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RE: Are Hive Rewards Taxable Events?

in LeoFinance3 years ago

Interesting case. Here in Poland it’s almost a consensus that the only moment you pay taxes is when you sell crypto for fiat. If I stake coins for rewards it’s not taxed. If I exchange one coin for the other it’s not taxed as well. Even when selling crypto for a stable coin it is not taxed. There’s only 19% tax applicable when selling for fiat, it’s a tax for capital gains to be precise.

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I like the Polish law. Simple and clear. Win for everybody.

Not really, our law system is super complicated and unintuitive, especially when it comes to tax law. We have one of the worst systems for running businesses—a lot of complicated laws, taxes of various kinds. The case with crypto is an exception—probably because the last few Polish governments have underestimated crypto and probably have had no idea what it is and how to approach it. But whatever the cause, for now we have quite alright tax law when it comes for crypto.

Although I did not mentioned that if you do run a business activity and you are rewarded using crypto, you should still pay the income tax. I.e. if I performed some service for you and you paid me 100 HIVE, I am bound to pay income tax for this amount (the value of HIVE from the day of the transaction should be used for calculations).