About Us
FAQ
Global Law Experts Logo
Global Law Experts Logo

Find a Global Law Expert

Specialism
Country
Practice Area

Awards

Since 2010, the Global Law Experts annual awards have been celebrating excellence, innovation and performance across the legal communities from around the world.

Profits from trading cryptocurrency subject to tax

posted 4 years ago

Profits from the sale of Bitcoin and other cryptocurrencies are subject to tax. That was the verdict of the Finanzgericht Berlin-Brandenburg in a ruling from June 20, 2019 (Az.: 13 V 13100/19).
Many investors have invested in cryptocurrencies such as Bitcoin. If cryptocurrency is sold again within a year and a profit is made in the process, we at the commercial law firm MTR Rechtsanwälte note that this is subject to income tax.
Tax liability was confirmed by the Finanzgericht Berlin-Brandenburg in a ruling from June 20, 2019. The legal action was lodged by a married couple that had generated profits in 2017 from trading Bitcoin via a trading platform and declared them in their tax return. The tax office deemed the transaction a private sale and issued an income tax assessment notice. The married couple’s action was unsuccessful.
The Finanzgericht held that Bitcoins constitute an asset that is comparable to a foreign currency, with any profits generated from transactions subject to income tax. Accordingly, the Court went on to note that trading in cryptocurrencies is to be viewed as a private sale and any profits within the speculation period are subject to tax.
It is advisable to maintain detailed documentation when trading in cryptocurrencies. Lawyers with experience in the field of tax law can offer advice.
https://www.mtrlegal.com/en/legal-advice/tax-law.html 

Author

Find the right Legal Expert for your business

The premier guide to leading legal professionals throughout the world

Specialism
Country
Practice Area
0
LAWYERS RECOGNIZED
0 m+
EVALUATIONS OF LAWYERS BY THEIR PEERS
0
PRACTICE AREAS
0
COUNTRIES AROUND THE WORLD

Join

0
who are already getting the benefits

Sign up for the latest legal briefings and news within Global Law Experts’ community, as well as a whole host of features, editorial and conference updates direct to your email inbox.

Naturally you can unsubscribe at any time.

Newsletter Sign Up

About Us

Global Law Experts is dedicated to providing exceptional legal services to clients around the world. With a vast network of highly skilled and experienced lawyers, we are committed to delivering innovative and tailored solutions to meet the diverse needs of our clients in various jurisdictions.

Contact Us

Stay Informed

Join Mailing List

GLE