Quote from: strawbs on Today at 04:50:08 PM

Quote from: OutOfMemory on Today at 03:46:21 PM

Hey-Ho!

Crypto tax on the horizon in my country Sad

The blueprint accounts 27,5% capital gains tax when selling BTC/crypto.
Swapping from crypto to crypto or stablecoin is not a taxable event, though.

This leaves me to use BTC/crypto to buy things (tax free).

The only thing that leaves me confused is that BTC is legal tender in El Salvador, and the blueprint of the law defines selling as "changing into a legal tender".
So maybe BTC is an exception to the rule and "taxically" untouchable?

Edit: on the other hand, income tax, which was to be paid for short-term gains (under a year, also for swapping), will be a thing of the past for crypto

I was just trying to remember where I read or heard about this (but my memory failed, and I'm not sure which jurisdiction/s this would apply to), but somewhere recently I came across the following notion:

Exchanging from one currency^# to another is not a taxable event (otherwise trillions of dollars of currency exchanges would been taxed each day). Now that El Salvador has accepted Bitcoin as legal tender, an exchange from any fiat currency to Bitcoin is now simply a currency exchange event and therefore not a taxable event.

(^#I remember something about the currency having to be recognised by the World Bank or IMF or something - which would automatically have to happen once a sovereign state accepts and uses it as legal tender)

I'm not sure how this would stand up with IRS, HMRC etc but it seems like a plausible defence of not paying taxes on what could be argued to be a currency exchange event - from BTC to fiat.

I wish I could remember where I first heard this idea discussed, but it seemed worth mentioning and perhaps worthy of some further investigation...

Which i sure will do and keep you guys updated on this, of course.
Aside of this, every Satoshi i bought before Feb. 28th 2021 is tax-free if sold for fiat, unless i sell before 1st of Mar. 2022. Then the "old" regulation applies (added to income tax). So let BTC moon until Feb 28th next year and i can get in with the majority of fiat and only pay with Bitcoin in the future.

* OutOfMemory dreams on... Cool