Spain wants to tax Bitcoin Mining

Gradually, the regulatory initiatives towards digital currencies and mining activities become more concrete. While still retaining many other countries, the Spanish tax authorities and Bitcoin- Altcoin mining have classified as taxable economic activity. In the last letter, of the National Tax Directorate of Spain, and Bitcoin- Altcoin mining companies and individuals will be prompted to register. How seriously this call is, however, taken by the mining operators, is questionable. Nevertheless, a strict application or interpretation of those provisions mean that the mining profitability of many operators is in danger.

According to the Spanish business and tax consultant, Jose Antonio Bravo Mateu, it can be expected that the taxation of mining income is estimated anywhere between 10% and 47%. Rising energy costs through higher mining Difficulty and corresponding hardware investments could Depreciation be quite advantageous. However, doing so also the net income from profits is lower, which could be used for future investments. Correspondingly large uncertainty is currently, since the taxation of many is seen as a barrier to investment. Consequently, there is concern that characterized the development of the block chain technology could be adversely affected.

In addition, there is also the question of how much influence these new tax regulations other countries, especially the EU. So far, Spain has shown to be very susceptible to digital currencies. It is one of the first European countries to Crypto currency transactions has not exempt from VAT.

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