Germany goes Tax-Free on Crypto holdings for 1-year

Germany Tax-free Crypto

Germany to go tax-free on investors holding crypto-assets and related digital assets for 1-year. The Ministry of Finance has amended its cryptocurrencies policies for the betterment of institutional and individual investors. According to the authorities, any individual selling Bitcoin (BTC) or Ethereum (ETH) after one year from the buying date will not be taxed.

The letter recently published by the German Ministry of Finance says for the amendments adopted on the income tax treatment of digital assets. The new amendments will also be implied to the crypto assets meant for staking and lending in the decentralized finance sector. New policies and their adoptions have expedited new opportunities and will attract more financing companies to the country.

Source: Twitter

Also read: Coinbase shares sink to 80%- Result of Crypto Winter

Earlier, the crypto assets were to be held for at least ten years to be exempted from taxations. The finance authorities will keep their focus on how better they can make the taxation policies for customers. They will always ensure to eliminate all the rising risks and related issues in coordination with federal tax authorities and government institutions.

Furthermore, according to the letter, the income tax deduction will not be applicable to cryptocurrencies and utility tokens used to access networks or to receive a certain product. According to the judgment passed by the finance ministry in 2018, redeeming crypto tokens or digital assets will not be counted as a sale under income tax law.

According to digital asset exchange aggregator CoinCub, Germany was the most crypto-friendly nation by the first quarter of the year 2022. Last year it ranked fourth on the Coincub’s list. Singapore has bagged a second rank while The United States’ rank has plummeted to third, says the CoinCub research. The aggregator deploys a strategic and systematic scoring algorithm to judge countries around the world.

Also read: Best 3 crypto price tracking tools

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