Germany’s federal government is preparing a tax overhaul that would bring crypto profits under a 25% capital gains tax, according to a report by German tech outlet Golem cited by BlockBeats on Sept. 9. A draft bill shows the Federal Ministry of Finance has readied legislation to classify gains from cryptocurrencies within the scope of capital gains taxation. Under the proposal, speculative profits from digital assets such as Bitcoin and Ether would be taxed at 25% starting in 2028. That rate would match the one currently applied to gains from stock trading. If enacted, the proposal would mark a clear shift in Germany’s crypto tax framework. At present, gains from cryptocurrencies can be tax-free if the assets are held for more than one year. The draft also indicates that a personal tax-free allowance is expected to remain in place under rules similar to the current system, where the exemption threshold stands at 1,000 euros per person.
Germany’s federal government is getting ready to slap a 25% capital gains tax on cryptocurrency profits, German tech outlet Golem reported, in a Sept. 9 BlockBeats citation.
A draft bill from the government says the German Federal Ministry of Finance has written legislation that would pull crypto gains into capital gains taxation. If it passes, speculative profits from digital assets such as Bitcoin and Ether would face a 25% tax starting in 2028. Same rate as stock trading gains now.
The proposed "crypto tax" would be a sharp break from how Germany has handled crypto taxes up to now. Under the current system, gains from cryptocurrency holdings can be tax-exempt if the assets are held for more than one year.
The draft also says a personal tax-free allowance will probably stay, under rules similar to the current setup. Right now, the exemption threshold is 1,000 euros per person.
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