Denmark consider taxing unrealized gain on bitcoin.

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Quote from: Synchronice on November 11, 2024, 11:43:01 AM

Quote from: AsiaHODL on November 11, 2024, 11:03:27 AM

Quote from: Synchronice on October 28, 2024, 02:07:21 PM

In what world does it make any sense to set taxes on unrealized gain? Especially on as volatile asset as Bitcoin is? This is crazy! This will be an additional headache for every investor. Denmark should be aiming to motivate people to know what cryptocurrencies are and to invest in it but instead they make it less attractive for people while UAE does amazing job at attracting investors and businesses all over the world. This doesn't make sense and I hope they'll understand that everything should not be taxed.

True, but either way, people can move. They have the choice - stay where you value is stolen form you by law, or move where you are treated best.

People can move, sure, but that's not the solution to the problem. When something inappropriate happens, people should unite and fight against it instead of leaving their own country. This is definitely not my problem, more likely the problem of Danish people but it's still sad that Denmark, one of the most amazing country with high quality of life, instead of adopting future technologies, is doing the opposite of it. After the ETF approval and interest from other countries, it should also be Denmark's interest to have as many Bitcoin holders as possible in their country. It sounds very strange for me that they do the exact opposite.

I believe they will soon realize that this initiative would be hard to implement as the gain/profit is quite subjective. If a crypto user knows how to manage the anonymity of his transactions, the government won't find out about his crypto involvements. Unless, the user will be using legit local crypto-exchanges as the government has a hold on them.

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Quote from: Sanitough on October 25, 2024, 04:57:32 AM

This new proposed bill sounds wild. It would mean holders have to declare their assets and pay taxes on any increase in value from their original purchase, even on unrealized gains. So, even if you’re just holding, you’d have to report it every year.

The state also wants its "piece" of your "pie" of imaginary profit.

Quote from: Sanitough on October 25, 2024, 04:57:32 AM

Now, if the value drops, sure, maybe you’d pay lower taxes or get a tax offset, but it’s still odd. Think about it: you buy Bitcoin at $10,000, and over the next five years, it rises, so you’re paying annual taxes based on that value increase. But then, if the price tanks overnight and you sell in a panic, you’re at a loss - yet the government’s already pocketed tax from your unrealized gains.

You don't see the main positive "line" in this text. If the government plans to withdraw part of the unrealized profit, then this can only mean one thing. The government believes in the future growth of bitcoin.

Didn't you want recognition of bitcoin by governments? Well, get what you asked for. And it will get a "fat" piece of your investment, to which it has nothing to do (didn't allocate any money and didn't risk a single cent).

Quote from: Sanitough on October 25, 2024, 04:57:32 AM

And look at the percentage of tax... Cry

Quote from: https://cointelegraph.com/news/denmark-propose-bill-to-tax-unrealised-crypto-gains

Similarly, the Italian government mulled raising the capital gains tax specifically for Bitcoin holdings from 26% to 42% beginning in 2025.

I like it! Grin

Did you really think the government would act in your interests and profits?

Richbased

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Quote from: MeGold666 on October 25, 2024, 07:48:19 AM

Quote from: stompix on October 25, 2024, 07:45:03 AM

And, what are you going to do with your Monero? Cheesy

Let's see the options:
- sell it, taxable registered event
- buy stuff with it, taxable registered event
- go to a country where is not taxable, thing you can do with Bitcoin
- print a piece of paper with your key and the words "I'm rich" and take it to your grave

You sound like one of those guys who is so happy he can pay for stuff with cryptocurrency anonymously then goes on to type his whole name and address in the delivery address and the warranty certificate. Wink

Also, these gains in Monero which the government would tax you on, are they in the same room as us now?

YES, I pay taxes when I sell my Monero, but I refuse to pay taxes on the Monero I hold.

Do you see the difference? Cool

I have too much money in crypto to have it visible to the government.

/Over&Out

Paying taxes on selling cryptocurrency is justifiable a bit but to pay taxes on the amount you hold is really an insane act by any government. Perhaps, it's only when you sell that they would know you have asset in crypto since they can get your personal details from the centralized exchanges you used as a medium to sell your crypto since your KYC documents are in their data.

I think anyone who have enough money should just use it and buy cryptocurrency where the government won't get to know the amount you got then anytime you need Fiats, you can just sell part of it. The only problem with this practice is volatility because if the price of any crypto you are holding falls at a time you needed to get Fiats it may be difficult which can even lead to selling at lost. Though for Monero, since the volatility is very slow, you won't record much losses if the price falls.

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Quote from: Sanitough on October 25, 2024, 04:57:32 AM

This new proposed bill sounds wild. It would mean holders have to declare their assets and pay taxes on any increase in value from their original purchase, even on unrealized gains. So, even if you’re just holding, you’d have to report it every year.

Now, if the value drops, sure, maybe you’d pay lower taxes or get a tax offset, but it’s still odd. Think about it: you buy Bitcoin at $10,000, and over the next five years, it rises, so you’re paying annual taxes based on that value increase. But then, if the price tanks overnight and you sell in a panic, you’re at a loss - yet the government’s already pocketed tax from your unrealized gains.

And look at the percentage of tax... Cry

Quote from: https://cointelegraph.com/news/denmark-propose-bill-to-tax-unrealised-crypto-gains

Similarly, the Italian government mulled raising the capital gains tax specifically for Bitcoin holdings from 26% to 42% beginning in 2025.

It's absurd and against the interest of common people. While the world needs to introduce tax on extremely wealthy population, they are introducing taxes which will increase the burden of commoners. Also such kind of taxes will make the tax calculation extremely difficult. Not a good move!

I am sure that a lot of people will either move out of crypto or hide their crypto holdings from the government if this tax code becomes a law.

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Quote from: AsiaHODL on November 11, 2024, 11:03:27 AM

Quote from: Synchronice on October 28, 2024, 02:07:21 PM

In what world does it make any sense to set taxes on unrealized gain? Especially on as volatile asset as Bitcoin is? This is crazy! This will be an additional headache for every investor. Denmark should be aiming to motivate people to know what cryptocurrencies are and to invest in it but instead they make it less attractive for people while UAE does amazing job at attracting investors and businesses all over the world. This doesn't make sense and I hope they'll understand that everything should not be taxed.

True, but either way, people can move. They have the choice - stay where you value is stolen form you by law, or move where you are treated best.

People can move, sure, but that's not the solution to the problem. When something inappropriate happens, people should unite and fight against it instead of leaving their own country. This is definitely not my problem, more likely the problem of Danish people but it's still sad that Denmark, one of the most amazing country with high quality of life, instead of adopting future technologies, is doing the opposite of it. After the ETF approval and interest from other countries, it should also be Denmark's interest to have as many Bitcoin holders as possible in their country. It sounds very strange for me that they do the exact opposite.

