The German Federal Ministry of Finance has issued a document outlining and regulating the various sorts of cryptocurrency gains.
We find, in particular, that German nationals will be immune from taxation on cryptocurrency gains if they keep them for longer than a year.
The German Federal Ministry of Finance published its first recommendations for regulating cryptocurrency taxation on Tuesday, confirming the country’s interest in developing digital assets.
The 24-page report delves into how cryptocurrencies are taxed in detail.
The most crucial feature is the tax exemption for gains in cryptocurrencies held by an individual for more than one year, which covers staking and lending.
Until now, a German citizen had to wait ten years to benefit from the tax exemption on his bitcoins.
This threshold is now decreased to one year, in accordance with Article 23 of the German income tax law, which states that if the duration between the acquisition and sale of an asset exceeds one year, the number of earnings is tax-exempt.
According to the government, the document, which includes discusses mining, hard forks, and airdrops, is subject to change:
“The Federal Ministry of Finance will continue to deal with income tax issues relating to virtual currencies and other tokens in close coordination with the highest financial authorities of the federal states and with the participation of associations. »