulate and I guess this is a fair trade off for what is going to happen. Tax may change for each country when in the future our country also have digital currency and I guess that's the digital currency they will get from us and not BTC.

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[uneng]

Crypto coins cannot be taxed due to their nature and anonymity. Although there are some centralized crypto currencies, no one prefers these crypto currencies just because they will pay taxes, so the states cannot receive taxes from these transactions. But there is a case that states can follow our accounts in crypto money exchange services and tax us on our income here. For this reason, it would not be very accurate to say that crypto moneys cannot be taxed, but they cannot be taxed.

Since crypto currencies are considered assets, they can be taxed by the local authorities of our countries according to the laws, and these taxes aren't cheap if you follow the rules strictly. I don't agree with this, but there is nothing I can do, as the law works to benefit the government, not the people.
The tax should be defined on the moment you exchange crypto currency into fiat, considering currency price on the moment of the selling.

The only things which may not be clear enough are:
1) when the tax obligation arises - on the moment you sold the crypto, or in accordance with their value at the end of the year/fiscal year.

Yes, on the moment you sell the currency is more accurate.

[Abiky]

Unfortunately, it's flat out robbery. All they care about is to have their pockets filled, and whenever you want to pay your taxes and make a mistake, they will threaten you with hefty fines and possibly even prison time.

The sad part is that when you are eligible for a tax return, it could take months to actually receive it (complaining will not work), while if they think you owe them money, they want it right away and you can't even be a day too late.

That's certainly true, mate. It's sad to see crypto being taxed, after being unstable in prices. After all, most governments don't consider them to be legal tender. But these entities still tax them, to benefit themselves in every way. For the average person, this may seem unfair but it's the law. As long as you comply with your crypto taxes, you'll be safe from going to jail anytime soon. If you want full discretion of your crypto funds, it's best to use privacy-oriented coins like Monero or even Grin. At least, you'll avoid governments being on your tail most of the times. Once you deal with privacy coins on centralized exchanges, expect your balances to be exposed to the government for taxation purposes.

In the end, governments might win the battle over crypto taxation. All we could is obey the law to retain our "liberty" or freedom in every way. Once governments are able to successfully tax crypto, they'll pave the way for the whole industry to grow without disruptions. I believe that transparent cryptos like Bitcoin, Ethereum, and others will have full support of worldwide governments while privacy coins like Monero, Zcash, Grin, and Beam will become the #1 target of governments within the mainstream world. These coins won't be able to last for long if governments declare them to be illegal in every way. People will stop using them, leaving transparent coins like Bitcoin and Ethereum on the scene for a very long time. Just my thoughts

[wack slacker]

Currently, governments can only tax cryptocurrency exchanges and users in those trading networks. Apart from the exchanges they manage, there's no other way to collect taxes. If they want to collect taxes on Crypto users, they need more specific and complete rules

[Mometaskers]

Sometimes I wonder why governments want to tax our cryptocurrency funds if they're not considered as money by most people worldwide? After all, crypto's nature is a highly unpredictable and volatile one. It seems to me that governments want to profit from this venture more than anything else.

Unsurprising. It's all about getting their share. At least in my country they only take their "cut" when the crypto is sold aka cashing out.

They can only really collect (legally) from these KYC exchanges anyway that's why they are going hard on them. Anything outside that and they'd have to do a lot of monitoring. It might become more routine though if transactions outside these exchanges become more and more common.

[dimox]

what government want is money, no need to know where come the money from, as long as it can be profit from government, they will take it. there are many funny way that government do to take money. in my country, they have health card, you must pay for it, when you are jot pay it, collector will come to you, like force you to pay it, which is health is the important thing for society. its good, but they have bad system

[Getmon]

what government want is money, no need to know where come the money from, as long as it can be profit from government, they will take it. there are many funny way that government do to take money. in my country, they have health card, you must pay for it, when you are jot pay it, collector will come to you, like force you to pay it, which is health is the important thing for society. its good, but they have bad system

If the system is bad, everything that comes from it could also be bad. The rest of the policies or laws that are emanating from a bad system are like vehicles for the perpetuation of this bad system. The people who are taking the better of it will be the ones who will benefit from all those. Taxation is one of the most effective vehicle of this. Taxing crypto is like dragging crypto into the old bad system that will not benefit crypto itself nor its end users.   

