Spain to Tax its Bitcoin Miners up to 47% of Profits

A latest notice from the official taxation authority ter Spain sees bitcoin mining fall under the purview of an economic activity, opening cryptocurrency mining to taxation.

Bitcoin and cryptocurrency miners ter Spain will see taxation of their profits, a latest notice issued by the country’s National Directorate of Tax exposed.

Very first reported by Spanish industry publication CriptoNoticias, the fresh directive would require all cryptocurrency miners to register themselves with Spanish authorities before submitting taxes on mining-earned profits.

Citing reasons for the fresh tax measures, the report sees curbing money laundering, tax evasion and the ‘possible’ relation to cybercriminal activity and implements such spil ransomware.

While the fresh tax rule sees the light of day ter theory, there is the task of Spanish authorities project on enforcing it to permissionless cryptocurrency miners beyond established or professional, large miners. Notably, the Spanish Ministry of Finance will be responsible for implementing the tax rule. The authority will reportedly hire bitcoin and cryptocurrency specialists, spil well spil training officials spil a means to identifying all miners. Few details are known at this juncture.

Speaking to the publication spil an experienced te the matter, Jose Mateu, an economist and tax advisor exposed that the tax will be levied on a quarterly onderstel to start with, before turning into a yearly tax collection.

He also sees miners facing taxes anywhere inbetween 10% to 47%, from the profits of mined coins.

Spain is also among the notable members of the European Union lobbying to establish a regulatory framework for the largely permissionless cryptocurrency ecosystem, despite establishing bitcoin spil a tax-free currency te sales transactions.

The freshly imposed tax for cryptocurrency miners comes te the months after Spanish law enforcement seized six bitcoin mines that were allegedly used by a criminal network involved ter the illegal distribution of pay-TV channels te the country.

Paying heed to Spain’s lead with the fresh taxation, other countries te Europe and could see the specimen spil a precedent to impose their own taxes on miners. Latin American countries could also go after suit ter a region where cryptocurrency miners see operations due to lower tens unit and labor costs.

Pics from iStock and Shutterstock.

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