Is this reasonable?

[Makus]

The Central African Republic (CAR) previously declared Bitcoin as legal tender, but that is no longer the case. The decision was later reversed, and Bitcoin is no longer officially recognized as legal tender in the country.

CAR to drop crypto as legal tender

The Central African Republic’s parliament has repealed legislation that gave bitcoin and other cryptocurrencies legal tender status. A new law amends an April 2022 statute that proved controversial among the CAR’s partners in the Economic and Monetary Community of Central Africa.

Thank you for the information on Central African Republic and their change in Bitcoin legal tender policy.

As of now, El Salvador remains the only country that has declared Bitcoin as legal tender. However, there’s a new development, due to pressure from the IMF, businesses in the country are no longer required to accept Bitcoin as payment. While it’s still legal tender, it’s no longer compulsory for businesses to accept it.

It is not big change pratically because businesses in El Salvador years ago told in many interviews that they were not happy with Bitcoin Legal Tender. Very little bussinesses especially small ones were ready to receive bitcoin and hold it for a while because of Bitcoin high volatility that can cause quick loss in their bussiness treasuries. They are small bussinesses and are vulnerable to high volatility of Bitcoin in short term. Very few small bussinesses are ready to hold bitcoin as Bitcoin investors and holders but they did not have solid plan on converting bitcoin to fiat currency or stable coin quickly to avoid price changes.

Personally, I don't recommend bitcoin for small business owners who are likely to sell and buy within short period of time. But if you have a large business that could secure some emergency funds to be use in the running of the business while some of your profits are kept on long term bitcoin holding conditions that would be fine. The volatility of bitcoin doesn't play too well on small business that is why I don't  recommend bitcoin for trading. It's better off to use USDT tether or any other stable coin for business transactions than using bitcoin. Well nobody is compelled to use bitcoin for business so it's a choice when you find out about its volatility it better to change your mind.

[GeorgeJohn]

If is large trading company in that country they're entitled to pay tax but a process whereby its the investors of bitcoin who purchase and hold for long-term, neither short-term, from my own understanding government of your Country is not supposed to demand tax on them, because they are not occupying any government spac, a government only have the right to ask for tax when what you are doing on their country is centralized, secondl, if I may ask what radar did have to dictate someone that has bitcoin.

[mirakal]

If is large trading company in that country they're entitled to pay tax but a process whereby its the investors of bitcoin who purchase and hold for long-term, neither short-term, from my own understanding government of your Country is not supposed to demand tax on them, because they are not occupying any government spac, a government only have the right to ask for tax when what you are doing on their country is centralized, secondl, if I may ask what radar did have to dictate someone that has bitcoin.

Like Binance PH and some local exchanges where they have offices in the said country, they should pay taxes. And for those who just used their services and earned less, I don't see it as fair to urge them to pay taxes.

But the good thing about crypto is we are anonymous. We can still hide from the government and tell nothing. It is a form of cheating but this will not happen if they show fairness to every crypto user. They are supposed to make a law that gives protection to the people, not milking them.

[Sanitough]

Well sincerely the government are feeling cheated about bitcoin and cryptocurrency at large. If I am not mistakenly I have had similar news without our country to start taxing all cryptocurrency traders and those who involved in any form of transactions using cryptocurrency, although I didn't see as something legal because, they can't tends to restrict cryptocurrency transactions/trading and still request for taxations from those who are trading it.

Does this looks presentable? To me it's entirely No! It would be better they declared it a legal tender and imposed taxations this would be fine because at then every is open to use it and while paying tax they wouldn't feel it anymore becoming it's openly acceptable.

For us crypto users it would look not reasonable at all, but we don’t have the control on what the government can do to all crypto owners and users. They can impose taxes all they want, that’s how unfair the government looks like, that even acceptance and crypto adoption are still hard for them to do. But when it comes to declining in paying our crypto taxes, they give immediate action on that. Sad reality which is not only happening in a single country, but even to most of the countries as well.

[alastantiger]

If is large trading company in that country they're entitled to pay tax but a process whereby its the investors of bitcoin who purchase and hold for long-term, neither short-term, from my own understanding government of your Country is not supposed to demand tax on them, because they are not occupying any government spac, a government only have the right to ask for tax when what you are doing on their country is centralized, secondl, if I may ask what radar did have to dictate someone that has bitcoin.

