The Washington Independent
The Washington Independent

Is bitcoin taxable or not?

Is bitcoin taxable or not?

It is difficult to say whether bitcoin is taxable because in some countries, bitcoin is taxable, and in some countries, there are no rules for bitcoin. Some countries banned bitcoin because it is a decentralized system that means the government cannot control the bitcoin and cannot trace and charge tax for bitcoin transactions.

Tyrese Griffin
Oct 12, 2021

Table of Contents


It is difficult to say whether bitcoin is taxable because in some countries, bitcoin is taxable, and in some countries, there are no rules for bitcoin. Some countries banned bitcoin because it is a decentralized system that means the government cannot control the bitcoin and cannot trace and charge tax for bitcoin transactions. So it is a confusing question whether bitcoin is taxable or not. This article will discuss the possible taxable rules about bitcoin and who is responsible for paying tax under bitcoin. So without wasting time, let’s understand whether bitcoin is taxable or not.

Some countries banned bitcoin because it is not taxable.

Some countries banned bitcoin because bitcoin is a decentralized system. No one can control bitcoin, such as the government, banks, financial institutions, president of the country, or even the founder of bitcoin because the primary purpose of bitcoin at the time of starting was to make a separate currency that no one could control. The government has banned bitcoin because they cannot track the records of bitcoin transactions and buying and selling through bitcoin. It was complicated to track the history because your identity on bitcoin is anonymous, and you can charge your wallet multiple times.

Is bitcoin mining taxable:

Yes, Bitcoin mining is taxable. Bitcoin is now on the exchange that means it is now a separate global currency and accepted worldwide except in some countries. Mining is the process of validating the bitcoin transactions for the smooth running of bitcoin. After successfully validating a block, you will get a reward of 6.25 BTC that is 2,74,398 US dollars, when writing this article. It is a considerable amount, and you have to pay taxes to the government. If you are earning money through mining for personal use, you have to pay tax, and you have to report to the government of your mining making and the cost of acquaintance.

Long term investment:

If you buy bitcoin or other cryptocurrencies for investment purposes, you have to pay tax to the government. First, you have to pay the capital tax that will levy on the profit of the investment. For example, suppose you have invested $1,00,000, and after five years, it becomes $2,00,000, which means your gain is $1,00,000. Then, you have to pay a capital tax of $1,00,000 according to the different slabs. The Tax slabs may vary according to the country's rules and regulations. If you hold bitcoin for long-term investment to earn a future profit, it will be levy under the capital gain, and you have to pay income tax.

Bitcoin trading:

Bitcoin Investment and trading are two different terms. Investment means buying and holding bitcoin for the long term, representing more than five years for earning, and trading means purchasing and having bitcoin for short periods, i.e., for hours, days, weeks, or months or not more than once a year. In simple words, trading means buying bitcoin at the market price, and when the price increases, sell them for profit. You are earning money, which means your income and income tax will be levy when you profit through bitcoin trading; for more information, learn at Bitcoin System. You have to pay the tax on trading because you are earning a profit under the tax slab of income tax.

Accepting bitcoin payments:

More than 1,60,000 merchants or vendors accept bitcoin payments and millions of bitcoin users who want to buy products and services paying through bitcoins. Many new businesses and startups, whether offline or online, accept bitcoins to expand their business. But the question is, do they need to pay tax for accepting bitcoin payments? Yes, if you are running a business and accepting bitcoins as a payment, you are earning money through your income or profit through your business. You have to pay income tax or tax levied on the business income according to the tax slab in your country.


Always remember bitcoin is a decentralized system that means no one controls it, which means you are not liable to pay tax. Many exchanges provide third-party services for converting bitcoin into fiat currency. When you do transactions in bitcoin currency, there is no tax, but when you convert bitcoin into your local currency and have gained profit, you have to pay tax on your profit. So remember that tax will only levy when you convert your bitcoin into local currency; otherwise, no one will force you to pay tax.

Tyrese Griffin | Tyrese started her education in the performing arts at the prestigious Alexander Hamilton Academy in Los Angeles. She returned to civilian life after serving in the United States Army as a tracked vehicle operator, and started writing short stories and screenplays, as well as directing short films and music videos. She has published six novels, which have sold over 200,000 copies, as well as audiobooks and short stories for anthologies, and has earned several awards.


6 Major Mistakes that Most Crypto Newcomers Make in Crypto Market!

Every day thousands of people enter the crypto market, out of which only a few know the market. Most people enter the market with zero skill and try to make a profit on their luck. It is crucial to know that pure luck and zero skills don't work in the crypto market.

Bitcoin in the Next Decade

Bitcoin came into the market as a revolution. In the current finance ecosystem, it behaves like a through the thing. Although it is volatile, the overall picture of Bitcoin has remained too rosy to cash. When we see the introduction of Bitcoin coming in a big way, we see some change taking place.

Can a local business accept bitcoin?

Nowadays, many startups and small businesses have come into existence. Everyone uses mobile phones, and everyone wants to pay digitally rather than in cash. There are multiple online payment options like Google Pay, Phone, Paytm, PayPal, Card swipe, QR code, UPI, and many more, and it makes the payment easy.

Earn good money with bitcoins – What are the top methods?

The primary motive of every person in life is to earn money. There are numerous ways to earn money, but bitcoin is the perfect option if you want to do it uniquely and easily. Bitcoin is not only a cryptocurrency that allows you to make payments, but it also provides you with several methods through which you can earn money, and some of them are listed below.

Do Bitcoin Benefits Overshadow Its Risks?

Bitcoin's journey has been quite interesting as it has ride waves of market volatility and interest of the public, but the main reason behind swings in its price is an actual reality. The crypto world is massive as thousands of cryptocurrencies exist in it and offer significant advantages to users.

The Basic knowledge of blockchain

Bitcoin was launched in 2008 by Satoshi Nakamoto to make the digital world. Yes, there were a lot of problems before bitcoin. For example, people use fiat currency, and if they want to transfer money abroad or outside the country, they need to pay high charges to third parties like banks and financial institutions.

Different ways to make money with cryptos!

Everyone is talking about cryptocurrencies nowadays. For most people, it is just a method for trading. However, if you look at the bigger picture, it is not only trading that has made it so popular. You can go for other methods of making money with cryptocurrencies, provided you are aware of them. First of all, you need to get the small picture of cryptocurrency.

Finding the 'Right' time to invest in Bitcoin

Far from being a red flag best avoided, this is testament to the fact that with Bitcoin more than most other trades, timing is an imperative aspect of success, though perhaps not in the ways that you might assume. As such, while there isn’t exactly a ‘right’ time to trade, these tips can at least help you to find the time that works best for at least helping you to earn big from your efforts here.

Will NFT go up in value? Understand why some are worth millions

The recent popularity and increased demand for NFTs or non-fungible tokens mean that the crypto world may be moving to a new unprecedented high.

Crypto in El Salvador

El Salvador became the first country in the world to recognize Bitcoin as legal tender. All organizations will be obliged to accept cryptocurrency here, it will be possible to pay taxes with it, and special wallets will be opened for citizens.

Top 5 ways to invest in Blockchain technology boom

Amidst the strong headlines of Covid -19 and its impact on global economies, something else was happening behind the scenes. It was the rush to invest in the growing blockchain technology. Business owners, investors, and key players across all industries are increasingly getting into the transformative blockchain technology.

© Copyright 2021 The Washington Independent All Rights Reserved

Terms & Privacy |