Taxes on Bitcoins: Unreasonable or essential?

[yazher]

Paying taxes is our right and here in our country, people are obliged to pay taxes when we are in a work.

Lucky for our country because as of this moment, the government isn't thinking of putting a tax on Bitcoins or any cryptocurrencies. Taxes are there for the betterment of the economy so if the time will come that they will put taxes on Bitcoins here in our country then there is no problem on it since it is our responsibility to pay taxes right .

I agree with you man, thankfully we are not yet obliged to pay taxes when using BTC in our country which is so far so good for us. If they ever put some taxes on it, it would not be that higher than the other countries on the list. because we know that in here people will not be engaged in something that has some kind of higher payments except those who can afford it which only a few people in our country can do.

[Findingnemo]

Paying taxes is our right and here in our country, people are obliged to pay taxes when we are in a work.

Lucky for our country because as of this moment, the government isn't thinking of putting a tax on Bitcoins or any cryptocurrencies. Taxes are there for the betterment of the economy so if the time will come that they will put taxes on Bitcoins here in our country then there is no problem on it since it is our responsibility to pay taxes right .

So you are ready to pay 30% of your earning as tax? This is an insane amount right and no one can live a better life other than politicians if we pay such amount.As I said huge tax rate will results into black economy.

[Debonaire217]

So you are ready to pay 30% of your earning as tax? This is an insane amount right and no one can live a better life other than politicians if we pay such amount.As I said huge tax rate will results into black economy.

Look what happened the country Moldova, I watched a vlog by one YouTuber stating the corruptness of the politicians in Moldova, that is why the country is considered the least visited. That is just a one side of the possibilities of having huge tax. But that doesn't mean that all of the country will do the same thing especially when taxing bitcoin. We should not generalize the government and politicians of all country as the same, since there's still a lot of good infrastructures and projects that are worthy of our taxes.

Going back, the problem is taxing cryptocurrency and bitcoin IMO, tax it in local exchanges, but they couldn't tax peer to peer transactions.

[KrisAlex18]

Its really not appropriate, bitcoin or cryptocurrency are decentralized and it should be separated to the centralized system where all of the things have their own taxes, bitcoin should not be included on it. The government is so greed when talking about money, they know that bitcoin is really valuable and there are many people who are making a big profit from it so for them to have shared with it, they want to put it in tax, but it is unreasonable, this should not be implemented in any country because once it will have on once country, there would be many countries who will do the same thing.

[TIDOVEE]

In my country, no tax is being demanded on it yet, but with the rate of growth of users now I'm suspecting they may soon have to open their eyes to it. The good thing is that many of the government agencies have not really known what Bitcoin is, in as much as it is not a scam which will quickly call their attention. I can't blame those smart government in the countries  that you have mentioned. Because thee make proper monitor of the money in circulation and even though you earn it without their help, they must collect tax for running within the national economy.

[mezzaluna]

That is such a big move to be made by the government if they are willing to place taxes on Bitcoins. That means that they are knowledgeable enough to make decisions like this and meaning that users within those countries will contribute to the countries economic status.

20% above tax is already big but I guess, from someone who has little knowledge about how will the tax be distributed, that tax must be place into good use. Those countries involve already have good names because of their economic status and with more help, that will really be profitable for the whole country. I guess they would be really willing to make these kind of moves for the benefit of the country. Users might suggest to lower the tax for them to keep using and working within the Cryptocurrency Industry.

[Findingnemo]

So you are ready to pay 30% of your earning as tax? This is an insane amount right and no one can live a better life other than politicians if we pay such amount.As I said huge tax rate will results into black economy.

Look what happened the country Moldova, I watched a vlog by one YouTuber stating the corruptness of the politicians in Moldova, that is why the country is considered the least visited. That is just a one side of the possibilities of having huge tax. But that doesn't mean that all of the country will do the same thing especially when taxing bitcoin. We should not generalize the government and politicians of all country as the same, since there's still a lot of good infrastructures and projects that are worthy of our taxes.

