2013-06-27 welt.de - After one Year Bitcoin sales are tax-free

[Akka]

Article in the German news, but I'm posting it here thanks to the Good News.

Due to my laziness everything is Google translated.

Bitcoin transactions are tax-free after one year

A parliamentary inquiry creates clarity: sale of Bitcoins are subject to a one-year holding period, no withholding tax. This makes the currency attractive to investors.

With Bitcoins winnings will be tax-free after one year. Thus, the digital money from the Treasury treated differently than, for example, stocks, bonds or certificates.

All of these asset classes are subject to withholding tax of 25 percent plus solidarity surcharge and church tax. In bitcoins falls after a holding period of one year on the other hand, no such tax.

The tax exemption of capital gains in Bitcoins findings of a parliamentary inquiry that has provided to the federal government the FDP financial expert Frank Schaeffler and the "world" exists. "It is good that investments in Bitcoins is finally legal certainty. Private profits from the sale of Bitcoins are tax-free after one year," said Schaeffler.

The legal nature and tax treatment of digital currency has been controversial for a long time. The response of the federal government only creates clarity. For fans of cyber-currency, it covers a lot of money. Despite strong fluctuations in the price of Bitcoin is now more than twelve times as high as twelve months ago. The tax treatment for investors is therefore of great importance.

An example illustrates this: in online exchanges like bitcoin.de or mtgox.com 100 Bitcoins could be acquired in mid-2012 for about 550 euros. Today, the same amount is worth about 7600 euros.

Event of a sale after more than twelve months holding period therefore falls to a gain of about 7000 euro. The flat tax would strike here at 1750 euros. Legally, these are for a private sale transaction under Section 23, paragraph 1, point 2 of the Income Tax Act.

Full article (machine translated): http://translate.google.com/translate?sl=de&tl=en&js=n&prev=_t&hl=de&ie=UTF-8&u=http%3A%2F%2Fwww.welt.de%2Ffinanzen%2Fgeldanlage%2Farticle117493178%2FBitcoin-Geschaefte-sind-nach-einem-Jahr-steuerfrei.html

Full article (original German): http://www.welt.de/finanzen/geldanlage/article117493178/Bitcoin-Geschaefte-sind-nach-einem-Jahr-steuerfrei.html



In your face US  

[Akka]

Am I dreaming this? If so I hope not to wake up Is this just in Germany or all Europe? Even if its only Germany it sets the example for the rest of Europe

It's only Germany. But it's a start. As this is the first statement in this matter, I think (personal opinion only) other EU states are likely to just follow this.

But before we cheer to much, if Bitcoin gets really big and we would talk about several millions in tax loss, I doubt it would stay this way.

But for now, that's great news and makes things so much easier.

And the most important thing is, that there finally is some clarity.

[dr_nix]

Am I dreaming this? If so I hope not to wake up Is this just in Germany or all Europe? Even if its only Germany it sets the example for the rest of Europe

...
In your face US 

It's only Germany. In Europe every country has its own tax system. For instance in the Netherlands we don't have a capital gains tax, only a capital tax (1.2% annually, no matter if you had gains or losses), so the huge value gains of your bitcoins go untaxed

[600watt]

lol - germany... out of all countries... 

so germany is the new offshore heaven for bitcoiners. no taxes. wow.

[kjlimo]

lol - germany... out of all countries... 

so germany is the new offshore heaven for bitcoiners. no taxes. wow.

The example at the end confused me.  Is this just one piece of tax that is zero, but there are other taxes (flat tax) that would still need to be paid?

How does one in the US legally take advantage of this?

[Akka]

lol - germany... out of all countries... 

so germany is the new offshore heaven for bitcoiners. no taxes. wow.

The example at the end confused me.  Is this just one piece of tax that is zero, but there are other taxes (flat tax) that would still need to be paid?

No, that a example is for the Tax don't have to pay on BTC. It's 1750€ you save now when selling BTC.

Flat Tax on Capital Gains is ~28% (Made out of capital gain Tax (24,4499% - 25,0000%) + solidarity tax (1,3447 % - 1,3750 % or 5,5% of the capital gain tax) + church tax(0-2,2005 % or up to 9% of the capital gain tax). After one year, you save the whole tax.

[600watt]

lol - germany... out of all countries... 

so germany is the new offshore heaven for bitcoiners. no taxes. wow.

The example at the end confused me.  Is this just one piece of tax that is zero, but there are other taxes (flat tax) that would still need to be paid?

No, that a example is for the Tax don't have to pay on BTC. It's 1750€ you save now when selling BTC.

Flat Tax on Capital Gains is ~28% (Made out of capital gain Tax (24,4499% - 25,0000%) + solidarity tax (1,3447 % - 1,3750 % or 5,5% of the capital gain tax) + church tax(0-2,2005 % or up to 9% of the capital gain tax). After one year, you save the whole tax.

[kjlimo]

lol - germany... out of all countries... 

so germany is the new offshore heaven for bitcoiners. no taxes. wow.

The example at the end confused me.  Is this just one piece of tax that is zero, but there are other taxes (flat tax) that would still need to be paid?

No, that a example is for the Tax don't have to pay on BTC. It's 1750€ you save now when selling BTC.

Flat Tax on Capital Gains is ~28% (Made out of capital gain Tax (24,4499% - 25,0000%) + solidarity tax (1,3447 % - 1,3750 % or 5,5% of the capital gain tax) + church tax(0-2,2005 % or up to 9% of the capital gain tax). After one year, you save the whole tax.

