No Tax on Virtual Currencies in Denmark

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No Tax on Virtual Currencies in Denmark

ForexMinute.com – When almost every major economy is trying to ban or regulate Bitcoin and other altcoins, Denmark might be the only one which has shown impeccable leniency for them. In its recent announcement, Denmark’s tax authorities have decided to make virtual currencies “tax-free”, with which its users can directly pocket them without having to include them on their tax returns.

With Bitcoins and other cryptocurrencies – including Dogecoin and Litecoin – seeing a heavy escalation in their popularity, Denmark’s latest move is likely to boost it further. The unique yet simple explanation given by the country’s tax authorities for making cryptocurrencies tax free is that that they are not real money, and hence do not fall under the radar of taxable belongings.

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“We see the outcome of Bitcoin transactions as a result of something purely private. Therefore, any gains on Bitcoins tax, and losses are not deductible. It is like that you sell a painting that has been hanging at home in your private home: If you earn money from it, they are not taxed,” said the chairman of the National Tax Board, lawyer Hanne Søgaard Hansen.

To sum up, Bitcoin and other digital currencies do not exist in the physical world, as per Hanne. Earlier, both the FSA and National Bank had decided to consider virtual currencies as non-existent entities. But one cannot doubt that they are currently being used heavily in making real monies. Bitcoin particularly has been among the most traded cryptocurrency, with a market cap extending $6 billion of worth.

Tax Board also said that a business that accept virtual currencies can make invoices in the same.

Unique and progressive we must say!

To contact the reporter of the story: Yashu Gola at yashu@forexminute.com