How does the German tax system treat gains from trading digital currencies?

1 answers

• ASKAug 23, 2024 · a year ago
  As an expert in the German tax system, I can confirm that gains from trading digital currencies are indeed subject to taxation. The tax authorities treat these gains as capital gains and they are subject to capital gains tax. The tax rate depends on the holding period of the digital currencies. If you hold them for less than one year, the gains are taxed at your personal income tax rate. However, if you hold them for more than one year, the gains are subject to a reduced tax rate of 25%. It's important to keep detailed records of your trades and consult with a tax professional to ensure accurate reporting and compliance with the German tax laws.
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