Welcome to BeerMoneyForum.com - BIGGEST MAKE MONEY FORUM ONLINE

[ElPaule]

The German Federal Ministry of Finance has published a draft on the taxation of cryptocurrencies, which takes a position on the taxation of Proof of Stake (PoS) revenues. Income from non-commercial staking is considered tax-free if these profits are not sold for a period of more than 10 years.
This directive, which is still in the legislative process, is currently a proposal and not yet binding on the tax office or tax courts.
Currently, the 10-year holding period is still heavily debated but it is a positive signal that non-commercial stakers have the opportunity to sell gains from crypto investments tax-free at all.

 

[Brain]

Well this will be a good idea as the stakers wouldn't have to pay tax but I think the proposed number of years is too much that might not really make sure to the people

 

[ElPaule]

Well this will be a good idea as the stakers wouldn't have to pay tax but I think the proposed number of years is too much that might not really make sure to the people

there are many investments that have that long lock-in times. So I think it is fair to get out without paying any tax after ten years. If you cash out before, there is a tax of capital gains. This is absolutely ok in my humble opinion.

 

[Corzhens]

Although this news is not implemented yet and is considered just a plan in the process but I am quite confused with that 10 years in the clause. I wonder what the relation of the 10 years staking to the taxation. It escapes me for the rationale of that.

 

[gammarays]

That's a very good policy to encourage crypto users to save. I don't think staking for 10 yèars can give one a desired return. Anyway you can benefit from the rise in value of the token.

 

[Pousinha]

Good initiative, even if I think to stake for a so long period may become too risky, due to the strong fluctuation of the cryptocurrencies'value along the time. If it happens a very good rise to the moon of a staked cryptocurrency and the 10 years timeline is not reached yet, the investor/trader must choose between paying taxes or lose the increasing value benefit. Sometimes could get more convenient to pay taxes.

 

[Wisdom01]

although ten years is actually too much ,I think the amount should be reduced , because the highest some people could hold coin is just 5 years and that's enough for them.,I know that the authorities wants to encourage more holder probably why they are implementing this

 

[Horia_10]

This is the same as investing in government schemes that are offered for a 10 year tenure and cashing out early makes you loose 10% of your deposit , this is nothing but a benefit to the authorities and a country's central power since when the people have invested in and are not looking to trade for cash , the reserves will remain stable else if market moves up and people cash out some will become very rich others who did'nt Boughy will become lesser so that's the storyline .

 

[Wisdom01]

This is the same as investing in government schemes that are offered for a 10 year tenure and cashing out early makes you loose 10% of your deposit , this is nothing but a benefit to the authorities and a country's central power since when the people have invested in and are not looking to trade for cash , the reserves will remain stable else if market moves up and people cash out some will become very rich others who did'nt Boughy will become lesser so that's the storyline .

looking at it in another direction ,I feel when people actually stakes and then hold for long they are likely to earn interest , so the government want more foreign inflow from staking and also people to save their flat and reduce inflation ,it's a plan and the government know why they intiated such plan

 

[fiery phoenix]

It is definitely good news for crypto stakers,but the duration is too long, a lot can happen in 10 years in the crypto space.Crypto is volatile and can make a massive crash anytime and people might make massive losses long term just because they want to escape taxes.Not only that,cryptocurrencies are still trying to find their acceptanc and stability and some cryptos are being delisted and removed by exchanges,if that were to happen whilst someone is in drawdown on staking it would be painful because they are still waiting forc10 years they cannot do anything unless the exchange prompts them and allows to cancel their staking agreement

 

[Wisdom01]

It is definitely good news for crypto stakers,but the duration is too long, a lot can happen in 10 years in the crypto space.Crypto is volatile and can make a massive crash anytime and people might make massive losses long term just because they want to escape taxes.Not only that,cryptocurrencies are still trying to find their acceptanc and stability and some cryptos are being delisted and removed by exchanges,if that were to happen whilst someone is in drawdown on staking it would be painful because they are still waiting forc10 years they cannot do anything unless the exchange prompts them and allows to cancel their staking agreement

you are right , because no one knows what could happen in the crypto currency period during that year , using the Luna huge fall for example ,it probably have thought some people lession , about investing and holding coin ,even top coins could get affected that the message

