Germany Reveals The First Ever Nationwide Guide Specifically For Crypto Taxes

2022-05-12 02:18:13

The Federal Ministry of Finance in Germany has presented the country’s first-ever nationwide guide for crypto taxes. In addition to regulating buying and selling of ethereum and bitcoin, the tax new guide will cover areas such as staking, mining, hard forks, airdrops and lending.

According to Katja Hessel, the Parliamentary State Secretary of Germany, the new guide will allow German citizens to sell bitcoin and ethereum without any imposed taxes for an entire year. Moreover, the guide also states that this period of one year will apply even if the cryptocurrency in question was staked by a third party for the purpose of creating Ethereum blocks.

State Secretary Hessel also said that unlike the tax for land, or non-mobile domiciles, where German citizens are exempt from paying taxes for 10 years when it comes to crypto, the government doesn’t have plans to apply the same rule to crypto as well, considering the big difference between digital and physical assets.

Interestingly enough, ruling by the guide, when it comes to utility tokens and redeeming, the income tax won’t apply to any cryptocurrencies that have a functional purpose. This may include the use of crypto assets as a payment method to obtain an unknown reward/product or even cryptocurrencies that have access to a specific network.

Finally, the German Ministry of Finance used a court ruling from 2018 to make the case that bearer bonds, i.e. redeeming crypto tokens, won’t be considered a sale under the income tax law. The first nationwide crypto guide for taxes in Germany is already publicly available on the official page of the German Ministry of Federal Finance.

Prior to this news the latest big move on the crypto scene in Germany came in late April, when Commerzbank, one of the largest banks in Germany, announced that it applied for a license to operate as an official crypto operator.

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