Spain intends to levy a tax on currency mining operations encryption

Spain intends to levy a tax on currency mining operations encryption

The Spanish tax authorities have encryption currency mining definition in order to pay the operation of economic activities.

About to mining crypto currency supervision is gradually implemented. Although many countries have yet to implement the regulation, but the Spanish tax authorities have given bitcoin and bitcoin mining operation copycat affixed label economic activities. This new classification will be included in the scope of crypto currency mining in taxation.

According to a recent announcement, the Spanish State Taxation Bureau requirements bitcoin and bitcoin mining company copycat and individual registration. Although the move appears in an attempt to legalize crypto currency mining operations, but it also will affect the interests of mining operations; this policy will force a part of miners choose to leave.

According to Spanish economist and consultant JoseAntonioBravoMateu, encrypted currency mining jobs may pay 10%-47% tax on profits. A Spanish online magazine quoted the potential benefits of encryption currency Mateu about the new tax system:

“With the new regulations will be encrypted into the currency mining can create wealth in economic activity, mining community should make full use of any power consumption and mining equipment tax regulations.”

The miners in order to continue to profit from mining operations, they will have to continually upgrade equipment. And the increasing difficulty of exploitation will lead to an increase in the consumption of electricity. In this case, the tax relief Ordinance may be conducive to profitable mining operations.

The Spanish government countered that the introduction of these regulations is to curb the illegal activities of digital currency. The law has not been implemented, the community of Spain said encryption currency tax may have adverse effects on the blockchain technology innovation and development concerns.

At the same time, the implementation of the new tax regulations in Spain may result in other EU countries and Latin American countries to follow suit. Spain for encryption of monetary economy is holding a friendly attitude. It was also the first encryption currency trading VAT exempt European countries. Whether the new tax will have a similar impact, it is not known.

Tax loopholes found in UK cryptocurrencies

nRunaway Comment: Each country has its own different tax system, the tax standards are not the same. Recently, financial experts warned that there are major tax loopholes in the United Kingdom, the government will cause millions of tax losses. Because according to the British tax law, gambling income is not required to pay taxes. However, exactly how to define the proceeds of cryptocurrency investment is currently required by the government. But what is certain is that the randomness of some cryptocurrencies determines that this part of the investment income can be treated as gambling revenue. Therefore, the entire ecological tax issues need to be subdivided into studies, or rather complex processes. However, the market has experienced explosive growth in 2017, attracting more investment and at the same time enacting government rules and regulations in 2018 to keep pace.n
nTranslation: Annie_Xun
Each country has its own set of tax assessment and tax collection systems, some of which are tougher. One of the major problems that governments have to encrypt money is the difficulty of taxing the profits of the related transactions. Her Majesty’s Revenue and Customs learned a great lesson from it.n
Financial experts warn that a UK tax return could exploit a tax loophole that is free of tax on cryptocurrencies. It has been reported that this may result in millions of tax losses for the government.n
n
Gambling incomen
Last year, the capacity of cryptocurrency market rose by 2000%, HMRC expected to increase the number of profit returns on the tax returns. However, the tax officer sees much less than expected because tax loopholes expose the cryptocurrency profit to non-taxable gambling income.n
HMRC spokesman said:n
n”We generally do not tax gambling income, because usually it is not classified as transaction income, but in some cases factors such as skill levels and organization levels make the activity more taxable transaction revenue.” Each case will depend on In their own case. “n
nBarrister Etienne Wong commented that British regulations could confuse amateurs with investors because they do not know who is a gambler and who belongs to a taxable investor.n
n
Outdated policyn
Since 2014, the existing laws and regulations have not been updated, when the bitcoin value is still around 500 US dollars. If buying and selling cryptocurrencies is an investment, participants will have to pay capital gains tax. The basic tax rate of over £ 11,300 ($ 15,600) is 18%, while the high tax rate is 28%.n
Saffery Champness Certified Public Accountant Robert Langston said:n
n”It’s hard to know how profits from bitcoin, the mainstream cryptocurrency, can be treated as gambling revenues.It is conceivable that some cryptocurrency markets are random and therefore profits can be treated as gambling revenues.”n
nWhat is certain is that France and Germany want to further curb the cryptocurrency and these guidelines will soon be revised. If 2017 is a big bang in cryptocurrencies, then 2018 must be the time to regulate.n

