I noticed that certain country may charge tax on earning from Bitcoin trading...
20% tax on it. I think this is quite ridiculous.
That means govt sees it as a lottery.
What do you guys think?
Taxation is one of the major source of revenue in many countries today. As far as a person earns money such person is obliged to pay his or her taxes. If a bitcoin trader earns profits from its trading activities, he or she is duty bound to pay taxes to the Government as this will aid in development of the society. Hence taxation of crypto related activities is highly supported by me.
It is not possible to keep track of transactions made by the cryptocurrency in a country due to its universal nature. Many tax imposing authorities have tried to impose tax on it and the taxation guidance given by the IRS depicts it as a possessions someone hold. According to which holding Bitcoin for a longer period of time, when you are about to sell it you have to pay the capital gain.