Going back, the problem is taxing cryptocurrency and bitcoin IMO, tax it in local exchanges, but they couldn't tax peer to peer transactions.

99% of the countries have corrupted politicians only, maybe they are using tax money for development of the country with good infrastructure but what is the point of collecting huge tax and building good infrastructure when 50% of their people don't have good income rate.We are already paying income taxes for all our earning in total so adding extra percentage especially for cryptos will result in half of our earnings will go to the government only.

[Yatsan]

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 ?

Here in the country where I am currently residing, our government have no say on putting taxation on using Bitcoin or any other cryptocurrencies because they tend not to encourage people on using cryptocurrencies and if we do want to use cryptocurrencies, it would be our freedom but we must also take it as a full responsibility on which we are taking it on our own risks.

If the case that once our government realize that it might be essential to put tax on those people using cryptocurrencies, I think it would be reasonable and unreasonable also on the other hand. Reasonable in a sense that crypto users must also take part as their responsibility on the country to have contribution for the sake of the day country's welfare. Unreasonable on the other side because cryptocurrency is out of government's range of power since no one owns it because it is decentralized.

But if the government would put taxation on using cryptocurrencies, it might not be a problem to me as long as the rate is fair for the user since not all are really that high earner and the tax must be properly use for good sake of the country and not to feed their pockets.

[Ozero]

Taxes are imposed not only in cases where the state helps people to make money. From the point of view of the state, taxes are established in cases where people make a profit from any kind of activity.
In general, we need to pay tax, otherwise the state will impose various restrictions or even prohibitions on the use of cryptocurrency. However, everyone has the right to decide what to do in this situation.

[DarkDays]

Well, most countries don't actually tax cryptocurrencies until they have been disposed of. This essentially means once they have been spent, sent, used or otherwise exercised.

Only a handful of countries will tax cryptocurrencies that havent been disposed of, this is because it actually opens them up to some severe downsides.

For example, if somebody buys a lot of cryptocurrencies and then loses most of their money, they could then claim a tax rebate in many countries. And since there are more losers than winners in trading, it would probably be net negative for them to tax undisposed digital assets.

Pretty sure America is the only country that does this, that's because it's a third world country masquerading as a first world one, and needs all the money it can to keep up this image.

[Natalim]

@DarkDays, TBH, I would prefer that the trading sites or other platform will just deduct the taxes from me, they will act as a withholding agent in short.
Tax on bitcoin and even in regular tax is quite complicated for people who are not into business.

[achach]

I am willing to pay crypto taxes if they will support the crypto community and protect it.

[Amel]

There are some governments who do that but there are also governments those who have made Bitcoin a band for their country. In no way do they think Bitcoin is safe for their country because they think bitcoin is only used for illegal activities. They also think that it is not possible for them to get any tax from Bitcoin. So they are reluctant to allow any form of bitcoin for their country.

[Daniel91]

Taxes on Bitcoins It is completely unreasonable because Bitcoin is decentralized and no one can control, The government of any country cannot control it like Fiat currency. Bitcoin is still illegal in many countries and many do not support. If no one knows the real source of Bitcoin then any platform will look at the debate over the imposition of tax on Bitcoin. The government of a country imposes a tax on cryptocurrency to improve their country.

I mostly agree with you.
Bitcoin should not be taxed, but what if we exchange bitcoin for fiat money, withdraw it in a bank account and buy something in the store?
Local money is issued by the central bank and it is fine for it to be taxed, in my opinion.
The Central Tax Office in my country has just given such instructions, that no tax is paid on bitcoin itself, but tax is paid at the moment when we exchange bitcoin into a hard currency, what is ok.
That tax is not big, 12% plus surtax and if we kept bitcoin in our wallet for 2 years we don't pay anything.

[GazetaBitcoin]

In Romania there is a 10% tax for crypto profits. So not for incomes, but for profits. The amount is the same one used for income taxes (for employees) and for companies' profits.

