Beijing Bitmain, one of the world’s largest Bitcoin mining machine companies, has been fined by the Beijing tax bureau for tax violations. The fine is worth $3.55 million equivalent to 24.9687 million yuan.
According to China’s Tax Collection and Administration Law, the unit shall withhold and pay individual income tax, this would account for benefits including travel subsidies to employees. Specifically, the firm was fined by the Fourth Inspection Bureau of the Beijing Municipal Taxation Bureau of the State Administration of Taxation.
The Bitcoin mining giant was in August 2022, served the “Notice of Order to Correct Within a Deadline” (Jing Shui Ji Si Zhi Gai [2022] No. 9), however, Beijing Bitmain failed to withhold and pay the personal income tax so far. The tax owed totaled 16.6458 million yuan.
Beijing Bitmain Technology Co., Ltd. was established in 2013 and ranks as a leading manufacturer of digital currency mining servers through its brand ANTMINER. The brand has maintained a global market share and leading position in technology and serves customers across countries and regions. Bitmain has subsidiaries in China, the United States, Singapore, Malaysia, Kazakhstan, and other locations.
The Chinese government tabs on Bitcoin mining
In the past years, China has been one of the largest hubs for Bitcoin mining, however, the Chinese government continues to step up tax inspection, especially targeting Bitcoin miners and large traders.
The latest move by the Chinese government has become more strict following last year. The focus on bitcoin miners and large traders involves thorough scrutiny for tax evasion, illegal use of electricity, and other related issues.
Several major Bitcoin mining companies, like Bitmain and Canaan, were forced to suspend their operations in China or move their operations to other countries. Some miners relocated their operations to other countries such as Kazakhstan, Russia, and the United States, while others have been forced to shut down entirely.
Read also;
Ethereum’s Shapella Upgrade: What It Means for ETH Holders
What do you think of this article? Share comments below.
