Private investors have to pay tax on their profits from transactions with Bitcoin and other cryptocurrencies. This was decided by the Federal Fiscal Court (BFH) and thus proved the tax office right in a dispute with an unnamed plaintiff. He had reported 3.4 million euros in profit from private crypto transactions to the tax authorities, but resisted taxation. In the opinion of the top German financial judges, however, virtual currencies such as Bitcoin or Ether are also economic goods that can be bought and sold at a market value on trading platforms and can serve as a means of payment. According to the ruling, the profits are subject to the Income Tax Act as “private sales transactions”.
Federal Fiscal Court – Crypto profits are taxable – Economy
