Bitcoin Code – Do I have to pay taxes?
As Bitcoins are not legal tender, profits from Bitcoin trading are not treated for tax purposes in the same way as shares or other forms of investment. This can mean that, under certain conditions, no tax is payable.
When is the profit on Bitcoin tax-free?
Whether and how much tax is payable on bitcoin code profits is subject to two values:
- the holding period of the currency or when the sale and purchase occurred
- the amount of the profit
If the investor holds Bitcoins or another cryptocurrency for longer than one year, no tax is due. It does not matter how high the profit is. However, when selling within a year, attention should be paid to the amount of profit.
All winnings up to 600 euros are tax-free. However, if only one euro more profit is made, the entire amount must be taxed.
It is important to note that this tax-free amount is not only relevant for Bitcoin trading, but for all private sales. For example, if you sell a work of art that brings in a profit of 1000 euros, you are already above the tax-free amount.
How can one profit from Bitcoin Code?
Step 1: Click on the link to go to the official website of Bitcoin Code.
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!
Is trading in bitcoins a private sale transaction?
Trading with virtual currencies such as Bitcoins, belongs to the private disposal transactions or also speculative transactions for tax purposes. If bitcoins are exchanged for euros on a platform, the trader may have to pay taxes because he has made a capital gain.
The decisive factor is the date of acquisition of this digital currency.
Two scenarios come to the fore:
Holding period is not taxable for more than one year
If the investor has already bought Bitcoins a year ago, this capital gain remains tax-free. Nevertheless, there are restrictions. If interest is earned, the investor not only has to pay a final withholding tax on the interest. The speculation period increases, therefore from one to ten years.
Holding period less than one year
If the trader keeps his Bitcoins for only a few months and then sells them at a profit, he must pay tax on this at his personal tax rate. However, there is an exemption limit of 600 euros per year, which is tax-free. It is important not to confuse this exemption limit with the so-called tax-free amount.
This exemption limit applies to all sales transactions made in one year. If, for example, you sell a painting or another work of art in addition to the profit from trading in Bitcoins, all the profits that accrued in that year must be added together.
This means that only if the profit does not exceed 600 euros are these private sales tax-free.
This is how digital money is entered in the tax return
The capital gain, for example from trading in Bitcoins, is entered in Annex SO (Other income). Even if the profits should be below the exemption limit of 600 euros. The tax office must officially declare the tax exemption.