Taxes on Bitcoins: Unreasonable or essential?

[20kevin20]

We want bitcoin to be a globally accepted currency.

Open your eyes wide, it'll never be a globally accepted currency. At least not at the level we'd want it to be.

If governments did want Bitcoin to thrive and not be a threat to them, they would've regulated it from the start. How? Well, it could initially be regulated, at least temporarily, a similar way gold is. That doesn't mean we have to call it a precious digital metal nor does it mean it's a safe haven - it's just a way BTC would be regulated.

Still, the thing is that I'm not fine with taxation on many things, not only BTC or Gold. In fact, in some countries if you hold Bitcoin or Gold for >1yr, it becomes tax-extempt and their economy status is very well.

But somehow a large door of interpretation about cryptos has been left open in lots of countries. Could be the disinterest of them in cryptocurrencies or the fact that they're still working on a perfect regulation for them.

[verita1]

I disagree that the government imposes high taxes on the use of Bitcoin.
If precisely because the world's governments have not met the needs of their citizens for the use of money and that it is available to everyone, it is that bitcoin has been born.
I am a little jealous to see that governments want to take over Bitcoin and that their citizens pay for it.

In my country Venezuela has not been implemented but there is talk of a (5%) and a maximum of twenty-five percent (25%) to the goods and services paid for in Bitcoin and cryptocurrencies.

[arwin100]

Government have always been wary of Bitcoins as a whole. They are never ready to accept that cryptocurrencies have made a significant improvement in the lives of many. Unfortunately if you search online about the taxation on Bitcoins , in many countries it's very unreasonable.

It's not a government owned platform.One might be aware of the fact that the government is tracking down people who owns Bitcoins. Taxes on cryptocurrencies are always a matter of debate , in a country like India 30-20% of the Tax is supposed to be paid by the handler who is using the cryptocurrencies like Bitcoins and earning more than a fixed number.

20-30% is not at all a reasonable tax price.

At the same time there are countries where taxation is not considered regarding the cryptocurrencies.

Portugal
Germany
Singapore
Malaysia
Belarus
Slovenia
Malta
Switzerland

(https://news.bitcoin.com/eight-countries-that-dont-tax-your-bitcoin-gains/)

What do guys think ?
Should the government place taxes on Bitcoins or should they let it be? Since they are not helping cryptocurrencies in any way, I do think they should stop making profits out of people. A reasonable tax percentage should be applied ofcourse, but it does not give them the right to label the cryptocurrencies as free money . They should understand that it's a serious issue and if some money is coming from cryptocurrencies, they should at least use 1% of it to educate people about cryptocurrencies.

How much is the taxation on Bitcoins in your country ? Is it reasonable or government is just trying to make profit out of it ?

Taxation on Bitcoins is essential for promoting Bitcoins and their use either as an investment or as a currency. As government holds an account of all the various amounts of tax collected from a sector and then they also give benefits to the people in those sectors depending upon the tax they collect. So if they collect huge taxes from bitcoins industry then they will most probably have more attention towards it which can be good for the future of Crypto itself.

Most of the people want to use bitcoins because it is tax free and decentralized. Although government will love to tax on bitcoin too and make it centralize but I don't think people will agree to it. People need financial freedom and therefore they use bitcoins because it is decentralized currency.

If the government will create a law regarding on mandatory taxes of all digital assets including the cryptocurrency then all of cannot do nothing with it even if you like it or not, But I think this is good since by implementing that for sure they will look on cryptocurrency and monitor the movement of it for sure in future we will see a legal adoption as well the market will wide since it will be accepted on merchants.

[Oasisman]

I feel like taxation on Bitcoin is going to happen inevitably, its just a matter of when

"Inevitably", yes!. Why? Because Bitcoin has been talked a lot and was dragged down to some controversial scamming events, where some of the layman misunderstood how Bitcoin works and thought Bitcoin itself is a scam.
I won't be surprised if one day here in my country, they will officially tax crypto traders. Some countries have been exercising regular taxations involving cryptocurrency, but time comes when crypto will be regularly taxed globally.

[Leviathan.007]

Unreasonable! The reason why many people use Bitcoins instead of fiat is sometimes because they don't need to pay any tax for it. Because, governments can't control over it. In my own idea it's unreasonable. Because, we do the trades and earnings of out our hard works and government is not involved on it. I'm a hundred percent disagree with paying tax for Bitcoins or governments controlling and tracking it in any any.

