Beijing Fines Bitmain For $3.55 Million Due To Personal Income Tax Violations

Key Points:

• Bitmain, the largest bitcoin mining machine company, was fined $3.55 million and 24.9687 million yuan by the Beijing tax bureau for unpaid personal income taxes and other violations, respectively.
• The fines highlight the importance of proper tax planning and compliance for companies in the cryptocurrency industry.

Bitmain, the world’s largest Bitcoin mining machine company, was fined about $3.55 million by the Beijing tax bureau in April. The fine was mainly for unpaid personal income taxes.

Recently, Beijing Bitmain Technology Co., Ltd. was fined about 24.9687 million yuan by the Fourth Inspection Bureau of the Beijing Municipal Taxation Bureau of the State Administration of Taxation due to other violations. According to the “Tax Collection and Administration Law of the People’s Republic of China,” the unit shall withhold and pay individual income tax for benefits such as travel subsidies to employees.

In August 2022, the inspectors delivered the “Notice of Order to Correct Within a Deadline” (Jing Shui Ji Si Zhi Gai [2022] No. 9) to Beijing Bitmain. However, Beijing Bitmain has failed to withhold and pay the above-mentioned personal income tax, resulting in a total fine of 16.6458 million yuan.

This news has caused concern among investors and industry observers, as Bitmain is a major player in the cryptocurrency mining industry. The fines are a reminder that companies operating in the cryptocurrency industry must comply with tax laws and regulations.

Bitmain has yet to release a statement regarding the fines. However, given the severity of the penalties, it is likely that the company will take steps to ensure compliance with tax laws in the future.

The fines levied against Bitmain highlight the importance of proper tax planning and compliance for companies operating in the cryptocurrency industry. As the industry grows and evolves, companies must stay up-to-date with regulations and requirements to avoid costly fines and penalties.

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