Though some countries have banned Bitcoin, some others are trying to regulate the digital currency - Sweden Brings New Bitcoin Regulations
26 May 2015, 03:11
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The new entrant to the list of the
countries that regulate Bitcoin is Sweden as the country has brought in
Bitcoin regulation that sets guidelines for imposing income tax on those
who are doing Bitcoin mining.
Nonetheless, the latest regulation by the authorities in Sweden at least shows it is not going to be banned anytime soon. In a release, Library of Congress says that on April 24, 2015, just days before the May 4 tax filing deadline, Sweden’s Tax Authority published guidelines on how to declare income from Bitcoin mining.
Titled, ‘Guidelines on the Taxation of Mining of Bitcoins and Other Virtual Currencies’ this instrument of communication from the government says that mining of Bitcoins, or of other virtual currencies, is generally set up so that it can be done from a server; because there are only a limited number of Bitcoins that can be mined.
It further says that there is a race to mine them before another party does and successful Bitcoin mining is therefore not guaranteed. However, it makes clear that under Swedish tax law there are three main forms of income: income from employment e.g. income from hobby activities; income from economic activity e.g. personal business; and income from capital.
Interestingly, income is considered to be derived from employment if it is not considered income of the other two types. However, economic activity must be carried out “professionally and independently.” It is also interesting to note that taxing Bitcoin mining would not really be easy as the law makers had not imagined such thing can also be there.
Nonetheless, the latest regulation by the authorities in Sweden at least shows it is not going to be banned anytime soon. In a release, Library of Congress says that on April 24, 2015, just days before the May 4 tax filing deadline, Sweden’s Tax Authority published guidelines on how to declare income from Bitcoin mining.
Titled, ‘Guidelines on the Taxation of Mining of Bitcoins and Other Virtual Currencies’ this instrument of communication from the government says that mining of Bitcoins, or of other virtual currencies, is generally set up so that it can be done from a server; because there are only a limited number of Bitcoins that can be mined.
It further says that there is a race to mine them before another party does and successful Bitcoin mining is therefore not guaranteed. However, it makes clear that under Swedish tax law there are three main forms of income: income from employment e.g. income from hobby activities; income from economic activity e.g. personal business; and income from capital.
Interestingly, income is considered to be derived from employment if it is not considered income of the other two types. However, economic activity must be carried out “professionally and independently.” It is also interesting to note that taxing Bitcoin mining would not really be easy as the law makers had not imagined such thing can also be there.
