punch bob wrote: » Hi. I hope someone can shed light into this situation. Let's say I bought 10 ETH at €100 and sold at €850 which means I gained €7650. I know I would have paid CG tax (of about €2105) by this time. However, instead of paying tax, I invested the whole amount of €8500 from selling ETH to investing VET thinking it’ll moon. My question is how will this put me in a complicated tax situation? I know people do this but I wonder how do they manage their taxes? NB. I have never considered this due to tax obligations but it’s tempting to do so in this bull run and make the most out of it. Thanks.
Figel Narage wrote: » I've been getting FOMO for the last month but what stopped me from getting involved months ago was the tax situation and where to buy the crypto's. I guess I'll wait for the crash before considering investing but I'd need to understand it a lot more before I decide to invest
keane2097 wrote: » If you sold it you owe the €2105 regardless of what you do with the proceeds.
punch bob wrote: » Ethereum was purchased with euro using an Irish bank account while in Ireland using Binance. Then Ethereum was sold and the profits were then withdrawn to a Slovakian bank. Where would the taxes be paid? Asking for a friend. Thanks.
myshirt wrote: » Where are you tax resident? Edit: Sorry, where is your friend tax resident? Where do you live, work, etc. Where have you lived, worked, bought groceries, socialised for the last 3/4 years?
punch bob wrote: » He’s been here for long and been living and working here for many years now. I’m sure he’s a tax resident here. So, he has to pay it here despite receiving the money to a non-Irish account?
Deloitte wrote: An Irish-resident or ordinarily resident and domiciled individual is liable to Irish capital gains tax on the gains arising on the disposal of chargeable assets worldwide. A non-Irish-domiciled individual who is resident or ordinarily resident is liable to capital gains tax on the following: • Gains arising on the disposal of chargeable assets situated in Ireland at the time of the disposal • Remittances into Ireland of proceeds of gains from the disposal of assets situated outside of Ireland.
Deloitte wrote: Domicile This term is not defined in the Irish tax code. It is a complex term and is primarily a question of fact, based on the notion of an individual’s permanent home to which that person intends ultimately to return. A person can be considered domiciled in the country which is the individual’s permanent home although they are temporarily resident in another country. An individual can never be without a domicile. Generally, an individual is domiciled in the country of nationality and in which the greater part of the person’s life is spent i.e. the domicile of origin. Once an individual has reached the age of majority, “domicile of origin” can be abandoned and a “domicile of choice” can be acquired. In this situation, factors of presence and intention would be required.
jmlad2020 wrote: » Question. I have a friend who works here but started buying crypto years ago when working in Uk. A lot of the exchanges in which they used still retain a UK based address on them. Can my friend 'GIFT' the crypto to his British cousin via an exchange, as a Birthday present so he can cash out and pay for his new house, thus paying UK CGT?
suave.4u wrote: » I had some ETH and planning to sell some and would definitely cross CGT threshold of 1250 EUR. Does anyone have a referral / recommendations on the website to use to calculate.
I know that we need to declare, but is everyone doing this? What is the percentage of people declaring?
Peregrinus wrote: » Gains accrue when the asset is disposed of. If your friend is an Irish resident when the asset is sold, then any gain is chargeable in Ireland regardless of where the asset is situated, what address he uses in his correspondence with the exchange or what is done with any proceeds.Unless your friend is non-Irish domiciled. But that's unusual and if he was you would certainly have mentioned it.
Lazy Bhoy wrote: » This is an interesting answer and it is something that I was talking about with a friend of mine during the week. What we were discussing was, what would happen if you were to have a lot of crypto (Bitcoin or any other). And by a lot, I mean millions of euros worth. So if you purchased the crypto in Ireland a few years ago for a few grand (or a lot less than it is worth now) but did not dispose of them. Then after the mad gains that BTC and other crypto coins have seen lately they were suddenly worth millions. If you were to cash in and dispose of them here you would have to pay 33% CGT minus your 1270 Euro allowance. But why on earth would anybody do that? Surely when you get into those figures it would be much better to move to Malta or Germany or Japan or somewhere where there is little or no tax on Bitcoin for a few years. Then sell the bitcoins for fiat currency and either move back to Ireland or live wherever you like.
Bob24 wrote: » Yes, this is been discussed here before and of course in that scenario it makes *A LOT* of sense to move elsewhere as part of your tax planning strategy. But keep in mind that as far as Revenue is concerned, you are still considered to be domiciled in Ireland for 3 years after leaving (and this liable for Irish CGT even though living abroad). So if you want to do things by the books, you actually need to move years before you are planning to sell.
correct horse battery staple wrote: » Anyone have any trouble with local banks and large sums arriving in? last thing I need is account being frozen when a large sum arrives as my salary goes there too Will go have a chat with a financial adviser during the week, but wondering what experience has been for others.
Lazy Bhoy wrote: » Yeah, that is exactly what I meant by staying in the other country for a few years. (3 years). I don't know anybody who has enough crypto to try it. But surely with the gains that BTC have been making of late, it wont be long before we see some people taking that route.
Lazy Bhoy wrote: » Serves the government right if they do. 33% is robbery anyway so anybody with the means to avoid that is obviously going to do just that. It's a no-brainer really.
correct horse battery staple wrote: » Want to cashout a large 6 digit amount, i dont mind paying taxes (already good chunk my salary and other earnings get taken) as the gains have been so incredible, and i have paid CGT before over the last few years (kicking myself selling so much so early!), i have been using crypto since 2012. Have my purchase order from 2015 on hand as well at a well known exchange Anyone have any trouble with local banks and large sums arriving in? last thing I need is account being frozen when a large sum arrives as my salary goes there too Will go have a chat with a financial adviser during the week, but wondering what experience has been for others.
TheW1zard wrote: » I withdrew 50k in december to Revo with no problems. Ive never had a call off any bank re deposits.
bosco12345 wrote: » Surely there will have to be some sort of compromise in regards CGT for crypto trading. 33% is a complete scam for the level of risk you take trading alt coins.
relax carry on wrote: » If you wish to change the taxation laws around this then petition the department of finance and as many politicians as you can. Just a query as to why you feel that gains for this asset should be treated differently to other assets? No one is forcing you to engage in this taxable activity.
Peregrinus wrote: » Don't be silly. Why should the tax system favour riskier investments over less risky ones? It's not as though investing in crypto were a socially desirable activity; quite the opposite.
Irish_rat wrote: » Betting is free. But I guess its not an asset
bosco12345 wrote: » Fair enough, your probably right but christ am I the only one here that thinks this is bonkers? We get absolutely fisted in this country. CGT should be max 20%. End of rant
