German bitcoin transactions have been exempted from general income tax. In Germany, financial resources such as stock market shares and bonds are subject to a 25% tax and a so-called church tax (Kirchensteuer). With the new tax law, bitcoins that have been in an account for more than a year will not be subject to this burden. Speaking in the German daily Die Welt, expert Frank Schaeffler said: "It is good news that bitcoins have finally become legal tender. The income of private sellers in this currency becomes tax-free after one year." The German government has long struggled with a lack of confidence in all digital currencies. Many will be pleased to see that the Reichstag intends to treat bitcoins as a viable form of investment. Die Welt elaborates on the topic (translated from German): "At online exchange offices such as bitcoin.de or mtgox.com, 100 bitcoins were worth around 550 euros in mid-2012. Today, the same amount of coins reaches a price of 7600 euros. If sold after more than 12 months, where the revenue is 7000 euros more, the tax would be 1750 euros." From a legal point of view, the acquisition and sale of bitcoin is described in chapter 23, paragraph 1, subpara. 2 of the Income Tax Act, according to which (according to Chapter 2, paragraph 1, subsection 1 of the same Act) it is classified as taxable. The legal requirement is that the period between purchase and sale is not more than one year. Bitcoins are becoming increasingly popular in online communities but are also the subject of much speculation. They allow payment for goods and services without the use of a traditional bank account or payment card. As of today, more than 2 thousand companies and organizations around the world accept this cryptocurrency. Such a move by the German government is a brilliant opportunity to promote bitcoin savings, which many people see as "inhibiting" bitcon transactions. However, once Germany sees bitcoin as a viable form of investment it may make it easier for the digital currency to establish itself in the German market. As long as one can demonstrate a steady amount of bitcoin for at least a year, further purchases and sales of the coins will be tax-free as long as the holders do not exceed their account balance from a year ago. Also of importance is the fact that the tax does not apply to mined coins. It is a tax that applies only to stocks, bonds, etc. that are purchased for further trading on the market. Since bitcoin mining is in fact the creation of a good, normal income tax is imposed. Source: http://www.coindesk.com/german-government-relieves-capital-gains-tax-on-bitcoin-positions/ Translation: l3sny Tags bitcoin Germany taxes
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