Taxation of bitcoin miner hosting company

1. In our country, it is forbidden to open Bitian mine< The central information office of the people's Bank of China, the Ministry of instry and information technology, the State Administration for Instry and commerce, the China Banking Regulatory Commission, the China Securities Regulatory Commission and the China Insurance Regulatory Commission
notice on preventing the risks of token issuance and financing In essence, the so-called "virtual currency" such as ether currency is a kind of unauthorized illegal public financing behavior, which is suspected of illegal selling token tickets, illegal issuing securities, illegal fund-raising, financial fraud, pyramid schemes and other illegal criminal activities. Relevant departments will closely monitor relevant developments, strengthen cooperation with judicial departments and local governments, strictly enforce the law in accordance with the current working mechanism, and resolutely deal with market chaos. If suspected crimes are found, they will be transferred to judicial organs

the token or "virtual currency" used in token issuance financing is not issued by the monetary authority, has no monetary attributes such as legal compensation and compulsion, does not have the same legal status as currency, and cannot and should not be used as currency in the market< (2) no organization or indivial is allowed to engage in the financing activities of token issuance illegally. Organizations and indivials that have completed the token issuance and financing should make arrangements such as refund, reasonably protect the rights and interests of investors, and properly handle risks. Relevant departments will seriously investigate and deal with the activities of token issuance and financing that refuse to stop and the illegal behaviors in completed token issuance and financing projects< 4. Financial institutions and non bank payment institutions shall not carry out business related to token issuance and financing transactions

financial institutions and non bank payment institutions shall not directly or indirectly provide procts or services such as account opening, registration, trading, clearing and settlement for token issuance and financing and "virtual currency", It is not allowed to underwrite insurance business related to token and "virtual currency" or include token and "virtual currency" into the scope of insurance liability. Financial institutions and non bank payment institutions shall report to the relevant departments in a timely manner if they find clues of violation of laws and regulations in token issuance financing transactions< 5. The public should be highly alert to the potential risks in the financing and trading of token issuance

there are multiple risks in the financing and trading of token issuance, including the risk of false assets, the risk of business failure, the risk of investment speculation and so on. Investors should bear the investment risk on their own, and hope that the majority of investors will be wary of being cheated

for all kinds of illegal financial activities carried out by using the name of "currency", the public should strengthen the awareness of risk prevention and identification ability, and timely report relevant illegal clues.

2.

According to the regulations of notice 2014-21 of the IRS:

1. The information range of virtual currency payment is consistent with that of other property payment

2. Virtual currency paid to service providers and independent contractors should be taxed, and the tax rules of freelance also apply to virtual currency. Taxpayers usually have to get form 1099-MISC

3. When using virtual currency to pay wages to employees, they must also pay taxes, and they also need to pay federal income tax and payroll tax

4. The third party accepting virtual currency settlement payment on behalf of the merchant must report the payment status in form1099-k, payment card and the third party network dealer

5. Based on the fact that the virtual currency in the hands of taxpayers is a kind of capital asset, the gains or losses in the transaction of virtual currency and the sales of virtual currency need to be taxed

extended information:

legal status of bitcoin in China

in China, the regulations on the administration of RMB prohibit the proction and sale of token tickets. Because there is no clear judicial interpretation of the definition of token ticket, if bitcoin is included in the "token ticket", the legal prospect of bitcoin in China will face uncertainty

the notice of the Ministry of culture and the Ministry of Commerce on strengthening the management of virtual currency of online games (Wen Shi Fa [2009] No. 20) on June 4, 2009 stated that the application scope of virtual currency of online games was defined for the first time, and the distinction between the current virtual currency of online games and the virtual props in the game was made; At the same time, the notice said that the "notice" stipulates that enterprises engaged in related services must be approved before they can operate< br />

3. In the digital currency community, bitcoin is considered as currency, but according to the 12.5 notice of the central bank and other five ministries and commissions, bitcoin is defined as a special Internet commodity, and people can buy and sell it freely at their own risk. Last August, Germany defined bitcoin as a unit of account, a private currency. Some people think that bitcoin is a kind of taxable property, while others think that bitcoin is money.

