Denmark will impose tax on profits from the sale of bitcoins

The decision is due to the speculative nature of the first cryptocurrency

31.03.2023 - 08:20

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What’s new? The Supreme Court of Denmark has ruled that profits from the sale of bitcoins, whether mined or bought, should be taxed. The authorities explained that BTC is speculative in nature and therefore subject to the country’s tax laws. Thus, according to the statement, BTC “are generally only acquired with a view to being sold and, to a limited extent, to be used as a means of payment.”

Court ruling

What else is known about the ruling? The Supreme Court issued this ruling in two cases before it and issued a verdict on March 30. In the first case, the owner bought and received BTC as a gift between 2011 and 2015, and later sold the coins at a profit in 2017 and 2018. In the other case, BTC were obtained by mining between 2011 and 2013 and sold at a profit in 2018. In both cases, the court ruled that the profits from the sale were taxable.

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The court noted that the BTC received as gifts and as a result of mining “constituted revenue in [the defendants’] non-commercial business,” the profits from which “trigger tax liability.”

In May 2022, the German Finance Ministry announced that the sale of BTC and ETH would not be taxed if individuals hold assets for more than a year. On December 30, Italy approved a 26% capital gains tax from trading crypto assets worth more than €2000.

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