A one-month old circular from Swedish Tax Authority Skatteverket on how to declare income from Bitcoin mining business was emerged recently.The circular was originally released on April 24th 2015, right before the May 4th tax filling deadline, but went highly unnoticed.It was only when the US Library of Congress intervened, and published a reworded document of the circular on its website, the new Swedish law came to light.And as it looks, Skatteverket deeply understood the complexities of a Bitcoin mining business before it penned down the income tax guidelines for it.It has traditionally divided the income into the three different categories — income from economic activity, hobby (employment) and capital.Considering the scale of investments required to start a full-fledged Bitcoin mining business, the tax authority has decided to wait for them to earn a surplus, before tagging it as a economic activity income business.Excerpt: “If the person mining the Bitcoins (or other digital currency) carries out the mining in a professional and cost efficient manner over a longer period with appropriate equipment; or if the activity is expected to create a surplus as measured over the full financial calculation period; and the computing capacity can be expected to generate more than 25 bitcoins a year (or the equivalent value in form of transactional fees or other virtual currency), it can be considered economic activity.” However, persons involved in Bitcoin mining as a part of hobby are liable to be put under the “income by employment” category.

Here, an individual is given a five-year exemption from paying taxes, only prior the year he/she starts generating a surplus.No VAT will be applicable on either of the income categories.Meanwhile, Bitcoin trading will continue to be tagged under the “income by capital” law.Legal The European Union has passed no specific legislation relative to the status of the bitcoin as a currency, but has stated that VAT/GST is not applicable to the conversion between traditional (fiat) currency and bitcoin.litecoin on nvidiaVAT/GST and other taxes (such as income tax) still apply to transactions made using bitcoins for goods and services.simple bitcoin ticker[1]:European Union In October 2015, the Court of Justice of the European Union ruled that "The exchange of traditional currencies for units of the ‘bitcoin’ virtual currency is exempt from VAT" and that "Member States must exempt, inter alia, transactions relating to ‘currency, bank notes and coins used as legal tender’", making bitcoin a currency as opposed to being a commodity.[2][3]how to sell bitcoin legally

According to judges, the tax shouldn’t be charged because bitcoins should be treated as a means of payment.[4]According to the European Central Bank, traditional financial sector regulation is not applicable to bitcoin because it does not involve traditional financial actors.[5]:5Others in the EU have stated, however, that existing rules can be extended to include bitcoin and bitcoin companies.[6]The European Central Bank classifies bitcoin as a convertible decentralized virtual currency.[5]:6litecoin recordIn July 2014 the European Banking Authority advised European banks not to deal in virtual currencies such as bitcoin until a regulatory regime was in place.[7]bitcoin millionaire play storeIn 2016 the European Parliament's proposal to set up a taskforce to monitor virtual currencies to combat money laundering and terrorism, passed by 542 votes to 51, with 11 abstentions, has been sent to the European Commission for consideration.[8]bitcoin calculator java

The European Commission also notably presented a "parallel" proposal aimed at preventing tax evasion techniques as revealed in the Panama Papers.[9]In 2017 it was revealed that the proposal will require cryptocurrency exchanges and wallets to identify suspicious activity.[10]KNC Miner Declares Bankruptcy – Chinese Competition Too Tough Written by on May 27, 2016 Editors Note: This post is part of a series called Featured posts, presented by Breakit.In a press release issued late Friday evening Swedish time, the Swedish bitcoin company KNC Miner informs that it has officially filed for bankruptcy.Breakit has previously reported on the company’s difficulties with increasing competition from China.In February, the company laid off somewhere around ten full time employees, which constitutes a fifth of it’s total workforce, to cut costs.The parent company, KNC Group, along with its seven subsidiaries has now decided to file for bankruptcy as a result of the changing market.

“Due to high uncertainty regarding the bitcoin block halving that occurs in July, in combination with a continued rapid capacity expansion from our competitors, the company is very unlikely to be able to fulfil it’s obligations past July.The board therefore took the decision to take the company voluntarily into receivership”, CEO, Sam Cole says.When Breakit reaches Sam Cole, he explains that the decision was driven by the bitcoin block reward halving, which means that the amount of bitcoin awarded for mining will be cut in half.“We knew that there were risks related to doing this in Sweden.We aimed for the skies, not to build a mediocre medium sized business.We got big investors on board and took a chance.But it hasn’t paid off.” The company raised $3 million (28 million SEK) i december last year but has apparently still been forced to shut down.The money was used to build a new server center.With the new center the company was able to make 80 quadrillion calculations per second.