RE: Does anyone here have a clue how TO PAY TAXES FROM EARNINGS on STEEMIT?
I wrote a blog post about the same issue https://steemit.com/taxes/@divyanthj/how-exactly-does-taxes-from-steemit-income-work
I'm not worried about taxes from steemit income because I'm going to consider only withdrawals from my steemit account as income. Here's why.
Let's say you are a manager of a company that is also in control of the budget and incentives. You have your own money invested in it. You make some budgetary decisions that yield profits. Since you control the budget, you also decide how much of it ends up in your pocket. So ultimately, you are charged a corporate tax that's on the profit calculated AFTER considering the bonuses you pay for yourself. If all of the profit ends up in your pocket, your business isn't paying any tax. You are the one paying income tax.
Although there are no laws and regulations on how steemit accounts are supposed to be treated (since they aren't registered with the government), I don't think it's unreasonable to treat it as any other corporate account. Just pay taxes on whatever you withdraw. It doesn't matter how much SBD you get from upvotes and how much of it you spend on bots.
That is a good explanation. Moreover, it depends on the tax regulations of specific countries. Therefore, every steemit account user should check the national income and corporate tax to see how it is determined by the law.
I like how responsive you are @xhevat
You mind telling me why you never posted anything? I wanted what's your reason to be here :)
Yours,
Piotr
Put it down in a simple way, the issue arises when the U.B.O. gets the money in his/her own account in the country of residence. Before that moment, they're just a crypto inside an account. The problem, in the end, will be identified not when you receive a reward for an article, but when you have converted BTC to FIAT in your Coinbase (i.e.) and transfer them to your bank account. At that point you need to refer to the jurisdiction of the country, one thing could be to officially ask the question to the Inland Revenue Dept. Here - but I say here and not elsewhere - after 60 days without a reply from a public office you're authorized to proceed and consider it as a go (silence is confirmation rule). It may be considered as a capital gain or interests. There's still debate if the BTC is money or not, go figure.
Amazing comment @f3nix
Thank you for taking the time to reply. I appreciate it a log.
I never knew about those 60 days. Is it general rule?
ps.
you're very responsive which is absolutely great and steemit community surely will benefit by having you here.
if you would ever like to keep in touch and support each other closer, then drop me a message [email protected]. This will allow us to communicate easier.
No pressure of course,
Cheers, Piotr
Yours,
Piotr
Thank you Piotr. I am very new to steemit. I have been reading more about steemit and what you guys are posting. However, i am thinking of starting to post now. I did not have much time lately, that is a part of my reason. I need to learn much more prior to being more active in steemit.
I must say that steemit community seems to be very good and supportive. Anyhow, we all have similar goals in steemit.
Thank you for sharing with me!
Regards,
Xhevat
hi @Xhevat
I agree that steemit community is more supportive than any community I encountered so far.
Thanks for your comment and I hope to hear from you sometimes. If you would ever create any post about crypto/blockchain/AI then please let me know. I will be always happy to support you, comment and upvote :)
Yours,
Piotr
hi @divyanthj
Thank you for sharing this link with me. Excellent post.
That's obviously the best solution. One simple question: how to pay those taxes from steemit? So far it seem that noone has any idea.
Take care,
Piotr