Tax loopholes found in UK cryptocurrencies

nRunaway Comment: Each country has its own different tax system, the tax standards are not the same. Recently, financial experts warned that there are major tax loopholes in the United Kingdom, the government will cause millions of tax losses. Because according to the British tax law, gambling income is not required to pay taxes. However, exactly how to define the proceeds of cryptocurrency investment is currently required by the government. But what is certain is that the randomness of some cryptocurrencies determines that this part of the investment income can be treated as gambling revenue. Therefore, the entire ecological tax issues need to be subdivided into studies, or rather complex processes. However, the market has experienced explosive growth in 2017, attracting more investment and at the same time enacting government rules and regulations in 2018 to keep pace.n
nTranslation: Annie_Xun
Each country has its own set of tax assessment and tax collection systems, some of which are tougher. One of the major problems that governments have to encrypt money is the difficulty of taxing the profits of the related transactions. Her Majesty’s Revenue and Customs learned a great lesson from it.n
Financial experts warn that a UK tax return could exploit a tax loophole that is free of tax on cryptocurrencies. It has been reported that this may result in millions of tax losses for the government.n
n
Gambling incomen
Last year, the capacity of cryptocurrency market rose by 2000%, HMRC expected to increase the number of profit returns on the tax returns. However, the tax officer sees much less than expected because tax loopholes expose the cryptocurrency profit to non-taxable gambling income.n
HMRC spokesman said:n
n”We generally do not tax gambling income, because usually it is not classified as transaction income, but in some cases factors such as skill levels and organization levels make the activity more taxable transaction revenue.” Each case will depend on In their own case. “n
nBarrister Etienne Wong commented that British regulations could confuse amateurs with investors because they do not know who is a gambler and who belongs to a taxable investor.n
n
Outdated policyn
Since 2014, the existing laws and regulations have not been updated, when the bitcoin value is still around 500 US dollars. If buying and selling cryptocurrencies is an investment, participants will have to pay capital gains tax. The basic tax rate of over £ 11,300 ($ 15,600) is 18%, while the high tax rate is 28%.n
Saffery Champness Certified Public Accountant Robert Langston said:n
n”It’s hard to know how profits from bitcoin, the mainstream cryptocurrency, can be treated as gambling revenues.It is conceivable that some cryptocurrency markets are random and therefore profits can be treated as gambling revenues.”n
nWhat is certain is that France and Germany want to further curb the cryptocurrency and these guidelines will soon be revised. If 2017 is a big bang in cryptocurrencies, then 2018 must be the time to regulate.n

The Portuguese Consumer Protection Association advises the government to tax Bitcoin investors

nBankruptcy comment: Deco, the Portuguese Consumer Protection Association, recently sent a proposal to the relevant officials of the Portuguese Ministry of Finance and the European Commission saying tax on cryptocurrencies should be taxed on the basis of the tax rates on proceeds from equities and other financial instruments because the current cryptocurrencies Investors do not pay taxes for the traditional investors is not fair. Although the Portuguese government is willing to take such measures, it seems that it does not intend to formulate a specific regulatory policy, so this issue should not be solved within a short period of time.n
nTranslation: Inan
As the cryptocurrency ecosystem has been significantly adjusted in some countries, Bitcoin has broken the $ 10,000 mark. In this case, DECO, a consumer protection society in Portugal, wants the government to tax cryptocurrency investors. According to Sábado, a local media, the group proposed to the Portuguese Ministry of Finance and members of the European Commission responsible for consumer protection to impose a tax on cryptocurrencies.n
According to reports, DECO said that the standard tax rate of 28% applies not only to proceeds from equities and other financial instruments, but also to profits from crypto-currency transactions. DECO revealed this move in its magazine “Proteste Investe” for traditional investors.n
The group said it is not fair that traditional investors must pay nearly a third of their profits, whereas cryptocurrencies do not pay penny. Its proposal reads:n
n”What is the reason for not taxing such financial behavior? Those who lend their savings to ordinary depositors and investment firms in the country and create wealth and employment should watch as the government take away nearly a third of its profits (individuals Income and capital gains tax rate is usually 28%.) How can justify this inequality? I think it is difficult.n
nDECO economist André Gouveia reiterated that all other types of investments require a 28% tax, so it is unfair to invest the money in a cryptocurrency without pay.n
As previously reported by the CCN, despite the lack of legislation, the Portuguese government has always wanted to tax Bitcoin users. Its Ministry of Finance made it clear that Bitcoin does not have a legal framework in the area, but still points out that if cryptocurrency is earned through professional activities, it should be taxed.n
According to Sábado, the Portuguese government currently leaves the potential for bitcoin regulation to the EU as if it had its financial regulators, such as the Central Bank of Portugal, work with the EU on any issues related to cryptocurrencies.n
Asked about the issue, Jo? O Galamba, vice chairman and party spokesman of the Parliamentary Group, said: “Bitcoin should be regulated at the European and G20 levels,” adding that a “separate initiative” will be launched To the reaction.n
Sábado also spoke with left and right-wing parties. The left clarified that there was no plan to take any action on cryptocurrencies, while the right-wing said they are “closely following” the topic, with one of the parties evaluating the need for regulatory oversight.n
CCN has previously reported that Portugal’s Santander Totta recently started to block bitcoin-related transactions, diverting some customers to other banks. Mário Centeno, Portugal’s finance minister and president of the Euro group, reportedly said he believes the regulator is overseeing the bitcoin’s influence.n

