Germany’s Federal Finance Ministry (BMF) issued a 24-page document on Tuesday, regarding the treatment of income tax related to blockchain tokens and cryptocurrencies. The document goes into in-depth technicalities on each of the top cryptocurrencies.
Moreover, the resolution comes with great news for anyone holding crypto for over a year. In addition, the same new rule applies to digital assets exploited in lending or staking protocols. The new rule comes as a result of a long and heated discussion. Formerly, the crypto used for staking or making any kind of profit was supposed to be held for up to ten years before an application tax exemption could be possible.
Germany's Ministry of Finance: The sale of acquired #Bitcoin and Ether is tax-free after 1 year, even if used for staking/lending Via @paddi_hansenAccelerated Crypto Development Calls for Resolutions— Blockworks (@Blockworks_) May 11, 2022
Germany’s first-ever cryptocurrency regulation bill covers a broad number of crypto-related topics:
- Buying and selling
- Staking
- Lending
- Token airdrops
- Hard forks
However, the 24-page guide is open to new suggestions and revision. ‘The rapid development of the crypto world ensures that we do not run out of topics’, – explains Parliamentary State Secretary Katja Hessel. Furthermore, Hessel mentioned the current resolution is rather provisional and the German government is already working on a supplementary document which will trigger the issue of how federal states should be handling their obligations.
On The Flipside
- 6 months ago, the German government has successfully implemented blockchain tech and cryptocurrencies in its coalition agreement
- German government pointed out that blockchain & crypto is going to be fundamental for the economical and social growth of the Western European country
