Tax tip: have to pay the taxes on Bitcoin

you mean Bitcoin, Litecoin, Ethereum or Ripple: The so-called crypto-shoot currencies like mushrooms from the ground. In the case of private investors, Social Trading platforms on derivative financial instruments on rising or falling exchange rates and prices of crypto currencies, without this self, is subject to gains and losses of the flat-rate withholding tax of 25 percent plus the solidarity surcharge (tax Declaration system).

the private investors who actually invest in crypto currencies, so, for example, holders of Bitcoin are not subject to the withholding tax, but may have other sources of income (investment): capital gains in the case of such private investors is liable to the tax if the period between acquisition (purchase, accepting as payment) and the disposal (sell, use it to Pay) a maximum of one year. Losses within the period of one year are deducted for tax purposes of the Gain from private sale transactions in the same year. A profit of a maximum of 600 Euro, so this is tax-free, resulting in a higher profit, this is taxable on the full amount of the personal progressive tax rate.

a loss of private-sale shops, so this is the gains from private sales transactions in the preceding year or all future years are deductible. Gains and losses from the sale after the expiration of the so-called speculation period of one year since the acquisition are tax-deductible irrelevant. In the case of winning the Fifo method is advantageous in the case of the first acquired, and thus the longest-held Bitcoin are considered to be sold. When people trade currencies, Crypto or derivatives on Cryptocurrencies professionally, or the new crypto-currencies to generate (Mining). All gains and losses in income – if the operation in Germany is maintained – in principle, tax relevant (Appendix G) and may also be subject to trade tax.

The author is a lawyer, tax Advisor and Partner at KPMG.