From this week onwards, any profits from sales made with Bitcoin in Denmark will be taxed by the government.
The news was confirmed in a statement released by Denmark’s Supreme Court, which based its judgement on the evaluation of two separate cases where individuals received and sold Bitcoin in a way that falls under the country’s wider law on taxable profits.
The first case presents the person A who between 2011 and 2015 received Bitcoin through purchases or third-party donations in connection to their business of providing Bitcoin software infrastructure. The same person sold these Bitcoins as profits between 2017 and 2018.
In a second case, person B managed to acquire a considerate amount of Bitcoin by mining the crypto currency between 2011 and 2013, after which they sold the amount gathered for a profit in 2018.
The document then goes on to assess that the purchase of Bitcoin in the case of person A was made “for the purpose of speculation”, meaning that it was not tax-free under the State Tax Act.
A conclusion is drawn that both A and B’s Bitcoin sales have constituted turnover in their non-business enterprises”, which automatically triggers tax liability under state law.
Despite the ruling, no further details were given by the court on the exact tax amount that those two transactions are subject to.
Denmark is the latest country to introduce tax on crypto gains, with Italy recently approving 26% tax on all crypto-related transactions over €2k, while Germany announced that all private crypto investors are now liable for tax on their crypto profits.