AsiaHODL

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Quote from: Synchronice on October 28, 2024, 02:07:21 PM

Quote from: Sanitough on October 25, 2024, 04:57:32 AM

This new proposed bill sounds wild. It would mean holders have to declare their assets and pay taxes on any increase in value from their original purchase, even on unrealized gains. So, even if you’re just holding, you’d have to report it every year.

Now, if the value drops, sure, maybe you’d pay lower taxes or get a tax offset, but it’s still odd. Think about it: you buy Bitcoin at $10,000, and over the next five years, it rises, so you’re paying annual taxes based on that value increase. But then, if the price tanks overnight and you sell in a panic, you’re at a loss - yet the government’s already pocketed tax from your unrealized gains.

And look at the percentage of tax... Cry

Quote from: https://cointelegraph.com/news/denmark-propose-bill-to-tax-unrealised-crypto-gains

Similarly, the Italian government mulled raising the capital gains tax specifically for Bitcoin holdings from 26% to 42% beginning in 2025.

In what world does it make any sense to set taxes on unrealized gain? Especially on as volatile asset as Bitcoin is? This is crazy! This will be an additional headache for every investor. Denmark should be aiming to motivate people to know what cryptocurrencies are and to invest in it but instead they make it less attractive for people while UAE does amazing job at attracting investors and businesses all over the world. This doesn't make sense and I hope they'll understand that everything should not be taxed.

True, but either way, people can move. They have the choice - stay where you value is stolen form you by law, or move where you are treated best.

Synchronice

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Quote from: Sanitough on October 25, 2024, 04:57:32 AM

This new proposed bill sounds wild. It would mean holders have to declare their assets and pay taxes on any increase in value from their original purchase, even on unrealized gains. So, even if you’re just holding, you’d have to report it every year.

Now, if the value drops, sure, maybe you’d pay lower taxes or get a tax offset, but it’s still odd. Think about it: you buy Bitcoin at $10,000, and over the next five years, it rises, so you’re paying annual taxes based on that value increase. But then, if the price tanks overnight and you sell in a panic, you’re at a loss - yet the government’s already pocketed tax from your unrealized gains.

And look at the percentage of tax... Cry

Quote from: https://cointelegraph.com/news/denmark-propose-bill-to-tax-unrealised-crypto-gains

Similarly, the Italian government mulled raising the capital gains tax specifically for Bitcoin holdings from 26% to 42% beginning in 2025.

In what world does it make any sense to set taxes on unrealized gain? Especially on as volatile asset as Bitcoin is? This is crazy! This will be an additional headache for every investor. Denmark should be aiming to motivate people to know what cryptocurrencies are and to invest in it but instead they make it less attractive for people while UAE does amazing job at attracting investors and businesses all over the world. This doesn't make sense and I hope they'll understand that everything should not be taxed.

FortuneFollower

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Quote from: asriloni on October 27, 2024, 11:05:28 PM

I'm really welcoming it as long as they can also pay my unrealized losses as well. Cheesy

By the way, taxing unrealized profit on bitcoin is not acceptable by me. I thought that this was because unrealized profit is not a form of income. It's very stupid to tax someone who hasn't sold their private property, and get profit by selling it.

I think the government is acting like a modern dictator. They doesn't care about its citizens. It seems that law matters less now.

It's more like it always was - if something is good for people and it's not regulated, it will be regulated eventually Grin

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I'm really welcoming it as long as they can also pay my unrealized losses as well. Cheesy

By the way, taxing unrealized profit on bitcoin is not acceptable by me. I thought that this was because unrealized profit is not a form of income. It's very stupid to tax someone who hasn't sold their private property, and get profit by selling it.

I think the government is acting like a modern dictator. They don't care about its citizens. It seems that law matters less now.

eightdots

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Quote from: GigaBit on October 27, 2024, 06:03:23 AM

Quote from: Sanitough on October 25, 2024, 04:57:32 AM

This new proposed bill sounds wild. It would mean holders have to declare their assets and pay taxes on any increase in value from their original purchase, even on unrealized gains. So, even if you’re just holding, you’d have to report it every year.

Now, if the value drops, sure, maybe you’d pay lower taxes or get a tax offset, but it’s still odd. Think about it: you buy Bitcoin at $10,000, and over the next five years, it rises, so you’re paying annual taxes based on that value increase. But then, if the price tanks overnight and you sell in a panic, you’re at a loss - yet the government’s already pocketed tax from your unrealized gains.

Some governments are still discouraging their citizens from investing in Bitcoin. Although they are not able to directly but indirectly their tax policy is showing that. Even if a person does not make profit by holding bitcoins, he also has to pay Tax. I don't know how reasonable such conditions can be.

Denmark is definitely one of the paradise states on earth. Where people are most interested in living. Their rules and regulation is promising but in recent times there are doubts about whether they will be able to implement the rules they are taking on taxing crypto. Although ideas have been proposed, no final decision has been made yet.

I am not against tax. But of course it will be supported by all if it is based on fairness. The Danish government is discussing taxing ordinary investors differently, with tax on those who benefit and a tax on those who retain. Since this is not approved yet , I think they must change this policy. Lowering the tax level can be another good measure for this industry.

They want to tax everything. Governments that want to tax unrealized gains can change the investment status of many people. Crypto provides people with a lot of freedom and trying to limit this freedom with some laws is a difficult situation for investors. Everyone who invests can make a profit or a loss. It is not right for governments to tax people for investing.

Governments should make it easier for their citizens to invest in Bitcoin. How can they make it easier? Among the actions that governments should take is to ensure that crypto exchanges are legal and communicate with exchanges to ensure the safety of citizens investing in crypto.

Taxes are necessary for governments and should be implemented, but it is not right to tax unrealized income as stated here. Before such policies are implemented, people are informed and discussed and a path is drawn up as to whether the policy will be implemented or not. I think they will not implement such policies.

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Quote from: Sanitough on October 25, 2024, 04:57:32 AM

This new proposed bill sounds wild. It would mean holders have to declare their assets and pay taxes on any increase in value from their original purchase, even on unrealized gains. So, even if you’re just holding, you’d have to report it every year.

Now, if the value drops, sure, maybe you’d pay lower taxes or get a tax offset, but it’s still odd. Think about it: you buy Bitcoin at $10,000, and over the next five years, it rises, so you’re paying annual taxes based on that value increase. But then, if the price tanks overnight and you sell in a panic, you’re at a loss - yet the government’s already pocketed tax from your unrealized gains.

