Do you think a 10% tax on Bitcoin profits is fair for long-term investors?

[Z_MBFM]

However, I would like to know how you view this decision?
Is a 10% tax on Bitcoin profits a reasonable rate? And is such a tax system good for the cryptocurrency market,? And what is it like for crypto users? or will it discourage long-term investors?

10% tax on profits is not a big deal. In some European countries, the government takes 30% tax from crypto. And in a country like Denmark, if the income exceeds a certain amount of income, the citizen of that country has to pay up to 60% tax, it has been shown in research. In that case, paying 10% tax on Bitcoin profits will not create much pressure on Bitcoin investors. And as a Bitcoin investor, I will definitely feel comfortable paying this amount of tax. However, the thing is that Bitcoin has not been legalized in my country so far, due to which we are using Bitcoin secretly and in this case we do not have to pay any tax to the government. The interesting thing here is that although Bitcoin is illegal in my country, it is in the top 13 position in the use of crypto in the whole world, which is very interesting. Here the government is neglecting it even though it has the opportunity to collect a large amount of tax

[decodx]

Honestly I think 10% is rather reasonable from what some other countries within EU are doing. Like 30% and more, which honestly I think is just a pure robbery. If I could choose I would rather go for 10% than get raped completely by a capital gains tax.

[Odusko]

I would even strongly disagree, it is too high and would be burdensome even though specifically mentioned as a capital gains tax. I think there will be effects on many areas. For exchanges, for crypto development in Greece. There might be a large exodus to avoid this very high tax. They might even not report the full gains. It seems Greece is moving in a better direction regarding crypto. But this condition is something I clearly do not agree with. Although there is a policy of tax-free income of €500. But I read that the tax on lending and staking is 15%, which is very high, like robbery.

The problem is if you are a citizen of that country you have no choice but to comply with the law. Of course it's your choice not to report it, but you should also be aware of the consequences since tax evasion is a serious offense, you could even go to jail for that. Actually that 10% might seem high for those who have not experienced being taxed yet, but compared to other countries that's still low.

Even in our religious houses we are meant to give a 10% tith on income to God as said by our pastor's, so being mandated to lay a 10% tax on our bitcoin investment I mean declared bitcoin investment is somewhat a good and fair policy for someone who is already use a tough tax regime from the government, and knowing how tax invasion can be treated as a jailable offense this make it ok to face the 10% tax demanded on declared crypto assets.

[CryptopreneurBrainboss]

According to the new law, no tax will be paid if the net profit earned from crypto is up to €500 per year. However, if this limit is exceeded, a 10% tax will be applied to the entire net profit. And even if a product or service is purchased with Bitcoin, you may have to pay tax based on the profit calculation. On the other hand, if you just buy Bitcoin and hold it for a long time and do not sell it, you will not have to pay tax because its value increases.

As far long term holders aren't getting taxed then it's cool because this encourages holding for long term and maybe we might begin to get more holders and interest in Bitcoin in the country. As for the 10% tax, I'm not familiar with how tax works in the country but if that's too much then they have to protest because it isn't fair to over tax those making use of Bitcoins and making profits.

But if it's in line with how taxes is been taken over there, then so be it. Govenwmmt use taxes to handle the affairs of the country as such, I won't say anyone should default paying their taxes but just that when it's being overcharge then something has to be done to fight that.

On the other hand, if you don't fill in you taxes how then do the government know you own Bitcoin and made a profits? isn't the government still depend on you to be truthful with your taxes and the ball still being in your court to report as you want? not giving out any ideas but just saying, you can invest and still nobodys knows anything you're doing.

[Ever-young]

Honestly I think 10% is rather reasonable from what some other countries within EU are doing. Like 30% and more, which honestly I think is just a pure robbery. If I could choose I would rather go for 10% than get raped completely by a capital gains tax.

10% is actually reasonable if we are to check it based on how some countries tax digital currencies and even other assets, but for people who don't want to pay tax, that's still a lot with the reason. The government don't care about how you go about earning your crypto. What they are more concerned about is what you remit to them and how they can benefit from that your success story it has always been their pattern which is why some stands against them.

[Bitcoin Smith]

10% capital gains is a very fair tax rate and anyone who don't want to lose their assets will comply to this rate because in my country the tax rate is 30% and even worse is we can't offset the losses on crypto profits that feels unfair and also government wants to make all the revenue from the crypto but they don't want to market to grow any further.

[buwaytress]

Well if you consider that Greece -- am assuming here they simply follow suit many other EU member states -- taxes any kind of investment income (I believe even savings, based on how my country of residence does), then it would actually be fair to also tax Bitcoin profits as part of investment income.