[billykannithi]

In my opinion, cryptocurrencies are one thing that will oppose the interests of the government, so it's common for cryptocurrencies to become popular, or to replace currencies. That's why governments find ways to limit its expansion by banning cryptocurrency trading, or collecting taxes ... The reason I say that is because the mission of cryptocurrencies is to replace With the current monetary policy, payment is made easier, more convenient and more fair. But you think, we live in a world where power is in the hands of those who hold much wealth. A strong nation is a country that holds the right to issue and control its currency. So how can cryptocurrencies - born with the mission of replacing currencies, decentralization, fairness, transparency ... become popular? Therefore, the government will find ways to prevent its development by prohibiting, collecting fees ...

[TheUltraElite]

Any hot girls from the countries you posted want to marry me so I can get citizenship?

Slow down cowboy

You have to see two sides of this system. One where tax evaders are trying to use bitcoin as a safe haven to save themselves from getting taxed due to their big income figures and another where normal law abiding citizens are using crypto for daily purposes.

Problem arises because taxation is the income for the state. Every government has this treasury system to fund government sectors. So taxation is a necessary evil. Now if people who are using bitcoin try to evade it too much then the government having a problem. It does not mean that bitcoin users are getting rich, but it is the opposite because essential services are going to go down for them.

So I think a taxation system should be there and a balance needs to be present, but I have no idea as to how it will be regulated.

The answer to any such problem is a compromise and not a simple yes or no. People know this but they fail to accept it because of their ego.

[Latviand]

Well, I don't say it was essential in today's current position but when the time comes that Bitcoin will be accepted worldwide, I don't think we can escape from that especially when the government is pursuing such mater. Unless, if we never declare it.
For me, I'm not afraid of taxes. What I worried about is how the authorities govern during the collection.

It is somehow essential and reasonable at the same time.

Essential: Bitcoin are the most used and popular cryptocurrency in the world, and we all know that many people are relying on its volatility for them to have a lot of profit. But bitcoin being a decentralized coin, the government should benefit of the things that you're using. They want to collect some part of the cryptocurrency for the economic purposes and to have a stable budget. Especially during this pandemic, the government really needs a budget to help other people sustain their needs.

Unreasonable: Yes, because sometimes the fees are higher than you can imagine and there are people who are just relying in bitcoin and the fees can make it lesser. The government should understand that they need to make reasonable rate of fees so that all of us will become comfortable.

[MCobian]

Of course this is really an unreasonable tax price if applied 20-30%, in my opinion the tax for bitcoin is just 2-3%. Because of investment
in bitcoin the risk is very high, if burdened by the government with high taxes will certainly make many investors feel heavy. Luckily in my
country bitcoin doesn't need to pay taxes, it's only required to pay $ 2 each time cashout becomes fiat.

[Wexnident]

It's not to the point of it being essential, but it's not like we can run from it. Under the words of patriotism, most of us would be pressured by those in power to pay taxes, whether it be BTC or Fiat. Ofc, an unreasonable amount of tax is something that most of us would not agree, which is of course natural. But I doubt there's a need to separate the tax of Fiat and BTC, just make them similar. It's like how no matter whether you pay with BTC or Fiat, the price you pay would still the same, in which that price is already taxed, that kind of idea. If there was a separate tax for the usage of BTC though, that would be quite bs already imo. Absolutely no need for that, and it's not like they'd be able to actually see who transacts who after all. That is, unless, they go control freak like China here.

I personally believe that bitcoins or any other crypto's should not be taxed at this moment.
Maybe only when and if crypto's start taking over real-life currencies and making them obsolete.

It wouldn't take over it. It could reach the same level, but they'd be living in a side by side relationship, with both of them not really fighting over anything. Probably the same reason why I said that the tax of BTC should just be the same with fiat I suppose.

[Reatim]

For us, as users of cryptocurrencies, this is certainly unpleasant, but it is quite logical for the government to tax what brings income to citizens and what these citizens own.

At least you understand the Government position because there are profiteering in Bitcoin thats why there must be a tax allocation but what if time comes that Bitcoin is already a monetary?i mean Bitcoin becomes the main currency of the world,do government will need taxation?this will be unfair because why not Put tax in Fiat if they can apply that to bitcoin?

