The German Ministry of Finance has made some changes to its cryptocurrency policy. The authorities announced that the sale of acquired Bitcoin and Ethereum is not taxed if individuals hold the assets for more than one year.
- The Federal Ministry of Finance has published a letter focusing on the income tax treatment of digital assets such as Bitcoin (BTC) and Ethereum (ETH).
- After working with the top tax authorities of the federal states, lawmakers have decided to make the sale of BTC and ETH tax-free if these assets are held for more than 12 months. The policy applies even if the cryptocurrencies used for staking/lending.
“For private individuals, the sale of purchased Bitcoin and ether is tax-free after one year.”
- Previously, digital assets used for such activities had to be held for ten years to be exempt from taxation.
- For the first time, the topic will be taken up with a nationwide uniform administrative instruction, according to the ministry.
- The officials promised to continue to look into the digital asset taxation policy and resolve any issues that arose. They work closely with the federal tax authorities and state institutions.
“Of course, the forthcoming official publication of the BMF letter is not the end of our discussion of the topic, 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 obligation to cooperate and a protocol are already being prepared,” the ministry concluded.
- Germany has been in the spotlight of the cryptocurrency scene lately. A recent Concub study estimates that the European county is the most crypto-friendly nation in the world for the first quarter of 2022.
- The company highlighted Germany’s positive attitude towards the sector and the growing number of local financial institutions ready to jump on the bandwagon.
- One such example is the intention of Sparkasse (the country’s leading financial group) to offer cryptocurrency services to its approximately 50 million user base.
Source: Crypto News Deutsch