In particular, we learn that German citizens will be exempt from tax on their cryptocurrency gains if they have held them for more than a year. On Tue

Germany: crypto held for more than a year will not get taxed

submited by

Style Pass

2022-05-13 12:30:04

In particular, we learn that German citizens will be exempt from tax on their cryptocurrency gains if they have held them for more than a year. On Tuesday, Germany's Federal Ministry of Finance released its first guidelines for framing the taxation of cryptocurrencies [PDF], confirming the country's interest in developing digital assets.

In particular, the 24-page document explores how cryptocurrencies are taxed. The most crucial point mentions the tax exemption for cryptocurrency gains held for more than a year by an individual, including staking and lending.

Until now, if germans wanted to get the tax exemption on their crypto, they had to wait ten years. This figure is now reduced to just one year, thus aligning with Section 23 of the German Income Tax Act, which states that if the period between the acquisition and sale of an asset is longer than one year, then the amount of the gains is tax-free.

The document, which also mentions mining, hard forks, and airdrops, remains subject to change. However, according to the department: