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Danes face tax on unrealized cryptocurrency profits

Danes face tax on unrealized cryptocurrency profits

HappyCoinNewsHappyCoinNews2024/10/24 18:01
By:HappyCoinNews

The Danish Tax Law Council wants to tax taxable unrealized profits from investments in cryptocurrencies.

The agency's representatives advised the government to adopt uniform taxation standards for all digital assets and proposed three models that would involve the introduction of:

  1. Capital gains tax (income tax);
  2. Tax on storage of digital assets;
  3. Property tax (tax on unrealized losses and profits).

The head of the Danish Tax Ministry, Rasmus Stocklund, claims that levying a classic income tax on crypto investors often leads to unfair extortion, so he suggests choosing a simpler approach to taxing investments in digital assets. If the authorities give preference to a property tax, then cryptocurrency owners will have to transfer money to the budget every year, regardless of whether they made a profit from selling coins at a higher rate or not.

The bill to amend the Danish Tax Code will not be considered before the beginning of 2025, and the Tax Law Council recommends that the changes be implemented on or after 1 January 2026. At the same time, Stocklund noted that the provisions of the decree may change based on the opinion of parliamentarians.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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