Jun 16, · The sale sold 1, Bitcoins, 1, Bitcoin Cash tokens, 1, Bitcoin Gold tokens and Ether. This is a very inviting news for the cryptocurrency enthusiasts in Germany. Having taken this time the Financial Authority of Germany it can be predicted that Germany is looking forward for a wider adoption of cryptocurrencies in future. Bitcoin trading in germany has evaluate in part because it has transaction costs that are very much raise than bank game. Bitcoins are also scarce and become more difficult to obtain over regulate. The order that bitcoins are produced cuts metal half about every four years. This rate is supposed to halve again sometime in Kraken is more than just a Bitcoin trading platform. Come see why our cryptocurrency exchange is the best place to buy, sell, trade and learn about crypto.
Germany bitcoin tradingBlockchain/Bitcoin Business & Trading in Germany
For the tax treatment of Bitcoins this means that they must be treated as ordinary intangible assets — at least for purposes of income tax law. The specific tax questions of Bitcoin transactions continue to be dependent on whether the transactions are made in the private domain or in the business sphere. Learn more A sale could be the sale of Bitcoins for euros via a trading platform. However, the use of Bitcoins as a means of payment also constitutes a sale, if the Bitcoin owner uses Bitcoins to pay for the acquisition of goods and services.
In both cases, private sales transactions— also known as "speculative transactions" — exist within the meaning of Section 23 1 no. For tax purposes, the classification as an object of speculation means that capital gains are completely tax-exempt after a holding period of at least one year.
If the sales transaction is made within the one-year holding period, at least a tax exemption limit of EUR p. The capital gains subject to taxation arise from the difference between the sales price achieved and the acquisition cost and advertising cost of the Bitcoins used for example, purchase price of the previously acquired Bitcoins or cost for the mining of the Bitcoins.
Corresponding losses can be offset and can also both be carried back as well as carried forward in future years and can thus be offset against profits from private sales transactions. The first-in-first-out-method Fifo may be suitable in these cases for determining acquisition cost reliably see on foreign currency transactions Bavarian State Office for Taxes of March 12, , S The usual individual income tax rate is taken as the basis for the tax rate.
The flat rate withholding tax therefore has no significance according to German tax law. Commercial companies cannot — unlike private investors — make private sales transactions. Transactions with Bitcoins, which are part of their business assets, lead instead generally to earnings from business according to Section 15 of the German Income Tax Act. A minimum holding period, after the expiration of which tax exemption arises, does not exist in this case. Depending on the legal form of the company, the profits generated in this way are then subject to income tax partnership or corporate tax limited liability company GmbH , public limited company AG , etc.
In addition to the income tax effects of Bitcoin transactions, however, above all their value-added tax treatment is of particular interest to companies.
It is particularly troublesome for companies accepting Bitcoins as a means of payment that the tax authorities regularly treat the later sale of Bitcoins via a trading platform as an ordinary delivery subject to VAT. Whether this way of handling such transactions is correct, is at least questionable: According to a judgment of the European Court of Justice, the pure purchase and sale of securities in a company is not at all a business activity and thus not taxable.
Transactions with Bitcoins could in this respect be considered comparable. Also in regard to tax exemption in connection with Bitcoin transactions, the German Federal Ministry of Finance has already expressed its opinion: The trading of Bitcoins and the procurement of Bitcoin sales is subsequently not for example exempt from the value-added tax according to Section 4 no.
In individual cases, however, at least in the opinion of the German Federal Ministry of Finance, tax exemption may result from Section 4 no. This provision exempts sales "in transactions with receivables" as well as the procurement of these sales.
Unlike the sale of Bitcoins, transactions, which are used merely for the pure payment of a fee, should not be subject to value-added tax according to a statement by the German Federal Ministry of Finance, therefore the use of Bitcoins as a means of payment therefore, for example, for the acquisition of services or goods is not taxable according to Section 1 1 of the German Value-Added Tax Act.
If it is assumed that Bitcoins are ordinary assets and not money and in a "payment process" Bitcoins are exchanged for other goods and services which normally triggers value-added tax on both sides , this statement is surprising at first glance. The value-added tax law in many cases does not, however, strictly follow the income tax law.
Numerous legal and tax issues accompanying Bitcoin businesses are not solved yet: Are Bitcoins within the meaning of the German Civil Code at all? What exactly are Bitcoins for tax purposes? Which contractual relations and claims do exist among the involved parties? What about liability if something goes wrong? Which rights and obligations does a dealer or an operator of a Bitcoin platform have? Providers, platform operators and distributors of so-called cryptographic currencies should know that dealing with those is not above the law, particularly when it comes to supervision, such as banking supervision.
In many cases, Bitcoin companies operating in Germany require a license from BaFin. Provisions on the avoidance of money laundering or obligations for user identification also play a role when commercially dealing with Bitcoins: Providers and brokers of Bitcoins must meet numerous regulatory requirements, including a certain amount of liability capital and the proof of expert knowledge. Despite open questions concerning regulation, Bitcoin business thrive in Germany. If you commercially deal with or intend to deal with Bitcoins, you should keep yourself up-to-date on the cryptocurrency's development and make sure that you have sufficient know-how before launching a Bitcoin related business in Germany.
We have monitored the market for digital currencies for a long time and in great detail and advise and represent numerous companies in this field see, for example, among other things the "liability umbrella" of the operator Bitcoin Deutschland AG.
Consulting an attorney on matters of legality, regulation and taxation ensures legally consistent transactions of cryptocpoins. Our attorneys and tax consultants provide advice pertaining to contract designs between the providers of Bitcoins and - both looking ahead as well as in a dispute — in the case of all tax-law issues.
We draft General Terms and Conditions for Bitcoin companies and represent them towards supervisory authorities in respect to all questions regarding supervisory law. Since we are in regular contact with the supervisory bodies, above all BaFin, we are always up-to-date as far as regulatory practice is concerned. You can contact them by e-mail info winheller. News Blog Press Contact.
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