[2016-09-29] Spain Wants to Tax Bitcoin Miners 47%

[tyz]

Spain Wants to Tax Bitcoin Miners 47%

At the end of August, the Spanish Ministry of Finance and Public Administrations said Bitcoin trading and use as a payment method is segregated as tax-free activities. In response, bitcoin miners said their activities “should be linked to tax regulations governing economic activities.”

https://news.bitcoin.com/spain-bitcoin-miner-tax/

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[richardsNY]

No one will seriously hand over nearly half their profits to the goverment. As an individual it's easy to hide your mining operation profits. But I am not sure how that is for companies. They can either choose to lower their profits on paper to avoid losing a good portion of their profits, or be totally honest about everything. I don't think the latter will be an option for them. Especially since they can use the lack of knowledge on the government's side in their advantage.

[coinzat]

there is a very simple solution. people can still mine but secretly to avoid these taxes. otherwise, miners will stop! because it is unbelievable to pay half of the profit !

[notthematrix]

use a VPN.
its that simple.
confiscating btc is also not possible.
if you own your keys you own the bitcoin.

[Karartma1]

use a VPN.
its that simple.
confiscating btc is also not possible.
if you own your keys you own the bitcoin.

Usually it happens that they don't need to know you are mining they only heve to think or guess that.
And if they think you are mining i.e. you have very high electricity consumption but you declared your company does E-commerce, maybe, you should need to worry.
It happens the same for pot growers when they are caught because they have a constant high usage of electricity during the night to grow their plants.

Sometimes a VPN is not enough

[1 currency now]

Government officials are identifying Bitcoin as a threat that is why they are taxing the coin.

Have you noticed that Bitcoin is an opensource software? Have you noticed that Bitcoin is getting taxed even while it is opensource...?


Their game is almost finished.

[pitham1]

Government officials are identifying Bitcoin as a threat that is why they are taxing the coin.

Have you noticed that Bitcoin is an opensource software? Have you noticed that Bitcoin is getting taxed even while it is opensource...?


Their game is almost finished.

There is no connection between opensource and taxation. Taxation is on profits / wealth.
Governments will continue to tax whoever/whatever they can.

[notthematrix]

use a VPN.
its that simple.
confiscating btc is also not possible.
if you own your keys you own the bitcoin.

Usually it happens that they don't need to know you are mining they only heve to think or guess that.
And if they think you are mining i.e. you have very high electricity consumption but you declared your company does E-commerce, maybe, you should need to worry.
It happens the same for pot growers when they are caught because they have a constant high usage of electricity during the night to grow their plants.

Sometimes a VPN is not enough

In spain its very easy to lower the bill get solar panels......
and your bill can be 0.00000 if you set up right.
otherwise you move miners to iceland or a other place , it will not stop bitcoin but it will hurt spain.

[tyz]

There is an average income tax of 35-40% in Europe. For rich people, income tax is often around 50% or more. So the tax, Spain suggests for miners, it not really something special.

Government officials are identifying Bitcoin as a threat that is why they are taxing the coin.

Have you noticed that Bitcoin is an opensource software? Have you noticed that Bitcoin is getting taxed even while it is opensource...?


Their game is almost finished.

[Winner]

I agree, no one will fork over their Bitcoin to the Gov just because they say so.

Unless Bitcoin was made by the Government, they have no right to tax it. Do they feel powerless yet?

[Kprawn]

There is an average income tax of 35-40% in Europe. For rich people, income tax is often around 50% or more. So the tax, Spain suggests for miners, it not really something special.

Government officials are identifying Bitcoin as a threat that is why they are taxing the coin.

Have you noticed that Bitcoin is an opensource software? Have you noticed that Bitcoin is getting taxed even while it is opensource...?


Their game is almost finished.

It is something special, when most of that money must go into operating costs to keep the operation going. The difficulty is rising and most of

these miners have to hoard Bitcoin to sell at a higher price, when the opportunity present it self. The Chinese Bitcoin farms are already having

the advantage to run at lower electricity prices, and lower taxes. Their exchanges offer "zero" trading fees... This will kill miners in Spain.