Do you have to pay taxes on cryptocurrencies?

[Starmix]

Yes, you have to pay taxes. There are cryptocurrency tax rules, in fact, people in my country pay taxes because they buy and sell coins. They have to follow the rules or else they will face the law. Crypto is a capital asset like stocks instead of cash. It is stated in the rule that you will be the one to pay for the capital gain tax if you sell crypto profitably. You will be responsible for paying the gains tax.

Even if you use your crypto to pay for a purchase, there is tax, value-added tax. I think it is an automatic deduction in the purchase counter, a customer paying in crypto will be charged for taxes if you receive a greater value than what you paid. You are required to pay the difference. You cannot hide yourself from your obligations to pay taxes.

The rich people in my country were warned by the government to pay a crypto tax of 20% of their total profit. Those who earn small profits are not required to pay tax for crypto, they will only be obliged to pay once reach certain criteria for paying. What about in your country?

 

[arunima]

It was made very clear in the budget session of our country two years back that any profit or earnings on cryptos would be taxable. I am not sure if the same law and criteria applies for cryptos what applies for earnings in Fiat currency. Or if it is different at different rate. We have slabs for income tax payment depending on our earnings. I assume that similar kind of rules will be applicable for cryptos gain too.
When government announced that cryptos would be taxable, many thought that it would be a step towards legalizing the cryptos in our country. But it was made very clear from the government side that there was no such intention. In fact they keep discouraging crypto involvement.

 

[Oliver4smile]

Taxes are made compulsory in so many countries today, but most people still find a way to avoid paying taxes. However when it comes to paying tax on crypto currency transactions, my country Nigeria won't doesn't even recognise the importance of crypto in the first place and so trading crypto currency in the country is even somehow against the law.

 

[Starmix]

In the Philippines, crypto owners are mandated to pay crypto tax. One cannot escape the law and those rich crypto buyers and sellers know well the penalty should they escape paying the tax gained from crypto. The BIR will sue them too. It is better for the people to think about taxes as very important as one source of a country's revenue.

No nation to withstand without taxes as the primary source for building the economic situation of a nation. All calamities, road repairs, school buildings, fires, and more derive from the taxes of the people.

 

[Goldynn]

In kat countries that permit cryptocurrency trading, you have to pay taxes to an extent. I've never had to pay taxes on crypto but I always wonder how they work.

Crypto is very volatile, so how are the taxes calculated? What of the times when you actually lose money, is that taxable too?

 

[sexysuzzy]

This I think seriously depend on the country you are and the laws in the country, some countries are strict when it comes to paying taxes and consider crypto trading as a form of legitimate business this they demand for tax payment from all crypto traders. However in some countries, crypto currency is a crime and not allowed, in such a country, the fact that you are trading crypto currency is a crime on its own, so you need to do it on a low key and taxes will not be demanded in such case. There are other laws guiding crypto currency trading but the laws differs from one country to another.