Germany’s Federal Ministry of Finance (BaFin) has published a 24-page document outlining clear rules for the taxation of profits derived from transactions with cryptocurrencies and virtual assets.
Now, tax practices, businesses and individual taxpayers have clear guidance on the tax requirements for buying, trading and selling cryptocurrencies.
Individuals who sell BTC or ETH after 12 months of purchase will not pay tax, even if they make a profit on the sale. Parliamentary Secretary of State Katja Hessel has also responded to questions about long-term cryptocurrency stealing. She has said:
“For individuals, the sale of Bitcoins and Ethers purchased is not taxable after one year. The deadline is not extended to ten years if, for example, Bitcoin was previously used for credit or the taxpayer provided ETH for someone else to stake their block.”
Germany urged companies, organizations, and individuals last year to contribute to the tax rules related to the use of cryptocurrencies, as well as to the staking and lending protocols.