finance
Federal Fiscal Court: Crypto profits are taxable
Profits from cryptocurrencies are taxable. photo
© Fernando Gutierrez-Juarez/dpa-Zentralbild/dpa
If you make a profit with cryptocurrencies, you also have to pay taxes on them. This was decided by the highest German finance court.
Private investors have to pay tax on their profits from transactions with Bitcoin and other cryptocurrencies. An unnamed plaintiff was shipwrecked before the Federal Fiscal Court, who had reported 3.4 million euros in profit from private crypto transactions to the tax office, but had resisted taxation. The highest German finance court published the verdict at its annual press conference on Tuesday in Munich.
According to the judges, virtual currencies are economic goods that have a market value and are bought and sold as a means of payment on trading platforms. According to the ruling, the profits are subject to the Income Tax Act as “private sales transactions”.