Taxes on Bitcoins: Unreasonable or essential?

[Vatimins]

     If we think about it, the main point of this whole industry specially bitcoins, is that it wants to be away from traditional ways or to give freedom to its users from the world we are used to in terms of assets or so if you get what I mean. But if we really want recognition and being allowed by most of the countries, we really have no choice but to agree with taxes no matter how unfair it kay seem since there really is no other way.

[Mahanton]

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.

Its still not consider to be on legal aspect thats why government would really see it as a taxable thing specially to those who are involved in investments and also with trading.
They do know that people do generate thousands of dollars in profits thats why they are trying to apply things up when it comes to taxation matters.Even myself is a taxpayer and doesnt have any skips
on that one but same as yours when we do talk about Bitcoin taxation then its a different thing.Yes its debatable and if they would push it out then i doubt if they do able to imply it yet
it wont be easy as it sounds.

[Daniel91]

     If we think about it, the main point of this whole industry specially bitcoins, is that it wants to be away from traditional ways or to give freedom to its users from the world we are used to in terms of assets or so if you get what I mean. But if we really want recognition and being allowed by most of the countries, we really have no choice but to agree with taxes no matter how unfair it kay seem since there really is no other way.

Of course that we all wants financial freedom but there is no absolute freedom out there.
If you want strong public service,  health care,  free study like we have in Europe than taxes are very important.
I think rule that we don't need to pay taxes on crypto but only on fiat money  (at the moment when we exchange crypto to fiat ) is fair rule
At least, such rule exist in my country.

[kateycoin]

This issue is still debating but we know that if bitcoin will be having a task goverment will do what ever they want. And i think bitcoin value will be gone if goverment will put task on it. I think it will not good for bitcoin and theres a lot of things to consider before that they put taxes in decentralize coin.

[abhiseshakana]

Of course that we all wants financial freedom but there is no absolute freedom out there.
If you want strong public service,  health care,  free study like we have in Europe than taxes are very important.
I think rule that we don't need to pay taxes on crypto but only on fiat money  (at the moment when we exchange crypto to fiat ) is fair rule
At least, such rule exist in my country.

If the tax on cryptocurrency is eliminated, many people will divert their income using cryptocurrency. With coercion and threat of sanctions, there are still many individuals and groups who avoid tax obligations. If cryptocurrency is not taxed, it will be an opportunity for many individuals to avoid tax legally. If this is widely practiced by the people, over time the country will lose income, which in turn will conduct a review of tax regulations that will ultimately harm many people.

[carter34]

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.

Only if it is made legal because many countries have not made bitcoin a legal means of generating money. So it won't be easily taxed upon when people are not freely making use of it. If it is made legal, then people can use it to make payment and income can be generated there.

[Daniel91]

Of course that we all wants financial freedom but there is no absolute freedom out there.
If you want strong public service,  health care,  free study like we have in Europe than taxes are very important.
I think rule that we don't need to pay taxes on crypto but only on fiat money  (at the moment when we exchange crypto to fiat ) is fair rule
At least, such rule exist in my country.

If the tax on cryptocurrency is eliminated, many people will divert their income using cryptocurrency. With coercion and threat of sanctions, there are still many individuals and groups who avoid tax obligations. If cryptocurrency is not taxed, it will be an opportunity for many individuals to avoid tax legally. If this is widely practiced by the people, over time the country will lose income, which in turn will conduct a review of tax regulations that will ultimately harm many people.

I agree with you and that is why we need some reasonable compromise that will suit everyone.
In my country there are already talks between the tax office and certain representatives  of the crypto sector and crypto companies.
For now we have a very good solution that we don't have to pay crypto tax if we've kept crypto funds in our wallet for at least 2 years and can prove it.
It's very good and reasonable solution.

[Eugenar]

This is so unreasonable, cryptocurrency is in a decentralized system so taxes are no place here because the government should not do things with regard to cryptocurrency, but once the government decided to put a tax on it then the people can do things to stop it. There are many users of bitcoin and they keep on using it for some purposes, if there would be a cryptocurrency tax there would be many people who will be mad for what will happen.

[Alucard1]

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 ?

Tax on Bitcoin is reasonable because anything that is tradable must have a tax so that every country has a funds and they can help the security of trading. It will also be the way to make the Bitcoin get legalize on every country because funds is very important. If Bitcoin gets legalize on every country and the mass adaptation occurs, there is a big possibilities that the tax on Bitcoin can be removed since it is the new financial system of the whole world.

[ufaiz50]

Based on the tax concept, making taxes depends on government regulations and the regulations have been calculated according to the criteria. Can be taken from the number of users in the country or by the number of transactions and the value of the transaction. It is unfortunate that some countries provide large taxes where users from these countries do not benefit from paying taxes. I don't think about taxes as long as the tax imposition is worth it.

