Quote from: BartS on February 21, 2018, 09:41:55 PM

Quote from: bug.lady on February 21, 2018, 11:44:09 AM

Quote from: alyssa85 on February 20, 2018, 11:22:48 AM

https://www.coindesk.com/israel-confirms-will-tax-bitcoin-property/

Quote

[...]The circular explains that profits from cryptocurrencies will be subject to capital gains tax at rates between twenty percent and twenty-five percent, while individuals mining or trading cryptocurrencies in connection with businesses must pay a seventeen percent value-added tax (VAT) in addition to capital gains tax.

nice. twenty-five percent and seventeen percent makes a nice forty two percent. Almost half of the money people make on bitcoin goes to the pocket of Israeli government. I have always known that the govs will regulate it eventually with the purpose of taxing it, but I have really mixed feelings about returning half of your money back.

And other governments will follow, if not now, eventually they will.

And in the middle ages the royalty was considered greedy because they taxed their subjects with 10% taxes....

This was going to happen we all knew that, but it is not such a big issue as you make it out to be, if they are going to tax bitcoin saying it is a property I have no doubt some countries will put forward laws that charge very little to no tax on bitcoin gains, when that happens then bitcoin holders will just create bank accounts on those countries and pay the small tax there, if done properly this will be completely legal and will allow you to get fiat for your bitcoin.

I am not so sure it will be legal, at least for US were I think majority of users come from. Did you know that US sued (in US courts) the Switzerland bank for not disclosing that one of their customers was an American and not surprisingly US won and (maybe more surprisingly) eventually the bank paid the fine? Of course all the banking was done in Switzerland, but still US could intervene. So it seems that US can prosecute you no matter were you do your banking. I am not sure on what Israel may or may not do.

This article is on a different but closely related story: https://www.huffingtonpost.com/2011/09/04/us-switzerland-tax-dodging-sue-banks_n_948362.html