95 sats \ 11 replies \ @davidw 27 Nov 2023 \ on: Stacker Saloon
Speaking to my Uruguayan accountant today. Anyone got any questions they’d like me to ask?
Just been told that no one really knows how to treat BTC the asset in 🇺🇾.
Regulation was proposed but never passed. Capital gains not really currently applied or collected (12% for other financial assets). I had previously assumed it was so.
Businesses or merchants can report or not report transactions performed with BTC, definitely gray area & no laws expecting or compelling you to do so.
I was given the anecdote of a client who was degenerative trading. His balances kept increasing and so the bank asked some questions. He told them what he was up to, and the bank waved him on his way and said nothing more, allowing him to continue profiting. No tax man knocking at his door. No expectations. Sound like somewhere you want to live? 😄 Can’t imagine it completely continues, but for now.. just goes to show the geoarbitrage opportunity here.
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Well then... 🇺🇾 is another country to add in "Place to live", 🇸🇻, 🇦🇷 ... I see a "theme" with this flags... blue, white, sun u other symbol...
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Huh. That seems... remarkable.
Makes me think of Puerto Rico, in the States (sort of.) They have an extremely generous tax policy once you establish residency. Surely they'll change that, eventually, but I also wonder if they'll make it retroactive and try to claw back tax revenue on previous capital gains.
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True, but even if they do worst case is 12%.
Already drastically lower than the 20% in U.K, where I can only see it going higher because “climate change”
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That’s right, stay in the goldfish bowl. Much safer there
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Scenario:
I am a merchant that accept payment in BTC
How I declare those income?
It's like other state when you need to add those btc as a "buy" stock, and then "sell" and paid double tax?
My 2cents
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It's incredibly how we went for accountant working for people that have a lot to account for, to accountant as a compliance mechanism to fear the state.
Old
- I want to account the amount of corn I have, I am a lazy person, could you do it for me?
New
- You need an external auditor to inform the state what you have and pay a tax.
If I forget about that, just ask how to legally avoid paying tax using bitcoin, I am pretty sure you will need a lawyer too.
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You’re right. The meeting is mostly for business stuff, but still will talk personal finances.
Sadly, governments over-regulate and create countless rules and regulations that make the simple math or keeping up with the various schemes nigh on impossible for someone not focused on it full-time.
In the absence of that, we would require a fraction of the amount of legal & financial professionals. Innovation would boom and velocity of money would speed up.
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It's insane how "you" are responsible of inform about "your" movements to an external entity (state) and if you forget something it is going after you.
Could be much more easy to said to this external entity, "What do you know?" and then "Ok, I agree with that, here are my taxes", I can't believe how 100% of the responsibility of tax declaration is in our side.
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Does he have enough sats stacked? But then again, how much is enough.
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