In fact, it would be unfair not to... price of acceptance, legitimisation, etc.

(But are you actually asking if investment tax is fair?)

[Alphakilo]

10% capital gains is a very fair tax rate and anyone who don't want to lose their assets will comply to this rate because in my country the tax rate is 30% and even worse is we can't offset the losses on crypto profits that feels unfair and also government wants to make all the revenue from the crypto but they don't want to market to grow any further.

Government can come up with whatever tactics they want just to ensure they either benefit from crypto currency or discourage users but the fact remains about the decentralized systems and that's it is a government on its own that doesn't rely on this national government to survive even if we must convert our Bitcoin to fiat for use, in some cases we can just spend Bitcoin directly and this boycott any taxes the government wants.
Still, taxes are good only if you make the government know you can pay them and until they do, holders remain exempt from this until they interact with CEX that makes this tax deduction compulsory without their knowledge.

[shinratensei_]

Unfair tax is tax on unrealized capital gain, it's like robbery because unrealized means the profit could go down because market volatility. That's what I call the most unfair tax ever. Needless to say it's not a rare thing to see high capital gain tax on europe, Denmark is charging 42% on your gain if I'm not mistaken and Greece is on moderate to low tax for capital gain. It's unfair if you're used to 0% percent capital gain but fair if you are in EU. Well, honestly I have opinion that any tax on capital gain is unfair though because it's double taxation, you're getting taxed for the money you used to buy the bitcoin and getting taxed again when that bitcoin grow.

[retreat]

10% tax still feels a bit unreasonable to me. Imagine paying €60 for a profit of €600, that's still quite high just for taxes. Maybe that tax is lower compared to countries with higher crypto taxes, but still, it feels like a kind of extortion against crypto holders, especially in the current economic situation.

If it were below 1%, that would make more sense to me, for example, my country only charges 0.21% for each transaction. That's reasonable for holders because the government doesn't impose significant taxes on it and the crypto ecosystem can grow positively. But even if it's taxed at 10%, the crypto market will still develop, although it could discourage some holders.

[decodx]

Honestly I think 10% is rather reasonable from what some other countries within EU are doing. Like 30% and more, which honestly I think is just a pure robbery. If I could choose I would rather go for 10% than get raped completely by a capital gains tax.

10% is actually reasonable if we are to check it based on how some countries tax digital currencies and even other assets, but for people who don't want to pay tax, that's still a lot with the reason. The government don't care about how you go about earning your crypto. What they are more concerned about is what you remit to them and how they can benefit from that your success story it has always been their pattern which is why some stands against them.

Well, for people who don't like paying taxes, any amount will be too much. 

I actually disagree with the idea that governments don't care how you earn your crypto. As far as I'm aware, this 10% figure actually refers only to capital gains tax; it doesn't mean that other tax obligations don't exist, depending on how the asset was acquired. For instance - did you mine it, or were you paid in crypto for actual work? There's income tax. Did you win it on an online casino site? That's gambling tax. Did you sell a house for Bitcoin? That's a whole different story - and so on.

[freedomgo]

Even in our religious houses we are meant to give a 10% tith on income to God as said by our pastor's, so being mandated to lay a 10% tax on our bitcoin investment I mean declared bitcoin investment is somewhat a good and fair policy for someone who is already use a tough tax regime from the government, and knowing how tax invasion can be treated as a jailable offense this make it ok to face the 10% tax demanded on declared crypto assets.

I think we cannot compare religion and the government, as the function of the government is separate from religion and they are independent. So in our country there are lots of religions here but the government should not favor any religion, it should be for the best of all. I have an idea what religion you are referring to now, but in our religion there's no such thing like that, no fixed amount to be allocated monthly.

[yhiaali3]

In my opinion, a 10% tax on profits earned from cryptocurrencies is somewhat high. It is true that it is much lower than in other European countries, where it is three times or more, but it is still high in my view.

It's funny that they say "no tax is imposed if the net profit earned from cryptocurrencies reaches a maximum of 500 euros per year" This is a very low number, and it means that the entire largest segment will pay the tax.

[Free Market Capitalist]

10% tax still feels a bit unreasonable to me. Imagine paying €60 for a profit of €600, that's still quite high just for taxes. Maybe that tax is lower compared to countries with higher crypto taxes, but still, it feels like a kind of extortion against crypto holders, especially in the current economic situation.