Some governments are still discouraging their citizens from investing in Bitcoin. Although they are not able to directly but indirectly their tax policy is showing that. Even if a person does not make profit by holding bitcoins, he also has to pay Tax. I don't know how reasonable such conditions can be.

Denmark is definitely one of the paradise states on earth. Where people are most interested in living. Their rules and regulation is promising but in recent times there are doubts about whether they will be able to implement the rules they are taking on taxing crypto. Although ideas have been proposed, no final decision has been made yet.

I am not against tax. But of course it will be supported by all if it is based on fairness. The Danish government is discussing taxing ordinary investors differently, with tax on those who benefit and a tax on those who retain. Since this is not approved yet , I think they must change this policy. Lowering the tax level can be another good measure for this industry.

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Quote from: Jet Cash on October 27, 2024, 05:29:20 AM

I can see Blackrock and other investment houses going for this. I'm sure they will be happy to fork out the tax on the £billions they hold in Bitcoin. They will probably speculate through and overseas exchange they own, and incur massive losses. That way they can get massive credits to reduce their profits on other assets like carbon credits.

Such laws are always for the "little guys" not for these trillion dollar companies that define the laws themselves! You can bet your ass they never mind such laws because if they did, they'd never allow it to be passed Grin

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I can see Blackrock and other investment houses going for this. I'm sure they will be happy to fork out the tax on the £billions they hold in Bitcoin. They will probably speculate through and overseas exchange they own, and incur massive losses. That way they can get massive credits to reduce their profits on other assets like carbon credits.

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Not really possible to tax what is in essence an extension of a person's body via a phase stored in their brain which interfaces with an algorithm in cyberspace...

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Quote from: Sanitough on October 25, 2024, 04:57:32 AM

This new proposed bill sounds wild. It would mean holders have to declare their assets and pay taxes on any increase in value from their original purchase, even on unrealized gains. So, even if you’re just holding, you’d have to report it every year.

This sounds really weird because people have to pay taxes on the assets they hold and perhaps the bill’s rationale is completely devoid of any public benefit. So how is this going to continue, is their government trying to erode taxes for whatever justification?

Quote from: Sanitough on October 25, 2024, 04:57:32 AM

Now, if the value drops, sure, maybe you’d pay lower taxes or get a tax offset, but it’s still odd. Think about it: you buy Bitcoin at $10,000, and over the next five years, it rises, so you’re paying annual taxes based on that value increase. But then, if the price tanks overnight and you sell in a panic, you’re at a loss - yet the government’s already pocketed tax from your unrealized gains.

The focus is not on the value of assets that have fallen so that taxes are lower, but this concept does not make sense at all if it is applied evenly because it speaks at the level of small ownership or large assets. The idea that the government is trying to develop there is not profitable at all and I think they only think about the benefits of taxes rather than considering alternatives that can be done by the wider community there.

Personally, I do not expect this to be the final decision and may need to be reviewed so that the regulation is more acceptable to some people involved in bitcoin and especially for the community there who are looking for alternatives to bitcoin for financial freedom issues.

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Quote from: crwth on October 25, 2024, 10:10:47 AM

This would be on Bitcoin exchanges registered in their country right now because I don’t know if it could be considered if it is just within your wallet. I’m not that familiar yet with the bill that they are trying to propose. I would still consider the part where you converted into Fiat, and then that’s where you would tax it.

That will include both your exchange and personal wallet, as both count as your holdings. You’ll need to declare it, but it’s easier for them to track the Bitcoins you have on exchanges since those exchanges are regulated. For now, it’s important to look for ways to minimize compliance with this law if it gets passed, so you can reduce your tax liability. There’s a good chance the government will approve this bill since they’re always looking to increase their tax revenue collection.

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Quote from: kotajikikox on October 26, 2024, 10:12:15 PM

Easy to assume that its citizens wouldn’t be happy. I mean the point of bitcoin is to be able to hold money and make transactions without sacrificing our data and privacy. I am sure that many holders are holding anonymously and would like it to stay that way.

Definitely, everyone wants to stay as private as possible. The people who will be most affected by this law are likely those trading actively because the government will require exchanges to provide data on traders to ensure they collect the necessary taxes. However, since this is about unrealized gains, I don’t think it’s necessary for long-term holders to report their Bitcoin, as long as they know there’s no link from the exchanges regarding when they acquired it.

If there is a link, then not reporting could lead to bigger penalties and, worst case, even accusations of a crime.

Quote from: kotajikikox on October 26, 2024, 10:12:15 PM

That is really odd but really beneficial for the government. The government is smart when it comes to taking money from its citizens but not doing anything to protect said citizens. I believe denmark citizens would prefer to hold bitcoin outside of the country as much as possible to avoid this.

That’s quite complicated - holding assets outside of the country while living in that country. It’s really not feasible unless someone else is managing those assets, which I find very risky.

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Quote from: Sanitough on October 25, 2024, 04:57:32 AM

This new proposed bill sounds wild. It would mean holders have to declare their assets and pay taxes on any increase in value from their original purchase, even on unrealized gains. So, even if you’re just holding, you’d have to report it every year.

Easy to assume that its citizens wouldn’t be happy. I mean the point of bitcoin is to be able to hold money and make transactions without sacrificing our data and privacy. I am sure that many holders are holding anonymously and would like it to stay that way.

Quote

Now, if the value drops, sure, maybe you’d pay lower taxes or get a tax offset, but it’s still odd. Think about it: you buy Bitcoin at $10,000, and over the next five years, it rises, so you’re paying annual taxes based on that value increase. But then, if the price tanks overnight and you sell in a panic, you’re at a loss - yet the government’s already pocketed tax from your unrealized gains.

That is really odd but really beneficial for the government. The government is smart when it comes to taking money from its citizens but not doing anything to protect said citizens. I believe denmark citizens would prefer to hold bitcoin outside of the country as much as possible to avoid this.

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Quote from: kryptqnick on October 26, 2024, 01:19:11 PM

Hm, taxing unrealized gain does seem problematic. It doesn't seem to be a common practice with cryptos. If it's capital gain tax, it makes sense that people pay it when profiting. If it's property tax, then people might declare their crypto holdings once, pay the tax and be done with it. That, of course, depends on a country and its laws around cryptos. That being said, it's only a bill, so it doesn't mean it will actually become the law.

This topic is getting interesting because we’re considering what would happen if this actually becomes a law, and we’re preparing for the potential consequences. It’s the first time I’ve read about Bitcoin holders being required to pay tax on unrealized gains, and if this gets approved, holding Bitcoin will become quite expensive. You’d have to set aside money for your yearly income tax, and if you don’t have enough cash to cover your liabilities, you might be forced to sell some of your stash to comply with the law.

