Okay. Charge tax on bitcoin. Is this fair policy?

[tsaroz]

I noticed that certain country may charge tax on earning from Bitcoin trading...

20% tax on it. I think this is quite ridiculous.

That means govt sees it as a lottery.

What do you guys think?

It's not a big deal to give some of your profit to your government as tax on your bitcoin profit. But the problem is it's hard to define what a profit in bitcoin is as there maybe many steps involved that the government may not be able to track. So, it would be much easier to tax on user trades (on exchanges) and mining of coin.

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[Astvile]

It is only fair I think. You live in the country you earn money from where you live and it is your obligation to pay taxes no matter where your income comes from. And that number is still low I think because I'm sure bigger entrepreneurs and businessmen are getting charged even higher than that.
Basically you are paying for your countries development so nothing is wrong at all.

[audaciousbeing]

I noticed that certain country may charge tax on earning from Bitcoin trading...

20% tax on it. I think this is quite ridiculous.

That means govt sees it as a lottery.

What do you guys think?

20% is not on the high side at all. The concern is what the 20% will be applied on. If its on earnings, then its not fair however, if its on net profit then its fair. Using this in comparison to other forms of taxes. In most countries, company income tax is always between 25% to 35%. Personal Income tax on the otherhand, the effective is always around 15% to 20% depending on the level of income. So 20% on another form of income is not bad so far its being treated as final tax in the case of individuals if not, it would be being taxed twice on the same income and more so, tax payment is our civic duty to contribute to the development of the state.

[3la9l_kolbaCa]

taxation in digital currency has now become a fairly complex phenomenon, especially if related to the calculation of profits in trade or from investments, taxation on bitcoin varies greatly, although now some countries use bitcoin as a currency, while some other countries consider it an asset or commodity .
so with different treatment in each country, so the bitcoin tax also has different rules in each country.

Yes, it's indeed a different perspective on a desired country who allowed bitcoin transactions to operate in their place. Without the compliance of tax regulations, the local exchanges who has active business in the country will be subjected to country's law. Most rules applied on exchanges, that's we noticed transaction charges was so high on popular coins like btc and eth.

[acdc]

The 20% tax is too high and unreasonable for a certain transaction, it seems that the government is trying to attack bitcoin holders.
I think a 5 ~ 10% fee is reasonable for bitcoin transactions, in my country bitcoin is considered a commodity and it is subject to 10% tax like all other goods.

[DabsPoorVersion]

The 20% tax is too high and unreasonable for a certain transaction, it seems that the government is trying to attack bitcoin holders.
I think a 5 ~ 10% fee is reasonable for bitcoin transactions, in my country bitcoin is considered a commodity and it is subject to 10% tax like all other goods.

But the fact that it is also a currency, should be subject to income tax and not as a commodity. It is not some kind of goods so I think it is reasonable with 20%.
As your country how it sees bitcoin as a commodity, it is also good, since the country itself decides how much percentage they will implement and where they will base the tax on it. But the thing is, other countries do not see it the same as your country.

[airdnasxela]

That's the way to legalized cryptocurrency on different countries. They won't legalize it if they can't get any benefits from it. And tax is something that we shouldn't avoid. We're also the one benefiting from the taxes we pay. The tax percentage is too much for me, but I think it would still depend on the amount of transactions. The government wouldn't just ask for 20% tax fixed, it might change depending on the transactions. I don't really know because there's no law and tax on crypto here in my country but the bill is already at the senate so sooner it can be legalized in my country.

[rosezionjohn]

If you make your money trading duck billed Platypus placentas that's taxable. Why on Earth should Bitcoin be any different?

This indignance turns up here so often I suspect there'll be some humongous tax bills arriving on many a doorstep because people thought they were 'special'.

This topic has been discussed in our local board. Due to the lack of regulations pertaining to tax on cryptocurrencies, some would argue that the absence of the law means they are not subject to tax. While others would also say it is still taxable since it is still an income and all types of income are taxable unless it's stated that they're not.

I tend to agree with the second argument. I also think those who never filed their crypto profits will be required to pay sooner or later with huge penalties.

[isaac_clarke22]

If there's gonna be a tax in connection with Bitcoin, it should be just within those financial institutions that allows people to sell Bitcoin. We got SCI here in our country that is all about the industry in linked with Bitcoin.
I believe that it shouldn't be taxed though because in the end people will still sell them to fiat money, and I guess they should take into consideration to tax fiat and any centralized institutions. Leave Bitcoin as it is.

[gentlemand]

This topic has been discussed in our local board. Due to the lack of regulations pertaining to tax on cryptocurrencies, some would argue that the absence of the law means they are not subject to tax. While others would also say it is still taxable since it is still an income and all types of income are taxable unless it's stated that they're not.

I tend to agree with the second argument. I also think those who never filed their crypto profits will be required to pay sooner or later with huge penalties.

It's a totally different matter if where you live has uncertain rules. I don't. I don't think that stops people ignoring them 'because it's on the internet and I took the risk so I shouldn't have to pay'.

If I were in a place that hadn't clarified anything I'd at least hang something back just in case they ever did. It's a pretty poor show to leave people in the dark completely.