If it were below 1%, that would make more sense to me, for example, my country only charges 0.21% for each transaction. That's reasonable for holders because the government doesn't impose significant taxes on it and the crypto ecosystem can grow positively. But even if it's taxed at 10%, the crypto market will still develop, although it could discourage some holders.

The situation in your country isn't just an exception—it's a miracle. Any lower tax rate than that would be 0%.

To me, 10% seems reasonable, and in many countries where taxes are higher and crypto millionaires have emigrated, if they were to set the rate at 10%, it would prevent further emigration and encourage some to return. I’d rather pay 10% in my own country than have to move somewhere else just to pay nothing.

[The Cryptovator]

For me, I will be happy if the government applies a 10% tax on the crypto profits and makes it legal. Because currently my government is very strict against Bitcoin and other cryptocurrencies. So we can’t show crypto profits during the tax filing; we have to think of some other alternative way to show our income.

I believe my country also should follow the other developed countries that apply taxes and make them legal. It doesn't make sense to consider Bitcoin illegal since the government can’t control or find who has been using cryptocurrency. All the crypto users will be happy to pay 10% tax on the Bitcoin and crypto profits.

[Synchronice]

However, I would like to know how you view this decision?
Is a 10% tax on Bitcoin profits a reasonable rate? And is such a tax system good for the cryptocurrency market,? And what is it like for crypto users? or will it discourage long-term investors?

That will only be a reasonable rate if the government is gonna insure my losses, which, they are never gonna do. The thing that I find very unfair is that I'm the one making the investment and I'm the one facing the potential financial loss, so why should I pay them any tax? If I invest $1000 and I lose money, I don't pay taxes but I lose money anyway and the government aren't gonna knock on my door and ask: Hey, Synchronice, how are you? Do you have money to survive tomorrow? But if I gain profit and my $1000 becomes $1500, then the government is gonna knock on my door and demand $150 from me? That's very unfair to me.

[BitBakerr1]

According to the new law, no tax will be paid if the net profit earned from crypto is up to €500 per year. However, if this limit is exceeded, a 10% tax will be applied to the entire net profit. And even if a product or service is purchased with Bitcoin, you may have to pay tax based on the profit calculation. On the other hand, if you just buy Bitcoin and hold it for a long time and do not sell it, you will not have to pay tax because its value increases.

As far long term holders aren't getting taxed then it's cool because this encourages holding for long term and maybe we might begin to get more holders and interest in Bitcoin in the country. As for the 10% tax, I'm not familiar with how tax works in the country but if that's too much then they have to protest because it isn't fair to over tax those making use of Bitcoins and making profits.

But if it's in line with how taxes is been taken over there, then so be it. Govenwmmt use taxes to handle the affairs of the country as such, I won't say anyone should default paying their taxes but just that when it's being overcharge then something has to be done to fight that.

On the other hand, if you don't fill in you taxes how then do the government know you own Bitcoin and made a profits? isn't the government still depend on you to be truthful with your taxes and the ball still being in your court to report as you want? not giving out any ideas but just saying, you can invest and still nobodys knows anything you're doing.

If you are holding for a very long time, and you are not selling no body will tax you so yeah it’s actually encourage people to hold more longer.
Talking about protest, before the government can listen to any protesters they will be more and I don’t think people holding bitcoin actually want other people to know they are holding bitcoin so they may likely not come out to protest.

I don’t think they are going to put any tax that is not in line with how the government operate when it comes to tax, so I believe it's in line with how taxes is been taken over there.

Even without telling them the government will know you have bitcoin, when you want to trade your bitcoin you are going to use exchange and they will know through that if they instruct the exchange to give them every detail.

[Hypnosis00]

The only thing that the government does to us is to tax. If that is the case, I won't dare tell anyone, even my relatives, that I own some BTC. As long as nobody finds out that we have BTC, nobody will bother asking for 10% shares as well.

That is why I'm thankful that BTC is not famous in my country. Otherwise, the government would go crazy over it.

But my question is, how does the government know that we have BTC? Well, keeping it silent gives them no idea about it.

[Jet Cash]

There should be no taxes on Bitcoin trading and investment, It should be treated like British sovereigns and Britannias, and be exempt. Of course speculative profits on exchanges should be taxed as income.

[KiaKia]

Actually 10% tax isn't a lot, it's very doable and I believe that many people will choose to pay it than to try evading it, but there are some countries that don't deserve this taxation on crypto at all.

There are few countries that only knows how to take and take from people, everything is already taxed and yet they copied what many western worlds are doing so they feel it's right to the the same.

That's all they know how to do, copying others when it comes to making money from poor people, I'm sure that some people here knows what I am referring to, developing countries to be frank.