Taxing profits on bitcoin is possible?

[gkapoxm 84]

Its bad to tax bitcoin or its profit since users need freedom for all they have.

[Shaza Ahmad 1682]

Cryptocurrencies, especially Bitcoin, face many legal problems in some countries that still reject Bitcoin as a method of payment or storage of assets and even legislation for blockchain technology.

[Upright 2688]

O don't know how that's possible on actually having to screen out users who hold or are traders of bitcoins efficiently, since holding of coins tend to not have a well knob identify, but wallets of such which ask for kyc could be those which might be on the demands of such information, since this kyc actually reviles your I'd on their sites

[Babubu609 0]

On 11/14/2019 at 10:50 AM, SyntaxEr. said:

Yes it is possible, if im not mistaken US is already getting a tax on every crypto holder. The tax reform on crypto will surely happen once your government legalized it like what happen to US.

there is a transition that has labored with nation banks to impose taxes, so customers when trading on the trade will right away be taxed.

[Ridam 7455]

May be in future we may see such tax in future and if tax could be implemented then maximum country will legalize the Crypto currency due to profit from it and it will be profitable for Crypto too.

[MrGox 880]

2 hours ago, Veniatrs said:

Some countries already make their own digital currencies, the reason being that these countries want to get the same profit. In addition, the government certainly sees an opportunity if cryptocurrency is taxed so that it can increase state revenues.

Yes indeed as you above mentioned their want to make own digital currencies, because they want to control people or always to be on the first place. That is why government would want control people or to be people depending on its. For that l do agree with your view. 

[Babubu609 0]

On 11/9/2019 at 12:40 PM, Tine0313 said:

Well I think government need to legalize the use of bitcoin the make laws about it so they can tax the cryptocurrencies. 

Crypto currency is better to use in lessen much of your stress to earn cool money at everytime

[rianpedia 816]

2 hours ago, hasanhamidul7 said:

But many are confused as to how to do this because the government does not end up clearing the situation. If in some countries they consider cryptocurrency as an asset that must be taxed.

Of course this is bad, crypto is not a fiat currency that must be taxed. Over time the state and the government intervened about crypto.

[johant123 1559]

18 minutes ago, Jake2 said:

I think even in the first place it is impossible to effectively impose taxes, so I think it's impossible. 

Why do you think it is impossible?

 

Here in the European Union, with the mandatory KYC, and the mandatory reporting by exchanges, it is very much possible to tax on crypto. In fact, many EU countries have implemented a tax scheme for crypto assets.

 

So, in my opinion, it is very much possible, and it will also become the normal situation.

[johant123 1559]

15 minutes ago, Mohd12 said:

Basically crypto currency market is not under governments control. To impose taxes on something it should be in control of governments.

bitcoin simply because bitcoin can't be managed. This can make much more feeling in order to taxes via trades in exchange.

 

Of course crypto can be taxed. The tax authorities only need to know how much money is flowing in and out of the exchanges you deal with (one reason why they want KYC). If you read the previous responses in this very forum thread, you see that several countries even tax crypto transactions now already. Germany, for instance.

[MrGeany 297]

yes that is possible and that is how the japana nd other smart countries are making profit from it. for example there is binance platform and japan goverments tells binance to tax japan users and binance has to follow japans order if not they will be sued and lost lots of money.

[Amir Vao 341]

On 10/19/2019 at 6:29 AM, Keith700 said:

Bitcoin is not a fiat currency of legal tender in any territory, so the regulations are not clear. In practice, any surplus value should be quoted as tax assets as a capital increase. There remain doubts if a benefit in cryptocurrencies is invested again in cryptocurrencies after a theoretical surplus value not transformed into an asset of legal tender must be declared. It is not clear in that case and legal uncertainty may take time to be resolved.

I think crypto illegal for it's anonymous transactions. If any government can solve this, then we will see massive adoption of crypto. For this many illegal activities occure here.