4. The standard of charge is different. At present, domestic mining machinery manufacturers and trading platforms basically adopt the way of mining machinery trusteeship. You only need to buy their cloud computing power to mine. Equipment installation and deployment are completed by them, which is much more convenient, but you need to charge a certain handling fee as management fee or mining machinery trusteeship fee. Of course, there are also some special miner trusteeship merchants, you are responsible for purchasing equipment, they are responsible for the installation and mining, trusteeship your miner, but you need to pay the management fee.

5. Depending on your personal situation,
if there are only one or two mining machines, you can choose to dig at home, rent an empty house in a slightly larger remote point, and use it as a special machine room. In this way, the mining machines will not disturb the residents, and it is convenient for you to see them at any time
if there are dozens or even hundreds of mine machines, it is recommended that you choose mine trusteeship. First, the electricity charge of mine trusteeship will be cheaper than that of indivials, and there are special personnel to take care of mine machines. The inconvenience may be that most of the mines are located in Northwest and southwest provinces, which may not be convenient for you to understand the actual situation, but you can also choose the background software to monitor your own mine machines, The selection of specific mines can be evaluated according to the quotation
if you don't know much about this area before and don't have a miner, you can choose to buy cloud computing power. This kind of miner is only used in a different way. The ownership of the miner doesn't belong to you, but is rented to you
if you have any other questions, please send me a private letter. I hope this answer can help you, thank you!

6. Hello, the miner trusteeship depends on the situation
if there are only one or two miners, you can choose to dig at home, rent an empty house in a slightly larger remote point, and use it as a special machine room, so that the miner will not disturb the people and it is convenient for you to visit at any time
if there are dozens or even hundreds of mine machines, it is recommended that you choose mine trusteeship. First, the electricity charge of mine trusteeship will be cheaper than that of indivials, and there are special personnel to take care of mine machines. The inconvenience may be that most of the mines are located in Northwest and southwest provinces, which may not be convenient for you to understand the actual situation, but you can also choose the background software to monitor your own mine machines, The selection of specific mines can be evaluated according to the quotation
if you don't know much about this area before and don't have a miner, you can choose to buy cloud computing power. This kind of miner is only used in a different way. The ownership of the miner doesn't belong to you, but is rented to you

the advantage of the mineral machinery trusteeship lies in the fact that it is not easy to manage; Annual regular electricity subsidies, cheap electricity; 24 hours a day without power cut to dig money; There is operation and maintenance technology in the mine 24 hours on call, problems can be solved immediately; If the power board is broken, it needs to be returned to the factory. The company will have machines to make up the power. However, it is suggested that when you choose a mine, you should consider the quotation of mine management fee and electricity fee
if you have any other questions, please ask me. I hope I can help you, thank you!

7. Now the bitcoin miner is relatively slow. It will take me more than a year to dig other coins

8. Israel recognizes the legitimacy of digital currency
the governor of the Central Bank of Israel indicates the inevitable trend of digital currency

9. They have their own mines, of course, but they need to buy more mining machines to expand their scale by selling their computing power. Generally speaking, the larger the scale of cloud computing power platform, the more stable the computing power and the more considerable the benefits. It is a win-win situation for both investors and platforms to buy computing power on large platforms such as micro travel cloud.

10. The domestic price is linked to btc-e. you can see by looking at the btc-e price

the reason why it is not linked to MT is that MT needs to go through at least two institutions if it sells money and wants to return to China. The service charge is also very expensive and troublesome. Besides, now MT needs identity authentication and withdrawal, which is very troublesome. China basically does not want to make money as you think.
why can btc-e be linked to China There is a FX trading platform in China, LTC can transfer BTC to btc-e website and exchange it with LTC
LTC sells money on FX to get RMB, but the price difference between btc-e and FX has been eliminated two months ago. Now you can't make any money
hope you can add me to QQ chat 4224.59155