 

[fiery phoenix]

you are right , because no one knows what could happen in the crypto currency period during that year , using the Luna huge fall for example ,it probably have thought some people lession , about investing and holding coin ,even top coins could get affected that the message

An acceptable period of time would be at most 3 years.If they were to take a survey on crypto staking around the world they will find out that 2 years is the maximum holding period that most retail stakers use.That 10 year period is used by large firms and institutions who don't have to worry about their capital amount

 

[Ben Kempton]

although ten years is actually too much ,I think the amount should be reduced , because the highest some people could hold coin is just 5 years and that's enough for them.,I know that the authorities wants to encourage more holder probably why they are implementing this

One of the main reasons why they are deliberately imposing the ten year period is because they do realise that no one would actually stake coins for that long and this is why they might have purposely introduced such laws. When the government wants to ban something, they sometimes introduce policies that make it really hard for people to avail those things that are banned.

 

[Wisdom01]

One of the main reasons why they are deliberately imposing the ten year period is because they do realise that no one would actually stake coins for that long and this is why they might have purposely introduced such laws. When the government wants to ban something, they sometimes introduce policies that make it really hard for people to avail those things that are banned.

you are right ,it's like they are more wiser ,they actually already know the kind of benefit that won't be used more , only few would be able to hold for that ten years ,so they are just intiating help that won't be used ,to me it's just like wastage ,why didnt they make it two or three years ,atleast it's more better

 

[Ben Kempton]

you are right ,it's like they are more wiser ,they actually already know the kind of benefit that won't be used more , only few would be able to hold for that ten years ,so they are just intiating help that won't be used ,to me it's just like wastage ,why didnt they make it two or three years ,atleast it's more better

I just hope that they are not taxing much when it comes to taxing cryptocurrency holders and this is the only thing cryptocurrency holders could hope for. I do not think that there is anything wrong with paying taxes because taxes make a country successful. However, the problems starts when the government start imposing huge taxes and this increases inflation in the country.

 

[Wisdom01]

I just hope that they are not taxing much when it comes to taxing cryptocurrency holders and this is the only thing cryptocurrency holders could hope for. I do not think that there is anything wrong with paying taxes because taxes make a country successful. However, the problems starts when the government start imposing huge taxes and this increases inflation in the country.

huge taxes would just create more problem for traders , because when they can't meet up they would quit trading ,it discourage traders from investing into the market ,the traders dosent always make profit ,most actually make loss too ,I actually wish the government knows about this ,but they are concerned about the profit side

 

[Ben Kempton]

huge taxes would just create more problem for traders , because when they can't meet up they would quit trading ,it discourage traders from investing into the market ,the traders dosent always make profit ,most actually make loss too ,I actually wish the government knows about this ,but they are concerned about the profit side

The fact is that it is not only cryptocurrency traders who might suffer, but I think that even many stock traders might also suffer when the taxes are imposed. My government's tax rate is around 12.5 on share trading and i must say that it is quite high considering the fact that the stock market is not gaining that much.

 

[Wisdom01]

The fact is that it is not only cryptocurrency traders who might suffer, but I think that even many stock traders might also suffer when the taxes are imposed. My government's tax rate is around 12.5 on share trading and i must say that it is quite high considering the fact that the stock market is not gaining that much.

am not even sure if people in my country are so interested in stock trading like before ,many are now in earning through cryptocurrency ,so the government won't be able to just place tax like that ,and that's why the government might not even bother about taxing stock market

 

[Horia_10]

10 years is a long period to hold a stock and many investors dont hold a stock for that much longer ; Stock market investing in any country is highly risky ; and it depends upon how the country is performing in global financial markets ; if it is not performing that well then the Country doesn't gets enough foreign direct investments ; which dilutes the reserves of it ; so people are moved away ; and if the stock markets are taxed too ; people won't invest anything at all in the markets .

 

[microunit]

10 years Is I think too much, as by that time there will be alot of movement in that specific currency that has been staked, example would be that depending on the currencies nature like if it is inflationary then eventually it will get lower in its value as it is inflationary then that is really bad in this case of being held for 10 years