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The German Ministry of Finance has made certain amendments to its cryptocurrency policies. The authorities disclosed that the sale of acquired bitcoin and ether won’t be taxed if individuals hold the assets for more than one year.
- Germany’s Ministry of Finance published a letter focused on the income tax treatment of digital assets, such as bitcoin (BTC) and ether (ETH).
- After collaborating with the highest tax authorities of the federal states, the lawmakers decided to make the sale of BTC and ETH tax-free if those assets were held for over 12 months. The policy will apply even if the cryptocurrencies have been employed for staking/lending.
“For private individuals, the sale of purchased Bitcoin and Ether is tax-free after one year.”
- Previously, digital assets used in such activities had to be held for ten years to be exempt from taxation.
- The Ministry outlined that this is the first time when the subject has been addressed with a nationwide uniform administrative instruction.
- The officials vowed to keep dealing with the digital asset taxation policy and eliminate any arising issues. To do so, they will work in close coordination with federal tax authorities and government institutions.
“Of course, the forthcoming official publication of the BMF letter is not the end of our discussion of the subject, but an interim result. The rapid development of the “crypto world” ensures that we do not run out of topics. A supplementary letter on the obligations to cooperate and a record is already in progress,” the Ministry concluded.
- Germany has been in the spotlight of the cryptocurrency scene lately. A recent Concub study estimated that the European county is the most crypto-friendly nation in the world for Q1, 2022.
- The company emphasized Germany’s positive approach to the sector and the growing number of local monetary institutions ready to jump on the bandwagon.
- Such an example is Sparkasse’s (the leading financial group in the country) intention to provide cryptocurrency services to its userbase consisting of approximately 50 million people.