I find this bill to be unfriendly to investors. If they’re treating crypto as property and imposing this tax, they should apply the same logic to other assets that appreciate over time, like land.

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Quote from: headingnorth on October 25, 2024, 05:04:36 AM

Just goes to show how western governments are run by complete morons.

Communism poisoning I'd say. They want to do the same thing in the US too. If the US voters have any sense left in them, they won't elect the communist candidate in November. Communism is a disease. Russians tasted it before, they got rid of it. I don't understand why the Europoors like it that much.

Some of them are already taxing unrealized gains on assets whether it is bitcoin or not. Why would anybody want to live in a shithole like that... Sigh... Not my problem, if the Danish people are happy with it, good for them. Tax them even more. Increase it to 99% so they will have the maximum pleasure.

https://www.independent.co.uk/news/world/americas/us-politics/trump-economy-policies-federal-tax-plan-eliminate-b2635208.html

Quote

Similarly, in June, Trump suggested that federal income taxes be replaced by funds obtained via tariffs, something he has not explained further.

^

I don't know about you but this is the kind of news I want to hear from the god damn president.

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Hm, taxing unrealized gain does seem problematic. It doesn't seem to be a common practice with cryptos. If it's capital gain tax, it makes sense that people pay it when profiting. If it's property tax, then people might declare their crypto holdings once, pay the tax and be done with it. That, of course, depends on a country and its laws around cryptos. That being said, it's only a bill, so it doesn't mean it will actually become the law.

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Quote from: stompix on October 26, 2024, 09:20:05 AM

Quote from: headingnorth on October 25, 2024, 11:52:29 AM

Western govts may have been run more competently in the past, but that doesn't mean that they are still being competently run today.
For example the EU and US are running massive deficits. In order to fund these incredible deficits they are printing money like there is no tomorrow.

I love it when a random guy makes such statements like he knows the truth when a simple Google search a toddler could do would prove him wrong!

Quote from: MeGold666 on October 25, 2024, 07:48:19 AM

YES, I pay taxes when I sell my Monero, but I refuse to pay taxes on the Monero I hold.
Do you see the difference? Cool

Again, what taxes would you have paid on your Monero since for the last 4 years you would have had only losses?
Get over it, nobody cares about privacy or anything else anymore, privacy coins are going to die if they don't find a way to attract money and people are more interested in making x10 on meme coins than in their privacy! So keep dreaming!

A toddler would understand that the idea of taxing unrealized gains is beyond idiotic.

Since you can't justify such idiocy, you bring up random crap that has nothing to do with the discussion at hand in an attempt to hijack the thread. Grow up.

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Quote from: stompix on October 26, 2024, 09:20:05 AM

Again, what taxes would you have paid on your Monero since for the last 4 years you would have had only losses?
Get over it, nobody cares about privacy or anything else anymore, privacy coins are going to die if they don't find a way to attract money and people are more interested in making x10 on meme coins than in their privacy! So keep dreaming!

You still don't understand... privacy is a nice bonus, but it's more about scalability on Layer 1.

I agree that if your goal is to become rich, Monero might not be perfect for you. However, it's ideal if you're already wealthy and simply want to protect your assets from government scrutiny, as I explained in my other posts.

At this point, I'm just repeating myself; I don't have anything more to add other than wishing you good luck with whichever path you choose.

To me, being transparent with the government and lacking scalability on Layer 1 isn't the right approach.

Cheers!

/Over&Out.

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Quote from: headingnorth on October 25, 2024, 11:52:29 AM

Western govts may have been run more competently in the past, but that doesn't mean that they are still being competently run today.
For example the EU and US are running massive deficits. In order to fund these incredible deficits they are printing money like there is no tomorrow.

I love it when a random guy makes such statements like he knows the truth when a simple Google search a toddler could do would prove him wrong!

Quote from: MeGold666 on October 25, 2024, 07:48:19 AM

YES, I pay taxes when I sell my Monero, but I refuse to pay taxes on the Monero I hold.
Do you see the difference? Cool

Again, what taxes would you have paid on your Monero since for the last 4 years you would have had only losses?
Get over it, nobody cares about privacy or anything else anymore, privacy coins are going to die if they don't find a way to attract money and people are more interested in making x10 on meme coins than in their privacy! So keep dreaming!

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Quote from: pakhitheboss on October 26, 2024, 05:11:03 AM

Quote from: lovesmayfamilis on October 26, 2024, 04:54:01 AM

What is noteworthy is that the new bill can only come into force on January 1, 2026, but people will have to pay the new tax regardless of the year in which the bitcoin was purchased, including January 2009.

However, if this bill is approved by parliament and goes into effect in 2026, I dislike the part that states anyone who bought Bitcoin in the past will have to pay taxes from that date. They are in simple words discouraging their citizens from investing in Bitcoin through this new tax bill. I am only imagining how much tax a person has to pay only for holding Bitcoin from 2011 to date looking at the current value of Bitcoin, the amount might go in millions of dollars. I do not think the parliament would be going ahead and passing this bill under the current status. There will be amendments that have to be made to make this tax bill easier for those who have been investing in Bitcoin.

As written in the report,

Quote

The report appeared to lean toward recommending a method called “inventory taxation,” which treats an investor’s entire portfolio as a single “inventory” to be taxed by a certain date each year, regardless of whether or not the assets have been sold by that time.

To make things easier to understand, think of your holdings as inventory assets. This includes any assets you bought before they became effective, as long as they’re still in your portfolio. You don’t need to pay taxes on past gains because the reference point is the summary of Bitcoin purchases at the time of buying and their purchase price.

When there’s a cutoff for computation, like next year on November 30, 2025, if the base price (ending price) is $100k, you’ll just need to figure out your profit (current price minus purchase price), and that amount will be taxable based on the percentage they decide. As for the following years, I’m not sure how it’ll be calculated, so we’ll just have to wait for the guidelines if this proposal gets approved.

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Quote from: lovesmayfamilis on October 26, 2024, 04:54:01 AM

What is noteworthy is that the new bill can only come into force on January 1, 2026, but people will have to pay the new tax regardless of the year in which the bitcoin was purchased, including January 2009.

However, if this bill is approved by parliament and goes into effect in 2026, I dislike the part that states anyone who bought Bitcoin in the past will have to pay taxes from that date. They are in simple words discouraging their citizens from investing in Bitcoin through this new tax bill. I am only imagining how much tax a person has to pay only for holding Bitcoin from 2011 to date looking at the current value of Bitcoin, the amount might go in millions of dollars. I do not think the parliament would be going ahead and passing this bill under the current status. There will be amendments that have to be made to make this tax bill easier for those who have been investing in Bitcoin.

