In a recent news which was released just this last month of September 2016, it seems that:
“Recognizing the potential profits digital currency will bring to the country, Spanish authorities have labeled bitcoin and altcoin mining operations as ‘economic activities.’Spain classifies digital currency mining as taxable activity.This means that crypto currency miners and mining companies….” (calvinayre.com/2016/09/28/business/spain-classifies-digital-currency-mining-as-taxable-activity/, pg. 1, para. 1 & 2)

There is more to be said on the matter. It is, by far, far from over.

For up until this moment, Spain has not been taxed on mining. This simply had just not been an activity for taxing involvements. It did not and could not make sense how and why this would ever even happen.

MINING IS ECONOMIC ACTIVITY? YES OR NO, OFFICIALLY?

Spain’s NATIONAL DIRECTORATE OF TAX has just recently said that they have overall, decided to adopt the new view change…..that mining itself is an activity which involved the economy at large. Therefore, if economics step in….then mining is an economic activity, after all. Here is what the government views in all of this….

The new added form of taxing will truly put a healthy curb on digital currency frauds and other forms of similar illegal actions & activity as a whole. Thus, it is a wise and healthy form of action. There is less possibility of crime, and more probability of government intervention and dominance as a whole…..leaving the authorities always one step on stop and one step ahead in the game. Societies need this form of power check and balance, in my own opinion.

On the other side of the coin, miners themselves may throw in the towel. They may decide to just bury the hatchet, give up and quite. This is to be taken note of and watched out for.

HOW TO MAKE UP FOR LOST PROFIT?

The profit percentage and possibility of overall profits from these mining activities will in no doubt be affected….resulting in many lost efforts and jobs as a whole. This is the detrimental aspect, or the other side of the coin. It may impact miners and, as a result, the government in more negatively spiraling ways than one, to date.
What these miners can do to offset such cost and loss of profit….is to perhaps take it into taxes, as it now is a tax and economic activity issue.

For example, since crypto currency mining is now classified as a wealth producing activity of economy in Spain…..then the community of miners should use their applicable deductions from taxes when it relates to certain expenses incurred. Such expenses may be repaid. They include those of the purchase of mining tools and the consumption of electricity.