Denmark’s Supreme Court Says That In Some Cases Bitcoin Benefits Would Be Tax Worthy

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The supreme court of Denmark posted two petitions for cases where two different users of cryptocurrency made profits from the BTC sales as well as mining. 

The Supreme Court of Denmark has handed out two ultimatums on whether these profits made out of bitcoin under particular circumstances shall be considered taxable. 

In a notice scheduled around the end of March, it was stated by the Supreme Court of Denmark that an individual subjected to profits made by the sales of bitcoins or through several investments in cryptocurrency was needed to make a report of that sale as the kind of job in which one is required to pay taxes.

Supreme Court Considers Bitcoins To be Assets

Both the cases that had been contemplated by the Supreme Court associated the acquirement of bitcoins between the years of 2011 to 2013 and the sales which took place around the years of 2017-2018, which leads us to suggest a difference in prices in terms of a thousand dollars at least. Sections from the National Tax Act of the country had been read out within the session of the court establishing the motive of selling the coins when they were being purchased. 

The Supreme Court established that bitcoins have to be understood and considered an asset, in this case, bought primarily with the intention of selling later for added profits. 

According to research made from September 2022, the tax rate on cryptocurrency profits achieved in Denmark might range from 37% to 51%, which would depend on the user’s finance. This will put the nation considerably above US taxes on capital gains on cryptocurrency, which range from 0% to 37% according to whether a person sells funds owned for more than one year or less and their level of income.