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What is noteworthy is that the new bill can only come into force on January 1, 2026, but people will have to pay the new tax regardless of the year in which the bitcoin was purchased, including January 2009. However, for now, this all looks like recommendations for the taxation of cryptocurrencies. And for this bill to be fully approved, it is necessary to receive permission from the Danish parliament. However, as the Minister of Taxes and Duties of Denmark Rasmus Stoklund, recommended: " it is necessary to carefully recheck everything and make the tax in a "simpler" display, since today's projection is very unfair."

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Quote from: NotATether on October 25, 2024, 06:35:51 AM

Guys who didn't read the article:

They will also issue credits on unrealized losses, too.

So if you buy a shitcoin and it suddenly dumps by 90%, you can actually get money back on that.

It's a stupid idea though that's going to hurt HODLers and help crypto traders.

As stupid as the fact that you will have to file a tax return between May 1 and July 1, 2026, regarding your 2025 holdings and it may be the case that you have a profit of DKK 1 million on December 31, 2025 but by that time in 2026, your investment has fallen by 90% and you have not enough to pay the taxes with even if you sell everything. In the end, what this encourages, as you say, is for people to sell more and be less of a holder.

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Quote from: Cryptomultiplier on October 25, 2024, 11:36:51 AM

If a country like the UAE has opted to not tax Bitcoin and other crypto currencies because it wants to be one of the largest investors in cryptocurrency, thereby boosting its economy and improving the standard of living by owning mining farms as well, am sure other countries can do same if they know the advantages of allowing crypto currency and Bitcoin in particular to be a main stay financial component of its economy.

It is a bad comparison because UAE is not exactly a country. It is more like a gas station. It is an artificial colony created about 50 years ago (so the tree in my backyard is older) so that the West has control over some gas and oil fields.

Unlike Denmark the UAE regime's budget doesn't really rely on taxes. It relies on the fossil fuel they cheaply extract out of the earth and sell. Which is why they can afford to not-tax bitcoin related stuff.
Also unlike Denmark, UAE is a dictatorship so the quality of life of the small ~1-2 mil population of it does not matter (note that the rest of the 8-9 mil are foreign workers that are only there to work and send the money back home).

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Quote from: Sanitough on October 25, 2024, 04:57:32 AM

This new proposed bill sounds wild. It would mean holders have to declare their assets and pay taxes on any increase in value from their original purchase, even on unrealized gains. So, even if you’re just holding, you’d have to report it every year.

Now, if the value drops, sure, maybe you’d pay lower taxes or get a tax offset, but it’s still odd. Think about it: you buy Bitcoin at $10,000, and over the next five years, it rises, so you’re paying annual taxes based on that value increase. But then, if the price tanks overnight and you sell in a panic, you’re at a loss - yet the government’s already pocketed tax from your unrealized gains.

And look at the percentage of tax... Cry

Quote from: https://cointelegraph.com/news/denmark-propose-bill-to-tax-unrealised-crypto-gains

Similarly, the Italian government mulled raising the capital gains tax specifically for Bitcoin holdings from 26% to 42% beginning in 2025.

You’re paying yearly taxes on that gain without selling a thing. But if the market crashes and you sell at a loss, the government’s already collected on your past 'gains.' And Italy considering a 42% capital gains tax on Bitcoin? Ouch.

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Quote from: stompix on October 25, 2024, 05:37:47 AM

Quote from: headingnorth on October 25, 2024, 05:04:36 AM

Just goes to show how western governments are run by complete morons.

Yeah indeed, so how about we do something like this:
- everyone who hates the Western world stays in their shithole country and stops coming in millions here
- every European that hates this goes to the shitty countries that they fancy
- as per above other countries manage to get as liveable and as appreciated as Denmark, good luck with this

Denmark is the No. 1 country for quality of life
Stupid government, right, what do they know about running a country, they should read posts on Bitcointalk for advice!

And again we have a shitty article about someone who translated the proposal with google translate and never bother to read the essential stuff, that all the tax models will be calculated IF the taxpayer does not disclose his income and doesn't fill his tax statements with his crypto holdings.

Can't wait till they realize how stupid they are and have failed for another hoax, remember this scaremongering:
No, Denmark did not propose banning self-custody wallets

Western govts may have been run more competently in the past, but that doesn't mean that they are still being competently run today.

For example the EU and US are running massive deficits. In order to fund these incredible deficits they are printing money like there is no tomorrow. Greater poverty and rampant inflation is the result. People simply cant afford to live in the west anymore and in fact large numbers of westerners are moving to more affordable "3rd world" countries.

Western govts are spending money like drunken teenagers binging on their parents credit cards. That is not a responsible way to manage your personal finances, let alone that of an entire country's economy. If it were any third world country doing that it would be described as out of control fiscal mismanagement and corruption. These deficits are unsustainable and will lead to economic collapse sooner or later.

Cryptomultiplier

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Quote from: Sanitough on October 25, 2024, 04:57:32 AM

This new proposed bill sounds wild. It would mean holders have to declare their assets and pay taxes on any increase in value from their original purchase, even on unrealized gains. So, even if you’re just holding, you’d have to report it every year.

Now, if the value drops, sure, maybe you’d pay lower taxes or get a tax offset, but it’s still odd. Think about it: you buy Bitcoin at $10,000, and over the next five years, it rises, so you’re paying annual taxes based on that value increase. But then, if the price tanks overnight and you sell in a panic, you’re at a loss - yet the government’s already pocketed tax from your unrealized gains.

And look at the percentage of tax... Cry

Quote from: https://cointelegraph.com/news/denmark-propose-bill-to-tax-unrealised-crypto-gains

Similarly, the Italian government mulled raising the capital gains tax specifically for Bitcoin holdings from 26% to 42% beginning in 2025.

If the Denmark government decides to go ahead with such a policy, am sure many individuals wouldn't agree to invest in Bitcoin, because the tax is just too outrageous to be frank.

If a country like the UAE has opted to not tax Bitcoin and other crypto currencies because it wants to be one of the largest investors in cryptocurrency, thereby boosting its economy and improving the standard of living by owning mining farms as well, am sure other countries can do same if they know the advantages of allowing crypto currency and Bitcoin in particular to be a main stay financial component of its economy.

