Tax legislation

 

 

Tax legislation in Denmark
Spot trades – how are they taxed? Leveraged trades - how are they taxed? Airdrops - how are they taxed? Staking rewards – how are they taxed? Hard forks – how are they taxed? Mining – how is it taxed? Crypto as a gift – how is it taxed? But I haven’t bought Bitcoin to speculate on it’s fiat value – so it’s not taxable? Does the Danish Tax Agency audit my crypto trades?
Overview - taxation on trading privately vs. through a company
Overview - taxation on trading privately vs through a company
Official guidelines (from the Danish Tax Agency)
Official guidelines (from the Danish Tax Agency)
Official decisions and case law from the authorities
Official decisions and case law
Tax news - summary of significant decisions and case law
Speculation - decision from the National Tax Tribunal (9/8/2023) Gifts - decision from the National Tax Tribunal (9/8/2023) Rug pulls and deductions for losses - binding answer from the Tax Council (8/29/2023) Staking - binding answer from the Tax Council (8/29/2023)

Tax legislation

In Denmark, there are no special legislation on taxation of trading with Bitcoin, other cryptocurrencies, and crypto-assets.

Therefore, trades are taxed according to the general rules in the State Taxation Act on speculation in trading with assets (spot trades) or the rules in the Capital Gains Tax Act on financial contracts (trades with financial contracts such as futures, shorts/longs and other leveraged trades).

However, the Danish Council on Taxation is working on a series of recommendations for the taxation of crypto. These recommendations are expected to be translated into special rules for the taxation of crypto in 2024 (or possibly later).

Until then, the rules described here apply.

It is, in our opinion, inappropriate, especially for spot trades, to be taxed asymmetrically – with much higher taxation of gains than deductions for losses. Hopefully this will change..

Please note: CryptoSkat does not provide legal advice. Our overview of Danish tax legislation on this page is based on our own understanding of the regulation and based on a detailed review of case law on the subject from the Danish tax authorities and courts. We base the CryptoSkat calculation methods on the requirements following from the authorities’ demands and guidelines.