Bitcoin & CyrptoCurrency no tax applicable someone know?

[drillbill]

I was wondering the following.

Because BitCoun and other CryptoCurrency is now recognized by any authority nor financial Service nor has it to be licensed to handle BitCoins then would it be right to say that we don't have to pay tax from BitCoun's.

Say I sell a service on the internet for 3 Bitcoins and keep it in my wallet as Bitcoins then considering the above mentioned facts there is no tax or what do you say?

 

[dotbloup]

Once you convert your bitcoins to a currency, then you have incoming cashflow. You have to justify this cashflow from Tax authority point of view.

As long as you keep it on bitcoins. Bitcoincs, credits, it is all the same.

That's why it is important to choose the best jurisdiction where you want to convert your bitcoins into currency.

 

[icecold]

If I understand it correct than as long as we keep the "money" in bitcoins we don't need to worry about tax? Also I think it's difficult for anyone to see how many bitcoins you have in your wallet if you keep it anonymous and not verify any account

 

[drillbill]

Yes it seems to be how it works with Tax & btc!

 

[suzy]

In the US they already started to tax people on Bitcoin income as long as they can proof who the account / wallet holder is so soon it will come to Europe I guess!

 

[negon]

If I understand it correct than as long as we keep the "money" in bitcoins we don't need to worry about tax? Also I think it's difficult for anyone to see how many bitcoins you have in your wallet if you keep it anonymous and not verify any account

I doubt it will be something that works long term now and the next few years it will work. But as soon as OECD and the USA have stoped the major money laundering channels in the banking industry and offshore jurisdictions around they will fall over cryptocurrency I believe!

 

[Fibor Stanogievsky]

So, if I understand correctly, I should not report the tax authorities if I hold BTCs inside an exchange account, but only when I convert them to fiat and withdraw them to a bank? What if I don't withdraw them, and just keep it inside the exchange (or even in the future convert them to BTC again)..should I inform the tax authorities of my country too?