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Quote from: stompix on October 25, 2024, 05:37:47 AM

Yeah indeed, so how about we do something like this:
- everyone who hates the Western world stays in their shithole country and stops coming in millions here
- every European that hates this goes to the shitty countries that they fancy
- as per above other countries manage to get as liveable and as appreciated as Denmark, good luck with this

I think there are so many rich people here, that's why people are complain how high the tax in Western countries. Cheesy

Poor and middle class people don't mind to pay tax because it won't make them poor, they can still live comfortable compared to living in third world countries. Since the rich gets richer, it's why they want to implement more tax and increase the tax rate.

But, I'm sure they will try to find a loophole to pay less tax.

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This would be on Bitcoin exchanges registered in their country right now because I don’t know if it could be considered if it is just within your wallet. I’m not that familiar yet with the bill that they are trying to propose. I would still consider the part where you converted into Fiat, and then that’s where you would tax it.

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It’s pretty simple—Denmark discourages people from holding bitcoin, and if you do, they’ll tax you in whatever way they choose. It’s tough to accept, but once the government imposes something like this, there’s nothing we can do except comply, or they’ll forcefully take it from us. In the end, we holders are the ones left at a disadvantage, the ones who have to sacrifice.

I’m not saying I’m against taxing cryptocurrency, but it should be at a fair rate, one that’s reasonable for everyone, rather than something we’re stuck with because we have no choice. Hopefully, other countries don’t follow this path—otherwise, it could be why people turn away from bitcoin altogether.

non fungible anxiety

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Didnt the US planned to do the same thing? This is probably a global effort and we will see more western countries adopt this crazy tax system which i'm sure the only purpose is to destroy any chance to make money at all.

MeGold666

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Quote from: stompix on October 25, 2024, 07:45:03 AM

And, what are you going to do with your Monero? Cheesy

Let's see the options:
- sell it, taxable registered event
- buy stuff with it, taxable registered event
- go to a country where is not taxable, thing you can do with Bitcoin
- print a piece of paper with your key and the words "I'm rich" and take it to your grave

You sound like one of those guys who is so happy he can pay for stuff with cryptocurrency anonymously then goes on to type his whole name and address in the delivery address and the warranty certificate. Wink

Also, these gains in Monero which the government would tax you on, are they in the same room as us now?

YES, I pay taxes when I sell my Monero, but I refuse to pay taxes on the Monero I hold.

Do you see the difference? Cool

I have too much money in crypto to have it visible to the government.

/Over&Out

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Quote from: MeGold666 on October 25, 2024, 07:26:25 AM

Quote from: stompix on October 25, 2024, 07:19:14 AM

Quote from: davis196 on October 25, 2024, 06:50:24 AM

I'm 100% sure that everyone in Denmark is going to declare his crypto holdings to the authorities. There's no doubt about that. Grin

They will, ...

The problem is that the government already knows how much Bitcoin you hold, as the majority of it is acquired through KYC exchanges.
Unlike Monero, you can’t simply claim you lost it in a ‘boating accident’ - Bitcoin is easily traceable. If you say you've lost access to your Bitcoin, they could simply blacklist it and prosecute anyone who tries to use it and ban you from exchanges.

And, what are you going to do with your Monero? Cheesy

Let's see the options:
- sell it, taxable registered event
- buy stuff with it, taxable registered event
- go to a country where is not taxable, thing you can do with Bitcoin
- print a piece of paper with your key and the words "I'm rich" and take it to your grave

You sound like one of those guys who is so happy he can pay for stuff with cryptocurrency anonymously then goes on to type his whole name and address in the delivery address and the warranty certificate. Wink

Also, these gains in Monero which the government would tax you on, are they in the same room as us now?

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Quote from: stompix on October 25, 2024, 07:19:14 AM

Quote from: davis196 on October 25, 2024, 06:50:24 AM

I'm 100% sure that everyone in Denmark is going to declare his crypto holdings to the authorities. There's no doubt about that. Grin

They will, ...

The problem is that the government already knows how much Bitcoin you hold, as the majority of it is acquired through KYC exchanges.
Unlike Monero, you can’t simply claim you lost it in a ‘boating accident’ - Bitcoin is easily traceable. If you say you've lost access to your Bitcoin, they could simply blacklist it and prosecute anyone who tries to use it and ban you from exchanges.

Quote from: Sanitough on October 25, 2024, 07:24:00 AM

...Bitcoin holders are clever; they’ll find ways to protect their privacy and make sure they’re not flagged for breaking any laws.

All clever ones switched to Monero long time ago.

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Quote from: davis196 on October 25, 2024, 06:50:24 AM

I'm 100% sure that everyone in Denmark is going to declare his crypto holdings to the authorities.

Not sure about that, honestly, why would they reveal their crypto holdings just to get hit with taxes? If they’re holding it long-term in a wallet that’s not tied to their personal info, they can keep it secure without worries. But for crypto sitting on exchanges, that’s a different story - it’s linked to their identity because of the exchange’s KYC rules.

Look at China: even with Bitcoin trading and mining banned, people there still hold Bitcoin. So, it wouldn’t be any different here. Bitcoin holders are clever; they’ll find ways to protect their privacy and make sure they’re not flagged for breaking any laws.

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Quote from: Sanitough on October 25, 2024, 04:57:32 AM

Now, if the value drops, sure, maybe you’d pay lower taxes or get a tax offset, but it’s still odd. Think about it: you buy Bitcoin at $10,000, and over the next five years, it rises, so you’re paying annual taxes based on that value increase. But then, if the price tanks overnight and you sell in a panic, you’re at a loss - yet the government’s already pocketed tax from your unrealized gains.

Volatility is always going to pose some challenge towards taxing of Bitcoin. Models that would allow for income tax which would be based on increased allocation and time of sales would be a preferable option.
This would only lead to more and more tax evading and they aren't looking for a means to help Bitcoin development eventually, they hope to discourage it with unfair taxation.

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Quote from: davis196 on October 25, 2024, 06:50:24 AM

I'm 100% sure that everyone in Denmark is going to declare his crypto holdings to the authorities. There's no doubt about that. Grin

They will, Denmark has the highest tax revenue to GDP rates in the EU and the highest in the world, it's always funny to see people not realizing the difference in willingness to pay taxes when you know how those are used and how the government actually takes care of you, of course for someone living it a 3rd world country this take would be hilarious as there all the money gets lost or stolen but here in the north it's actually put to good use.

For example, people are happy to pay 25% tax on a new car for the first 10000 euros and 80% for the rest of the value and Denmark still has 10 times more cars per capita than Nigeria or India Wink

Quote from: Ultegra134 on October 25, 2024, 06:33:39 AM

That's true; it does; I didn't comprehend what it meant at first, but to me it seems it's overcomplicating things, as the nature of a large number of investments, including cryptocurrencies, is highly volatile. What's the point then? From my understanding, it's what you mentioned already; it's an intrusive process to keep track of each investor's holdings, closely monitoring them every year, ensuring that they have the full history of your investment portfolio when they're sold.

