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Legitimate Way to Pay 0% Tax on Crypto Income from Digital Services?

WormCasting

New member
Feb 25, 2024
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Compost
If someone runs a legal online business offering digital services and gets paid in cryptocurrency (like Bitcoin),
could the following strategy be used to achieve 0% income tax , legally?

Imagine this setup:

A crypto payment processor is used to track all incoming payments.

Each transaction is logged with details like:

- Customer name
- Payment date
- Amount
- Type of service
- Wallet address or TXID
- Exchange rate at the time of payment

All the crypto goes into a dedicated business wallet that’s only used for:

- Receiving client payments
- Keeping clean, auditable records
- Cashing out funds when needed

There’s no mixing with personal funds, and the intent is full transparency , not tax evasion , but compliance-ready bookkeeping.


Now the key question is:

If someone de-registers from their current country of tax residence,
becomes a tax resident in a country that doesn’t tax foreign income (like Panama, UAE, Paraguay, etc.),
could this setup legally result in 0% income tax on their crypto revenue?
While not staying in any single country for more than 183 days , following a mostly nomadic lifestyle.

And in terms of documentation , what kind of data should someone keep to prove the income is legitimate and foreign-sourced?

Would the above listed be sufficient?
 
According to the list you’ve compiled, you’re likely collecting enough data to prove the origin of your crypto, so you shouldn’t have issues exchanging it or documenting the source of funds (SOF).

From a tax perspective, it’s considered income, not an investment. If you only move to a tax-free country after earning the money, then you’ll be taxed in the country where you currently live and are subject to taxation. It’s really that simple.