{"id":3736,"date":"2024-09-04T20:21:26","date_gmt":"2024-09-04T20:21:26","guid":{"rendered":"https:\/\/www.mgb-law.de\/services\/self-disclosures\/self-disclosure-and-preventive-advice-on-cryptoassets\/"},"modified":"2024-09-22T13:52:21","modified_gmt":"2024-09-22T13:52:21","slug":"self-disclosure-and-preventive-advice-on-cryptoassets","status":"publish","type":"page","link":"https:\/\/www.mgb-law.de\/en\/services\/self-disclosures\/self-disclosure-and-preventive-advice-on-cryptoassets\/","title":{"rendered":"Self-disclosure and preventive advice on cryptoassets"},"content":{"rendered":"\t\t
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Self-disclosure and preventive advice on cryptoassets<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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\n\t\t\t\tAnyone who has not declared income from the sale or exchange of cryptoassets in their tax return should consider filing a voluntary disclosure.\t\t\t<\/p>\n\t\t\t\t\t<\/blockquote>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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The tax authorities are increasingly taking action against taxpayers who have not paid tax on income from cryptoassets in the past or have paid incomplete tax.
\nThe first requests for information to crypto exchanges were successful.
\nThe data obtained in this way is currently being evaluated by the tax authorities.
\nA number of taxpayers have already received mail from their tax office.
\nThis development is likely to continue. <\/p>\n

The ruling by the Federal Fiscal Court (BFH) on February 14, 2023 (case no. IX R 3\/22) has made it clear that gains from the sale and exchange of cryptocurrencies can lead to taxable income.
\nAccording to the BFH, blockchain-based assets held as private assets are so-called “other assets”.
\nThe decision was issued for Bitcoin (BTC), Ethereum (ETH) and Monero (XMR), but can be applied to other tradable virtual currencies. <\/p>\n

With its ruling, the BFH has confirmed the opinion of the Federal Ministry of Finance (BMF).
\nIn its letter dated May 10, 2022, the BMF had already issued a fundamental statement on the “income tax treatment of virtual currencies and other tokens”. <\/p>\n

This means that such profits must also be declared in tax returns.
\nAnyone who fails to do so is guilty of tax evasion if they do so intentionally.
\nThere may also be a tax correction obligation for tax returns that have already been submitted. <\/p>\n

Whether and to what extent taxable income was actually generated depends on numerous factors.
\nThe BFH has assumed other income from so-called private sales transactions.
\nSuch speculative gains from trading in (or exchanging) cryptocurrencies are (only) subject to income tax if there is no more than one year between acquisition and sale (so-called speculation period).
\nHowever, this only applies if no commercial activity can be assumed.
\nIn such a case, all profits, including those from sales outside the speculation period, are taxable.
\nIn addition, trade tax is generally due.
\nTrade tax is also due.
\nWhen exactly the threshold for commercial activity is exceeded is still unclear, as are numerous other detailed questions. <\/p>\n

Anyone who has had income from the sale or exchange of cryptoassets in the past and has not declared this in their tax returns should consider filing a voluntary disclosure to avoid prosecution.
\nCaution is also advised when submitting tax returns.
\nUnresolved legal issues or poor documentation often make it very difficult to prepare a correct and complete tax return.
\nSufficient disclosure as part of the declaration as a preventive measure can minimize the risk of criminal prosecution.
\nIn view of the large number of unresolved legal issues, it may be worthwhile to lodge an objection to a tax assessment and, if necessary, to take legal action in the tax court.
\nThis also applies if a tax office estimates profits from cryptoassets and assesses a higher tax than declared in the tax return. <\/p>\n<\/div>\n<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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