Denmark’s Supreme Court to levy tax on Bitcoin profits based on different cases

Reportedly, both Bitcoin mining and selling can be considered as taxable events

Going by sources, Coincub is a crypto economy related informative platform
Going by sources, Coincub is a crypto economy related informative platform

Denmark’s Supreme Court has passed on a decision related to the context that under specific situations the exchange of Bitcoin will be taxable or not, stated Cointelegraph. 

On March 30, 2023, Denmark’s Supreme Court marked the profit as a taxable event which was  gained by selling Bitcoin collected through donations and purchases, stating that the purchase was “made for the purpose of speculation,” Cointelegraph added. Reportedly, in another case where the user sold their own mined Bitcoin would be subjected to the same taxable event.

“The Supreme Court finds that the received Bitcoins must be considered assets acquired with a view to later turnover as an integrated part of [the first party]’s business with the development and operation of software for Bitcoins,” the Supreme Court ruling mentioned. “They cannot be considered at the time of sale to have been transferred to be [their] private property or assets. On that basis, the Supreme Court finds that the relinquishment of the Bitcoins received constituted revenue in [their] non-commercial business. Sales therefore trigger tax liability,” Cointelegraph highlighted.

Furthermore, Coincub added in September, 2022, that the profit earned in Denmark from crypto can be subjected to a tax rate of about 37-52%, depending on the income level of user, Cointelegraph concluded. 

(With insights from Cointelegraph) 

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First published on: 31-03-2023 at 13:56 IST