Bitcoin Forum

HI

Big day for bitcoin in Denmark  :-*

Tax Board on Tuesday afternoon clarity on how to deal with the virtual currency bitcoin with fiscal glasses. x

The Council has determined that you do not have to pay taxes if you gain from buying or selling virtual currency.

- If one finds a gain of its Bitcoins is tax free. Just like you sell a painting , and you serve it, it is tax-free, says Chairman of the Tax Board , Hanne Søgaard Hansen continues:

- Bitcoins are not commercially motivated by a company. This means that you consider Bitcoins as a private asset.

This should not indicate his bitcoin gain in his tax return in Tax. Conversely, you are not entitled to a deduction if you lose money on a sale of its Bitcoins .

It is a request from an individual or a company that Tax Board has taken a binding decision.

See also: FACTS: Here you can learn about bitcoin

Norway is gone the other way . Here you have decided that you have to pay taxes on his Bitcoins if you buy the currency and sell them later at a higher price .

President of the National Tax Board notes , however, that there can certainly be other situations where there will be no question of the gains will be taxable

- If you are dealing with Bitcoins , one might imagine that there is a different tax situation , says Hanne Søgaard Hansen.

Tax Board has not taken a position on this issue during the meeting.

The four year old currency can be bought and sold in a number of Internet exchanges - both as object of speculation and trading currency. The currency is decentralized , which means that there are no banks or organizations who decide about it.

There are few stores and webshops in Denmark , which has taken the digital currency for themselves .

Source?

Bitcoin are taxed in US ?

When you speculate with any asset and you make a profit, you have to pay taxes in most countries.

http://ekstrabladet.dk/kup/elektronik/teknologi/article2246844.ece

This is because Denmark is awesome.  Danish people get it.  Denmark rules.  Rest of Europe - not so much.

Is Denmark the only country where bitcoins have been declared not only legal, but also tax free?

I think the UK went back and forth on the tax free thing. Not sure how it stands now.

Denmark FTW!

UK removed the former value added tax on BTC transactions (which was horrendous and would have killed BTC in their country) but they didn't said anything about capital gain AFAIK.

Thanks BLdSwttrs!

OP: source?

Translated sauce: http://translate.google.com/translate?sl=da&tl=en&js=n&prev=_t&hl=en&ie=UTF-8&u=http%3A%2F%2Ffinans.tv2.dk%2Fnyheder%2Farticle.php%2Fid-73468284%3Aafg%25C3%25B8relse-bitcoingevinster-er-skattefrie.html

Great! Thanks for the yummy sauce!

Any official docs? Even if just in danish?

Just saw this in the local paper. This is excellent. Practically doubled my money without having to jump through legal hoops or commit any kind of fraud.

This will force people who choose to spend Bitcoins to either change their citizenship and move to the other country that has an advantage to using Bitcoin.

I really, really hope the U.K. plump for the same thing. I really, really doubt it though.

If they did it would really boost BTC uptake in the U.K. As far as I know at the moment they are saying that they have removed the Bitcoin is classed as a voucher which means you pay VAT when you buy it and also VAT when you spend it. That double tax would have killed it. As far as capital gains tax I have heard nothing yet.

Way to go Denmark.

Official decision by the Danish tax council (skatterådet):

http://www.scribd.com/doc/214608716/Skatter%C3%A5det-Bitcoin-afg%C3%B8relse-25-marts-2014

It is very dense to read, but the conclusion is that the decision is VERY NARROW!

It applies only to the specific situation described.

What is important is that the bitcoin activity must be "non-commercial" in nature. WHEN, and only when, that is the case, then no income or capital gains tax is applied.

They compare it to selling a painting from your living room, which is not the same as a gallery or professional art person. Or even a painter.

The difference between commercial and non-commercial is hard! It is not a matter of "how much" (the painting could be a Picasso with profit in the millions).

"Someone" might just say that they had mined a bunch of coin early on and then sold now, even if the truth was that the "someone" was continually investing.

This reasoning also applies to VAT.

I take that back. Only when talking about registering with the tax authority.

There was NO decision on VAT.

I have been trying to read the document with an online translator and it is difficult to understand it properly.

Is it without doubt that all profit generated by an individual who has sold bitcoins is absolutely tax-free? No income tax or capital gains tax? No VAT? No hidden taxes?

That's a strange decision considering that Denmark is one of the most heavily taxed populations in the world. Let's hope it sticks.

This may have something to do with it. Tax evasion is the Danish national sport. That's not just a cute saying, everyone does it to some degree. They may have just decided, fuck it, not worth it.

Then there is the part about losses being on your own head. One could, theoretically, claim that one had lost the private keys and thus made a 100% loss, and then sell them on the side. It's simply too much of a regulatory nightmare, I think. I certainly give no credence to the idea that the people in charge are reasonable human beings.

I'm pretty sure you still pay VAT. Other tax friendly countries that i know of are UK, Germany and Singapore.

I am Danish, and have a hard time understanding it!


My layman gist of the entire story: Some guy read and misunderstood the document and posted about it somewhere. Some journalist read it and made a story about it. Some journalist read that and made a story about it. Rinse and repeat. 

This is how half of what you read in the media come into existence.

In particular it states:


meaning: If the company is a 'hobby company' or otherwise a non-business company (read ordinary guy) the income realized by increased Bitcoin prices are according the the Danish tax authorities subject to taxation as normal income tax. (we are talking abut 50% here)



The ruling is under the assumption that Bitcoin is a payment network only <-- wrong

They also mention several times that using Bitcoin for payment is futile as you have to use a bank on both ends anyway <-- wrong

They also mention several times that if your business does anything that could resemble speculation then the ruling does not apply. (most of us do that)



Before you move to Denmark, please realize that Denmark is a country where there is practically a tax on farting. We have the highest taxes in the world, and Bitcoin is not likely to be an exception.

TL;DR
Some guy read and misunderstood the document and posted about it somewhere. Some journalist read it and made a story about it. Rinse and repeat.


This is how half of what you read in the media come into existence.

What I wanna know is where the cutoff for exceptions go. If my original paltry investment turns into millions, can I spend it freely without the taxman coming for me? Does the amount matter at all if I don't have a job on the side? Lots of clarification still needed.

And yeah, taxes everywhere. They even tax the sun and the wind and energy companies bill you for NOT using electricity under certain circumstances.