Taxes on Bitcoins: Unreasonable or essential?

[Daniel91]

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.

Mostly I can agree with you.
If you just trade with btc or hold btc funds in the wallet I don't think we have to pay taxes.
But,  if you exchange crypto to fiat or even pay directly some services with crypto it's different matter.
In second case you should pay tax. 

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[pandog79]

i think alot of people bypass tax by taking out loans on their crypto holdings. thats a sneaky way to avoid.

[jpnl0006]

I see no essentiality in the  Taxing on Bitcoin as assets as it  has nothing to do with the government and the financial institutions. It was designed to be independent of government agencies and also the technology does not require approval or any function of govenrment in order to process it. Why then should therer be a tax on it.?

[CarnagexD]

I see no essentiality in the  Taxing on Bitcoin as assets as it  has nothing to do with the government and the financial institutions.

Now they see it, now it has to do with government. This is why government are trying to regulate cryptocurrencies coz they are so bothered that some people are making millions out of it without giving them the revenue tax, which is illogical for crypto that is decentralized, no governance and intermediaries especially with bitcoin. There is no essence in putting tax in bitcoin, however there is a significance of taxes even if we turn the world upside down, tax purpose is for the government to work as long as the public services that we have. In conclusion of mine, the only essential part of this is people who pay taxes in trading crypto is helping their own country's economy.

[Ozero]

I see no essentiality in the  Taxing on Bitcoin as assets as it  has nothing to do with the government and the financial institutions. It was designed to be independent of government agencies and also the technology does not require approval or any function of govenrment in order to process it. Why then should therer be a tax on it.?

To collect taxes, it does not matter at all whether the state took part in so that we could receive a certain profit, from which the tax is calculated. States have the right to charge tax on any type of activity that brings people a profit, regardless of whether it helped us to receive this profit or not.
Here we must proceed from the opposite. If we do not pay taxes on profits in cryptocurrency established by the state, then government agencies can restrict the circulation of cryptocurrency or even ban its circulation. In this case, the cryptocurrency will not develop, that's for sure. Therefore, in general, it is necessary to pay tax on cryptocurrency.

[wack slacker]

Bitcoin is not created by the government, so taxing them is unnecessary. If taxed, do it with bitcoin trading companies and cryptocurrency exchanges. Given the current transaction volume, the crypto market is too small to be taxed. When the crypto market is big enough like the forex market, taxation makes more sense.

[Shimmiry]

Bitcoin is not created by the government, so taxing them is unnecessary. If taxed, do it with bitcoin trading companies and cryptocurrency exchanges. Given the current transaction volume, the crypto market is too small to be taxed. When the crypto market is big enough like the forex market, taxation makes more sense.

In our country, taxes on bitcoin is still a debate. They're still discussing it with the crypto experts. But for me, if ever that they will place tax on bitcoin they should make sure that it is reasonable enough.

There was this article that I've read and it states that any income in whatever form here in the Philippines is taxable according to the national internal revenue code of our country.

(Source: https://philippines.bc.events/news/taxation-of-cryptocurrencies-in-the-philippines-how-are-virtual-currencies-regulated-93106)

[Neconic]

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.

Mostly I can agree with you.
If you just trade with btc or hold btc funds in the wallet I don't think we have to pay taxes.
But,  if you exchange crypto to fiat or even pay directly some services with crypto it's different matter.
In second case you should pay tax. 

Daniel, in which country are you living? I think that these are excellent conditions. It seems that your government is promoting holdings in crypto assets. In EU and US you need to pay high taxes on capital gains.

[Daniel91]

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.

Mostly I can agree with you.
If you just trade with btc or hold btc funds in the wallet I don't think we have to pay taxes.
But,  if you exchange crypto to fiat or even pay directly some services with crypto it's different matter.
In second case you should pay tax. 

Daniel, in which country are you living? I think that these are excellent conditions. It seems that your government is promoting holdings in crypto assets. In EU and US you need to pay high taxes on capital gains.

I live in Croatia.
Yes, I agree that our government and state have given us good terms as far as the crypto tax is concerned.
We only pay 12% tax and only if we exchange crypto for fiat money.
If we keep crpto for 2 years in the wallet we do not pay any tax.
I think these are very reasonable and fair rules.
Since last year, we have even had the opportunity to sell bitcoin directly in state post offices 

[Russlenat]

I live in Croatia.
Yes, I agree that our government and state have given us good terms as far as the crypto tax is concerned.
We only pay 12% tax and only if we exchange crypto for fiat money.

Interesting law, how does that 12% tax is treated, was that an income tax or something, because IMO exchanging or selling crypto to fiat does not mean profit all the time since we also use fiat to acquire crypto.

If we keep crpto for 2 years in the wallet we do not pay any tax.
I think these are very reasonable and fair rules.
Since last year, we have even had the opportunity to sell bitcoin directly in state post offices 

This one too, I'd like to know something brief about the rules, if you would just care to share though.

[nguyenvl159]

This tax is too high and limits the use of crypto for ordinary people. This exchange is simply needed so that people do not start using crypto on a massive scale. The government thinks this could stop progress.

