Last Updated: 24 November 2023
From a tax perspective, bitcoin does not fall under a currency. Therefore, the purchase and sale cannot be subject to the final withholding tax. Nevertheless, investors who were able to generate profits from crypto trading should carefully check whether or not there is a tax liability.
How do you pay tax on Bitcoins?
In times of Corona, many investors rely on other investment products. This is because people are still looking for higher profits. This has brought cryptocurrencies and Bitcoin Evolution more and more into focus.
Since cryptocurrencies are not considered a means of payment (by law) in this country, no earnings from investments or shares can be compared from them. The tax office declares profits from crypto trading and compares them with profits from works of art or other valuables.
As a result, profits from the sale of this digital currency are often tax-free.
How can one profit from Bitcoin Evolution?
Step 1: Click on the link to go to the official website of Bitcoin Evolution.
Step 2: Fill out the form to get a FREE licence to trade.
Step 3: Follow the instructions on the platform to profit from bitcoin fast!
When are Bitcoins tax-free?
There are two values that determine this:
- This is firstly the profit that arises from the sale of the Bitcoins
- The period during which Bitcoins were held
It is important to note that:
Anyone who has owned their Bitcoins for a whole year is tax-free. The amount of profit does not matter and does not have to be listed in the tax return.
However, if these are now sold again twelve months after the purchase, only the profits up to an exemption limit of 600 euros are tax-free. Anything over 600 euros must be taxed on the entire profit.
If this is only one euro higher, the investor must pay tax on his entire profit.
The Bitcoin holding period
If you often buy and sell Bitcoins, it can be difficult to determine the exact holding period. It is impossible to assign the date of sale and purchase to each Bitcoin.
If the profits from these sales are nevertheless to be listed in the tax return, the person can select the FIFO method. This then means that those Bitcoins must be sold first that the investor bought first.
How the profit is calculated
The amount of profits can be calculated very easily.
Sales promotion costs may possibly be possible trader commissions. However, the profit can show positive as well as negative.
Reducing taxes with losses
If the investor has incurred losses with his cryptocurrency trading, he can minimise the tax burden. For example, the losses can be offset against any private sales transactions that may have occurred in the year.
The profit will decrease from the sales transactions and the tax will be reduced. If no gains have been made, the loss can be carried forward without a time limit into future years and then offset against any gains.
What is the amount of tax?
Profits are based on the personal income tax rate. In addition, there is the solidarity surcharge and possibly church tax.
How are bitcoins entered in the tax return?
For this purpose, the trader indicates in the column “Income” how many Bitcoins he has acquired in the respective tax year. In the following questions, it is then stated how long they were in the possession of the investor and what price arose after they were bought or sold again.