BTC Mining Operation IPO Numbers Income Expenses Equipment Contract About Us Taxes

Taxes information

Why a members owned bitcoin mining operation?

Under a regular mining company, once bitcoins are recongized as a currency, the company would have to pay taxes on all business incomes along maintenance fees prior to paying dividends to it's shareholders. Shareholders would then have to declare their dividends as personal income and also pay taxes on those.

By having a mining operation owned by its members and managed by an external party, each member becomes their own business owner and can enjoy an increased income by declaring income and expenses for themselves.

As bitcoin transactions (and as such members too) are often completely anonymous and members can be located in different countries, we believe this association's verbal agreement that each member remains the owner of their fair share of the operation (based on GLBSE shares they own) and are responsible for declaring their share of income and expenses to be the most appropriate way to deal with the anonymity and international nature of bitcoins.

Although the equipment is hosted in Canada, until clear regulations are made about bitcoins and since said equipment is hosted there as a service, they should be considered like web servers as equipment hosted in foreign country. Income and expenses will usually be considered to originate in each member's country of origin/operation in that case.

It is advised to consult a legal expert in your own country to verify how to treat your bitcoin incomes.

Administrative fees

Since equipment is owned and purchased by members and you receive 50% of generated bitcoins, you may want to declare an additional 20% bitcoins than what you receive to account for the 10% fees depending on if maintenance fees are tax deductible in your country.


Repair fees are usually tax deductible, but you may want to declare them in your income for tax purposes, depending on your local tax laws.

Expansion purchases

Date, total shares and amount spent will be indicated here. Since members own the equipment and purchasing new business equipment usually isn't tax deductible, you may want to declare bitcoins used for those expenses as income first for tax purposes depending on tax laws in your country. You can estimate your part of the bill based on shares you owned from the total shares in the operation at the time of the transaction.

Equipment purchases from shares issued on GLBSE

Since members own the equipment and purchasing new business equipment usually isn't tax deductible, you may want to declare bitcoins used to purchase shares as income first. Equipment purchases from GLBSE shares are expenses paid by the share buyers only (not pre-existing members), for which the equipment is donated to the association's equipment pool in exchange of a percentage right in bitcoins generated by said pool.


The expenses report is provided as a courtesy by Namworld. Namworld provides a service (ordering, running and maintenance of electronic equipment and the association's website) and receive fees for it for which Namworld declare and pays it's own taxes. All members are responsible to declare their bitcoins income and expenses as required by their local law. takes no responsibility for their members choices as to how to declare their bitcoin income and expenses.

BTC Mining on GLBSE

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Important reads


The verbal agreement for operation.

Taxes Information

Important taxes information and tips.

About Us

Information about the co-owned mining operation.