Tokens received as a result of mining are taxed both upon receipt and again when they are sold.

Mining can be compared tax-wise to the salary one receives for work on a project (like airdrops). Mining will in most cases be treated as running a so-called “hobby business” – which, however, does not change the basic fact that mined tokens are taxed at receipt and again when sold as other personal income.

Therefore, if you receive 1,000 ABC tokens worth 1,000 DKK as mining reward in 2021, you must report 1,000 DKK as other personal income (box 20).

If you sell these 1,000 ABC tokens for 10,000 DKK in 2022, you must report the profit (9,000 DKK) as other personal income in 2022 (box 20).

However, if you mine, you can also report your mining costs, such as hardware and software costs and electricity costs directly related to the mining business, as a deduction. There are no guidelines yet on how these costs should be documented and calculated.