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Do we need to pay tax on Bitcoins?

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  • #16
    No, I don’t need to pay and majority of the Asian countries don’t have such thing either unless you are doing transactions in millions then tax and such things become important. But, if we are from somewhere like U.S. then you got to check things properly, as you might have to pay tax there, as they are known to cause issues in everything from big to tiny, so just be watchful of that thing.

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    • #17
      I think this is on a case to case basis. Depends on where you stay and how you use the Bitcoins. Different countries have different rules and you must know what is your country’s take on Bitcoins and its earnings, tax and all. But guess, most of the users of BTC are small players and their earnings can’t be so high to be taxed!

      Of course, business entities or exchanges would have to pay tax as they do regular big transactions involving higher volumes!

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      • #18
        For bigger regular transactions, you need to pay Tax whether you like it or not, else the authorities might block your way of conducting such businesses, usually via banking channels and the likes. So pay some tax and have peace of mind and grow your business further. But for small retail traders this does not means much as they might not be earning big enough regularly to qualify to pay taxes and as such not required to pay taxes.

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        • #19
          That depends if you want to pay tax or not? Earnings from Bitcoins are not clearly defined by law in some countries and if you happen to be in such country, then you need to be careful more so if you deal in big amounts through regular financial channels like say banks!

          You might be held for money laundering and indulging in criminal activities. But guess for smaller amounts it does not matters but as the amount/frequency of earning grows, one needs to be careful enough!

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          • #20
            This is going to be relative and debatable with no clear convincing answers as the thinking of users and authorities with regards to law does not match most of the time. Tax is something that is levied on individuals and businesses if they earn over a certain threshold and we have to file the returns every year to authorities of our earnings in most countries whether we earn big or small. But how the tax is structured with respect to Bitcoins depends on that country’s local laws!

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            • #21
              In most Asian/African/South American countries there might not be any tax on Bitcoin or very loose regulation and people can simply bribe the tax officers and keep earning illegal wealth.

              But there are many small earners too who need not pay any tax as their earning threshold would be surely lower than the stipulated one. So only those earning very big & regularly and using normal banking/payment systems of cards, etc. needs to pay tax, if at all!

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              • #22
                Like they say, there are only two certainties in life ~ Death and Tax. But paying tax on Bitcoins depends on many factors as articulated by others like a country’s tax laws, Bitcoin’s status, amount earned, etc. Therefore there is no clear answer for the same. Small earners don’t have to pay obviously though the medium to big earners needs to check out, more so if they are in business of exchange or something as opposed to individual earners!

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                • #23
                  Well, if one is not clear on whether they need to pay tax on Bitcoins or not, then they need to consult a tax or financial advisor who would advise them on the present laws and provide services related to filing the tax, if any!

                  As such, there should not be really any concern! Paying tax is quite tedious with lots of paper work for arriving at the number fit enough to pay tax! So this is on case-to-case basis and not common for all!

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                  • #24
                    To pay tax or not is a big issue and depends on many factors and the willingness of someone to do it in the absence of auto-debit or auto tax deductions. So to pay on Bitcoins also depends on these usual parameters. Personally I don’t pay tax on Bitcoins as I have very little Bitcoin which can’t be considered for paying tax. Then again the tax laws in my country regarding Bitcoin are also quite hazy and not so clear.

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                    • #25
                      I am in agreement with you Farhad Entessari. Whether to pay tax or not depends on many factors and therefore one needs to follow the conditions accordingly.

                      If you are a law abiding citizen then you would do it strictly and see to that you follow all the rules of your country properly. One can also try to cheat either knowingly or unknowingly, which is a different matter. Therefore there is no clear answer and just needs to do what they feel best!

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                      • #26
                        Yeah this would differ from person to person based on their earnings, laws of their country and other factors. So there is no uniformity as such. If in doubt, consult a tax advisor. But people need to avoid doing illegal things like avoiding to pay the tax by hiding the earnings via Bitcoin and other ways. Bitcoin is not a money laundering tool though many people are doing that due to anonymous nature of its operations!

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                        • #27
                          Yes this is too general an issue and of course different people would have different views. But if someone is really law following citizen then they would follow all the rules of the country with respect to the tax and Bitcoin, which must be legal to begin with it.

                          So there are some simple concepts to be followed and maintained. But if want to take chances then it can also be done which would be breaking the law!

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