What's the tax rate (%) on your crypto trading?

Hey everyone, Some people are all about keeping their privacy and avoiding taxes, but then there are those who just wanna live without the stress and pay up. I'm curious what percentage of your earnings or profits from crypto trading you actually hand over to your tax authority. For a decent trader, that tax could just be a few days of trading, so at some point, it might not even be worth the hassle of dodging taxes. Plus, if you connect your exchanges, PayPal, TransferWise, or whatever to a real bank account, you pretty much lose any chance of staying anonymous.

Hello, The tax rate on cryptocurrency trading profits varies by country. In general, you pay taxes on capital gains, similar to stocks. For example: MyWakeID Com In the USA, the capital gains tax rate can be 0%, 15%, or 20% based on income and how long you hold the asset. In the UK, the rate ranges from 10% to 20%. In India, profits from cryptocurrency are taxed as capital gains at a flat rate of 30% without any deductions. It's crucial to keep good records of your trades and consult with a tax professional to avoid any complications. Paying taxes helps you avoid legal issues and ensures a stress-free trading experience as you mentioned. Best regards, James Goff

In Russia, you get punched in the face for asking such questions. If you don't want to pay taxes, then you don't use exchanges with KYC, banks and other bullshit organisations that will pass your data to the tax authorities. You use cash only.

Here in Indonesia crypto trading is a legal activity and the information about tax "Cryptocurrency transactions in Indonesia are subject to Income Tax (PPh) Article 22 of 0.1%. PPh Article 22 is deducted directly when the transaction is carried out on an exchanger or cryptocurrency trading platform that is legally registered in Indonesia." - https://www.pajak.go.id/index.php/id/artikel/cryptocurrency-dalam-yurisdiksi-pajak-indonesia How to calculate crypto tax - https://taxation.binus.ac.id/2024/04/01/pajak-mata-uang-kripto-di-indonesia/ The VAT rate for crypto asset trading by Physical Asset Traders (PFAK) is 0.11% The VAT rate for crypto asset trading by non-PFAK trade organizers is 0.22% The Final Income Tax Article 22 rate for crypto asset trading by PFAK is 0.1% The Final Income Tax Article 22 rate for crypto asset trading by non-PFAK trade organizers is 0.2%

None. Crypto gains are not taxed in where I live. You can make a hundred million dollars from crypto trading and never pay a dime to the government. It is hard to fine a trusted local crypro exchange though. You’ll never know when the exchange will ask the proof of origin of your coins or other stupid questions because if you are crypro rich in their eyes you are either a drug dealer or a shady guy who does othee shady stuff. They don’t want to believe that you became rich fair and square. Paying taxes for crypto gains is no good. Trading assets in general shouldn’t be taxed.

Why do you need a local cryptoexchange, though? Can't you just use any CEX located anywhere in the world as long as you trust it? Or do you mean that you need the CEX in order to convert your crypto to fiat?

That’s because I don’t trust international exchanges even more. If the international exchange scams me I can’t do anything about it. If the local exchange scams me I can find a local lawyer and try my luck. When a international CEX asks impossible questions, it is over for you because they have the advantage over you. They know you can’t do anything. I would never hold big positions on the international exchanges because of that.

OK, I see. Thanks for the clarification. Relying on legal action for protection means that one has to provide KYC information beforehand, otherwise he would have no way to prove that it was actually him that lost the money. I don't use KYC exchanges, so I don't really have reasons to prefer local exchanges to foreign ones. Moreover, I actually prefer foreign ones, as in my case the local exchanges have mandatory KYC.

I hate kyc more than anyone but it is almost impossible to cash out without using these centralized pro-kyc exchanges. I wish we were living in a world where could spend crypto directly but the govs already put restrictions on these actions. In the US if you purchase a hamburger using btc, you trigger a tax event as far as I know. In my country, the businesses can’t even accept crypto legally for the services and products they offer because the gov don’t acknowledge crypto as a currency.

In most countries you can easily exchange cryptocurrency for cash. I would like to say that this business is mainly run by Russian people. I can teach you https://www.bestchange.ru/tether-trc20-to-dollar-cash.html Next, you choose your city or the nearest city. DYOR!

Every country has different tax structure. In my country, it's 30% on the profits without the opportunity to offset losses. It's really pathetic because my government doesn't want to encourage crypto usage at all. So if you make 3 trades like below, Trade 1: Buy: $100 Sold: $120 Tax liability: $6 Trade 2: Buy: $100 Sold: $90 Tax liability: $0 Trade 3: Buy: $100 Sold: $130 Tax liability: $9 Your tax liability will be $15 in total based on the profits you have made from 2 trades. Loss offsetting isn't allowed.

Speaking of crypto asset tax tax either when selling or purchasing, I think each country has the laws and rules or policies of each country, so the comparison is diverse The rule of law and the applicable rules in my country with a Crypto 0.1% user is valid for all crypto assets including USDT, except Fiat. What is certain is that we have a tax history for each individual in carrying out the sale/purchase of crypto on my local exchange that is official and registered in the authority So if we sell or buy in an amount of $ 100 discount of $ 0.1 and so on depending on the nominal transaction you do, the greater the transaction you make the greater the tax cut, but still at the level of 0.1%.

With such tax conditions, it makes no sense to engage in legal cryptocurrency trading. Traders make money on the difference in profit between successful and unsuccessful trades. In your example $50 of income of which $15 is taxed and $10 is a loss that cannot be taken into account when paying taxes. With this financial model you are doomed to bankruptcy.