Indian tax authorities send tax notifications to 500,000 Bitcoin traders

nRunaway Comment: Although the Indian regulators have not yet clear the management rules and guidance for the cryptocurrency industry, but the relevant government departments have indeed conducted more investigations, from their own point of view of management. At present, the Indian income tax department has started to send tax advice to some 500,000 Bitcoin traders across the country, regulating transactions. At the same time, the local bitcoin exchange also made corresponding efforts, hoping to self-adjust before the government introduced specific policies.n
nTranslation: Inan
The Indian income tax department is sending notices of taxation to 500,000 Bitcoin adopters who conduct cryptocurrencies transactions there.n
Key Indian tax officials are expanding their investigation of Bitcoin investments and transactions and visited at least nine bitcoin exchanges throughout the country last week. At that time, it was reported that the tax authorities suspected that there was a tax evasion in the field and “investigation” had been conducted to clarify the identities of investors and traders and the transactions they conducted, the identity of the relevant bank account holder and other details.n
Finally, a spokeswoman for the tax department confirmed the news, claiming information was collected through the Bitcoin Exchange, its investors and sources of investment to tax the related conduct.n
For more than a week now, the income tax department of India has set its sights on 400,000-500,000 HNWIs across the country and found them trading on bitcoin exchanges in India.n
According to the Press Trust of India, the largest news agency in the region, official sources disclosed that between 400,000 and 500,000 of the roughly 2 million registered users on nine exchanges have been engaged in bitcoin transactions and investments .n
A senior tax official who understands the “investigation” said:n
n”The tax department is investigating charges of tax evasion after looking at the records of individuals and entities and is sending a notice to them that they will have to pay capital gains tax on bitcoin investments and transactions.”n
nThe Bitcoin Exchange in India has formed a self-regulating body to develop the standard KYC and AML norms because the regulatory and guidance of the local regulators is not clear. Earlier this month, the Bank of India has issued a warning against the investment or use of cryptocurrencies, such as bitcoin. In mid-November, due to a request for a clear legal status of Bitcoin in India, the Supreme Court of India has urged relevant government departments to regulate bitcoin.n

South Africa wants to track and tax Bitcoin transactions

nRunaway Comment: The South African Revenue Agency is currently engaged with some well-known technology companies in the hope of tracking and taxing increasingly popular bitcoin deals on the ground. The move is in line with the tax authorities in the United States, South Korea and India and shows that South Africa is also stepping up its participation in this emerging market. In the future, we may see more similar initiatives.n
nTranslation: Inan
The use of Bitcoin in South Africa is rapidly growing, mainly for trading. Encrypted currency is currently very popular there and people even use it to pay for traffic fines. This situation prompted the South African Revenue Agency (SARS) to explore ways to ensure that all taxes that were taxable were not missed. It is reported that the agency is in talks with leading international technology companies to find an effective way to track the country’s cryptocurrency transactions for taxation.n
Dr. Randall Carolissen, SARS research director, said:n
n”As you can imagine, blockchain technology is hard to understand. Because we have very little information to find, we are talking to some of the top technology companies in the world. They are also providing similar services to Canada and the United Kingdom, and we want to be able to handle this. Technology. “n
nHe added that the agency is also consolidating its ties with the Reserve Bank of South Africa (SARB) to study ways to better link cross-border outflows with capital inflows to ensure that people do not hide much.n
n
global cooperation n
Dr. Carolissen explained: “Right now, we are treating cryptocurrencies as capital, the kriging, and if you buy cryptocurrencies at a particular point in time and then sell it, you may We experience capital appreciation and then we treat it as a capital gains tax. “n
According to him, SARS is working with similar agencies in different countries to address this issue through the implementation of new policies by the Organization for Economic Co-operation and Development (OECD). This cooperation is said to provide them with detailed advice on handling cryptocurrencies.n

Carolissen said:n
n”We are part of the OECD working group and naturally include this in our policy environment, so that’s where we come from. In fact, South Africa is considered one of the key players in this cryptocurrency environment.”n
nIt is not surprising South African interest in the field, given that the tax authorities in the United States, South Korea and India have recently started to study bitcoin. At the moment, in addition to forcing local exchanges to report all transactions and disclosing deals to citizens, it is unclear what steps these regulators can take to track such deals.n