[Ozero]

Currently, governments can only tax cryptocurrency exchanges and users in those trading networks. Apart from the exchanges they manage, there's no other way to collect taxes. If they want to collect taxes on Crypto users, they need more specific and complete rules

Governments will continue to study cryptocurrency and establish new rules in order to tax cryptocurrencies and we won’t go anywhere. In general, taxes will need to be paid so that the cryptocurrency is not outlawed by them. Of course, as always, whenever possible, we will avoid paying such taxes. So it was and so, perhaps, will be in the future. Any state has the right to establish taxes on any type of activity of citizens that brings them income. All the reasoning that this does not concern them does not make sense.

[Murat]

Every Government is running with the money from the people, So Government is ready to serve their people because of the taxation. I think cryptocurrency would get enlisted to the government if this system is included in the taxation system. when the government will get benefitted by this system then obviously the government would allow this platform within their territory, we know that tax is being used for the welfare of the people, it's very certain that they will find the proper way to minimize this issue and cryptocurrency will get accepted and legalized around the world very soon.

[Janation]

Currently, governments can only tax cryptocurrency exchanges and users in those trading networks. Apart from the exchanges they manage, there's no other way to collect taxes. If they want to collect taxes on Crypto users, they need more specific and complete rules

And I don't want that.

It is not that I don't want to help my country but sometimes, there are those times that you think that they are getting too much.

Cryptocurrencies are great since they are decentralized. That is the reason why a lot of people want to use it since it is anonymous, the government will never track our records or transactions. It is also a way for some people to avoid taxes. I think it is also efficient for us to earn money without any government or other people knowing that we are earning money. I don't want people to know something like that.

[avatar_kiyoshi]

Currently, governments can only tax cryptocurrency exchanges and users in those trading networks. Apart from the exchanges they manage, there's no other way to collect taxes. If they want to collect taxes on Crypto users, they need more specific and complete rules

Governments will continue to study cryptocurrency and establish new rules in order to tax cryptocurrencies and we won’t go anywhere. In general, taxes will need to be paid so that the cryptocurrency is not outlawed by them. Of course, as always, whenever possible, we will avoid paying such taxes. So it was and so, perhaps, will be in the future. Any state has the right to establish taxes on any type of activity of citizens that brings them income. All the reasoning that this does not concern them does not make sense.

That is why if a country implements cryptocurrency is not illegal because they have already taken tax from the exchange, for example in my country now every cryptocurrency / commodity / forex, will be charged expensive fees if they want to establish a company.

The point is that the government does not want to take risks and does not want to make efforts to take care of cryptocurrency, they throw all it's affairs into the exchange.

[AniviaBtc]

Currently, governments can only tax cryptocurrency exchanges and users in those trading networks. Apart from the exchanges they manage, there's no other way to collect taxes. If they want to collect taxes on Crypto users, they need more specific and complete rules

Governments will continue to study cryptocurrency and establish new rules in order to tax cryptocurrencies and we won’t go anywhere. In general, taxes will need to be paid so that the cryptocurrency is not outlawed by them. Of course, as always, whenever possible, we will avoid paying such taxes. So it was and so, perhaps, will be in the future. Any state has the right to establish taxes on any type of activity of citizens that brings them income. All the reasoning that this does not concern them does not make sense.

That is why if a country implements cryptocurrency is not illegal because they have already taken tax from the exchange, for example in my country now every cryptocurrency / commodity / forex, will be charged expensive fees if they want to establish a company.

The point is that the government does not want to take risks and does not want to make efforts to take care of cryptocurrency, they throw all it's affairs into the exchange.

That is so unfair, the money in crypto is the citizen's hard work and yet the government will just get taxes out of it. That's so irritating, I hope they consider first the crypto as money before they do that.  They just get it from exchange and that's so disturbing.

One day, crypto will just become a normal currency that many will use. Exchange also should be tax-free and let the people or citizen cash out their money without deduction.

[Duzter]

Currently, governments can only tax cryptocurrency exchanges and users in those trading networks. Apart from the exchanges they manage, there's no other way to collect taxes. If they want to collect taxes on Crypto users, they need more specific and complete rules

Governments will continue to study cryptocurrency and establish new rules in order to tax cryptocurrencies and we won’t go anywhere. In general, taxes will need to be paid so that the cryptocurrency is not outlawed by them. Of course, as always, whenever possible, we will avoid paying such taxes. So it was and so, perhaps, will be in the future. Any state has the right to establish taxes on any type of activity of citizens that brings them income. All the reasoning that this does not concern them does not make sense.

