Denmark Supreme Court Mandates Taxation on Bitcoin Profits
- The court issued a ruling on March 30 mandating taxation on bitcoin gains.
- Renowned for its strict regulations, Denmark is not a tax haven.
The Denmark Supreme Court decided that bitcoin sales proceeds must be taxed as ordinary income. Investors and miners are both affected by the new law. The Højesteret, Denmark’s highest court and the last arbiter in civil and criminal matters, issued a ruling on March 30 mandating taxation on bitcoin gains.
The judges argued that most Bitcoin purchases are made “for the purpose of speculation,” or the hope of making a profit by selling at a higher price. Thus, such deals shouldn’t be considered tax-free under the legislation of the country.
The ruling reads:
“The Supreme Court assumes that bitcoins are generally only acquired with a view to being sold and, to a limited extent, to be used as a means of payment.”
Not a Tax Haven
Højesteret authorities also concluded that those who mine cryptocurrencies and then sell their earnings must pay taxes on their gains.
Renowned for its strict regulations, Denmark is not a tax haven. Capital gains are taxed at a rate of 27% for individuals whose earnings are below 58,900 DKK (roughly $8,630), and at a rate of 42% for those whose earnings are over this threshold.
Danmarks Nationalbank Governor Lars Rohde is also not a fan of the most popular cryptocurrency. In May of 2021, he described Bitcoin’s notorious volatility and decentralized nature, adding that he is “tempered to ignore” Bitcoin and the digital asset market as a whole.
With the crackdown by U.S. authorities over the crypto sector, many nations have adopted a stringent approach towards the crypto sector.
Read more: https://thenewscrypto.com/denmark-supreme-court-mandates-taxation-on-bitcoin-profits/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
