Taxes on Bitcoins: Unreasonable or essential?

[Twinkledoe]

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.

Same here. Let's enjoy these moments that the government has not found a way yet how to put taxes on crypto transactions. But I think in some way, the government is already getting a bit from our local fiat conversion because those local crypto exchanges are paying taxes for sure. The reason why their rate is relatively lower than the global market. So even if they say we are not paying any, they already compensate such fees by giving us lower conversion rates.

[Lorence.xD]

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.

Taxes has been a way for citizens to contribute to the development of their country and I think taxation is reasonable thing if bitcoin is to be pushed into further development. In my opinion, there are no other way for bitcoin to be injected into mainstream circulation if they are not willing to do this faustian bargain, retracting from it would result as a lose because a government is also the authority and they can ban the use of this because they are not benefitting from it. Sometimes it is better if bitcoin jumps the shark, they made unexpected and impressive results and I think that is worth it.

[TheUltraElite]

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.

Tax evasion is a illegal thing, firstly. But only applied to the fiat economy for now. Thing is that you have to understand the reason why we have to pay taxes - for the development of the city we live in mainly. However it is not a perfect world so of course the taxation is going into other people' pockets but we are not the jurisdiction to declare whether it is correct or not, since we are citizens.

Bitcoin did not intend on evading taxes though. It was not what was in the ideology. Bitcoin was meant to be decentralized but that does not mean evading taxes. It means that bitcoin does not have any central institution controlling but.

[Debonaire217]

This is the main reason why some countries haven't really advertised the use of bitcoin and cryptocurrency, it is very complicated to tax bitcoin and the most possible way is for the local exchanges to do the work. If most of the transactions will be anonymous and will not be under the local exchange, there will completely no tax needed to be paid which isn't good for the government and eventually for the economy.

For me, I am okay with government taxing bitcoin but only if bitcoin became mainstream transaction medium. Right now, it serves as an alternate option especially for cross border transactions which really costs a very huge transaction fee.

[carlisle1]

Sad to now but only with taxation we will have real adoption and legalization

there is no need to be sad when we are earning in crypto so it is our obligation to pay for taxes because what we are doing now is not helping the government and if this indeed then Don't expect any support from the government and instead expect banning or regulation more in future.

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.

Nope that is totally wrong,it is every peoples obligation to Pay taxes in every profiteering we made so why need to be used as currency first before paying taxes?

[vapourminer]

Sad to now but only with taxation we will have real adoption and legalization

agreed. perhaps im wrong, but once something is taxable, that adds legitimacy. after all you dont tax illegal gains.. like there is no tax on selling heroin on the streets. or taxing bribes. etc.

[Russlenat]

Taxes are reasonable IMO, but it varies on the percentage of tax the government will enforce to us, if it's 20-30%, I think that is too high, any government that would impose high taxes on crypto are treating crypto as an enemy or anything that would not help to the economy on its existence, this kind of tax rate are like taxes on cigarettes and liquor in our country which we called SIN TAX.

However, every government has different policy on crypto taxes, I'm just happy to belong in a crypto where our government are positively accepting cryptocurrency.

[Kez1817]

 I think tax on bitcoin is essential to help the government a little percentage but it should have a limit or exact amount to be taxed like for example if someone owned 5BTC for the whole year then he is titled for bitcoin tax but hopefully just  a small percentage because crypto currency is not like a stable job who consistently earns monthly.

[Forexgdp20]

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 ?

It is 0% for those in the 10-15% income bracket, 15% for those in the 25-35% income bracket, and 20% for those in higher brackets

[Sanugarid]

This is the main reason why some countries haven't really advertised the use of bitcoin and cryptocurrency, it is very complicated to tax bitcoin and the most possible way is for the local exchanges to do the work. If most of the transactions will be anonymous and will not be under the local exchange, there will completely no tax needed to be paid which isn't good for the government and eventually for the economy.

This is the concern that most of the people are complaining to, why would you tax cryptocurrency? it is foolish to tax it just because they know that we can make money out of it. Have you not wondering why we are having a lot of CBDC trials? because even working digitally they want a tax from the people, cryptocurrency lead the whole financial to be digitalized which from our case we are near to make it happen. It is sad knowing that most of CBDC are not into cryptocurrency but only with digital payments. I'm not against with it tho.

For me, I am okay with government taxing bitcoin but only if bitcoin became mainstream transaction medium. Right now, it serves as an alternate option especially for cross border transactions which really costs a very huge transaction fee.

