The Left Party and Alliance 90/The Greens in Germany have proposed a significant tax reform targeting cryptocurrency holdings. The proposal aims to abolish the current one-year tax-free holding period for Bitcoin, aligning its taxation with that of stocks. This reform seeks to address an estimated €47 billion in untaxed crypto gains projected for 2024.
Under the current system, German investors can avoid capital gains tax on Bitcoin profits if they hold the asset for more than a year. The proposed changes would classify cryptocurrencies as financial assets, subjecting all gains to taxation regardless of the holding period. Currently, only about 3% of Germany's 7 million crypto users pay taxes on their holdings, according to Bundestag member Isabelle Vandre.
German Parties Propose Tax Reform on Bitcoin Holdings
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