[Daniel91]

I live in Croatia.
Yes, I agree that our government and state have given us good terms as far as the crypto tax is concerned.
We only pay 12% tax and only if we exchange crypto for fiat money.

Interesting law, how does that 12% tax is treated, was that an income tax or something, because IMO exchanging or selling crypto to fiat does not mean profit all the time since we also use fiat to acquire crypto.

If we keep crpto for 2 years in the wallet we do not pay any tax.
I think these are very reasonable and fair rules.
Since last year, we have even had the opportunity to sell bitcoin directly in state post offices 

This one too, I'd like to know something brief about the rules, if you would just care to share though.

Ok, I'm really not a tax expert but I think we pay the crypto tax as a second income from abroad.
I haven’t gone to the post office to sell bitcoin yet but as far as I’ve heard, it’s very simple.
At the post office, they read the code on our mobile phone at the time of sale and wait to receive confirmation that the transaction has passed.
Everything is done using an application developed by the Croatian company Electrocoin https://electrocoin.hr/en
When the employee at the counter receives confirmation that the transaction has been completed and confirmed, he makes a payment in local currency at the current exchange rate.

[AicecreaME]

It depends on the situation for me. Bitcoin is legalized already in some countries and used as commodity or currency which makes it subjected with taxation.

The topic should be clear enough to pin-point what specifically would be taxed in bitcoin? Since bitcoins are treated as an asset and not really a currency for now, if you use it to buy goods and use some services, it's really necessary for you to be subjected with capital gains tax. And this capital gains tax also depends on the span of time you held bitcoin.

Taxing bitcoin is rational as long as it would not be over 10% tax rate since exceeding that is already too much. After all, it's a currency like fiat that you can use for transactions. However, rules and regulations should be clear on how it would be imposed. No double taxation should happen since it's already abusive if ever.

[coolcoinz]

Bitcoin is not created by the government, so taxing them is unnecessary. If taxed, do it with bitcoin trading companies and cryptocurrency exchanges. Given the current transaction volume, the crypto market is too small to be taxed. When the crypto market is big enough like the forex market, taxation makes more sense.

What about the things you produce by hand like if you were making furniture, your intrellectual property like music or books? All of it is not produced by the government, yet the government takes part of your profit. Life isn't fair and the government is like a leech that sucks your blood every day, but when you try to rip it off it bites of your hand.

[Findingnemo]

Bitcoin is not created by the government, so taxing them is unnecessary. If taxed, do it with bitcoin trading companies and cryptocurrency exchanges. Given the current transaction volume, the crypto market is too small to be taxed. When the crypto market is big enough like the forex market, taxation makes more sense.

You are paying taxes for everything, no matter the price of the product which included in the price itself when you are buying on a supermarket or the street shop you are still paying the taxes.So the government asks taxes from everyone not only from the consumer but we are talking about what is the fair amount which should be in single digit to call it as fair amount.

[mirakal]

This tax is too high and limits the use of crypto for ordinary people. This exchange is simply needed so that people do not start using crypto on a massive scale. The government thinks this could stop progress.

If we are talking of a fix percentage of tax, it's not high only for ordinary people, but also to people who are transacting huge amount of BTC,

Example is the above percentage mentioned by one poster, the percent is 12%, so that depends on the amount you'll transact from bitcoin to fiat.

$1,000 x 12% is $120

$100 x 12% is $12

you see the difference?

[BlackFor3st]

Most of the government are alive because of two reasons, resources that owned and taxes. Meaning tax is very important to every government in order for it to prosper more.

With regards to bitcoin tax, I can't say that it is unreasonable as I am a law abiding citizen and I know how the government works. Governments are doing their best in order to give it's citizen the best service that they can give aside from the governments that are very corrupt. I have no problem if in case our country will put a taxes to bitcoin or crypto currencies as I know that our tax here is only 12% which is pretty far from 20-30% as it is too much if I were to give an opinion.

[john_nautica]

Indeed, the government is thriving because of its resources and the tax being generated from its people. But I do not agree unto the taxation of Bitcoin, as it is not a property of the government. Unless it was converted into flat, then they have the power to ask tax then.

[skarais]

Indeed, the government is thriving because of its resources and the tax being generated from its people. But I do not agree unto the taxation of Bitcoin, as it is not a property of the government. Unless it was converted into flat, then they have the power to ask tax then.

I dont think there are any specific provision regarding bitcoin tax at the moment or maybe I am not well informed. I also dont agree that the government requires bitcoin users to pay taxes on the income they earn from bitcoin or trading other cryptocurrency. But if the government cooperates with exchange, there is a possibility that they will benefit from trader or investor without the trader knowing themselves. I suspect that the fees for trading on a government-approved or cooperated exchange have something to do with taxes because so far in my country there is no official rule that we have to pay taxes on bitcoin earning.

[mksundip]

taxing bitcoin goes through many aspects. there must be an agreement between the government and the bitcoin party. because both must be mutually beneficial for now and in the future. maybe the contents of the agreement if the government imposes taxes, bitcoin will never be banned in the country forever. wow that's a convincing agreement