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Tax regulations - Virtual assets
All income from virtual assets is taxable.
Virtual assets such as cryptocurrency, digital tokens and other digital values are considered assets (assets) for tax purposes. Income from assets is considered capital income and is taxed at a rate of 22%.
Virtual assets should be included in the calculation of wealth tax by market value on January 1 of the year following the year in which the income was earned.
Virtual assets are subject to general asset tax rules. They are not covered by the exemptions and special tax rules that apply to the common currency (FIAT), stocks, bonds, financial instruments or other types of assets covered by special exemption rules. This means, inter alia, that the exemption method does not apply to virtual assets and that the upward adjustment factor for equity income does not apply.
Taxation of virtual assets should be assessed for each product/service separately. What the product is called or the performance is not decisive for this rating.
Example
The reimbursement or expense can be called interest, and therefore it is not interest income or interest expense within the meaning of tax law.
Implementation
Implementation means the transfer of property rights against remuneration and the expiry of property rights. A typical implementation example is sale and exchange. For example, the sale of a virtual asset against settlement in another virtual asset would be considered a tax realization. Another example could be the loss or destruction of an asset. Giving a gift is not a fulfillment.
Income from implementation
There is a taxable gain or a deductible loss on the sale or other realization of virtual assets. In the case of virtual assets such as cryptocurrencies and other tokens, this means that all transactions between two or more parties imply, in principle, one or more executions.
The profit/loss on execution is the difference between the output value and the input value of the current virtual asset, adjusted for any costs associated with the transaction. More information on Profit/Loss Calculation .
If you are trading virtual assets as a business, execution gains/losses should not be included in your personal income calculation.
other income
Extraction of virtual assets through verification activities generates income regardless of the protocol used.
Examples of this are proof-of-work (mining) and proof-of-stake.
Other income may result from, inter alia, DeFi i non-fungible tokens (NFT) .
Read our next article: Tax on bitcoin or other cryptocurrency - you need to remember this
If you have received virtual assets in the form of forks or similar, the market value at the time of receipt will be considered as income. Often, the market value at the time of receipt may be zero and then becomes the input value for the subsequent calculation of profit/loss on execution.
Mining income which is a business activity for self-employed persons will be included in the personal income calculation.
. Costs and deductions
If you have expenses related to income from virtual assets, you may be eligible for a deduction. The deductible costs of virtual assets are considered the cost of capital and are deductible at the rate of 22%. In practice, the costs are usually deducted in the profit and loss account or in the income statement in the case of mining/mining and reduce taxable income or increase tax loss.
You can deduct costs related to investments or income from virtual assets only if you can document the costs.
