Bitcoin [BTC]: Profits made from sale are taxable, rules Denmark court
- The Supreme Court of Denmark has ruled that profits from the sale of Bitcoin assets are taxable.
- Many countries, including India and Italy, have already proposed laws taxing gains made on crypto sales.
On 30 March, The Supreme Court of Denmark ruled that profits from the sale of Bitcoin [BTC] assets are taxable. This ruling was reached by the court after two cases on the matter.
The court ruled that a party who profited from selling Bitcoin obtained through multiple purchases and donations was required to report the sale as a taxable event, adding that the purchase was “made for the purpose of speculation.” In a separate case, the court ruled that a user who mined their own BTC and later sold the coins would be taxed as per the same rules.
Both cases heard by the Supreme Court involved the purchase of BTC between 2011 and 2013, with sales occurring between 2017 and 2018, implying a price difference worth thousands of dollars in the crypto market.
The court cited sections of the country’s National Tax Act, noting that it had taken into account the first seller’s intention to eventually sell the coins based on a post published in a Bitcoin forum in 2011.
The court did not rule on how much tax would be levied on Bitcoin sales.
Bitcoin surges in value
At press time, Bitcoin was at a resistance level of $28,733, with a support level of $28,060. It briefly surpassed the $29,000 mark before falling back. Despite this, BTC was at its highest since June 2022. At press time, it was trading at $28,137.08.
Although BTC has grown by 73.33% since the beginning of the year, it is still a long way from its all-time high (ATH). At the time of writing, Bitcoin was 58.47% lower than its all-time high of $69,044 (November 2021).
We must note that Denmark is not the only country introducing the crypto gain tax in its jurisdiction. The Italian government passed a law approving a 26% tax on capital gains on crypto trading of over 2,000 euros. Similarly, the Indian government proposed in its 2022 union budget that the transfer of any virtual/cryptocurrency asset will be taxed at 30%.
