Bitcoin Tops $11k As Germany Refuses To Tax Cryptocurrency Payments

https://www.zerohedge.com/news/2018-03-02/bitcoin-tops-11k-germany-refuses-tax-cryptocurrency-payments

by Tyler Durden
Fri, 03/02/2018 - 08:41
Bitcoin's rebound continues, pushing the cryptocurrency back above $11,000 overnight...
While there are several catalysts for the rebound - among
3/2/2018 Bitcoin Tops $11k As Germany Refuses To Tax Cryptocurrency Payments | Zero Hedge
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The German federal authority published its decision to not subject purchases with Bitcoin and other
cryptocurrency to taxes on Feb. 27, citing the European Court’s 2015 decision, which set a precedent for all
members of the European Union.
image courtesy of CoinTelegraph
The Court justified its taxing decision by stating that it considers cryptocurrency as a legal means of
payment:
According to the decision, a conversion from crypto to fiat or vice versa is classified as “other taxable
services”. Therefore, a party that is acting as an intermediary for this exchange will not be taxed. Under this
provision, operators of crypto exchanges can also get tax exemptions, “if they complete the purchase and
sale of Bitcoin as an intermediary on their own behalf.”
The court decision also notes that miner fees will not be taxed, since they are paid on a voluntary
basis.
These guidelines distinguish Germany from the US where The Internal Revenue Service (IRS) treats Bitcoin
like property, meaning that each purchase using Bitcoin is technically considered to be a sale of property
and is, therefore, subject to capital gains tax.