I was reading a report from an accounting firm tonight regarding Crypto taxes in South Africa. Taxpayers are supposed to disclose their Crypto portfolios which includes current holdings and trades. I think staying abreast of what is expected is knowledge we all need to know.
The Revenue service has tried to simplify things by categorizing your Crypto into either buying for trading or as an investment. Taxes on trades vary between 18%-45% or investments where any gains would be taxed at 7.2%-18%. The problem with the last one is when you sell that investment (if you do) then you have to prove it wasn't a long term hold which would thus ultimately be a trade.
I see this as a Government move where they always win as the next part is even more baffling. Trade losses on international exchanges cannot be used to offset tax revenue due where as local losses can. This I see as having your cake and eating it as who trades locally? The exchange offerings that are here are terrible and anyone who is serious about Crypto gives them a wide berth.
If I am correct in my assumption they would expect me to declare my Hive Power and HBD holdings. This would mean any gains made over the financial year would be taxed at 7.2%-18% which is nuts as you haven't sold any. Each year you would have to sell some Hive to pay your tax bill if you went according to the tax laws. Thankfully this is all safe as Hive is decentralised so a fat chance of that happening and is a safe haven from the receiver. I cannot think of many blockchains that are safe from the prying eye of the taxman.
I have never looked at Hive in this way before as I know we have no figurehead, but the benefits of this are far reaching. No one can police Hive due to decentralisation which we already know, but no Government agency could get financials either from the community members who reside in those countries enquiring.
Exchanges are working closer with tax agencies around the world as regulation will want to score the Crypto taxes due for their countries revenue. Being on a decentralized blockchain will make more sense in the future and wouldn't it be great if we had a proper exchange we could trade with internally like we do with the likes of Binance or Huobi or who ever we use.
Hive has plenty of plusses and this is just another one as this tax issue will become a big problem in the next 5 years or less.
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It's satisfying to know that Hive fixes this too.
But it's absurd to ask someone to pay taxes on crypto holdings....I said this, and I remembered it is always done to fiat currency too, I guess this is why they are trying to bring their authoritative selves to crypto. Thank goodness for decentralization, the government have nothing on us.
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Governments should first support crypto before they would even think of taxing their people who invest or trade in them.
Also, a fee for every trade? That's ridiculous. They should start their own crypto exchange where they could charge a trading fee. xD
The best simple way they could tax us is through the gains that goes into our pockets.
!1UP
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In Germany it is very similar. I agree with you that Hive might be decentralized and therefore hard to track for the government eye right now. But let's assume you are trading your Hive to BTC and then sell it on a centralized exchange into FIAT (for whatever reason). This event will now make it possible to track back to your HIVE wallet and therefore link your personal ID with your HIVE Stack.
I think the governments will have tools in the future and because governments can get their taxes even after 10 years (and then with interest) it is even more f** up in my opinion. For me, I am trying to foolow the rules as best as possible even if it means that I would have to sacrifice some gains at the moment.
In general I think the taxation topic is a very difficult one, as I think it only should be taxated when you really get some gains into FIAT. But as we know governments always want their share of stuff :/
I agree with your views on this as it will be difficult to avoid but also believe there will be ways open to us on Hive. I have no issue paying taxes, but only when it comes out into the real world when it is being used.
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This is just another example of old rules being applied to new tech.
Like stuffing a square peg into a round hole...
PS. From an SEO perspective, Google only reads the first time you link to a page.
So unless you think it is better for the user to see the same link over and over (questionable), it might be worth only linking once to each page.
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wtf? It is time that the government start paying us taxes.
really, most things have to be looked into. its time to turn the table around.
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Governments around the world, are hungry for the value their people earn drom cryptos. They really try their best to keep them poor and based to them! A huge proof is all this social policy that can be implemented in your country, where it does not aim to solve a problem, but simply to mitigate it to a degree that you willingly tolerate it
I have started to realize over the years that Hive is really one of the safest bets that we can make at this point. Assuming it will finally catch hold, it just seems to make a lot of sense.
im not sure it will catch hold really. Maybe but more likely something else will turn up and steel its lunch. sad but true.
The community is pretty strong so while something else may rise to the top, I still think it will be kicking around in some form or another.
it will do ok i think, i just dont know if it will ever blow up like it could do.
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