Cryptocurrency and taxes. It is controversial topic. Noone want to pay taxet especially for bitcoin. Now this is a very profitable business and soon the government can introduce taxes on cryptocurrency nevertheless. But we can`t "touch" or "hold" it so in what way cryptocurrency might be taxed?
In my opinion, cryptocurrency may be taxed in the same way as a program or any sale or purchase transaction. Regardless of what you are selling, if you are profiting, you are required to pay tax.
What do you think?
I strongly support the tax introduction in crypto currency. Currently crypto currency is neither legal nor illegal in majority of the countries. Many countries are debating on the probable impact of bitcoin on their economy and haven't yet come up with a concrete decision. So we are pretty much hanging in between. Either our government will make it illegal or they will start taxing it and declare it legal. So I am hoping that majority of the governments will introduce a tax framework for crypto currency and declare it legal, both the users and governments will be happy and it will be mutually beneficial as well.
In my opinion, cryptocurrency may be taxed in the same way as a program or any sale or purchase transaction. Regardless of what you are selling, if you are profiting, you are required to pay tax.
So you are referring to capital gain tax which usually implies on property transactions. That it possible, but it is really hard to keep track of it. None of the governments have the infrastructure to monitor all crypto currency transactions and they will have to reply on the citizen's input to calculate tax. Instead it will be easier for them to track any fiat transaction a person is undertaking. So this transactions can be taken in to consideration while calculating the tax implication.
Like if I have exchanged my bitcoin for 4 times in a year amounting to 80k in my local currency, I can simply add this amount to my total income and calculate the total tax implications. This will make the entire system easier for citizens as well as for governments. No one gets hurt!