Crypto traders and investors in Denmark are in for a shock as a court ruling says that crypto gains are now taxable in the country. The ruling takes immediate effect, meaning any profits made from crypto sales from now on will attract a tax.
According to a statement by Denmark Supreme Court, crypto currencies purchased for the purpose of speculation, acquired through donations or by mining are all subject to taxation under the country’s tax laws.
An exact amount or percentage of profits that is considered to be tax was however not stated by the supreme court.
Denmark Follows Italy and Others
Denmark is the latest to impose tax on crypto earnings. Other countries have since ruled that crypto earnings within their jurisdictions are taxable. One of them is Italy which recently imposed a 26% tax on any crypto transaction exceeding 2,000 Euros.
Germany has also announced a tax on all private crypto investors, exempting corporate investors from such taxes. This is in spite of the fact that these countries do not have any clear regulations guiding the crypto industry yet.
Investors May Find Alternatives
Before now, both Denmark and Germany were crypto tax free countries, making the countries particularly attractive to retail crypto investors. With the change in legislation now, it is likely that such investors will find other crypto havens.
Examples of such havens are El Salvador which has declared Bitcoin as a legal tender, Portugal, Belarus, Malta, and Cayman Islands. It is no wonder crypto investors and companies find these places very attractive.