Cryptocurrency exchange are more of centralized exchanges that we have and they are using some of the service that are only available to the local citizen of the country. The government can demand tax to be paid by any companies that is offering a service to the people of their country. The companies do not have to get a physical business before they can get tax. In some countries when they have a physical presence with building for their offices, they can get extra taxed.

If the laws of your country are like mine, they will have to pay the tax because they are operating in the country despite not having a physical presence in the country. Cryptocurrency exchanged shouldn't get into a fight with the government because the government will win but they should look for an avenue of them to get into close doors discussion and resolve the issues.

[Peanutswar]

Its just the same with the POGO companies and other gambling institution to operate because they are the one who have the biggest profits and to make operate they need to have the license and a tax at the same time so the government or the county itself agree they establish a business. Its like the basic concept are you willing others operate into your land without paying anything?, for sure no. Even not crypto related they are offering a taxes for business.

[nullama]

Its just the same with the POGO companies and other gambling institution to operate because they are the one who have the biggest profits and to make operate they need to have the license and a tax at the same time so the government or the county itself agree they establish a business. Its like the basic concept are you willing others operate into your land without paying anything?, for sure no. Even not crypto related they are offering a taxes for business.

I think there might be exceptions to that rule.

For example for native American lands I think they have a separate law for casinos.

And I think certain countries do have more relaxed laws for making casinos, specially in some Asian countries that are well known gambling tourism hot spots.

But yeah, overall, I think most countries would want to get a cut through taxes.

[Stormisover]

It is reasonable as long as you agree with the law. Nearly everybody is experiencing the same thing all around the world. If you have made profits from crypto trading, the government will want its share. That’s how taxes work.

You may not like it and try to find ways to avoid it but most of the time these actions will bring you more trouble.

The solution is simple. If you don’t like the current environment you are in, either move to some other country or vote for some other people that promise less taxes.

In other way round if we can't beat the government we will be left with no other option than to join them and that's is conformity,  not every can have all it takes to move to other country or environment were we can get what we want and how we want it,  as for voting, the manipulation in some political system can not over emphasis, your vote may not count and where your vote doesn't count the election becomes selection so you see this are just easy for everyone at the same time.

[Ziskinberg]

If is large trading company in that country they're entitled to pay tax but a process whereby its the investors of bitcoin who purchase and hold for long-term, neither short-term, from my own understanding government of your Country is not supposed to demand tax on them, because they are not occupying any government spac, a government only have the right to ask for tax when what you are doing on their country is centralized, secondl, if I may ask what radar did have to dictate someone that has bitcoin.

That’s a different matter. We’re talking about capital gains tax here, where an investor or individual has to pay taxes when selling crypto at a profit. That’s just a basic tax law and shouldn’t be complicated. I wouldn’t bring up exchanges since that’s not relevant to the law being implemented by the Philippine government.

[MarjorieZimmermanGinger]

I'm not sure if this is also happening in your country. Is anyone honest enough to declare his/her crypto assets? For me, taxes should be considered ONLY if it is officially accepted and become legal tender.

It should be so but each country has its own regulations in regulating the tax system that is applied and if we consider it unreasonable, then what can be done in such a condition. My country imposes tax on crypto and I can't say it is unreasonable because even if I said so there would be no effect that could be done. If we want to be honest we hope that there is no tax imposed on crypto but the government knows there are many benefits in it so there needs to be tax.

[nullama]

~snip~
It should be so but each country has its own regulations in regulating the tax system that is applied and if we consider it unreasonable, then what can be done in such a condition. My country imposes tax on crypto and I can't say it is unreasonable because even if I said so there would be no effect that could be done. If we want to be honest we hope that there is no tax imposed on crypto but the government knows there are many benefits in it so there needs to be tax.

Yeah, I think it is becoming the norm all around the world to tax Bitcoin as an asset, similar to owning shares or index funds for example.

This is probably the most reasonable way to deal with Bitcoin, since it really is an asset, and in a way this tax legitimizes it.

In the end, capital gains tax is the same for every other asset you might have, so I guess it's fair enough if you are OK with the other assets being taxed like that.