But for fairness of all?i think Tax is need to be taken from those Investors and traders and not for those people that uses this coins in their transactions daily(though i think this is hard to implement) bu that is the best way for the government to profit and also for the people to use as legal tender or a profiteering material.

[Sanugarid]

For us, as users of cryptocurrencies, this is certainly unpleasant, but it is quite logical for the government to tax what brings income to citizens and what these citizens own.

At least you understand the Government position because there are profiteering in Bitcoin thats why there must be a tax allocation but what if time comes that Bitcoin is already a monetary?i mean Bitcoin becomes the main currency of the world,do government will need taxation?this will be unfair because why not Put tax in Fiat if they can apply that to bitcoin?

I also understand what the government is trying to say for every one that is dealing with cryptocurrencies, of course there is an income with dealing crypto however I don't think of any way that they can impose tax on it like in what percentage? because the cryptocurrencies has a high volatility rate, I don't think they would tax you every time that the cryptocurrencies how about when it goes down? How are we going to run after the tax that we paid?   Just think about that

But for fairness of all?i think Tax is need to be taken from those Investors and traders and not for those people that uses this coins in their transactions daily(though i think this is hard to implement) bu that is the best way for the government to profit and also for the people to use as legal tender or a profiteering material.

What I can suggest for the government is to develop a system where the investor and trader that is subject for taxation will going to benefit, better if secured in terms of any thing that they could come up that will give the investors and trader a fair look at the taxes. It is not enough to tax the crypto because they said so, put a law and tax it? don't kid.

[whyrqa]

But for fairness of all?i think Tax is need to be taken from those Investors and traders and not for those people that uses this coins in their transactions daily(though i think this is hard to implement) bu that is the best way for the government to profit and also for the people to use as legal tender or a profiteering material.

What I can suggest for the government is to develop a system where the investor and trader that is subject for taxation will going to benefit, better if secured in terms of any thing that they could come up that will give the investors and trader a fair look at the taxes. It is not enough to tax the crypto because they said so, put a law and tax it? don't kid.

It seems to me that every government on any other side will solve this problem in its own way, but it seems to me that the owner of the cryptocurrency should have the same rights as the owner of any other value. In addition, if we take into account the taxation of traders, then in my opinion the tax should be paid by the cryptocurrency exchange, and the trader pays interest for the exchange. In addition, one must take into account the fact that the sale and purchase of cryptocurrency can be carried out without intermediaries, that is, without cryptocurrency exchanges. but nevertheless, the transaction must be officially executed, with the appropriate document. And if the transaction is conducted by a public or private notary, then in this case, you can not do without tax.

[Zionatin]

You can't tax bitcoin. It's not government issues and has nothing to do with the government. If the government wants us to pay tax in bitcoin then they should start using it as well. But they won't because it is too easy to trace and thus easy to trace back to their corruption and ill spending of taxpayers money. I love when anti bitcoin people say bitcoin users do tax evasion meanwhile its the best method to avoid government fraud.

[NorrisK]

In The Netherlands you are currently paying taxes in the same way you would when you would hold an equivalent in euros. Result is that any amount above 30k euro value (this includes all your euros, regular stocks and crypto).

Below the line you pay for the first 70k above 30k 0.54% tax, then for the next 930k you pay 1.26% and anything above 1M euro value you pay 1.58% tax.

Sounds reasonable to me, mostly because it is similar to how euro holdings are handled.

[kecha1]

Perhaps this is the right decision. Maybe.

[hassancisse]

to me its unreasonable because whats the whole point of decentralization when the government tax bitcoin. I am invested in bitcoin because of the whole idea of decentralization and i know that it cant be taxed by the government

[Sadlife]

I think its necessary if other countries where to totally accept Bitcoin like Zimbabwe and Venezuela that they've made it their local currency due to hyperinflation then taxes is necessary for a country to progress and in order to support their citizens.

[awwal1206]

its purely unreasonable! one of the main reasons people use bitcoin instead of fiat is to do without payment of taxes and there's no point of decentralization if the government can put tax on bitcoin.

[salamat700]

Well, there is nothing we can do about taxes since it is always in the power of the government to levy such a thing. Now, in cases where people feel that the rate and implementation of specific tax laws can be burdensome then maybe the best thing to do is to advocate for it to be more rational and fair. As long as we are conducting business and much more if we are making money, the governmental machine can be upon us. I am still thanking the heavens that I am in a country where tax laws are not that so strict and the government has not been flexing its muscle on cryptocurrency business.