Abstract: With the spontaneous creation and market transactions of Bitcoin in the civil society, various cryptocurrencies have been developed and integrated into the economic operating system through market transactions. This creates new problems and challenges for the traditional income tax system. To accurately and reasonably determine the tax liability under the mining and transaction activities of cryptocurrency, this study classifies and defines the types of income derived from Bitcoin mining and transaction activities. Generally, the Bitcoin produced by mining generates income in the sense of tax law only when it has been transferred and converted into real economic benefits. When Bitcoin mining and transaction activities constitute a commercial activity for an individual or enterprise, the resulting income should be categorized as business income. Otherwise, the income should be categorized based on the nature and content of the transaction activities and their alignment with different taxation rules. This involves distinguishing the personal income types of the initial Bitcoin transferor, the personal income types of the Bitcoin transferee and re-transferor, as well as the types of income derived from the initial Bitcoin obtained through enterprise mining and the Bitcoin obtained through enterprise transactions.