No, even when it reaches $50000 it is very unreasonable. What the government should be doing is taxing the exchange, not the bitcoin because they are the service provider and us? we are paying for the tf.

[rexxarofmoknathal]

Most countries don't currently recognize Bitcoin for tax purposes, simply because a lot of people also lose money on cryptocurrencies which would therefore mean that they should be able to claim a tax rebate. Overall, more people lose money nowadays than gain money, therefore the government would actually be in a net loss as far as tax goes. The only way around it would be to only tax profits and offer no relief on losses, but that wouldn't be in line with other asset types.

[shata]

Tax should always be just accordingly whether or not the reason for government has discouraging form of accepting one. Crypto in its nature is viewed like stocks transactions which involved capital gains tax. Ideally, if it is taxed based on income tax then it will be doubled; thus, it must be tax as capital gains normally on fixed percentage like 10%-15%.

[ChiBitCTy]

I guess this question really depends on the amount of taxes you're paying overall in your nation. Personally living in Chicago Illinois the amount of taxes I pay are higher than anyone else in the country.  We pay countless needless taxes that just end up going to the government to be misappropriated, so for me, I think it's a bit unnecessary at least in the manner of how it's taxed.

[charlesmichel1]

Taxes on buying and holding Bitcoins is unreasonable, people don't get income, so it can't be a taxable event. I agree that trading crypto to fiat or using crypto for making purchases or earning cryptocurrency as income should be taxed. But 30-40% is too high.

[thesmallgod]

I am not again paying tax for holding bitcoin but such policy should be adequately be reviewed. Just because people earn a lot doesn't mean they should put on a huge percentage cut of the tax to be paved. 30% is too much. If any country want this. They should work out the modality and make sure equal tax is paid for crypto and fiat earners. And above all they should also help hodlers by making policy that make use of crypto seamless and more generally acceptable

[CoinFoxs]

When it comes to Bitcoins, Internal Revenue Service(US) and its counterparts from other parts of the world believe Bitcoin as an asset or intangible property but not a currency as it is not issued or printed by central banks. If someone is mining bitcoins and then selling it to third party or if one is buying BTC from someone and selling it to others for making profits and using bitcoins to buy good or services then I think yes it should be taxable. As in recent past people have earned enormous amount of money by trading crypto so I think its fair to collect tax if someone is making money out of it.

[KrisAlex18]

It is unreasonable, bitcoin or other cryptocurrencies are decentralized and governments don't have something yo do with it, they shouldn't give tax on it because they don't even control the blockchain, but in some other way in order for the bitcoin to become more prominent all over the world government should be related on this because they ate the one that will accept the bitcoin on their country, the government will do anything just to have profit on something. The government is always into money that is why there are many corrupt governments they always find ways to have revenue on the cryptocurrency.

[Zionatin]

Crypto is not owned by anyone and shouldn't be taxed. Noone can prove beyond a reasonable doubt where your bitcoin came from and what wallets you own. Why must you sell something you and your people decided to trade just to convert it into a government entity known as fiat? The fiat has already been converted into bitcoin and so the fiat is already in circulation. It isn't essential nor reasonable to tax crypto. Unless you declare what crypto you own. No one can prove you even have any.

[Excell110]

Well, where I come from, taxes on Bitcoin has not been effected yet.
 But I think it will be unreasonable to place higher tax on Bitcoin seeing as it is supposed to be beyond any central controly, due to the technology it was built on.
 Rather, Bitcoin owners can pay the regular taxes imposed on fiat currencies, just like every other individual.

[abhiseshakana]

Crypto is not owned by anyone and shouldn't be taxed. Noone can prove beyond a reasonable doubt where your bitcoin came from and what wallets you own. Why must you sell something you and your people decided to trade just to convert it into a government entity known as fiat? The fiat has already been converted into bitcoin and so the fiat is already in circulation. It isn't essential nor reasonable to tax crypto. Unless you declare what crypto you own. No one can prove you even have any.

The object of the tax is your total wealth and the income you get. The tax object does not look at the form of your wealth. The initial purpose of bitcoin is to eliminate intermediaries in transactions not to juggle your assets to become untraceable.

Why does the state have the right to impose a tax on the income or wealth of all citizens in any form. Because all citizens must obey the applicable laws and regulations. The essence of a country has an obligation to protect its citizens. Ensuring fairness and security in transactions in a country. We take the parable if there are taxpayers involved in tax crime or tax avoidance, then the tax institution will have difficulty freezing the relevant assets because the authorities do not have the authority. This is a form of injustice for other citizens. In addition, the facilities that you use in your daily life, such as roads, are owned by the state.