That is why if a country implements cryptocurrency is not illegal because they have already taken tax from the exchange, for example in my country now every cryptocurrency / commodity / forex, will be charged expensive fees if they want to establish a company.

The point is that the government does not want to take risks and does not want to make efforts to take care of cryptocurrency, they throw all it's affairs into the exchange.

That is so unfair, the money in crypto is the citizen's hard work and yet the government will just get taxes out of it. That's so irritating, I hope they consider first the crypto as money before they do that.  They just get it from exchange and that's so disturbing.

One day, crypto will just become a normal currency that many will use. Exchange also should be tax-free and let the people or citizen cash out their money without deduction.

Taxation is followed everywhere, maybe very few countries were free from taxation. Governments tax depending on the economic condition and the need in advancement. In most of the cases the economy completely depends upon the return got as taxes from its citizens. To make this taxation fair what's been got as tax needs to be used for the goodness of the citizens. Very few countries does it effectively. When we doesn't want to pay taxes we can't expect benefits from the governments.

[stiffbud]

Currently, governments can only tax cryptocurrency exchanges and users in those trading networks. Apart from the exchanges they manage, there's no other way to collect taxes. If they want to collect taxes on Crypto users, they need more specific and complete rules

Governments will continue to study cryptocurrency and establish new rules in order to tax cryptocurrencies and we won’t go anywhere. In general, taxes will need to be paid so that the cryptocurrency is not outlawed by them. Of course, as always, whenever possible, we will avoid paying such taxes. So it was and so, perhaps, will be in the future. Any state has the right to establish taxes on any type of activity of citizens that brings them income. All the reasoning that this does not concern them does not make sense.

That is why if a country implements cryptocurrency is not illegal because they have already taken tax from the exchange, for example in my country now every cryptocurrency / commodity / forex, will be charged expensive fees if they want to establish a company.

The point is that the government does not want to take risks and does not want to make efforts to take care of cryptocurrency, they throw all it's affairs into the exchange.

That is so unfair, the money in crypto is the citizen's hard work and yet the government will just get taxes out of it. That's so irritating, I hope they consider first the crypto as money before they do that.  They just get it from exchange and that's so disturbing.

One day, crypto will just become a normal currency that many will use. Exchange also should be tax-free and let the people or citizen cash out their money without deduction.

It's just that if you will keep your bitcoins in your wallet then no one can take taxes from you as your private keys are only with you and no one can take out your bitcoins if they don't have your private keys. And if government start taking your money from the exchanges then we will have to keep our money in our wallets and when we want to sell our coins then we can do p2p trades instead of going to exchanges.

[Eclipse26]

Every Government is running with the money from the people, So Government is ready to serve their people because of the taxation. I think cryptocurrency would get enlisted to the government if this system is included in the taxation system. when the government will get benefitted by this system then obviously the government would allow this platform within their territory, we know that tax is being used for the welfare of the people, it's very certain that they will find the proper way to minimize this issue and cryptocurrency will get accepted and legalized around the world very soon.

Indeed. If we don't want to pay tax by using cryptocurrency, then don't expect that cryptocurrency will be adopted by different countries. It doesn't mean that they're asking for tax, they're already taking advantage of us. Tax is part of us. They use money to run the country using the tax paid by the citizens. There are government officials that are corrupt but the main purpose of tax is for the country itself.

[Edraket31]

Every Government is running with the money from the people, So Government is ready to serve their people because of the taxation. I think cryptocurrency would get enlisted to the government if this system is included in the taxation system. when the government will get benefitted by this system then obviously the government would allow this platform within their territory, we know that tax is being used for the welfare of the people, it's very certain that they will find the proper way to minimize this issue and cryptocurrency will get accepted and legalized around the world very soon.

Indeed. If we don't want to pay tax by using cryptocurrency, then don't expect that cryptocurrency will be adopted by different countries. It doesn't mean that they're asking for tax, they're already taking advantage of us. Tax is part of us. They use money to run the country using the tax paid by the citizens. There are government officials that are corrupt but the main purpose of tax is for the country itself.

You have a point but actually our government are all wiser than we think, for sure they will not let this to happen and will do something that will make us panic and will disclose our earnings in crypto so that we can pay tax, so for now, they might not that too strict so we can enjoy it first, but here in our country little by little they are making tax regulations on it.