On the flip side, you also get all the benefits your country might provide, like discounts for holding the asset for more than a year, etc.

[Ziskinberg]

On the flip side, you also get all the benefits your country might provide, like discounts for holding the asset for more than a year, etc.

People just aren’t used to it yet, but eventually, they’ll understand that taxes are the lifeblood of a country. We can’t completely evade them, but if we know how to manage our accounting records properly, we can find ways to minimize them. They say tax evasion is illegal, but tax avoidance is legal - so the key is figuring out how to legally avoid paying more than necessary. It’s definitely possible.

[Perfectbaby]

Well sincerely the government are feeling cheated about bitcoin and cryptocurrency at large. If I am not mistakenly I have had similar news without our country to start taxing all cryptocurrency traders and those who involved in any form of transactions using cryptocurrency, although I didn't see as something legal because, they can't tends to restrict cryptocurrency transactions/trading and still request for taxations from those who are trading it.

Does this looks presentable? To me it's entirely No! It would be better they declared it a legal tender and imposed taxations this would be fine because at then every is open to use it and while paying tax they wouldn't feel it anymore becoming it's openly acceptable.

For us crypto users it would look not reasonable at all, but we don’t have the control on what the government can do to all crypto owners and users. They can impose taxes all they want, that’s how unfair the government looks like, that even acceptance and crypto adoption are still hard for them to do. But when it comes to declining in paying our crypto taxes, they give immediate action on that. Sad reality which is not only happening in a single country, but even to most of the countries as well.

Yes we can't control how we use provided we are abided by laws and operating under a certain geographical area there must be law impose on their citizens which they must abides to, and if government Imposes law on cryptocurrency traders it's assumed they want to milk more from the traders because they see it as something resourceful coming out from Bitcoin and cryptocurrency at large therefore they needs to be key players by benefiting from the traders.

[Reatim]

Yes we can't control how we use provided we are abided by laws and operating under a certain geographical area there must be law impose on their citizens which they must abides to, and if government Imposes law on cryptocurrency traders it's assumed they want to milk more from the traders because they see it as something resourceful coming out from Bitcoin and cryptocurrency at large therefore they needs to be key players by benefiting from the traders.

it’s understandable if the government wants to take advantage of traders and cryptocurrencies but the thing is they should at least impose laws that are also beneficial to traders as well and not impose laws that are just harmful and detrimental to the community because it does nothing but make the traders want to hide their activities and not let the government know what they are doing

[hero_the_bossman]

Yes we can't control how we use provided we are abided by laws and operating under a certain geographical area there must be law impose on their citizens which they must abides to, and if government Imposes law on cryptocurrency traders it's assumed they want to milk more from the traders because they see it as something resourceful coming out from Bitcoin and cryptocurrency at large therefore they needs to be key players by benefiting from the traders.

it’s understandable if the government wants to take advantage of traders and cryptocurrencies but the thing is they should at least impose laws that are also beneficial to traders as well and not impose laws that are just harmful and detrimental to the community because it does nothing but make the traders want to hide their activities and not let the government know what they are doing

Usually these laws are not compromises to be made between two parties, but rather what you described - which is a shame, really.

Because good regulations mean better adoption and the future for BTC, as well as for crypto in general.

[dunfida]

If is large trading company in that country they're entitled to pay tax but a process whereby its the investors of bitcoin who purchase and hold for long-term, neither short-term, from my own understanding government of your Country is not supposed to demand tax on them, because they are not occupying any government spac, a government only have the right to ask for tax when what you are doing on their country is centralized, secondl, if I may ask what radar did have to dictate someone that has bitcoin.

Like Binance PH and some local exchanges where they have offices in the said country, they should pay taxes. And for those who just used their services and earned less, I don't see it as fair to urge them to pay taxes.

But the good thing about crypto is we are anonymous. We can still hide from the government and tell nothing. It is a form of cheating but this will not happen if they show fairness to every crypto user. They are supposed to make a law that gives protection to the people, not milking them.

If they have that physical offices then they would really be needing up to comply and they will really be that needing to get in line with government regulations and they will really be needing up to pay up some taxes but if we do speak about self claimed about having  that profit making then i doubt that you will be paying up taxes. We do even having that issue about with Binance with other local player on having that trying out to be blocked.

