Denmark’s supreme court rules bitcoin profits are taxable
The supreme court of Denmark in a recent judgment ruled that profits obtained from the sale of bitcoin were taxable, with the ruling applying to investors and miners.
Investors and miners are to be taxed for gains on BTC sale
The ruling which was given on March 30, 2023, involved two cases where the court tried to determine if bitcoin profit was a taxable event.
The first case involved a party that got BTC from purchases and donations from a third party. According to the supreme court, the BTC purchase in this instance was considered speculative, adding that the sale was not tax-free according to Denmark’s state tax act.
In another case, miners who earned bitcoin for validating transactions and securing the network, and later sold the bitcoin at a profit. In both instances, the justices of the supreme court stated that bitcoin sales by both parties would trigger a tax liability.
Denmark is not one of the known tax havens for the crypto industry. In 2019, Danish authorities sought to collect data from crypto exchanges in order to monitor the trading activities of users and collect necessary taxes.
Outside of Denmark, more countries have formulated crypto tax laws. In October 2022, Portugal proposed a 28% crypto tax law in its 2023 budget. Ukraine is also working on a crypto tax policy.