Crypto tax in Germany

Crypto-assets are “other assets” within the meaning of section 23 (1) sentence 1 no 2 of the Income Tax Act (Federal Fiscal Court judgment of 14 February 2023, IX R 3/22, Federal Tax Gazette II p. 571; see paragraph 31). Profits from the sale of crypto-assets held as private assets therefore constitute income from private sales transactions under section 22 no 2 in conjunction with section 23 (1) sentence 1 no 2 of the Income Tax Act if the length of time between acquisition and sale is no more than one year (for the

the transfer of the acquired asset to a third party for valuable consideration constitutes a sale. An exchange of crypto-assets for units of a government-issued currency (such as euros), for goods or services or for other crypto-assets is therefore a sale.

the transfer of the acquired asset to a third party for valuable consideration constitutes a sale. An exchange of crypto-assets for units of a government-issued currency (such as euros), for goods or services or for other crypto-assets is therefore a sale.

Income from (passive) staking in the sense used here of putting up a stake without being involved as a forger in block creation – participation in a staking pool, or platform staking (see paragraph 13) – is generally subject to taxation under section 22 no 3 of the Income Tax Act as gains that are classified under private asset management. In exchange for their service (temporarily forgoing the use of the crypto-assets), taxpayers receive consideration in the form of additional crypto-assets (see paragraph 46). The cryptoassets obtained are valued at the market price at the time of acquisition (for

Mining and forging can be a private or a commercial activity, depending on the circumstances of the particular case. The income includes both the block reward and the transaction fees received.

The receipt of additional crypto-assets may result in other income from rendering of service within the meaning of section 22 no 3 of the Income Tax Act. This is the case – despite the marketing nature of many airdrops – if interested parties are required to render a service (see paragraph 46), and hence in particular in the case of active engagement such as mentioning the airdrop or the project initiator in social media posts.

Non Fungible Token (NFT) und das sogenannte Liquidity Mining sind noch nicht Gegenstand des BMF-Schreibens. Das Bundesministerium der Finanzen wird sich weiterhin in enger Abstimmung mit den obersten Finanzbehörden der Länder und unter Einbindung der Verbände mit den entsprechenden ertragsteuerrechtlichen Fragen rund um Kryptowerte befassen und das BMF-Schreiben sukzessive ergänzen.

10. Lending With lending, crypto-assets are loaned for use in exchange for a fee.

Federal Tax Gazette II p. 571; see paragraph 31). Profits from the sale of crypto-assets held as private assets therefore constitute income from private sales transactions under section 22 no 2 in conjunction with section 23 (1) sentence 1 no 2 of the Income Tax Act if the length of time between acquisition and sale is no more than one year (for the

objectively established by sale within the holding period. However, under section 23 (3) sentence 5 of the Income Tax Act, the profits remain tax-free if the sum total of the profits generated from all private sale transactions in the calendar year (the total profits) is less than €1,000 (prior to the 2023 assessment period: €600).