Looks like somebody has finally seen the light as the Tax Board of Denmark saw reason and decided not to impose taxes on any gain or loss due to the transaction of bitcoins.
Trading bitcoin is a private matter
The basic idea behind this decision is that all the transactions made are exclusively up to users, bearing in mind that cryptocurrencies are just strings of numbers, not something physically real (although there are people who would argue against that concept).
Therefore, when one initiates the act of sending a bitcoin it is basically the same as sending an e-mail; he or she shouldn’t have to be charged for it. As the chair of the Tax Board, Hanne Søgaard Hansen puts it:
“We see the outcome of bitcoin transactions as a result of something purely private. Therefore, any gains on bitcoin are tax-exempt, and losses are not deductible.”
However, don’t get your hopes up too high if you have a business whose main activity is centered on trading cryptocurrencies, checking in digital coin payments or managing bitcoins in any other possible way. Taxation will not go by you.
Hanne Søgaard Hansen
Took them some time
The Denmark Bitcoin community’s member Michael Poop-Madsen claims that the decision should have been made three months ago, in December, but these last months were highly eventful for Bitcoin in the geopolitical, technical and social fields. That is why the Board took its time to finally present the community with its decision.
Nevertheless, Michael thinks that the decision is the best thing that could have happened to cryptos in Denmark, as it allows the free spirit of Bitcoin’s decentralisation to be retained and gives the green light to those who wanted to become involved with Bitcoin but were unsure due to the potential bureaucracy or, in that case taxation, involved.
Not a Trivial Decision
Although the previous statement by Denmark’s Central Bank was almost copy-pasted from other countries, except, maybe, for the “glass beads” part, the current decision puts it above any other government.
The local community is celebrating as it was never believed that their government would allow for cryptocurrencies to run free, as opposed to the example of other countries wanting to put a tag, regulate and suck them dry of any possible value they might possess.
What possible value can these strings of numbers have? That’s the point made by Denmark’s officials!