South Korea announced plans to levy taxes on encrypted currency users seeking to obtain transaction data from exchanges

nRunaway Commentary: On Tuesday, the 2017 National Tax Administration Forum (2017), co-hosted by the National Tax Administration Reform Committee of the National Tax Service and the Korea Institute of Public Finance, Tax Administration Forum) on its plans to tax cryptocurrencies such as bitcoin, and plans to force the cryptocurrency exchange to submit user transaction data, while also considering whether the tax code needs to be amended to do so.n
nTranslation: Clovern
South Korea’s National Tax Service announced plans to tax cryptocurrencies, including bitcoin. The agency is also exploring ways to force crypto currency exchanges to hand over their user transaction data.n
n
South Korea’s cryptocurrency tax plann


 n
The National Agency for Tax Revenue (NTS) was announced on Tuesday by the National Tax Administration Reform Committee and the 2017 Korea National Public Finance Institute’s 2017 National Tax Administration Forum (National Institute of Tax Administration, Tax Administration Forum) announced a tax plan for cryptocurrencies such as bitcoin.n
“Korea Business” reported that NTS “decided to push forward the income tax and transfer of income tax on virtual currency plans.” “South Korea Times” quoted NTS officials in the forum said:n
n”We will be taxing virtual currencies such as bitcoin, which should be taxed on the principle of ‘income tax’ because the virtual currency belongs to assets such as real estate or securities.”n
nHank Kyung-soo, deputy director of the value-added tax department, underlined the importance of collecting “detailed historical data on both parties to the transaction and how the tax is traded.” If the agency was able to find a way to get the data, he said, “If this is done, it is possible to achieve full taxation.” To that end, he said:n
n”We are discussing with planning agencies such as the Ministry of Finance how to force the virtual currency exchange to submit transaction data.”n
nn
Modify the tax lawn
Prof. Kim Byung-il, Department of Economics and Business Administration, Jiangnan University, pointed out that overseas advanced countries have imposed taxation on revenue and transfer income related to cryptocurrencies.n
He explained that although there is a need to set standards for classifying digital assets and measuring their fair value, “it is still possible to impose enterprise income tax, corporate tax, inheritance and gift tax without amending the law.” However, he considered it necessary to “amend the Income Tax Law or impose a transaction tax” in the case of transfer tax.n
NTS also said at the forum that it is necessary to amend the current tax law to levy income tax on the profits generated by the encrypted currency transactions.n
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Not yet ready next year to amend the tax law on this issuen
Kim Dong-yeon, South Korea’s deputy prime minister and finance minister, held a press conference last week at the Sejong government office. He disclosed that tax issues such as cryptocurrencies such as bitcoin are still under discussion and Etoday quoted him as saying:n
n”We have not yet progressed to put this issue into the tax law revision next year.”n

Australia promulgates the “double taxation” of the special currency


nnThe issue of double taxation in the sale and consumption of the Australian special currency has caused dissatisfaction with the local bitcover community, so last year the government announced plans to make adjustments. At present, the Australian government has proposed a laws and regulations, once the two houses through the written law, you can eliminate the purchase of special currency tax, as a physical currency to treat. And to consolidate Australia’s reputation as a global financial technology center.n
nTranslation: Annie_Xun
The Australian government has proposed a bill to honor the long-term commitment to address the issue of “double taxation” in encrypted money.n
Australianers who now buy or spend an encrypted currency must pay GST, goods-and-services tax. This situation has been criticized by the local local community. In March 2016 the government announced plans to solve the problem, cancel the purchase of Bitcoin tax.n
Now that the budget has been released since the budget has been released over the past few months, the Australian government has proposed another law, if passed, the cancellation of the currency purchase tax will be written into the law. In a September 14 statement, the Australian Finance Ministry said the plan would “consolidate Australia’s reputation as a global financial technology center.”n
The government explained:n
n”The bill will ensure that Australian citizens who buy digital money will no longer pay GST taxes and treat the digital currency in the GST currency tax system, which will be traced back to July 1, 2017, according to the 2017 budget statement day”.n
nThe initiative is part of the Australian financial technology development work, including the promotion of local encrypted monetary ecosystem.n
n”The bill will allow new digital currency innovators to operate more easily in Australia because the government has taken steps to promote domestic employment and wage increases.”n
nIt is not yet clear when to discuss and amend the bill. Australia to implement the bicameral system, that is to say the relevant laws and regulations must first be unanimously approved by the two houses, it may become a national law.n