Denmark: Tax Authority Clarifies Rules for Digital Asset Taxation

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The Danish Customs and Tax Administration released Tax Council Binding Answer No. SKM2024.171.SR, shedding light on the taxation of digital asset investments.


The clarification arose from a case where a taxpayer held investments in digital assets through an online, decentralized peer-to-peer marketplace utilizing blockchain technology. The investments included a token granting rights to profits in a Ugandan gold mine and a stablecoin designated for gold investment, with returns reflected in the taxpayer’s account dashboard on the platform.


Seeking clarification on tax liability, the taxpayer questioned the timing of tax obligation. The Tax Council determined that income should typically be included in the income statement upon the acquisition of final rights to it. As the taxpayer legally acquired the return on investment upon its deposit into the account dashboard, the return displayed on the dashboard was deemed taxable. Furthermore, it was ruled that the method of receiving the return, whether temporarily limited to reinvestment or transferred to a private wallet or separate account, was irrelevant. Similar outcomes were applied to a token related to a mining company offered by the platform, utilizing the same dashboard system.



Source: skat.dk

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