[AicecreaME]

You made me laugh on that. How would the Government put a tax on something that they can't touch, and they can't put tax on Bitcoin Trading same as for the traders because they are almost the same with freelancers, but we couldn't avoid paying taxes like paying our monthly bills, electricity, using public transportation, etc... that is tax also.

Government will never be able to put tax on crypto currency, because it is decentralized.

[Linkkoin]

This topic has been discussed in our local board. Due to the lack of regulations pertaining to tax on cryptocurrencies, some would argue that the absence of the law means they are not subject to tax. While others would also say it is still taxable since it is still an income and all types of income are taxable unless it's stated that they're not.

I tend to agree with the second argument. I also think those who never filed their crypto profits will be required to pay sooner or later with huge penalties.

This may lead to several possible outcomes, which all have a huge impact on cryptocurrencies as such:
1) If you have used cryptocurrency for buying something, you may be forced to present invoice/receipt for such action/contract. Here we can argue - should companies have in such case registered wallets working more or less in the same way as bank accounts? What about defining the cryptocurrency value for VAT purposes? With fiat currencies, these are usually foreign exchange rates as published by the central bank. In this scenario there is a slight chance, the authorities could start accepting tax payments in crypto (eg. 23% of BTC amount, not its value in eg. USD).
2) Taxation reforms - as speaking of the price itself, should taxation apply to profit made per each transaction, or annual summary? What in situation like this: you bought 10 BTC at the 2018 bottom ($4000/1BTC) and sold it at 2019 highs ($12000/1BTC), next bought at the end of the year 15 BTC for $8000 each. In this case what should be taxed? The total value of BTC at the end of the year, its price per each coin?

[keeee]

Our local exchange has applied the fee whether for withdrawal or trading, every transaction on the platform now has already included 10% tax I think every country has their own regulation regarding how much fee they collected from trading cryptocurrency. When your revenue is being taxed it means that you're helping your Government and the Country. Just hoping the money that they have collected is being used for the right thing, bring benefits to our community.

I agree with this,  actually tax is fairly thing especially when it comes to transactions.  We really need to psy some fee for there sre also working on our transaction and without them it wont be possible to transfer some cryptocurrency to wallet.

[Twentyonepaylots]

The 20% tax is too high and unreasonable for a certain transaction, it seems that the government is trying to attack bitcoin holders.
I think a 5 ~ 10% fee is reasonable for bitcoin transactions, in my country bitcoin is considered a commodity and it is subject to 10% tax like all other goods.

20% is too much. You can't even call it tax if that's what the percentage is. Taxation is only necessary for legality purposes so I don't have anything against cryptocurrency transactions being taxed or regulated, it adds more security after all. For not being outlawed, a tax of 10% is a small price to pay. But 20% is so outrageous, you might want to have it be reviewed or appealed.

[Youghoor]

Why do  some government officials have low level of thinking and understanding?  So they want to tax bitcoin miners or who?  Most government officials are always thinking of money and how to find a way to rob people of their money. Its high time we in the crypto space make these people understand that we gave them the power.

[Artemis3]

I noticed that certain country may charge tax on earning from Bitcoin trading...
20% tax on it. I think this is quite ridiculous.
That means govt sees it as a lottery.
What do you guys think?

It is pointless because you can simply not declare it. It is not terribly difficult to keep a wallet hidden from the government. The only way the State may have some chance of taxation, is probably VAT since they can audit the movement of physical goods (inventories, etc), services utility bills, or an annual fee for the ownership of luxury things like property, lambos etc. Not that i particularly endorse taxes or the State...

Oh and always remember this: bitcoin never comes in or goes out from your country. Everything occurs in the blockchain, the blockchain resides in the world (anyone can run a node and be part of it).

[affandi]

Government regulations in each country seem to vary. as in my country, the government sets a 10% tax on crypto trade revenues. I think this is good, because by doing that, cryptocurrency can be well received in every country.

[huige007]

I noticed that certain country may charge tax on earning from Bitcoin trading...

20% tax on it. I think this is quite ridiculous.

That means govt sees it as a lottery.

What do you guys think?

Taxation is one of the major source of revenue in many countries today. As far as a person earns money such person is obliged to pay his or her taxes. If a bitcoin trader earns profits from its trading activities, he or she is duty bound to pay taxes to the Government as this will aid in development of the society. Hence taxation of crypto related activities is highly supported by me.

It is not possible to keep track of transactions made by the cryptocurrency in a country due to its universal nature. Many tax imposing authorities have tried to impose tax on it and the taxation guidance given by the IRS depicts it as a possessions someone hold. According to which holding Bitcoin for a longer period of time, when you are about to sell it you have to pay the capital gain.

[gentlemand]

It is pointless because you can simply not declare it.

Same goes for many other things. Tax collecting in most places is taken on trust. People cough up for the sake of a quiet life.

Unless your opsec has been peerless there's a good chance you could be retrospectively nailed. It's not the cleverest area to be indulging in tax evasion. You leave a trail of permanent droppings wherever you go and the data mining techniques are only going to get better.

[iram3130]

If you're talking about income tax then I would support this move as governments will regularize the crypto with this tax. But if you're talking about trading tax which I too have little knowledge of, then I would not support. There are many countries which accept income tax if you consider crypto as other income source and pay accordingly.