Bitcoin mining: taxes on creation of cryptocurrency

Bitcoin mining as a business leads to tax payments.

Bitcoin, Ethereum and other cryptocurrencies have experienced a real hype in recent years. As anarchic currencies from the Internet, they have a reputation for giving their traders quick riches. But in profitable trading and especially in mining, i.e. the creation of Bitcoins and Co., taxes are due above certain amounts. So if you are busy mining Bitcoin and let your graphics cards run hot, you should perhaps contact a tax advisor.

Note: I am not a tax advisor and at this point I am only giving the results of my research. If you have any questions, special concerns or taxable income, please contact an appropriate specialist.

Bitcoin mining and trading in cryptocurrencies - both can result in tax liability. Bitcoins and taxes often belong together.

Bitcoin mining and trading in cryptocurrencies - both can result in tax liability. Bitcoins and taxes often belong together.

Bitcoin mining in the blockchain: taxes are due

Anyone who mines and creates new blocks in the blockchain receives brand new bitcoins for it. If it is successfully incorporated into the digital value chain, this is 12,5 units of the cryptocurrency per block. At the current rate (April 19, 2018) that corresponds to EUR 82.471,75. Everyone should notice that this is quite a high turnover. Of course, the tax office too.

But not only with excessive mining with the aim of six-, seven- or eight-digit euro amounts, but also with speculative business and occasional mining with the generation of smaller profits, taxes must be paid to the tax authorities depending on the level of income. In the following I have summarized for you which amounts should be kept in mind when trading Bitcoins or Bitcoin mining.

Recommended reading: Hardware wallets for Bitcoin, Dash, Ethereum, Litecoin and Zcash

Bitcoins: when do taxes become due?

There are different grades of income, each of which leads to a different taxation. The following overview is only intended as a guide. How it behaves in individual cases, you should clarify with the tax office or a tax consultancy.

  • "Income from other services" up to EUR 256 per year: tax-free
  • Profits from the sales transaction (income minus expenses from trading) over 600 euros per year: Will be taxed
  • Bitcoin mining in commercial operations (i.e. with the intention of making a profit): Must be registered and taxed
  • Sales tax / sales tax does not apply because income is not directly related to the mining service and there is basically no service recipient.

More information and details

More detailed explanations of the individual income models, the need for a trade license for profit-oriented mining and the offsetting of losses in the event of negative trading is available from CIO. In the article in the specialist magazine, the individual points are examined again in detail. If you yourself have experience with Bitcoin, Ethereum, other crypto currencies and their creation or taxation, please leave a comment!

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1 comment

  1. the boy says:

    Lobbyism, which is why there is resistance from many states. For comparison: Tariffs on imported agricultural products through the EU: Beef 69% import taxes Pork 26% import taxes Cars imported into the EU from the USA are taxed at 10%. In contrast, the USA tax all these products on imports into the states at 2,5%. Conclusion: The USA are not the interferers, we are the interferers, and that's that. Better to do some research before you parrot the newspaper filth of the journaille scum. The US has every right to do the same to us, they have let this EU insolence sit on them for too long.

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