Haha, yeah.  So what can I do from the US to take advantage of this no tax beauty?

Do I need a German bank account?

Do I need to hold my bitcoins "in Germany?"

Do I need to sell my bitcoins in Germany?

I saw reference to Mtgox.  Does that mean people buying/selling on Mtgox who live in Germany are saying their local laws govern taxation of their capital gains?

[600watt]

lol - germany... out of all countries... 

so germany is the new offshore heaven for bitcoiners. no taxes. wow.

The example at the end confused me.  Is this just one piece of tax that is zero, but there are other taxes (flat tax) that would still need to be paid?

No, that a example is for the Tax don't have to pay on BTC. It's 1750€ you save now when selling BTC.

Flat Tax on Capital Gains is ~28% (Made out of capital gain Tax (24,4499% - 25,0000%) + solidarity tax (1,3447 % - 1,3750 % or 5,5% of the capital gain tax) + church tax(0-2,2005 % or up to 9% of the capital gain tax). After one year, you save the whole tax.

Haha, yeah.  So what can I do from the US to take advantage of this no tax beauty?

Do I need a German bank account?

Do I need to hold my bitcoins "in Germany?"

Do I need to sell my bitcoins in Germany?

I saw reference to Mtgox.  Does that mean people buying/selling on Mtgox who live in Germany are saying their local laws govern taxation of their capital gains?

buy german bitcoins.

[n8rwJeTt8TrrLKPa55eU]

Finally some major news that isn't depressing!  

The meaning and consequences of this will take time to sink in, but basically Germany just became the most Bitcoin friendly jurisdiction among the G8.  Not perfect, we still need a country to declare Bitcoin legal tender with no taxes whatsoever, but a good precedent that's way smarter than the threats and lack of foresight coming out of everywhere else, especially USA and CA in particular.

Germany will now get a windfall of Bitcoin millionaires moving to Germany to take advantage of this tax-free disposition.  And most likely, Germany now becomes the frontrunner to lead in number of payment & e-commerce startups/enterpreneurs by 2023.  

Let's see whether the rest of the EU + Switzerland will take notice and imitate.

[Piper67]

Finally some major news that isn't depressing!  

The meaning and consequences of this will take time to sink in, but basically Germany just became the most Bitcoin friendly jurisdiction among the G8.  Not perfect, we still need a country to declare Bitcoin legal tender with no taxes whatsoever, but a good precedent that's way smarter than the threats and lack of foresight coming out of everywhere else, especially USA and CA in particular.

Germany will now get a windfall of Bitcoin millionaires moving to Germany to take advantage of this tax-free disposition.  And most likely, Germany now becomes the frontrunner to lead in number of payment & e-commerce startups/enterpreneurs by 2023.  

Let's see whether the rest of the EU + Switzerland will take notice and imitate.

Agreed. We need a truly first rate, professional Bitcoin exchange based in Germany asap.

[caveden]

Let's see whether the rest of the EU + Switzerland will take notice and imitate.

I thought Switzerland didn't have capital gain taxes at all...

[n8rwJeTt8TrrLKPa55eU]

Let's see whether the rest of the EU + Switzerland will take notice and imitate.

I thought Switzerland didn't have capital gain taxes at all...

It depends, corporations do, individuals do not (except on real estate gains under certain conditions).

[ErisDiscordia]

Hey seems that Bitcoin has a supporter in the German Parliament:

Der FDP-Finanzexperte Schäffler, der die Anfrage stellte, ist auch als "Euro-Rebell" bekannt, weil er im Bundestag mehrfach gegen die sogenannte "Rettungspolitik" votiert hat. Der Liberale befürwortet die Aufhebung des Zentralbankmonopols. Es sei ökonomisch schädlich, wenn eine zentrale Stelle wie die EZB die Geldmenge kontrolliere und sich dabei von politischen Motiven leiten lasse.

English translation: Financial expert Schäffler, who posed the question (to parliament) is also known as an "Euro-Rebel" because he voted several times against bank bailouts. The Liberal (sic) spoke in favor for the abolishing the central banking monopoly. He said it's economically harmful, when a central point like the European Central Bank controls the money supply while being guided by political motives.

[Akka]

[COINDESK] German government relieves capital gains tax on Bitcoin positions

Does anyone know how to contact them?

There is a small error in there:

In Germany, assets such as stocks and bonds are subject to a 25% solidarity surcharge and so-called church tax.

There is a capital gain tax of 25%. In addition on this tax comes 5,5 of this tax as solidarity surcharge and 8-9% church tax, but only if you are a member of the church.

[caveden]

Hey seems that Bitcoin has a supporter in the German Parliament:

English translation: Financial expert Schäffler, who posed the question (to parliament) is also known as an "Euro-Rebel" because he voted several times against bank bailouts. The Liberal (sic) spoke in favor for the abolishing the central banking monopoly. He said it's economically harmful, when a central point like the European Central Bank controls the money supply while being guided by political motives.

 

There is such an individual in Germany's parliament? Wow...
How libertarian is he on other fronts? EU could use its own "Ron Paul"....

[kjlimo]

Let's see whether the rest of the EU + Switzerland will take notice and imitate.

I thought Switzerland didn't have capital gain taxes at all...

It depends, corporations do, individuals do not (except on real estate gains under certain conditions).

Is that why people make jokes about having swiss bank accounts... b/c of the capital gains advantages?