Just In: CZ Claims a ‘Local Player’ Was Blocking Binance From Securing License in the Philippines
https://bitpinas.com/regulation/cz-binance-local-player-ph-block/

This do really shows that if they cant be able to tax up Binance then they would really be that trying out to block it out as much as possible and with some local player too on which they will really be that having the advantage since they are really that complying on what the government been asking or getting with that regulation. Taxes is always been that the government would really be wanting.

[Ziskinberg]

Just In: CZ Claims a ‘Local Player’ Was Blocking Binance From Securing License in the Philippines
https://bitpinas.com/regulation/cz-binance-local-player-ph-block/

This do really shows that if they cant be able to tax up Binance then they would really be that trying out to block it out as much as possible and with some local player too on which they will really be that having the advantage since they are really that complying on what the government been asking or getting with that regulation. Taxes is always been that the government would really be wanting.

There’s already a topic created on this headline, so you might want to check it out and share your insights there, especially if you're familiar with how corruption works in the Philippine government. Your perspective could add valuable input to the discussion.

the thread...  Corrupt people blocking Binance from operating legally in PH

[Huppercase]

it’s understandable if the government wants to take advantage of traders and cryptocurrencies but the thing is they should at least impose laws that are also beneficial to traders as well and not impose laws that are just harmful and detrimental to the community because it does nothing but make the traders want to hide their activities and not let the government know what they are doing

I don't think Philippine is the only country that doesn't have a specified law for crypto and yet tax her people. In US, crypto isn't recognized as a legal tender but as a commodity which is taxable under the security exchange commission law, you are bound to pay tax because you are making profit from it and what I see they does is they just recognized crypto earning like the laws of stocks and foreign investments, it's not like there is a new law for it and that's what I believe Philippines are doing.

To OP, the government doesn't have to recognized Bitcoin or crypto as a legal tender, it's not like what you are doing is illegal, it's practically legal and your right to it and because you earn from it, tax is unavoidable because that's how the world works in this system of government. Hopefully, in the future there is going to be a law that protect Bitcoin investors and recognized laws that guide everyone in crypto from different countries.

[Gladitorcomeback]

Yeah, I think it is becoming the norm all around the world to tax Bitcoin as an asset, similar to owning shares or index funds for example.

This is probably the most reasonable way to deal with Bitcoin, since it really is an asset, and in a way this tax legitimizes it.

In the end, capital gains tax is the same for every other asset you might have, so I guess it's fair enough if you are OK with the other assets being taxed like that.

On the flip side, you also get all the benefits your country might provide, like discounts for holding the asset for more than a year, etc.

I wonder how they are going to impose this anyway. I mean, it's understandable if a person has an account in a centralized platform where they submit their KYC and carry all the transactions which can be connected to them if the platform is regulated and they can monitor all the data, however, if someone uses decentralized services to buy Bitcoin or other cryptocurrencies, and then use non-custodial wallets to keep them, how are they going to find out how much a person has in holdings?

This is the reason why governments are always against decentralized systems and platforms, and this is also why they ban services that help people stay anonymous and maintain their financial privacy because they know it's not possible for them to track their assets and holdings this way and if they can't do that, they won't be able to tax them.

[Perfectbaby]

Yes we can't control how we use provided we are abided by laws and operating under a certain geographical area there must be law impose on their citizens which they must abides to, and if government Imposes law on cryptocurrency traders it's assumed they want to milk more from the traders because they see it as something resourceful coming out from Bitcoin and cryptocurrency at large therefore they needs to be key players by benefiting from the traders.

it’s understandable if the government wants to take advantage of traders and cryptocurrencies but the thing is they should at least impose laws that are also beneficial to traders as well and not impose laws that are just harmful and detrimental to the community because it does nothing but make the traders want to hide their activities and not let the government know what they are doing

I think what is left for the government is to openly acceptable Bitcoin and of course the US has taken that move (reserved funds) and I believe other countries and nation would also take that same steps as well. If they are making things extremely difficult for traders and want to also taxed traders or investors is something that is not legal to me, but with open acceptance and also allowing people to trade and involve in transaction without any form of restrictions makes it more legal and taxable than not allowing them and still impose taxations.