Denmark Is Determined To Leave Bitcoin Transactions Free Of Taxes
Looks like somebody has finally done their homework right as the Tax Board of Denmark saw the reason and decided not to impose taxes on any gain or loss due to the transaction of bitcoins.
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.