Bitcoin and Crypto Tax Implementation

[Alert31]

Bitcoin is already more than ten years of existence now and many changes in the development of bitcoin continue to occur today and as the day goes by, bitcoin become more valuable and useful. Government is always aware of that for sure that's why they always find away on how to take advantage of bitcoin despite its decentralization. Taxation is what they want to imposed. I think no body can escape if the tax for bitcoin and other crypto asset will become implemented by next year 2021. If one country start and become successful for implementing tax, then I think other country will follow.

OECD tax director says international crypto tax standards are coming in 2021.
Pascal Saint-Amans, the director of the OECD’s Centre for Tax Policy and Administration, has asserted that the 37-nation organization will introduce a common reporting standard, or CRS, for crypto assets in 2021.

According to Law360, Amans stated that the crypto tax standard “would be roughly equivalent to the CRS” developed by the Organisation for Economic Co-operation and Development to combat tax evasion.
https://cointelegraph.com/news/oecd-tax-director-tips-international-crypto-tax-standards-are-coming-in-2021

[Wysi]

First they tried to stop Bitcoin and crypto when they failed miserably despite all those threats now they are planning to benefit through crypto by taxing on crypto but it won't be possible to tax those who use DEX as government will not have any data about users due to anonymousity, but CEX users are exposed to danger of being reprimanded by government and hounded with taxes. Even this time regulators and government will fail on their unrealistic quench of greed.

[gentlemand]

I don't really get the article. Tax is already in place for crypto just like anything else and its status has been clarified by a few tax agencies. Maybe this is some way of forcing exchanges to share info with foreign agencies.

I'd love to know the proportion of users who still think it's magically tax exempt 'because it's on the internet'. It's probably disturbingly high. Hopefully they figure out it may not be depending on where they are before it bites them.

[tranthidung]

It is another FUD attempt. At the ends of the day, such potential strategies or restrictions will not completely ban bitcoin, crypto. Believe in bitcoin (you can not believe in me) and stay strong.

Paying the tax from earnings you get in the crypto market to government in your local area then you will be fine.

Coinbase CEO: Trump Administration May ‘Rush Out’ Burdensome Crypto Wallet Rules. It is unachievable target and they will never achieve even if they actually give it a try in reality.

[btctaipei]

leaches and parasites are evolving.  To debug you need crypto DDT which are madeup of mixed formulae with  decentralized exchanges 30% and direct between physical goods and services (70%) to BTC.

[gentlemand]

leaches and parasites are evolving.  To debug you need crypto DDT which are madeup of mixed formulae with  decentralized exchanges 30% and direct between physical goods and services (70%) to BTC.

Got an explanation of that? It all sounds rather clever.

Ultimately it doesn't matter how obscure or clever your wrapper is, it's still taxable if you live in a place with such rules. I can well imagine all this defi stuff is going to become ever more convoluted. The tax man will do his best to keep up.

It also depends on how committed your tax man is. In the UK they regularly forensically pick apart schemes designed to get around them and hammer everyone involved. Other countries may not care all that much.

[avikz]

Tax is inevitable! However, if a government wants to impose tax on crypto, they they will have to create a legal definition for bitcoin. Which is good because it will give legal support to bitcoin holders within that country.

Right now, only a handful of countries have a legal definition of bitcoin. So if other countries too join the bandwagon, it will be great in terms of adoption. Many merchants are there who are willing to accept crypto as a payment method. It will only become a reality once bitcoin gets a legal definition.

I know a lot of people thinks, tax is a bad thing. But that's an individual choice! If we really want to crypto in our daily life, legality and tax are the most important parameters we should look for!

[gentlemand]

Tax is inevitable! However, if a government wants to impose tax on crypto, they they will have to create a legal definition for bitcoin. Which is good because it will give legal support to bitcoin holders within that country.

Not really. They can simply bung a label on it. In the UK they classed it as a foreign currency for tax purposes initially I think. That doesn't give it magic legitimacy and no legislation was passed. They created a box and stuck it in there.

There are loads of things that are taxable that don't have much legal status. I doubt horse manure has ever been put through legal analysis but if your living is selling it then the bill is on its way.

[Kupid002]

I am not against crypto taxes, as long as these taxes protect the rights of crypto traders.

The only problem is how they plan to implement it, taxes will only work if they ask it in exchange which is local countries supported.

And how much they plan to ask for taxes as crypto investors  10% or more ? It will not be profitable anymore for short traders if they will ask something that people will need to earn first . Ask only a taxes came from the money widraw to Fiat from crypto currency using exchange  but not the crypto it self it will hard for them to ask it.

[gentlemand]

The only problem is how they plan to implement it, taxes will only work if they ask it in exchange which is local countries supported.

And how much they plan to ask for taxes as crypto investors  10% or more ? It will not be profitable anymore for short traders if they will ask something that people will need to earn first . Ask only a taxes came from the money widraw to Fiat from crypto currency using exchange  but not the crypto it self it will hard for them to ask it.

You might well be fully taxable right now and many people are being taxed on their crypto right now. It all depends on the country you live in. If you're an active trader or have cashed out a ton of profit you'd be wise to check the policies of where you live. You might be pleasantly or unpleasantly surprised.

[Argoo]

In Japan, the cryptocurrency was legalized back in April 2017, and then taxes were introduced on profits for its use.  In the first six months, this allowed to increase the country's gross domestic income by 0.6 percent.  This is an example of mutually beneficial cooperation between government and citizens in cryptocurrency.  It cannot be otherwise.  If someone thinks that cryptocurrency allows us not to pay taxes, then he is wrong.  The state has enough leverage to force it or drive cryptocurrency underground.

