Germany makes sale of crypto assets tax free if held for one year

The German Federal Ministry of Finance (BMF) has issued guidance enabling investors to sell Bitcoin (BTC) and Ethereum (ETH) tax free after one year of holding them.

The 24-page document, which details new tax arrangements on cryptocurrencies and blockchain-based tokens, was published on Tuesday.

Section 23 of the German Income Tax Act states that if the period between obtaining the asset and selling it is more than one year, the full amount of the gains will be tax-free.

Previously any cryptocurrencies used for staking purposes and gaining a profit would be subject to a hold of up to ten years before receiving a tax exemption. This is no longer the protocol according to the BMF.

“Any acquired cryptocurrencies including Bitcoin (BTC) and Ethereum (ETH) will become tax-free for individuals after a year of owning the asset”, said parliamentary state secretary Katja Hessel in a statement confirming the new guidelines.

The BMF has confirmed it will be working around the clock to ensure it does “not run out of topics” regarding crypto.

The German government is already working on a document focusing on the federal states and their commitment to crypto-related issues.

“Of course, the publication of the guidance is not the end of our engagement”, said Hessel, “but an interim result”.

Germany is not the first country to implement rules surrounding crypto and tax. In Uzbekistan, miners who set up solar panels could avoid paying federal income taxes whereas those who don’t may face paying double.

With many regulations and laws being implemented around crypto, you may just want to use yours recreationally. You can do so at Bitcasino, 1xBit or FortuneJack.

 

Source

Updated: 05/12/2022 — 17:00