Bitcoins Tax Free in Germany After One-Year
[heading]Bitcoins Tax Free in Germany After One-Year[/heading]
Bitcoin increased 25% in German Euro terms over the course of the day on one simple announcement: the p2p digital currency would not be subject to a litany of taxes.
Bitcoiners have been waiting for the Bitcoin shoe to drop in Germany. On the heels of Canadian and American rulings, it has been of great interest how Europe would respond.
Germany’s financial role since the onset of the economic crisis in 2009 has at times been compared to the Nazi party’s hold over Europe, with Cyprus bank accounts being looted most recently and Greece ravaged before that.
Despite the hawkish insistence of Germany that the rest of Europe – in particular the southern countries – capitulate to the industrial center or historical core of Europe, Die Muetterland apparently has a soft spot for digital currencies…for now.
And so, Bitcoin gains (in terms of profits) will not be subject to tax in Germany after one-year. And it is likely that since Germany has taken such a laissez-faire approach to Bitcoin other European nations will as well.
Therefore, the online money will be treated differently by the Treasury than stocks, bonds or certificates, all of which are subject to a withholding tax of 25 percent plus solidarity surcharge and church tax. In the case of Bitcoin, after one year, there will be no such taxes reports Die Welt.
Such a tax exemption in terms of capital gains in Bitcoins comes as a sense of relief to German investors in the online currency.
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 can come with more certainty now. Private profits from the sale of Bitcoins are tax-free after one year,” said FDP financial expert Frank Schaeffler.
There has been an ongoing debate in Germany regarding the tax treatment of digital currency. The Federal Government’s response has clarified this.
Frank Schaeffer, who made the request for clarification on Bitcoin, is also known as a “Euro-rebel” due to his having repeatedly voted in parliament against the bailout policies.