[Daniel91]

In Croatia we already have crypto tax a few years.
As far as I know, the tax is 12% but if the crypto funds are kept for 2 years and not sold, and it can be proven, no tax is paid.
Very good rule in my opinion 

[dothebeats]

I don't really get the article. Tax is already in place for crypto just like anything else and its status has been clarified by a few tax agencies. Maybe this is some way of forcing exchanges to share info with foreign agencies.

Except here in the far east. We're still awaiting for official recommendations and regulations concerning the taxation of gains from cryptocurrencies, and even though I hate paying tax, it's the least I can do to help and avoid being the 'enemy of the law' for not knowing the guidelines and the specifics in paying my taxes for the magic internet money that I own.

I'd love to know the proportion of users who still think it's magically tax exempt 'because it's on the internet'. It's probably disturbingly high. Hopefully they figure out it may not be depending on where they are before it bites them.

Relatively high here in the Philippines. Most eCommerce sellers are even outraged at the thought of being taxed by the government, albeit profiting lots of $$$ during the pandemic as most people shifted to online shopping and such. It's just a matter of time before proper tax guidelines and implementations are introduced here, though there doesn't seem to be any initiative coming from the concerned and relevant departments. The central bank, together with the SEC are only issuing memorandum regarding currently-circulating frauds using the name of cryptocurrencies but that's just about it.

[mahilchii]

What else can we expect from the government which has been targeting crypto currency for years to undermine its efforts as it would give people control over thier funds which banks control as of now. When they cannot defeat crypto they thought of making use of it by imposing taxes. Terrible thinking which will only benefit corrupt governments.

[coolcoinz]

I said it many times and I'll say it again. The government has achieved mastery in stealing money and looking for it in our pockets. They are usually against everything and will make it as hard as possible for you to make money, but once you do, they'll be the first to reach out for it. I'm not going to report my cryptocurrencies anywhere, despite new laws and regulations, but I have the advantage because my coins were bought on exchanges that no longer exist.

[sayaya17]

If the government recognizes crypto assets as commodity subjects, it is likely that the Government in a country will plan Income Tax for each of its citizens and for crypto exchanges operating in that country. As in my country, the government will levy a tax on every crypto exchange for every bitcoin, altcoin and token sales transaction.
But I do not yet know whether the government will levy taxes also for crypto asset traders, because this is not yet fully validated. 
Actually, inevitably as a good citizen, I have to welcome this positive news. Because somehow we can’t fight the government.
However, since crypto assets are still new, then I hope to tax these crypto assets do not incur a large fee.

[Vaskiy]

Already different countries around the globe have tried the best to impose tax on cryptocurrency usage. Nothing has turned to be an effective way. As in the opening post, if something is found to be working in an efficient way then surely every country will tend to follow the same. Israel took it similar to digital gold and imposed tax, but it wasn't able to collect as the incoming transactions from cryptocurrencies can't be identified perfectly. As Governments weren't able to stop the usage of bitcoin, now the focus will be to regulate and impose tax on its usage.

[emmybd]

Tax is inevitable! However, if a government wants to impose tax on crypto, they they will have to create a legal definition for bitcoin. Which is good because it will give legal support to bitcoin holders within that country.

Right now, only a handful of countries have a legal definition of bitcoin. So if other countries too join the bandwagon, it will be great in terms of adoption. Many merchants are there who are willing to accept crypto as a payment method. It will only become a reality once bitcoin gets a legal definition.

I know a lot of people thinks, tax is a bad thing. But that's an individual choice! If we really want to crypto in our daily life, legality and tax are the most important parameters we should look for!

Many governments have desperately tried to stop the rise of Cryptocurrency, but they have miserably failed as the cryptocurrency has been gaining grounds day by day. Now, seeing no other alternative, they are trying to cash on Crypto by imposing taxes. I believe instead of creating hurdles if they take tax and legalize crypto, then it will be good for all.

[Casdinyard]

Tax is inevitable! However, if a government wants to impose tax on crypto, they they will have to create a legal definition for bitcoin. Which is good because it will give legal support to bitcoin holders within that country.

Right now, only a handful of countries have a legal definition of bitcoin. So if other countries too join the bandwagon, it will be great in terms of adoption. Many merchants are there who are willing to accept crypto as a payment method. It will only become a reality once bitcoin gets a legal definition.

I know a lot of people thinks, tax is a bad thing. But that's an individual choice! If we really want to crypto in our daily life, legality and tax are the most important parameters we should look for!

Many governments have desperately tried to stop the rise of Cryptocurrency, but they have miserably failed as the cryptocurrency has been gaining grounds day by day. Now, seeing no other alternative, they are trying to cash on Crypto by imposing taxes. I believe instead of creating hurdles if they take tax and legalize crypto, then it will be good for all.

I think Governments did not try to stop the rise of cryptos but rather imposed prohibitions on its usage alone to some areas Taxation will only occur in this industry through regulation but to how will they do such thing if most of the cryptos are decentralized? To how I view this at this moment, this would only be possible through the use of third party networks more likely in forms of exchanges. And that's what we are seeing right now. The question is, when will this technology be used in normal or daily transactions if most of its users are making use of this technology as means of investment and not merely as a currency?

[death69]

There have been countries imposing tax ojn bitcoin snd cryptocurrencies.

Taxatiok is a big issue to all of us to concern about. You cant run away from tax because it is oblogatory