Bitcoin Profits Taxable In Denmark
The Danish Supreme Court upheld a prior decision by the Danish High Court by concluding that gains from the selling of bitcoin represent a taxable event.
Two bitcoin profit cases were examined by the Supreme Court. In the first, a company that bought bitcoin from a third party was engaged, and in the second, miners who receive bitcoin in exchange for protecting the network were. According to the Court, both organisations would owe taxes if they sold their coins.
The court determined that the first instance’s clients’ acquisition of bitcoin was speculative in character. As a result, in accordance with the State Tax Act of Denmark, any sales made by them shouldn’t be tax-free. As for miners, the Supreme Court ruled that their bitcoin acquisitions via mining constituted revenue and should attract taxes if they sell.
(With inputs from Shikha Singh)
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