Quite the opposite!
You have the whole document here:
https://skm.dk/ministeriet/om-skatteministeriet/publikationer-fra-skattelovraadet/rapport-om-finansielle-kryptoaktiver

Quote

The Tax Council has considered three different taxation principles; a traditional realization principle, a net profit principle and an inventory principle. Overall, the challenges of a realization principle are that the calculation can be complex and difficult when there is a lot of trading. On the other hand, the calculation according to a storage principle is simpler, and it does not require that information about the trades be stored long after the acquisition. Particularly for the stock principle, however, it applies that a liquidity burden may arise when assets have not necessarily been realized to pay the tax with.

The Tax Council recommends that financial crypto-assets in future be covered by the same set of rules that
currently apply to financial contracts that are taxed on stock according to the rules in Chapter 6 of the Capital Gains Act

MeGold666

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I had been warning about this for a long time. Why? Because if they can, they will.

They can't tax what they can't see. That's why Monero. Cheesy

If my country goes rogue, I'll just move to Monaco for a while or somewhere else without crooks.

It's good to be in power. With Bitcoin, however, it's like walking around with your pants down, hoping no one takes advantage.

I don't put my money in a hope box, I need security.

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Quote from: Sanitough on October 25, 2024, 04:57:32 AM

This new proposed bill sounds wild. It would mean holders have to declare their assets and pay taxes on any increase in value from their original purchase, even on unrealized gains. So, even if you’re just holding, you’d have to report it every year.

Now, if the value drops, sure, maybe you’d pay lower taxes or get a tax offset, but it’s still odd. Think about it: you buy Bitcoin at $10,000, and over the next five years, it rises, so you’re paying annual taxes based on that value increase. But then, if the price tanks overnight and you sell in a panic, you’re at a loss - yet the government’s already pocketed tax from your unrealized gains.

And look at the percentage of tax... Cry

Quote from: https://cointelegraph.com/news/denmark-propose-bill-to-tax-unrealised-crypto-gains

Similarly, the Italian government mulled raising the capital gains tax specifically for Bitcoin holdings from 26% to 42% beginning in 2025.

I'm 100% sure that everyone in Denmark is going to declare his crypto holdings to the authorities. There's no doubt about that. Grin

Maybe the authorities in Denmark are considering the ownership of Bitcoin/crypto to be pretty much the same as owning a house. You will have to pay taxes over the property, even if you don't get any income or dividends from that particular asset(assuming that a house/apartment can be called an asset). The Scandinavian tax systems are weird and I don't want to get familiar with them. I don't live in a Scandinavian country and I don't have any plans moving there.

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Quote from: NotATether on October 25, 2024, 06:35:51 AM

So if you buy a shitcoin and it suddenly dumps by 90%, you can actually get money back on that.

"Money back" isn’t quite accurate here since, with taxes, there’s no literal refund once you’ve paid it. Instead, they offset your tax liability with any negative balance during your annual filing, especially if your assets dump a lot. It’s more like adjusting your future taxes rather than actually giving money back.

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Quote from: pooya87 on October 25, 2024, 06:38:03 AM

I've always found tax laws in the west to be very draconian. Although it makes sense because their governments' budgets heavily relies on these taxes and the more budget deficit they face and the more economic crisis they face the more they need to increase their income hence the increasing taxation.

Considering that the alternative is to print money and that would cause hardship for everyone and tank the economy, I'd say the "draconian taxation" is the lesser of two evils.

But that's still an evil for Hodlers especially Grin

Only time will tell whether it really will be implemented and how it will work out in practice, if it ever will, that is.

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I've always found tax laws in the west to be very draconian. Although it makes sense because their governments' budgets heavily relies on these taxes and the more budget deficit they face and the more economic crisis they face the more they need to increase their income hence the increasing taxation.

Considering that the alternative is to print money and that would cause hardship for everyone and tank the economy, I'd say the "draconian taxation" is the lesser of two evils.

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Guys who didn't read the article:

They will also issue credits on unrealized losses, too.

So if you buy a shitcoin and it suddenly dumps by 90%, you can actually get money back on that.

It's a stupid idea though that's going to hurt HODLers and help crypto traders. Unless (as someone on r/cryptocurrency wrote) they abuse the system by only reporting the losses and not the gains, or a bear market comes by and everybody loses $$$, in which case it will be forced to close shop quickly.

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Quote from: AVE5 on October 25, 2024, 06:28:03 AM

Government oppressions everywhere. So are the Denmark government going to issue insurance Incase of holders lost such as scammed victims? Let's just assume lost on profit is constant due to market fluctuations.

Don't see it happening.. Grin

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Quote from: freedomgo on October 25, 2024, 06:19:52 AM

From what I get, the article explains that if you incur losses, your tax liability goes negative, letting you carry that forward to offset future tax liability. So if you owe $5000 the next year, you can reduce it by last year’s losses. Honestly, this setup feels intrusive; it pushes citizens to disclose their holdings, which raises big privacy concerns. Reporting your assets could expose you to risks if that info ever leaks, as it shows just how much you hold. I’m not in favor of this proposal, even if it won’t affect me directly since I’m not in that country. Here’s hoping it doesn’t go through.

That's true; it does; I didn't comprehend what it meant at first, but to me it seems it's overcomplicating things, as the nature of a large number of investments, including cryptocurrencies, is highly volatile. What's the point then? From my understanding, it's what you mentioned already; it's an intrusive process to keep track of each investor's holdings, closely monitoring them every year, ensuring that they have the full history of your investment portfolio when they're sold. I'm hoping it doesn't go through, because even though it's in Denmark, more countries may follow if it's ultimately accepted.

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Government oppressions everywhere. So are the Denmark government going to issue insurance Incase of holders lost such as scammed victims? Let's just assume lost on profit is constant due to market fluctuations.

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Quote from: Sanitough on October 25, 2024, 04:57:32 AM

This new proposed bill sounds wild. It would mean holders have to declare their assets and pay taxes on any increase in value from their original purchase, even on unrealized gains. So, even if you’re just holding, you’d have to report it every year.

Now, if the value drops, sure, maybe you’d pay lower taxes or get a tax offset, but it’s still odd.

They are taxing citizens to death because taxing unrealized gain (profit) is insane. 1 bitcoin is always 1 bitcoin but its value and price change with time, in every market cycle and more seriously in black swan events.

