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Author: Admin | 2025-04-28
Having to do anything specific. By following the guidelines put out by German tax authorities, if Lea decides to sell her 1000 ENS, any profits made will be tax-free.Example 2: Lea found out her favourite token project is releasing an airdrop, and that users can get part of this drop by participating in 3 simple tasks on the protocol. Lea completes the 3 tasks and goes on to receive 10,000 FUN tokens. As she provided a service, these tokens may be treated as other income by the BMF. Lea should ask her local tax professional for advice on this matter.NFTsWhile there are no specific guidelines on NFT tokens from German tax authorities, NFTs as cryptocurrency assets could safely be assumed to incur the same type of Income Tax as other cryptocurrency assets in the region. This means that as a German taxpayer if you buy an NFT and do on to dispose of it for a profit, you will pay tax depending on the length of time you held the NFT and/or the amount of profit you made.Example: Gunther purchases a Cryptopunk in February 2020 for 1 ETH at the value of 200 EUR. He goes on to sell his Cryptopunk in April 2022 for 100 ETH at the value of 300,000 EUR. Gunther held his Cryptopunk for longer than one year, which means the 299,800 EUR profit he made will be tax-free.Crypto as a salaryIf you are receiving crypto as part of a salary from your job, it will be taxed as income at the time you receive it. You would declare it as part of ordinary income on your annual tax return.When is the deadline to file my crypto taxes as a German citizen?In Germany, the financial year is from January 1 to December 31, with individual tax
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