[bitgoldpanther1978]

20-30% tax was too irrational for my understanding dude, Because here in my country our local exchange
was also deducting tax, and it should due to they are centralized platform that means it is automatic there is
tax given return in the government.

[Lina AH]

The government is always one step ahead of its population and of course they want to make a profit from everything. Perhaps if they could somehow help people who own bitcoins, learning, saving, safety, etc. and they would take a small tax for it, I think it would be normal, but in fact I am sure it will be on average 20%.

[Daniel91]

The government is always one step ahead of its population and of course they want to make a profit from everything. Perhaps if they could somehow help people who own bitcoins, learning, saving, safety, etc. and they would take a small tax for it, I think it would be normal, but in fact I am sure it will be on average 20%.

I think that in my country the government is very reasonable and open when it comes to crypto taxes.
We only pay taxes if we decide to exchange crypto funds into local money and the tax is relatively low, only 12%.
If I can prove that I kept crypto funds in my wallet for at least 2 years I don’t pay any taxes.

[Ozero]

    If we think about it, the main point of this whole industry specially bitcoins, is that it wants to be away from traditional ways or to give freedom to its users from the world we are used to in terms of assets or so if you get what I mean. But if we really want recognition and being allowed by most of the countries, we really have no choice but to agree with taxes no matter how unfair it kay seem since there really is no other way.

Yes, I also agree with your opinion. The imposition of a tax on profits from bitcoin and other cryptocurrencies simultaneously paves the way for increasing its liquidity. The development of infrastructure for the use of cryptocurrency as a means of payment is possible only through the establishment of general rules for its circulation in society and the simultaneous consideration of the issue of taxes.
We will also have to pay these taxes, otherwise governments may take measures to restrict the circulation of cryptocurrency, up to and including its complete ban.

[PeripoGrey]

Unreasonable, there are a lot of ways for a government to generate revenue and funds for its economy and for building infrastructures so aa schools and road works. Small businesses might get affected and will slightly make their income reduce due to transaction fees and taxes will be deducted to them.

[FlightyPouch]

I don't know. Here in our country they are not actually taxing crypto currencies. This pandemic made some changes to taxes and they are even including some streaming platforms like Nerflix now. I don't think they will be doing the same with cryptos or bitcoin all I know is that there is a possibility it will happen and I also think it is unreasonable yet it is needed by the country.

[Natalim]

The government is always one step ahead of its population and of course they want to make a profit from everything. Perhaps if they could somehow help people who own bitcoins, learning, saving, safety, etc. and they would take a small tax for it, I think it would be normal, but in fact I am sure it will be on average 20%.

I think that in my country the government is very reasonable and open when it comes to crypto taxes.
We only pay taxes if we decide to exchange crypto funds into local money and the tax is relatively low, only 12%.
If I can prove that I kept crypto funds in my wallet for at least 2 years I don’t pay any taxes.

12% is only low if you are exchanges a small amount, you might not feel the tax, but try to exchange $1 million, 12% of it is $120,000, that's huge right?
I know know what the tax laws in your country but compared to other countries, that's lower of course but it might differ on how tax are treated when computing it.

[Daniel91]

The government is always one step ahead of its population and of course they want to make a profit from everything. Perhaps if they could somehow help people who own bitcoins, learning, saving, safety, etc. and they would take a small tax for it, I think it would be normal, but in fact I am sure it will be on average 20%.

I think that in my country the government is very reasonable and open when it comes to crypto taxes.
We only pay taxes if we decide to exchange crypto funds into local money and the tax is relatively low, only 12%.
If I can prove that I kept crypto funds in my wallet for at least 2 years I don’t pay any taxes.

12% is only low if you are exchanges a small amount, you might not feel the tax, but try to exchange $1 million, 12% of it is $120,000, that's huge right?
I know know what the tax laws in your country but compared to other countries, that's lower of course but it might differ on how tax are treated when computing it.

As I already explained before,  there is a very simple way how to avoid crypto tax in my country.
We have to keep the crypto funds at least 2 years in the wallet, prove it to the authorities and in such case we don't have to pay any tax.
It's very simple and fair rule.

[pandog79]

its an interesting discussion and i am not really sure what would be fair.  i think because governments are not involved, they should not receive the incentive of a tax unless you liquidate btc and turn it into cash.  then and only then i could see taxation of some sort being fair.  afterall, cash is governed.

[Lizzie_Girl]

I don't think we should pay taxes at all. Though that won't work since you need tax to build and maintain infrastructure. I don't think crypto should or can be taxed unless it becomes fiat. Why should we pay tax on something we created for ourselves? One day people will appoint a new way of doing things where you don't pay tax but rather fees for everything you do. YOu invest in the infrastructure instead of mindlessly tossing money to the government to waste.

In some countries paying tax almost feels like the wrong thing to do since you know what they will do with it. Buy themselves a new car and house.