[Thomas. 1 18]

 Basically crypto currency market is not under governments control. To impose taxes on something it should be in control of governments. It government take control of digital market then she can do anything.they can only ban it but not control it. The only thing you will pay I think is the conversion cost from currency to currency, and the transactions that you will be doing

[Lover840 0]

On 10/19/2019 at 5:59 AM, Keith700 said:

Bitcoin is not a fiat currency of legal tender in any territory, so the regulations are not clear. In practice, any surplus value should be quoted as tax assets as a capital increase. There remain doubts if a benefit in cryptocurrencies is invested again in cryptocurrencies after a theoretical surplus value not transformed into an asset of legal tender must be declared. It is not clear in that case and legal uncertainty may take time to be resolved.

Every country has their respective rules and regulations for the bitcoin. There are different obligations in different countries. But yes many country impose tax on the crypto market. 

[Laboni 755]

It was virtually impossible to earn a profit tax on Bitcoin and not be in the future. Bitcoin is not taxed on fiat currency because it is under the control of the government. The government does everything in its favor and wants subsidies. Bitcoin is under the control of nobody and there is no tax.

[abualez 4106]

At the present time, I think that imposing taxes on the Bitcoin currency is very complicated because its spread rates in the world are considered few ... but it may be organized in the future when the world needs more broadly !!!

[malik6314193 5449]

If the crypto are illegal in any country then i think no tex apply on crypto assets. But if crypto is legal in any country then Anybody have cryoti asset then he have to pay tex. 

[Ms.o 3322]

Actually,dealing with crypto are being taxed,it depends only on how we get it.

Following are some guide on how bitcoin are being taxed:

 

• If bitcoins are received as payment for providing any goods or services, the holding period does not matter. They are taxed and should be reported, as ordinary income.Federal tax on such income may range from a 10% to 37% marginal tax rate.Additionally, there may be state income taxes to be paid.
• If bitcoins are received from mining activity, it is treated as ordinary income. Additionally, there may be a self-employment tax to be paid on such receipts.
• If cryptocoins are received from a hard fork exercise, or through other activities like an airdrop, it is treated as ordinary income.
• If bitcoins are bought as an investment and sold at a profit, the treatment of such income depends on the holding period. If held for less than a year, the net receipts are treated as ordinary income which may be subject to additional state income tax. If the holding period is for more than a year, it is treated as capital gains and may attract an additional 3.8% tax on net investment income 

 

source:https://www.investopedia.com/tech/how-prepare-bitcoin-tax-filing/

Edited April 15, 2020 by Ms.o

[Treat1234 0]

Taxing on profits on bitcoin will discouraged many people to engage in cryptocurrency, this will make them think there is no more Profits if any profits they make will be tax

[George10 9932]

The only Taxation of bitcoin by government that can be possible is when you exchange it to fait they might add a tax fee for performing the transactions but still more I dout this it seems impossible too.

[BrolySSJ 7899]

the fact that bitcoin is decentralized and cannot be traced it one of the reasons why governments are not able to keep track of bitcoin use and therefore they are unable to impose taxes. However in order to impose taxes, the government needs to be able to legalize crypto, and there is a major debate around that with many countries not buying into crypto. Therefore i think the first step before taxing would be to determine legality and then from there taxes can be implemented. As it stands, i think that korea has already begun to tax crypto.

[SuperCrypto 7193]

How will bitcoin and cryptocurrency taxes be paid? These currencies are widely used not only as a method of payment, but also as investment vehicles and no one will be able to determine the profits of their investors.

[jacker 1095]

The legal issue of cryptocurrencies in general or bitcoin in particular comes from countries. and when they accept cryptocurrencies the government has the right to have the same policies or regulations on usage and taxation. Taxation is not wrong, which is also how the government benefits and controls some of the cryptocurrency.

[ComeBackIsrael 185]

Yes, I think it's possible, if countries accept bitcoin as a digital currency that people can invest in and make money from, they will pay taxes on their income. 

[deepown 0]

On 4/16/2020 at 10:57 AM, CrimBit2020 said:

It will not making any sense because cryptocurrencies supposed to be of no tax, only miners fee are deducted and that is what makes it great to be used. 

But the government will not let crypto go by taxed, i have heard that in Dubai they have allowed crypto to be used tax free, but other countries will not be feeling the same.