This type of predatory taxation will only ensure that those with considerable crypto wealth will move to places like Malta. That's why much of the software development will also happen in places with crypto-friendly taxation.
By the way, your tax jurisdiction is not determined by where you bank but your place of residence. For example, when you move out of Finland, you can remain obligated to pay taxes to Finland on all or some of your income earned either in Finland or abroad depending on whether you have ties in Finland for quite some time after you move. Tax agreements between governments and laws limiting double taxation may exempt you from having to pay some taxes. It can get complicated. But one thing is certain: banking in Malta will not exempt you from paying taxes on any income earned in Malta if you are or have recently been a resident of Finland.
Then the answer is to bank in Malta for your crypto and pay taxes on only profits. It has nothing to do with the country where you reside as it is off shore. You are paying legitimate taxes in Malta. You can apply for duel nationality as well. There are going to be loopholes that the smart ones jump through. Do you have to declare your Steemit in Finland if you power down?
The tax laws are going to get messy as this is all new to us.
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Legally, tax obligations have everything to do with the country you live in. If you get caught not reporting significant income, it could mean going to prison in the worst case. It probably is mandatory to report any and all income anywhere but you might get those taxes you have already paid deduced from the taxes you have to pay where you life.
I'm still not sure what taxes I should pay from Steem income and when. I earned very little last year and none in fiat. Now the guidelines have changed.
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If you earn in Malta you are right you have to pay taxes there. If you reside in Malta and make money from other countries you will not pay double tax. I don't know all the ins and outs as I am no expert but I am reluctant to pay taxes on crypto. My problem is you may do well on some and not so well on others and be breaking even but they will want to tax you on only the good ones. To me it is a cost incurred like running a business where the cost to make the profit is tax deductible. It should be the same with this.
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What I mean is that if I continue to live in Finland but do my crypto-banking in Malta, I will continue to be fully obliged to report all of my earnings in Malta to the Finnish Tax Authority. If I fail to report those earnings and they are very significant, I'm risking criminal prosecution for tax fraud in Finland. That income may never be found out but it's possible that it will if the Maltese authorities should share information with Finland. That could happen many years after the fact. It's politics and you never know about the future.
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I understand. I just think it sucks that the government can nail you only on profits. My account was hacked last year so I lost $1200. In my eyes that should be written off against any tax they want to tax me on crypto profits.
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I think you just might be able to write it off as permanently lost. Has the South African government released any guidelines as to how cryptocurrencies are taxed?
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No the SA Government will come up with something. They are desperate to refill the coffers after all the thefts and corruption so expect something harsh. At the moment if you deposit or withdraw more than $1000 it raise red flags. There is only a couple of overpriced local exchanges that operate here.
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To bypass all that shit:
https://www.iol.co.za/business-report/economy/sas-first-cryptocurrency-atm-comes-to-joburg-14982296
It doesn't say whether you can also sell Bitcoin for fiat using that ATM, though.
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Hi markku. it will be one way system. Pay for Bitcoin and not the other way around. I saw an article about ATM's in Malta the other day where it works both ways. If they were launched all over the world that would help and would create more loopholes.
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There are Bitcoin ATMs in Helsinki metropolitan area and other larger localities. Some are two-way.
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