[sapnu]

Every Government is running with the money from the people, So Government is ready to serve their people because of the taxation. I think cryptocurrency would get enlisted to the government if this system is included in the taxation system. when the government will get benefitted by this system then obviously the government would allow this platform within their territory, we know that tax is being used for the welfare of the people, it's very certain that they will find the proper way to minimize this issue and cryptocurrency will get accepted and legalized around the world very soon.

Indeed. If we don't want to pay tax by using cryptocurrency, then don't expect that cryptocurrency will be adopted by different countries. It doesn't mean that they're asking for tax, they're already taking advantage of us. Tax is part of us. They use money to run the country using the tax paid by the citizens. There are government officials that are corrupt but the main purpose of the tax is for the country itself.

You have a point but actually our government are all wiser than we think, for sure they will not let this to happen and will do something that will make us panic and will disclose our earnings in crypto so that we can pay tax, so for now, they might not that too strict so we can enjoy it first, but here in our country little by little, they are making tax regulations on it.

It is indeed possible because the government can regulate it, they can ban it, they can also take tax to every investors or users of cryptocurrency. But I am thinking how they can od that because we all know that cryptocurrency is decentralized meaning they do not know how to get some taxes since there are no organizations or groups of people running cryptocurrency. But maybe they can give some taxes to the banks who are accepting cryptocurrency, the idea is that they can give taxes to those people who are withdrawing their crypto using that particular bank.

[Maestro75]

Crypto coins cannot be taxed due to their nature and anonymity. Although there are some centralized crypto currencies, no one prefers these crypto currencies just because they will pay taxes, so the states cannot receive taxes from these transactions. But there is a case that states can follow our accounts in crypto money exchange services and tax us on our income here. For this reason, it would not be very accurate to say that crypto moneys cannot be taxed, but they cannot be taxed.

Cryptos are no longer anonymous. The long secrecy thing has been spoilt with the introduction of KYC and am sure the founders of cryptocurrency will not be proud of this development. On the taxation of cryptos, sometimes I imagine what it was like when we used cowries before making a switch to paper money. How did the government get taxation during that time, am asking.

[asus09]

Every Government is running with the money from the people, So Government is ready to serve their people because of the taxation. I think cryptocurrency would get enlisted to the government if this system is included in the taxation system. when the government will get benefitted by this system then obviously the government would allow this platform within their territory, we know that tax is being used for the welfare of the people, it's very certain that they will find the proper way to minimize this issue and cryptocurrency will get accepted and legalized around the world very soon.

Indeed. If we don't want to pay tax by using cryptocurrency, then don't expect that cryptocurrency will be adopted by different countries. It doesn't mean that they're asking for tax, they're already taking advantage of us. Tax is part of us. They use money to run the country using the tax paid by the citizens. There are government officials that are corrupt but the main purpose of the tax is for the country itself.

You have a point but actually our government are all wiser than we think, for sure they will not let this to happen and will do something that will make us panic and will disclose our earnings in crypto so that we can pay tax, so for now, they might not that too strict so we can enjoy it first, but here in our country little by little, they are making tax regulations on it.

It is indeed possible because the government can regulate it, they can ban it, they can also take tax to every investors or users of cryptocurrency. But I am thinking how they can od that because we all know that cryptocurrency is decentralized meaning they do not know how to get some taxes since there are no organizations or groups of people running cryptocurrency. But maybe they can give some taxes to the banks who are accepting cryptocurrency, the idea is that they can give taxes to those people who are withdrawing their crypto using that particular bank.

Indeed bitcoin become legal transaction I think is good way for bitcoin's taxation but how come to get tax for bitcoiner, many country not regulated bitcoin as legal currency payment but when country have allow using bitcoin and pay taxes how to know who use bitcoin or not,  always have way how to manipulated document and data with bitcoin transaction.

[darkangel11]

That is so unfair, the money in crypto is the citizen's hard work and yet the government will just get taxes out of it. That's so irritating,

Life isn't fair.

You make a website on TOR and get sentenced to life in prison for it.
You sell bitcoins for cash in the USA and get treated like a criminal and put in prison with all the murderers and rapists only because you don't have a "money transmitting license". Why would you need a money transmitting license if Bitcoin isn't officially recognized as money?
There are people prosecuted for small mistakes of getting high or forgetting to file some government papers. Your taxes aren't a big deal as long as they aren't higher than 20%. Some countries are stealing over 30% of your income and that's really abusive.