Governments are trying to do the easiest part, taxing first on Unrealized profit, but then even they allow you to claim tax rebate if you eventually sell at loss, I believe that it won't be an easy procedure to claim your Tax Rebate, if there is any tax policy like this.

Taxing citizens to death will push their citizens moving to other countries which are tax heaven like Saudi Arabia.

15 crypto tax-free countries in 2024. You have to double check information in that article, I am not sure about information accuracy.

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Quote from: Ultegra134 on October 25, 2024, 06:07:19 AM

That doesn't necessarily mean that their recommendation is realistic or sensible. I understand the point you're trying to make, but this doesn't change the fact that this is an unreasonable recommendation. It makes no sense to report unrealized cryptocurrency gains; for instance, what if I report $20,000 in gains because Bitcoin is booming but next year has crashed, resulting in a $5,000 loss? I would already be taxed for the $20,000 I didn't sell and were never actually in my hands in fiat currency, but now that I'm at a loss, will I receive the tax amount I paid last year? Probably not; this scheme has many loopholes, but it still remains a recommendation; it hasn't been approved yet, and even if it is, I'm confident that this is subject to change.

From what I get, the article explains that if you incur losses, your tax liability goes negative, letting you carry that forward to offset future tax liability. So if you owe $5000 the next year, you can reduce it by last year’s losses. Honestly, this setup feels intrusive; it pushes citizens to disclose their holdings, which raises big privacy concerns. Reporting your assets could expose you to risks if that info ever leaks, as it shows just how much you hold. I’m not in favor of this proposal, even if it won’t affect me directly since I’m not in that country. Here’s hoping it doesn’t go through.

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I really think taxing unrealized gains is a terrible idea for investors. It’s frustrating to think we’d have to pay taxes on profits we haven’t even cashed in on yet, especially in a market as unpredictable as crypto. It could put people in a tough spot, forcing them to sell their investments just to cover tax bills on gains that could disappear in an instant.
On top of that, it complicates everything when it comes to filing taxes. We’d have to keep a close eye on the value of our assets all year round, and that’s just asking for mistakes. If this kind of policy actually gets pushed through, I can see a lot of people looking to invest in places where the tax situation is friendlier, which would be a shame for innovation here. It just makes so much more sense to tax only the gains we actually realize when we sell.

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Quote from: stompix on October 25, 2024, 05:37:47 AM

Yeah indeed, so how about we do something like this:
- everyone who hates the Western world stays in their shithole country and stops coming in millions here
- every European that hates this goes to the shitty countries that they fancy
- as per above other countries manage to get as liveable and as appreciated as Denmark, good luck with this

Denmark is the No. 1 country for quality of life
Stupid government, right, what do they know about running a country, they should read posts on Bitcointalk for advice!

And again we have a shitty article about someone who translated the proposal with google translate and never bother to read the essential stuff, that all the tax models will be calculated IF the taxpayer does not disclose his income and doesn't fill his tax statements with his crypto holdings.

Can't wait till they realize how stupid they are and have failed for another hoax, remember this scaremongering:
No, Denmark did not propose banning self-custody wallets

That doesn't necessarily mean that their recommendation is realistic or sensible. I understand the point you're trying to make, but this doesn't change the fact that this is an unreasonable recommendation. It makes no sense to report unrealized cryptocurrency gains; for instance, what if I report $20,000 in gains because Bitcoin is booming but next year has crashed, resulting in a $5,000 loss? I would already be taxed for the $20,000 I didn't sell and were never actually in my hands in fiat currency, but now that I'm at a loss, will I receive the tax amount I paid last year? Probably not; this scheme has many loopholes, but it still remains a recommendation; it hasn't been approved yet, and even if it is, I'm confident that this is subject to change.

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Quote from: headingnorth on October 25, 2024, 05:04:36 AM

Just goes to show how western governments are run by complete morons.

Yeah indeed, so how about we do something like this:
- everyone who hates the Western world stays in their shithole country and stops coming in millions here
- every European that hates this goes to the shitty countries that they fancy
- as per above other countries manage to get as liveable and as appreciated as Denmark, good luck with this

Denmark is the No. 1 country for quality of life
Stupid government, right, what do they know about running a country, they should read posts on Bitcointalk for advice!

And again we have a shitty article about someone who translated the proposal with google translate and never bother to read the essential stuff, that all the tax models will be calculated IF the taxpayer does not disclose his income and doesn't fill his tax statements with his crypto holdings.

Can't wait till they realize how stupid they are and have failed for another hoax, remember this scaremongering:
No, Denmark did not propose banning self-custody wallets

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Quote from: Sanitough on October 25, 2024, 04:57:32 AM

This new proposed bill sounds wild. It would mean holders have to declare their assets and pay taxes on any increase in value from their original purchase, even on unrealized gains. So, even if you’re just holding, you’d have to report it every year.

Now, if the value drops, sure, maybe you’d pay lower taxes or get a tax offset, but it’s still odd. Think about it: you buy Bitcoin at $10,000, and over the next five years, it rises, so you’re paying annual taxes based on that value increase. But then, if the price tanks overnight and you sell in a panic, you’re at a loss - yet the government’s already pocketed tax from your unrealized gains.

And look at the percentage of tax... Cry

Quote from: https://cointelegraph.com/news/denmark-propose-bill-to-tax-unrealised-crypto-gains

Similarly, the Italian government mulled raising the capital gains tax specifically for Bitcoin holdings from 26% to 42% beginning in 2025.

So, what if exchanges wouldn't comply with the tax?
They would be banned?
At least that's all on paper for now.. Grin

headingnorth

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NO SHITCOIN INSIDE

Just goes to show how western governments are run by complete morons.

Sanitough

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This new proposed bill sounds wild. It would mean holders have to declare their assets and pay taxes on any increase in value from their original purchase, even on unrealized gains. So, even if you’re just holding, you’d have to report it every year.

Now, if the value drops, sure, maybe you’d pay lower taxes or get a tax offset, but it’s still odd. Think about it: you buy Bitcoin at $10,000, and over the next five years, it rises, so you’re paying annual taxes based on that value increase. But then, if the price tanks overnight and you sell in a panic, you’re at a loss - yet the government’s already pocketed tax from your unrealized gains.

And look at the percentage of tax... Cry

Quote from: https://cointelegraph.com/news/denmark-propose-bill-to-tax-unrealised-crypto-gains

Similarly, the Italian government mulled raising the capital gains tax specifically for Bitcoin holdings from 26% to 42% beginning in 2025.

Topic: Denmark consider taxing unrealized gain on bitcoin. (Read 575 times)