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.
Do you have to pay taxes on cryptocurrencies?
- Thread starter Starmix
- Start date
It depends. If the country has already regulated cryptocurrency and also has established laws it is possible while it is not the case if country doesn't do anything from these steps.
- Thread starter
- #3
You're so right, but in my county Philippines, it's emphasised by our government that businessmen on buying and selling of crypto must pay taxes. There are big time businessmen in my country do buying and selling of crypto including Manny Pacquiao.
- Thread starter
- #6
That is good but in my country, only those big-time businessmen who capitalized in millions pay taxes like owners of PAL Airlines, Camelia Homes, Manny Pacquiao, and more.
It depends on country. Country like India place high tax on cryptocurrency to discourage Indian users but it seems that it is not deterring them from cryptocurrency. In Nigeria, the government place ban on cryptocurrency and it is not legal to use cryptocurrency in Nigeria.
Crypto taxes are not only for state revenue but also to limit the circulation of cryptocurrencies so they don't disturb their financial stability. In my country, every purchase of crypto will be subject to VAT of 0.22% while selling crypto will be subject to income tax of 0.2%.
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- #10
Almost everything is taxable even in small purchase in the mall or big stores. Others prefer to shop in the public market to escape taxes..But for crypto investment, an investor is obligated to pay accordingly.
If the cryptograncies are allowed in country then there must be a law about its taxes and individual must pay different Texas on the other hand there are many countries Where cryptocurrencies are not allowed but people are doing it by different ways..
Crypto taxes put crypto investors and traders even more under pressure, because the tax is charged on sales not on profits. So if you buy 1 Bitcoin for $28k plus 0.22% VAT then we have to pay $28,062. Whereas if you sell at a price of $ 26k then sales tax will be deducted. So investors will lose many times over.
And it was because they were sanctioned, in my country without any sanction you have to pay 29% for the profits obtained in cryptocurrencies, taxes are really high here to be honest.
It seems that your country is more friendly to cryptocurrencies, if you only pay 29% for the profit, so if you lose you are tax free. not from sales transactions so that both profits and losses are still subject to tax.
Yes you are right, if you have profits you have to pay that amount and if you get losses you can declare losses and dont pay anything, but the worst thing here is that the goverment would know what amount of crypto you have by that moment.
- Thread starter
- #18
That is so true like in my country , those rich people who like to play their money in crypto also pay taxes like Manny Villar owner of Camellia Homes and Lucio Tan owner of PAL. Manny Pacquiao is also a crypto fanatic.
