Danish Supreme Court judges have handed down two rulings on whether the sale of Bitcoin (BTC) in certain circumstances qualifies as a taxable event.
In a March 30 notice, the Danish Supreme Court saying a party that made a profit from the sale of Bitcoin acquired through various purchases and donations was required to report the sale as a taxable event, adding that the purchase was “made for the purpose of speculation.” In a separate case, the court ruled that a user who mined their own BTC and then sold the coins would be subject to the same tax consideration.
Both cases considered by the supreme court involved the acquisition of BTC between 2011 and 2013, with sales between 2017 and 2018, suggesting a price difference of thousands of dollars. The court cited sections of the country’s National Tax Law, noting that it had considered the intention of the first seller to eventually sell the coins based on a 2011 Bitcoin forum post.
“The Supreme Court determines that the Bitcoins received should be considered assets acquired with a view to their subsequent billing as an integral part of the business (of the first party) with the development and operation of software for Bitcoins,” the ruling reads. “They cannot be considered at the time of sale as transferred as property or private property. On that basis, the Supreme Court finds that the relinquishment of the received Bitcoins constituted income in (his) non-commercial business. Therefore, the sales trigger the tax liability.”
Related: What is crypto tax loss collection and how does it work?
Coincub reported in September 2022 that profits made from cryptocurrencies in Denmark could incur a tax rate of approximately 37%, but also up to 52%, depending on whether the user has a high income. This would put the country well above crypto tax rates in the United States subject to its capital gains laws, between 0% and 37% depending on whether the taxpayer sells assets held for more or less than a year and their level. from income.
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