How does Germany's tax system treat gains from cryptocurrency investments?

1 answers

• Pauli StarkerJul 05, 2020 · 5 years ago
  At BYDFi, we understand that taxation is an important aspect of cryptocurrency investments. In Germany, gains from cryptocurrency investments are subject to taxation. Cryptocurrency gains are treated as taxable income and are subject to capital gains tax. The tax rates for cryptocurrency gains depend on the holding period of the assets. If the cryptocurrency is held for less than one year, the gains are taxed at the individual's income tax rate. However, if the cryptocurrency is held for more than one year, the gains are subject to a reduced tax rate of 25%. It's crucial for individuals to keep track of their cryptocurrency transactions and report them accurately to the tax authority to ensure compliance with the tax regulations.
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