The 10% has to be paid once a year, if you exchange crypto for fiat and only if you earn a profit. If you obtained crypto at a higher price than when you sell it, then you are on a loss and you don't have to pay the 10%. This tax applies to anything crypto related which may bring profits: trading, mining etc.

There is an exception though: if you earn profits in a year, but no bigger than 600 RON (~135$) and in transactions lower than 200 RON (~44$), you don't have to pay the 10%. But if you have a 500 RON transaction and another one of 100 RON (which still don't surpass the 600 RON treshold) you will pay 10% though, as you had a transaction bigger than 200 RON.

However, taxing is difficult for both sides - state and bitcoiners. For now, the state acts on good faith, allowing people to pay or not their crypto tax without verifying them. So you can have profits and not pay the tax, assuming the risk that somewhere in the future, if you'll get caught, you'll be a tax evasion criminal.

On the other hand, those which want to be correct have difficulties in proving if they were on a profit or loss. For traders, they should have logs for each transaction and prove at what price they bought and at what price they sold. But if they worked with many exchanges, maybe also with closed ones, they can't prove if they are in a profit or on a loss, as they don't have logs anymore. Only those very thorough can actually prove with papers, in case the govern comes for them.

For miners it's even harder. They should present the papers for acquiring their equipments, they should present also the electricity bills, then calculate if they have profit or loss at exchanging crypto for fiat taking also into consideration the price paid for electricity and for hardware. I believe even an accountant would have difficulties in calculating that, without thinking at a regular person.

That being said, it is a very complex law and even more complex is enforcing it. Of course, this applies for those which cease their privacy when going into fiat, meaning those which use centralized exchanges, which ask for KYC. If you make the exchanges without giving your personal information (DEXs, p2p transfers, using cash-in / cash-out crypto ATMs), you have less to worry.

[Asuspawer09]

I guess it does make sense putting small taxes in bitcoins or in a transaction but probably it would not happen directly in the bitcoin transaction but in the companies or the bitcoin wallet.

But probably it's a bad idea at this time as bitcoin is not yet completely implemented all over the world if the country already exposed in bitcoin or already uses it as an asset it might work with taxes.

[olamidey]

I remember when you could invest in cryptocurrency and make money without worrying about giving part of your earnings to government.

I am not trying to say paying tax is bad, in fact i pay my tax regularly for close to a decade now, but when it comes to taxing Bitcoin or any other cryptocurrency,

I am not fully in support, because Bitcoin is first a currency before it is an investment, how will it sound if you are taxing someone for spending dollars? That's exactly how it seems taxing Bitcoin.

 Just like you said, it is debatable, but if you put Bitcoin's primary objective of Bitcoin (which is to serve as alternative currency), then Bitcoin should not be taxed.

[pixie85]

Cryptocurrency taxation is essential, but the same should not be levied heavily. It is a must to take into account the chart for the transaction amount and the value. However we do, it is a big process to get the taxes from the citizens. Here everything need to be done with effect from the traditional exchange system.

Essential for which entity? The government?

Surely not essential for the taxed citizens.

I guess it does make sense putting small taxes in bitcoins or in a transaction but probably it would not happen directly in the bitcoin transaction but in the companies or the bitcoin wallet.

But probably it's a bad idea at this time as bitcoin is not yet completely implemented all over the world if the country already exposed in bitcoin or already uses it as an asset it might work with taxes.

If the tax is added to the transaction fee how is it going to work? Are you taxed by the country you live in? Or maybe the country you send coins from or the country you send  coins to? Or maybe you're taxed by the country you are a citizen of?

[conhela]

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

Of course it isn't, imagine that a person gets taxed that much for purchasing or selling gold or similar assets, it's governments being governmental that they need a cut of everyone's pie and part of the reason why bitcoin was born in the first place.

[Heart18]

For me its essential, only if the Government of each Country accept Bitcoin and legalized it. The tax that might be collected from Bitcoin can help the Country's economy to grow. So, if that would be implemented I will support the Government because its a big help for my country.