The dilemma revolving around Bitcoin and other cryptocurrencies has always persisted. Especially in a situation where global nations are adopting cryptocurrencies, this has become a hot subject. Since there is no global regulation for cryptocurrencies, bitcoin and other cryptocurrencies are taxed differently in different nations.
While some countries like India imposed a 30% tax, some other countries like the Seychelles completely made cryptocurrency tax-free. Nations around the world are still puzzled about how to curate a tax regime. While other nations are in a dilemma, Denmark has made its stance clear on bitcoin and its taxation. According to the latest Denmark Supreme Court ruling, BTC sales that end in profit are taxable.
Denmark says bitcoin sale should be taxed
The Denmark Supreme Court has delivered two rulings, wherein it decreed that gains resulting from the sale of bitcoin shall be subject to taxation. These decisions may potentially establish a legal precedent regarding the tax treatment of cryptocurrency investments within the Nordic region.
The Supreme Court deliberated on two cases of BTC profits. In the first case, an entity purchased bitcoin from a third party, while in the second case, miners received bitcoin as a reward for network security. The court’s decision was that both parties would be subject to tax liabilities should they sell their cryptocurrency.
The court stated that: “The Supreme Court assumes that Bitcoin is generally only acquired with a view to being sold and, to a limited extent, to be used as a means of payment.”
Even though both instances were different, the court concluded that BTC is taxable in both situations.