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Germany Recognises Cryptocurrencies as Taxable Assets

Definition and Tax Implications of Crypto Assets in Germany

In Germany, cryptocurrencies such as Bitcoin and Ethereum, are considered other economic goods and their sale is treated as a private disposal transaction. Any profits derived from these transactions are subject to taxation, and it is important for individuals to be aware of their tax obligations.

Key Tax Considerations for Cryptocurrencies in Germany

The Federal Central Tax Office (BSZt) has clarified that short-term capital gains from crypto transactions held for less than a year are subject to income tax. This tax is levied at the individual's applicable income tax rate. However, crypto-related income below the tax-free allowance of 256 euros is exempt from taxation.

Individuals are required to declare their crypto-related profits and losses in their annual tax returns. The deadline for filing tax returns in Germany is May 2nd of each year, with an extension to September 30th available upon request.

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