Quote from: crsdr16 on August 09, 2016, 03:31:03 AM

Hi Everybody,

When getting Satoshi/Bitcoins from the internet in general, could you please tell me whether you have to pay tax to the country you get them from or do you just pay taxes to your own country?

Thanks for your help.

There is a courtcase in Estonia, which has influence to all EU member states. It is Otto de Voogd vs RAB. In this decision bitcoin was deemed to be as an "Alternative means of payment" which means, it is handled pretty much as a normal currency from the anti money laundering and financial regulation perspective.

However, for tax it is different and really depends on each different state. Many states tax also assets which are not fiat, some don't. Estonian companies can keep every asset, including FIAT tax-free. In principle, bitcoin has a market value which corresponds to a fiat value, which means that no holder of bitcoin is relieved from tax, if there is any. HOWEVER, the other question is that how much the tax authorities can actually track and enforce the tax on bitcoin and playing around with this possibility is a risk in itself.

The only more super-governmental statement came in European Court of Justice Case C‑264/14 David Hedqvist vs Skatteverket, which set the standard in European Union that selling Bitcoins is exempt from VAT as being an alternative means of payment again.

Bitcoin is not necessarily illegal in Europe and being cooperative with the authorities right now is a way to sustain a healthy business on the area. That, at least, I can ascertain in Estonia.

HandoR

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